Question:
Assistant Treasurer flags super changes
Answer:
Recent changes are outlined below:
July 1, 2022
- Loss carry back for eligible companies extended to cover 2023 income year.
- Professional firm profits diverted to the professional's spouse or other associates to be reviewed under new Tax Office guidance.
- Corporate collective investment vehicle legislative regime introduced.
- Temporary full expensing of depreciating assets extended to include 2023 income year.
- Depreciable assets of a company joining a tax consolidation group have tax costs setting rules modified for assets depreciated under temporary full expensing rules.
December 9, 2021
- Reduced Pandemic leave disaster payment of $750 per week made available through to 30 June 2022.
August 5, 2021
- COVID-19 Disaster Payments are non-assessable non-exempt income in 2021 income year and later. Payments phasing out as vaccination rates increase.
July 1, 2021
- New Investment Engagement Service launched for businesses planning significant new investments in Australia.
- Tax Office small business independent review service made permanent for businesses with turnover < $10m, for income tax, GST, exercise, luxury car tax, wine equalisation tax and fuel tax credits. Requested before amended assessment issued.
- Small business income tax offset for individuals increased to provide a reduction of 16% for a tax payable up to $1,000.
- Self-managed superannuation funds can now have six members, increased from four members previously.
July 1, 2021
- Some COVID -19 state and territory business grants received by small and medium enterprises are non-assessable, non-exempt income for 2021 and 2022 income years.
- Certain state, territory and local government financial support for individuals and businesses suffering COVID-19 impacts made exempt where businesses have turnover less than $50 million and only in eligible programs.
March 31, 2021
- JobKeeper payments scheme ended.
October 5, 2020
- Boosting apprenticeship commencements subsidy (up to 50% of apprentice's wages) is assessable income.
June 4, 2020
- Homebuilder grant for new home or substantial renovation construction is not subject to income tax.
April 1, 2020
- COVID-19 cash flow boost payments are not subject to income tax
Assistant Treasurer Bill Shorten has foreshadowed that legislation will be introduced to increase compulsory superannuation guarantee from 13%. He also said we will make the system fairer by ensuring no tax is paid on the 9% superannuation contributions for Australians earning up to $37,000 and that the money is instead directed into their superannuation.
He argued that this Parliament must back the move from 9% to 12% to provide:
• A more comfortable post work life;
• Retirement incomes at 70% replacement rate of accustomed income;
• Leverage the benefits of concessional tax, compound interest and dividend imputation;
• For Australia to become even better at financial services;
• Reduced cost of capital;
• More capital being available for nation-building infrastructure; and
• Low inflation, high savings and a future some Europeans now dream of.
It was a speech to the Association of Superannuation Funds of Australia at a celebration of 20 years of superannuation guarantee.
Mr Shorten also said that 70% replacement rate of accustomed income was required to live in retirement comfortably and that where there are 3 million Australians over 65 now that by 2050 there will be 8.1 million Australians over 65.
http://www.dpm.gov.au/DisplayDocs.aspx?doc=speeches/2011/028.htm&pageID=005&min=brs&Year=&DocType=
WTB 1350
