Some of the last sitting days before this year’s Federal election saw changes to the tax and super rules finally pass through both houses of Parliament. Here’s a roundup of some of the key developments.
Several reforms to the tax and super rules were legislated during the final marathon full Parliamentary session before this year’s Federal election. They include an extension of the business loss carry-back tax offset for the 2022-23 financial year and an extension to 30 June 2023 for the temporary full expensing regime.
Removal of the current $450-per-month threshold for payment of Superannuation Guarantee (SG) contributions means from 1 July 2022, employers will be required to make contributions for employees earning less than this amount.
Other key changes to the super rules include application of the work test to super contributors aged 67 to 74 who claim a deduction for personal contributions. However, from 1 July 2022 contributors over age 67 will be able to make or receive non-concessional super contributions using a bring-forward arrangement.
The new legislation also includes a reduction in the age limit for downsizer super contributions to 60 and an increase to the maximum allowable amount of contributions under the First Home Super Saver Scheme from $30,000 to $50,000.
To help businesses correctly claim the loss carry back (LCB) tax offset in their company tax return, the ATO has launched a new online tool to help prevent errors and ensure correct completion of LCB labels in your return.
The interactive tool helps companies work out their eligibility for the tax offset and calculate the maximum offset they can claim. It also displays labels that must be completed in the company tax return.
Employers need to remember the annual fringe benefits tax (FBT) deadline is rapidly approaching on 31 March 2022.
The FBT year runs from 1 April to 31 March, and you are required to self-assess your FBT liability for certain benefits you have provided to your employees or their families and other associates.
As an employer, you may be able to claim an income tax deduction for the cost of providing fringe benefits and for the amount of FBT you pay, so it’s important to get your paperwork in order.
The government is currently consulting on whether to introduce a Business eInvoicing Right (BER) giving businesses the ‘right’ to ask other businesses to send an eInvoice for transactions.
The BER would be established as part of a new regulatory framework or under the Corporations Act 2001.
Implementation of the BER would be in three phases starting with large entities before moving to medium and finally small businesses.
Holders of an Australian Business Number (ABN) can now include up to four additional business activities when updating their ABN details.
The extra information will help government agencies better target appropriate business support and stimulus measures.
If you offer business services other than those listed as your main business activity, it may be time to update your ABN details with some additional industry codes.
The ATO has announced it’s paying closer attention to businesses mistakenly claiming small business capital gains tax (CGT) concessions to which they are not entitled.
Anyone claiming one or more small business CGT concessions in a recent income tax return may receive an ATO letter asking you to check your claim and ensure you meet the basic eligibility conditions.
The taxman is also encouraging taxpayers planning to claim a small business CGT concession to check what attracts its attention in this area.
If you take goods from your business’ trading stock for private use, you will need to check the updated values applying for both adults and children aged four to 16 when preparing your tax return.
The tax man has updated the value of goods it will accept for certain industries during 2021-22.
The new amounts will apply to owners of businesses such as cafes, greengrocers, takeaway food shops, mixed businesses, butcheries and bakeries.
Call us on 6260 4994today if you'd like more information regarding the recent superannuation changes.
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