Question:
Having your cake and eating it
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
Not so, said the Full Federal Court. In a case involving the Tax Office, Esso and BHP (Esso Australia Resources Pty Ltd v FCT(1)) the Full Federal Court dismissed the Commissioner’s application for adjournment.
This case involves some $20 million of Petroleum Resources Rent Tax (PRRT) and whether two particular categories of hydrocarbon streams produced by a joint venture between Esso and BHP were within the definition of a marketable petroleum commodity and therefore subject to the PRRT.
The Government introduced amending legislation to ensure that these products were subject to PRRT and made this legislation retrospective.The Court held that this legislation has not been passed through Parliament and it is a retrospective taxing law operating over a 21 year period (from 1 July 1990). The Court said that there will be some resistance to its introduction and the fact that the Government does not command a majority in either House, makes it impossible to say that the passage of the Bill is inevitable.
Accordingly, the Court refused the application for adjournment and set the case down for hearing.WTB 1758
