Hot Issues
spacer
Part 1 – Budget reminders. Under the Hood.
spacer
Part 2 – Budget reminders. Under the Hood.
spacer
Part 3 – Budget reminders. Under the Hood.
spacer
Comprehensive list of COVID-19 initiatives and packages.
spacer
Businesses not meeting obligations warned as ATO restarts compliance programs
spacer
Employers cautioned over ‘hard and fast’ decline in turnover eligibility
spacer
‘Follow the spirt of the law’, warns ATO
spacer
$120m in JobKeeper clawed back by ATO, new compliance areas highlighted
spacer
Budget 2020 - A very comprehensive break down.
spacer
Budget 2020 - Fact Sheets
spacer
Budget 2020 - At a Glance, Overview, Outlook
spacer
Temporary home office expenses shortcut extended again
spacer
JobKeeper extension – changes implemented
spacer
JobKeeper Participants – are “workers”
spacer
Commissioner registers updated JobKeeper alternative tests
spacer
Varying Pay As You Go (PAYG) Instalments
spacer
Reminder of Medicare Levy Surcharge (MLS)
spacer
September update of latest COVID-19 initiatives.
spacer
ATO JobKeeper 2.0 guidance surfaces
spacer
Expats Return to Australia – Travel Expenses
spacer
Profession to be relied on for post-JobKeeper turnover certificates
spacer
Update of Superannuation contribution rules from July 1, 2020
spacer
Expats & COVID-19 Impacts on tax residency
spacer
Economic recovery could be slower than anticipated: RBA
spacer
High Court rules in favour of employers on personal leave accruals
spacer
JobKeeper Phase 2 - Latest Update
Article archive
spacer
Quarter 3 July - September 2020
spacer
Quarter 2 April - June 2020
spacer
Quarter 1 January - March 2020
spacer
Quarter 4 October - December 2019
spacer
Quarter 3 July - September 2019
spacer
Quarter 2 April - June 2019
spacer
Quarter 1 January - March 2019
spacer
Quarter 4 October - December 2018
spacer
Quarter 3 July - September 2018
spacer
Quarter 2 April - June 2018
spacer
Quarter 1 January - March 2018
spacer
Quarter 4 October - December 2017
spacer
Quarter 3 July - September 2017
spacer
Quarter 2 April - June 2017
spacer
Quarter 1 January - March 2017
spacer
Quarter 4 October - December 2016
spacer
Quarter 3 July - September 2016
spacer
Quarter 2 April - June 2016
spacer
Quarter 1 January - March 2016
spacer
Quarter 4 October - December 2015
spacer
Quarter 3 July - September 2015
spacer
Quarter 2 April - June 2015
spacer
Quarter 1 January - March 2015
spacer
Quarter 4 October - December 2014
Quarter 1 of, 2015 archive
spacer
ATO states estimates are acceptable
spacer
Hockey considers super access for first time home buyers
spacer
Reportable Fringe Benefit Amount - Employer Reporting
spacer
Simple Mistake on Share Transfer
spacer
ATO highlights billions in forgotten super
spacer
In a bankruptcy what does a trustee do?
spacer
Bankruptcies, what are they?
spacer
SMSF trustees unprepared for new collectibles rules
spacer
We wish all our clients a Merry Christmas, a Happy New Year and a restful holiday
spacer
Employee Christmas Parties and Gifts – Any FBT?
spacer
Breaking down the latest ATO determination on TRIS
Part 1 – Budget reminders. Under the Hood.

 

The 2020 Federal Budget was one of the most far reaching and complex ever brought in.  This is the first of three articles to remind us of important topics the budget addressed. 

 

       

Exempting granny flat arrangements from CGT

Whilst there has been Centrelink encouragement for granny flats, the capital Gains Tax issues have prevented wider acceptance.  That may change now.

The law will be amended to provide a targeted CGT exemption for granny flat arrangements.

The CGT exemption will apply to arrangements with older Australians or those with a disability, where there is a formal written agreement in relation to the granny flat.

The new exemption is proposed to apply from the first income year after the date of Royal Asset of the enabling legislation.  This should mean the 2021 financial year.

The change will only apply to agreements that are entered into because of family relationships or other personal ties and will not apply to commercial rental arrangements.

 


 

Temporary Full Expensing of Eligible Capital Assets

Most businesses are now able to claim full deductions for depreciating assets.

Businesses with aggregated annual turnover of less than $5 billion will be able to deduct the full cost of eligible capital assets in the year they are first used.

Full expensing in the year of first use will apply to:-

  • New depreciating assets
  • The cost of improvements to existing eligible assets
  • For small and medium businesses (aggregated turnover of less than $50 million) – second-hand assets

Applies to eligible capital assets acquired after 7.30pm on 6 October 2020 and first used or installed by 30 June 2022.

In an extension to the previous rules, eligible businesses that acquire eligible new or second-hand assets under the $150,000 instant asset write-off by 31 December 2020 will have an extra six months, until 30 June 2021, to first use or install those assets.

Whilst the acquisition date is important, the asset must also be in use or ready for use.

 


 

Victoria’s business support and other State grants to be tax neutral

The Victorian Government’s business support grants for small and medium businesses, as announced on 13 September 2020, will become non-assessable, non-exempt (NANE) income for tax purposes.

The Federal Government will extend this arrangement to similar grants by all States and Territories on an application basis.

NANE income treatment is only available for grants announced on or after 13 September 2020 and paid between 13 September 2020 and 30 June 2021.

On 13 September 2020, the Premier of Victoria announced a $3 billion Business Resilience Package to help Victorian businesses impacted by the ongoing COVID-19 business restrictions and to prepare for ‘COVID Normal’ business.

The package includes grants of $10,000, $15,000 or $20,000 for eligible businesses in targeted sectors, depending on the size of annual payroll, in a third round of Business Support Fund.

State based grants without this legislation, are considered to be assessable income for income tax purposes  There is no immediate benefit, but this change will mean no 2021 income tax becomes payable.

 

 

 

AcctWeb