FEDERAL BUDGET 2022 – SUPERANNUATION

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Super guarantee: rate rise unchanged The Budget did not announce any change to the timing of the next super guarantee (SG) rate increase. The SG rate is currently legislated to increase from 10% to 10.5% from 1 July 2022, and by 0.5% per year from 1 July 2023 until it reaches 12% from 1 July 2025. […]

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FEDERAL BUDGET 2022 – TAX COMPLIANCE AND INTEGRITY

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Digitalising trust income reporting The Budget confirms the Government’s previously announced intention to digitalise trust and beneficiary income reporting and processing. It will allow all trust tax return filers the option to lodge income tax returns electronically, increasing pre-filling and automating ATO assurance processes. There are no other additional details in the Budget papers than […]

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FEDERAL BUDGET 2022 – BUSINESS TAXATION

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Deduction boosts for small business: skills and training, digital adoption The Government announced two support measures for small businesses (aggregated annual turnover less than $50 million) in the form of a 20% uplift of the amount deductible for expenditure incurred on external training courses and digital technology. External training courses An eligible business will be […]

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FEDERAL BUDGET 2022 – COST OF LIVING MEASURES

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One-off $250 cost of living payment The Government will make a $250 one-off cost of living payment in April 2022 to six million eligible pensioners, welfare recipients, veterans and eligible concession card holders. The $250 payment will be tax-exempt and not count as income support for the purposes of any Government income support. A person can only receive […]

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FEDERAL BUDGET 2022 – PERSONAL TAXATION

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Personal tax rates unchanged for 2022–2023 In the Budget, the Government did not announce any personal tax rates changes. The Stage 3 tax changes commence from 1 July 2024, as previously legislated. The 2022–2023 tax rates and income thresholds for residents are unchanged from 2021–2022: taxable income up to $18,200 – nil; taxable income of […]

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Superannuation

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FEDERAL BUDGET May 2021 SUPERANNUATION Superannuation contributions work test to be repealed from 1 July 2022 The superannuation contributions work test exemption will be repealed for voluntary non-concessional and salary sacrificed contributions for those aged 67 to 74 from 1 July 2022. As a result, individuals under age 75 will be allowed to make or […]

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Allowing small businesses to pause disputed ATO debt recovery

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FEDERAL BUDGET May 2021 TAX COMPLIANCE AND INTEGRITY Allowing small businesses to pause disputed ATO debt recovery The Government will introduce legislation to allow small businesses to pause or modify ATO debt recovery action where the debt is being disputed in the Administrative Appeals Tribunal (AAT). Treasurer Josh Frydenberg had earlier announced this measure on […]

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Loss carry-back extended by one year

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FEDERAL BUDGET May 2021 BUSINESS TAXATION Loss carry-back extended by one year Under the temporary, COVID-driven restoration of the loss carry-back provisions announced in the previous Budget, an eligible company (aggregated annual turnover of up to $5 billion) could carry back a tax loss for the 2019–2020, 2020–2021 or 2021–2022 income years to offset tax […]

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Temporary full expensing: extended to 30 June 2023

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FEDERAL BUDGET May 2021 BUSINESS TAXATION Temporary full expensing: extended to 30 June 2023 The Government will extend the temporary full expensing measure until 30 June 2023. It was otherwise due to finish on 30 June 2022. Other than the extended date, all other elements of temporary full expensing will remain unchanged. Currently, temporary full […]

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Child care subsidies to change 1 July 2022

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FEDERAL BUDGET May 2021 PERSONAL TAXATION Child care subsidies to change 1 July 2022 The Budget confirmed that the Government will make an additional $1.7 billion investment in child care. The changes will commence on 1 July 2022 (that is, not in the next financial year). This measure was previously announced on 2 May 2021. […]

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Primary 183-day test for individual tax residency

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FEDERAL BUDGET May 2021 PERSONAL TAXATION Primary 183-day test for individual tax residency The Government will replace the existing tests for the tax residency of individuals with a primary “bright line” test under which a person who is physically present in Australia for 183 days or more in any income year will be an Australian […]

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Self-education expenses: $250 threshold to be removed

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FEDERAL BUDGET May 2021 PERSONAL TAXATION Self-education expenses: $250 threshold to be removed The Government will remove the exclusion of the first $250 of deductions for prescribed courses of education. The first $250 of a prescribed course of education expense is currently not deductible. Background A limitation on deductibility exists under s 82A of the […]

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Low income offsets: LMITO and LITO retained for 2021–2022L

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FEDERAL BUDGET May 2021 PERSONAL TAXATION Low income offsets: LMITO and LITO retained for 2021–2022L   Low and middle income tax offset The Government also announced in the Budget that the low and middle income tax offset (LMITO) will continue to apply for the 2021–2022 income year. The LMITO was otherwise legislated to only apply […]

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