Question:
Holiday costs: Domestic up, International down
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
Official inflation for the 2011 calendar year was 3.1% with some categories out of the “basket of goods and services” up and others down.
Domestic holiday travel and accommodation prices rose by 7.3%, where international holiday travel and accommodation got 1.9% cheaper.
Other categories that were up include:
+ Rents 1%;
+ Telecommunications 1.1%;
+ Beer (Oh no!) 1.2%; and
+ Automotive fuel 0.7%.
These were the declines in the CPI categories:
+ Fruit - 13.4%;
+ Pharmaceuticals - 5.6%;
+ Vegetables - 5%;
+ Audio, visual and computing equipment - 3.4%; and
+ Motor vehicles - 1.2%.
The CPI indexation factor is utilised in calculating the value of remote area fringe benefits in the fringe benefits tax rules. The indexation factor under those rules remained unchanged from the September quarter at 179.4.
ss 60, 60AA of Fringe Benefits Tax Act, ABS Catalogue 6401.0, WTB 85
