Question:

Personal tax changes from July 2014

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.

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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 are a number of changes to personal income tax that apply from the beginning of the 2014/15 financial year. Here is a list:

Medicare levy increases from 1.5% to 2% to fund the disability insurance scheme;
Debt and deficit levy of 2% is introduced to increase the top marginal tax rate from 45% to 47% for taxable income over the $180,000 threshold. Together with the increase in the Medicare levy, this temporary levy which is in place for three financial years, means the effective top marginal tax rate will become 49%;
Superannuation guarantee rate increases from 9.25% to 9.5%;
A tax receipt will be issued with assessment notices indicating how your tax is spent on social security, health and other Government outlays;
Dependent tax offsets are mostly abolished although this change has not yet been legislated;
PAYG instalment thresholds increased where the taxpayer is not registered for GST from $2,000 to $4,000 of gross business or investment income; from $500 to $1,000 for the balance of assessed tax and from $250 to $500 for the notional tax threshold with all of these calculations based on the last tax return lodged;
Deductible (or concessional) superannuation contribution cap increased to $35,000 for people aged 49 or more on 30 June 2014; and
To $30,000 for everyone else; and
Non-deductible superannuation contribution cap has increased from $150,000 to $180,000 from July.

WTB 14/1062, AAT Case [2014] AATA 361, Re Ford and FCT, Lunney v FCT (1958) 100 CLR478

Andrew and Tony Lovett

10 August 2014

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