Question:
Empire building still in operation
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
The Australian Charities and Not-for-profits Commission (ACNC) has revoked the registration of 392 charities who have not completed and lodged outstanding Annual Information Statements.
Charities have always operated successfully in Australia under State law with their taxation exemption status overseen by the Tax Office. In its wisdom, the previous Labor Government decided to establish the ACNC and require all charities to register with this federal body at the risk of having their tax exempt status revoked.
Each charity is required to lodge an Annual Information Statement and to provide financial statements, together with the legal establishment documents and much additional information. Completion of the Annual Information Statement seems simple but requires every voluntary treasurer to pay very careful attention to system requirements when inputting the details electronically. There is no other way of lodging the return. If voluntary treasurers make a mistake or omit something, they will not be permitted to complete and lodge the return.
There are 56,000 charities which were transferred from the Tax Office to the ACNC. Assuming each volunteer treasurer has to spend four hours completing this document, that’s a total of 224,000 unpaid hours forced upon honorary treasurers throughout Australia. That is the equivalent of 5,600 weeks of labour! And taxpayers must pay the salaries of an army of bureaucrats to watch over it all.
The newly elected Federal Government announced that it would abolish this new organisation but it seems that it has quickly become entrenched in bureaucracy with a result that getting rid of it may become impossible.
Yet another burden has been placed on 56,000 treasurers attempting to do their bit for the good of the country.
WTB 2015/68
Andrew and Tony Lovett
12 February 2015
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