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FEDERAL BUDGET May 2021 SUPERANNUATION Superannuation contributions work test to be repealed from 1 July 2022 The superannuation contributions work test exemption will be repealed for voluntary non-concessional and salary sacrificed contributions for those aged 67 to 74 from 1 July 2022.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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Life insurance in super: costs on the way up?

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Having insurance through superannuation can be a tax-effective and cost-effective way of protecting yourself and your loved ones. Most funds offer three different types of insurance through super, each covering different contingencies: life insurance, total and permanent disability (TPD) insurance and income protection insurance. Life cover pays a lump sum or income stream to your […]

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COVID-19 stimulus and support measures winding back

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A number of important COVID-19 related government stimulus and support measures are now coming to an end, and some others have begun phasing out, which will occur over a slightly longer period. This means that businesses and individuals need to prepare for an environment where the government safety net is not as wide. TIP: If […]

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ATO reminder: lodge your TPAR

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The ATO is reminding owners of businesses that provide various services to lodge their taxable payments annual report (TPAR) for the 2019–2020 income year. It estimates that around 280,000 businesses were required to lodge a TPAR for the 2019–2020 financial year, but at the beginning of March around 60,000 businesses still had not complied with […]

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It’s time to consider FBT

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If your business has provided any benefits to your employees, you may be liable for fringe benefits tax (FBT). This includes benefits to current, prospective and former employees,as well as their associates. It’s important to keep in mind that this applies no matter what structure your business has – sole trader, partnership, trustee, corporation, unincorporated […]

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Your Future, Your Super legislative changes

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The Treasury Laws Amendment (Your Future, Your Super) Bill 2021 has been introduced to Parliament to implement some of the “Your Future, Your Super” measures announced in the 2020–2021 Federal Budget. Treasurer Josh Frydenberg has said the measures are intended to save $17.9 billion over 10 years by holding underperforming super funds to account and […]

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