Question:
September 2011 - A day in the tax life of… A modern day soap (tax) opera
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
… previously on tax life … Sam was getting into the routine of quarterly reporting to the bank despite that it seemed to be a waste of time. The estate administration for Mick was moving along smoothly albeit somewhat slowly (you just can't rush the lawyers).
The big proposal
There was a mixture of determination and absolute excitement coursing through Sam's veins! She knew she was in the race with a great chance to win.
She had been working on the proposal for a new customer for the last three months and she knew that if she won the contract it would make a huge difference to the future of the business. Sam had done some sales training about six months ago and followed the procedure and the steps exactly. The first step was to identify all of the customer's people that would be taking part in the decision making.
Sam had got to know Gloria pretty well. They seemed to hit it off and really connected with a similar view of the world. They had lunch on a few occasions and Gloria seemed to really want Sam to win the bid. Gloria, of course, was prudent and protective of the commercial information but nonetheless helped Sam with who the decision-makers were, what role they played and what were their key needs from this decision.
Gloria was the commercial manager and wife of the most senior partner. She walked softly but carried a big stick.
Fred was a bit different. Sam could not make out whether she was winning him over or not. He was the "technical buyer" for the project and he knew a lot about the type of work that she did and what represented a really good service. She had answered all his questions positively but his poker face gave away nothing. He seemed to just want to cover his backside and was much more likely to say no then yes.
Neil was the supervisor of the tele-marketing centre and in the sales jargon was the key "business user". He was a real advocate for Sam's service and bid. He was really enthusiastic because he knew his life would be much better with Sam's system. The current system was driving it crazy. To go to a new sophisticated system like Sam's would be such a relief.
Albert was the Chief Executive and would make the final recommendation to the Board. Sam initially had trouble getting through to Albert because he had a great secretary/gatekeeper.
Gloria had been able to help to tee up a cup of coffee with Albert and Sam was able to get to understand the key economic drivers for the Board (apparently the old system is costing them a fortune in lost sales).
Sam was bubbling over with excitement and there was a bit of nerves as she took the presentation and report into the Board Room.
Yes! I am going to do this.
… Stay tuned …
