Question:
New personal property security law
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 commencing date for the Personal Property Securities Act 2009 has been delayed yet again. The start date of 31 October 2011 has now been deferred until sometime in February 2012. This Act will affect all interests in personal property both tangible and intangible, including motor vehicles, equipment, business and retail stock, crops and livestock, intellectual property, licences, household items and financial instruments such as shares. It will not cover land or buildings or water rights.
Lenders taking security over these assets will be required to register their interest in the Personal Property Securities Register. This will be an online register controlled by the Insolvency and Trustee Service Australia (ITSA). When the Acts commences all security interests created from that time onwards will be required to be registered in the new register. Security interests created prior to the commencement will need to be registered within 24 months. The new law will affect transactions not currently registrable and not currently regarded as securities. These include the sale of goods subject to retention of title clauses, equipment supplied under leases and bailment arrangements.
Importantly, lessors of assets who do not register their interest maybe at risk of losing the asset if the customer becomes insolvent.
Many wholesalers sell goods to retailers but retain title to the goods until they are paid for. Unless these are registered, the retention of title clauses will effectively be invalid.
