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See below for updates for Tax Determinations, Australian Taxation Office warnings, annual federal budget, income tax return checklists and changes in legislation for superannuation, small business, individuals, trusts and partnerships.

August 2021

From 1 July 2021, the superannuation contributions caps have been indexed for the 2022 income year.

The new concessional contributions cap for the 2022 financial year is now $27,500 (increased from $25,000). The new non-concessional (i.e., non-deductible) contributions cap for the 2022financial year is now $110,000 or (where the 'bring forward' rules are applicable) $330,000 over three years (increased from $100,000 or $300,000 respectively).

Other headlines in this month's update:

  • Division 7A benchmark interest rate for 2022 remains unchanged
  • Changes to STP reporting from 1 July 2021
  • Maximum contributions base for super guarantee
  • The 'gigs up' with a new sharing economy reporting regime
  • Taxable Payments Annual Reports ('TPARs') due 28 August
  • New FBT retraining and reskilling exemption available

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

July 2021

Super guarantee contribution due date for June 2021 quarter

The due date for employers to make super guarantee contributions for their employees for the June 2021 quarter is 28 July 2021.

Note that the super guarantee rate in relation to salary and wages paid on or before 30 June 2021 is 9.5%, but the super guarantee rate is 10% in relation to salary and wages paid from 1 July 2021 (even if they are paid in relation to work performed before that date).

Also, contributions made (and received by the fund) after 30 June 2021 will not be deductible in the 2021 income year, even if they are made in relation to work performed during the 2021 income year.

Also covered in this month's edition:

  • Extension of time to make repayments on Division 7A loans
  • Rent or lease payment changes due to COVID-19
  • Lost, damaged or destroyed tax records
  • Introducing SMSF rollover alerts
  • SMSF limited recourse borrowing arrangements interest rates
  • New ATO data-matching programs

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

June 2021

Cryptocurrency under the microscope this tax time

The ATO is concerned that many taxpayers believe their cryptocurrency gains are tax-free, or only taxable when the holdings are cashed back into Australian dollars.

ATO data analysis shows a dramatic increase in trading since the beginning of 2020, and has estimated that there are over 600,000 taxpayers that have invested in crypto-assets in recent years.

This year, the ATO will be writing to around100,000 taxpayers with cryptocurrency assets  explaining their tax obligations and urging them to review their previously lodged returns. The ATO also expects to prompt almost 300,000 taxpayers as they lodge their 2021 tax return to report their cryptocurrency capital gains or losses.

Gains from cryptocurrency are similar to gains from other investments, such as shares. CGT also applies to the disposal of non-fungible tokens ('NFTs').

The ATO matches data from cryptocurrency designated service providers to individuals' tax returns, helping it to ensure investors are paying the right amount of tax.

"The best tip to nail your cryptocurrency gains and losses is to keep accurate records including dates of transactions, the value in Australian dollars at the time of the transactions, what the transactions were for, and who the other party was, even if it's just their wallet address" 

- Assistant Commissioner Tim Loh.

Businesses or sole traders that are paid cryptocurrency for goods or services will have these payments taxed as income based on the value of the cryptocurrency in Australian dollars.

Holding a cryptocurrency for at least 12 months as an investment may mean the holder is entitled to a CGT discount if they have made a capital gain.

Matters further discussed in this month's issue:

  • Temporary reduction in pension minimum drawdown rates extended
  • Super Guarantee rate rising from 1 July 2021
  • ATO warns on 'copy/pasting' claims
  • Family assistance payments
  • Claiming tax deductions when using the Small Business Superannuation Clearing House (SBSCH)
  • Car parking threshold for 2022 FBT year
  • Luxury car tax thresholds
  • New ATO data-matching programs involving property

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              May 2021 & Budget

              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

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

                                April 2021

                                JobKeeper comes to an end

                                The ATO has advised that the final JobKeeper payment will be processed in April 2021.

                                Enrolled businesses do not have to do anything when the program closes, although they will need to complete their final March monthly business declaration by 14 April 2021. 

                                Also, once a business is no longer claiming JobKeeper Payments, it may start to be eligible to receive the JobMaker Hiring Credit for any additional employees that started employment on or after 7 October 2020.

                                Also in this month's edition:

                                • ATO loses case on JobKeeper and backdated ABNs
                                • First criminal conviction for JobKeeper fraud
                                • ATO's taxable payments reporting system update
                                • FBT rates and thresholds for the 2021/22 FBT year
                                • Warning regarding new illegal retirement planning scheme
                                • New succession planning guide for family businesses
                                • Parliament passes casual employee definition and addresses casual employment uncertainty - Employment Contracts Legislation Update

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