Question:
Taxation discussions commences
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 Federal Treasurer, Mr Joe Hockey, has issued a Tax Discussion Paper which is titled Re: Think. Mr Hockey said that the Paper begins a dialogue on how to create tax system that supports high economic growth and living standards, improves international competitiveness and adjusts for a changing economy and new opportunities. He noted that the current tax system, having been designed before the 1950s, is not suited to the 2050s.
The Discussion Paper is a 203 page document and is available on www.bettertax.gov.au
The Government is encouraging consultation and is planning to issue a Green Paper to be published in mid to late 2015. Further feedback will be sought before the issue of a White Paper in 2016.
2015/16 Budget coming up
The Treasurer will deliver his 2015/16 Budget at 7.30pm on Tuesday, 12 May. From 1.30pm on that day, chosen members of the media will be locked up in a secure area and provided with Budget material, so they can hit the press and the television as soon as the Budget is delivered.
Andrew and Tony Lovett
16 April 2015
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