Question:
Our View - public service waste
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
There has been a huge blowout in the wages bill for Australian Governments over the past four years.
We have checked the statistics provided by the Australian Bureau of Statistics. They say that the total cash wages for Government employees in the 2010/11 financial year was around $123 billion. In 2007/08, the wages bill was around $100 billion. Government wages increased by 5.6% pa in that four year period.In the same timeframe, the number of Government employees increased from 1.75 million to 1.9 million an increase of 2.1% per year.
This large growth in the Government wages bill is one of the main reasons for our economic deficit. If there are more public servants there will necessarily be an increased burden of regulation on private enterprise and the Government will be competing with our banks to raise debt funds to pay for the wages blowout.
State Governments are the big employers with large numbers of teachers, nurses and police. These frontline professionals are extremely important to our society and future economy.
Unfortunately, there is an excess of administrative staff and wasteful bureaucratic processes which get in the road of the frontline professionals and private business.
The Commonwealth Public Service and also the respective State Government Public Services need a good hair cut!
Andrew and Tony Lovett
