Div 7A and financial accommodation
The ATO has recently released a significant draft ruling around Div 7A, which operates to ensure that private companies cannot make tax-free distributions of profits to shareholders or their associates in the form of payments, loans, or forgiven debts. Generally, a private company is taken to have paid an unfranked dividend in the income year …
Get ready for FBT time
The end of the FBT year is approaching once again. Employers who have provided their employees with fringe benefits any time during the 2022 FBT year – 1 April 2021 to 31 March 2022 – will need to lodge a FBT return and pay any liability by 23 May 2022. As an employer, you may …
Super guarantee minimum threshold removed
Low-income employees should rejoice that the minimum threshold at which an employer has to pay super under the super guarantee scheme will no longer apply from 1 July 2022. Under the current scheme all employers must pay a minimum level of super contributions on behalf of their employees, but only if each individual employee makes …
AAT to get more powers to help small businesses
The AAT may soon be given more powers to help small businesses if a proposed Bill passes Parliament before the Federal election is called. The Bill, which is currently before the House of Representatives, seeks to enable small business entities to apply to the Small Business Taxation Division of the AAT for an order staying …
Downsizer contributions: Age limit change
To help those nearing retirement boost their super balances, those aged 65 and over are able to make downsizer contribution of up to $300,000 from the proceeds of the sale of their home. This measure was originally envisaged as a way to encourage older people get into more suitable homes as well as increase the …
Support for flood ravaged areas
The recent month has seen parts of Queensland and NSW inundated with Biblical amounts of rain and associated flooding, causing untold damage and loss of life. While these floods have finally been declared a national emergency by the Federal government, thus allowing it to intervene and deploy resources, details including the scale and type of …
FHSS maximum releasable amount increased
Cost of living pressures coupled with high house prices mean that many people in Australia are finding it increasingly difficult to get on the property ladder. This is not confined exclusively to young people. Older long-term renters, particularly in the regions, have also been disproportionately affected due to the great migration to the regions driven …
Record-keeping education in lieu of financial penalties
The ATO could soon have the power to issue a direction to complete an approved-record keeping course in instances where it believes an entity has failed to comply with tax-related record-keeping obligations in lieu of financial penalties. Legislation has been introduced into Parliament, but not yet passed. Currently, in instances where a business is required …