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FEDERAL BUDGET May 2021 SUPERANNUATION Superannuation contributions work test to be repealed from 1 July 2022 The superannuation contributions work test exemption will be repealed for voluntary non-concessional and salary sacrificed contributions for those aged 67 to 74 from 1 July 2022.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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Personal tax rates unchanged for 2021–2022

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FEDERAL BUDGET May 2021 Personal tax rates unchanged for 2021–2022 In the Budget, the Government did not announce any personal tax rates changes, having already brought forward the Stage 2 tax rates to 1 July 2020 in the October 2020 Budget. The Stage 3 tax changes will commence from 1 July 2024, as previously legislated. […]

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FB2020 Superannuation

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Super reforms: accounts to be stapled to members; best financial interests duty; other The Government will provide $159.6 million to implement reforms to superannuation to improve outcomes for super fund members. The Your Future, Your Super package, which will seek to reduce the number of duplicate accounts held by employees as a result of changes in […]

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FB2020 Social Security

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$250 cash payments for income support recipients The Government will pay two $250 economic support payments for eligible income support recipients and concession card holders. The payments will be made from November 2020 and early 2021 to eligible income support recipients and concession card holders, including: Age Pension; Disability Support Pension; Carer Payment; Family Tax Benefit, including […]

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FB2020 Business Tax – Wage subsidy for new apprentices

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Wage subsidy for new apprentices The Government will provide a capped 50% wage subsidy to businesses who take on a new Australian apprentice from 5 October 2020 to 30 September 2021. It will be available to employers of any size or industry, Australia-wide, regardless of geographic location or occupation. There are two important caps: it is limited to 100,000 […]

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FB2020 Business Tax – Supporting small business and responsible lending

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Supporting small business and responsible lending The Budget confirmed that the Government will implement reforms to support consumers and businesses affected by COVID-19 to facilitate Australia’s economic recovery. The reforms are designed to reduce regulatory burden to ensure a timely flow of credit and resolution for distressed business. These include: introducing a new process to […]

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