Government proposal to modernise business communications

The Government has committed to modernising certain laws so that they are 'technology neutral', to enable easier communication between businesses, individuals and regulators.

The first phase of legislative reform will focus on key areas raised by stakeholders which are implementation-ready (ideally by the end of

2021), including:

  • expanding the range of documents that can be validly signed electronically;
  • increasing the range of documents that can be sent electronically to shareholders and amending requirements to contact lost shareholders;
  • improving flexibility for customers when changing address and consenting to electronic communication with credit providers;
  • removing prescriptive requirements for notices to be published in newspapers, where suitable alternatives have been identified; and
  • addressing provisions in Treasury legislation where only non-electronic payment options are in place.

Subsequent phases will consider reforms in additional areas that could benefit from greater technology neutrality, including communication with regulators, and product disclosure and recordkeeping requirements.

Also in this Month's Update:

  • ATO "keeping JobKeeper payment fair"
  • Independent review service for small businesses made permanent
  • ATO asks businesses to check if they are still using their ABNs
  • Passenger movement data matching program
  • Super contribution caps will increase from 1 July 2021

2021/22 Federal Budget Summary

Key points for Individuals:

  1. Retaining the Low and Middle Income Tax Offset ('LMITO') for the 2022 income year
  2. Increasing the Medicare levy low-income thresholds
  3. Modernising the individual tax residency rules
  4. Reducing compliance costs for individuals claiming self-education expense deductions
  5. Employee Share Schemes – removing 'cessation of employment' as a taxing point and reducing red tape
  6. Exemption for pay and allowances for Operation Paladin

Key points for Businesses:

  1. Temporary full expensing extension
  2. Temporary loss carry-back extension
  3. Digital economy strategy (including self assessing the effective life of intangible depreciating assets)
  4. Debt recovery for small business
  5. Tax treatment of qualifying storm and flood grants

Key points for Superannuation:

  1. Removing the work test for voluntary contributions
  2. Reducing the age limit for downsizer contributions
  3. Removing the $450 per month threshold for Superannuation Guarantee ('SG') eligibility
  4. Relaxing the residency requirements for Self-managed Superannuation Funds ('SMSFs')
  5. Exiting legacy retirement products
  6. Changes to the First Home Super Saver ('FHSS') scheme
    1. Increasing the maximum releasable amount to $50,000
    2. Changes to improve the operation of the FHSS scheme

Read More

If you have any queries please do not hesitate to contact us.