Federal Budget 2016-17
There has been a different flavour to the speculation around this year’s Budget. While election year budgets are often chock full of juicy promises, a certain new spice has been added to this one due to its very close proximity to a double dissolution poll being officially called.
An interesting balancing act was foreseen between the promises of the Prime Minister Malcolm Turnbull and Treasurer Scott Morrison that this Government will “live within its means”, and the need to provide their Party with a launch pad for a marathon election campaign.
Expectations were high – or low depending on your viewpoint – for a distinct lack of expensive promises from a Government keen to prove it can responsibly manage the economy, and for the terms “jobs and growth” to feature prominently.
ATO attempt to close a contributions loophole
Integrity measures in the form of contribution caps are limits on how much a member can contribute to an SMSF. They are intended to limit the amount of tax benefits anyone can get out of using a SMSF.
Prior to 2007 the Reasonable Benefit Limits (“RBLs”) enabled a member to put as much into a SMSF as they wanted although not all of it would be tax-deductible. If the member took out more than was considered reasonable, they paid extra tax. From 2007, the tax system reverted to placing limits on the amount that could be contributed to a SMSF.
ATO Phone scams
Please refer to the following message from the ATO regarding phone scams in respect of unpaid tax debts. Please note the ATO would never threaten jail or arrest and does not email, call or SMS asking for credit card or bank details to issue a refund.
New South Wales Small Business Grant
The Small Business Grant is designed to encourage small businesses in New South Wales that do not pay payroll tax to hire new employees and expand their business. To be eligible for the grant your business must have an active ABN and not have a payroll tax liability during the 12 month employment period of a new person as at 30 June of the financial year.
Changes to Taxation rules for Business taxpayers
The Tax Laws Amendment (Small Business Measures No 1) Bill 2015 and the Tax Laws Amendment (Small Business Measures No 2) Bill 2015 have passed the Senate without amendment and are currently awaiting royal assent.
Federal Budget 2015-16
Having been roundly savaged for his first Budget in 2014, which contributed in no small part to a ‘rocky’ first 18 months for the Abbott government, there has been much speculation about how the Federal Treasurer, Mr Joe Hockey, would address this in his second Budget.
Whether it was what the 2014 Budget actually contained, or how it was ‘sold’ to the electorate was the bigger problem remains a point of much contention (and depends on which side of the House you ask) but there is little likelihood of this second Budget being undersold. As we already know, significant new measures contained in the Budget have already been much touted through a series of high profile press releases and press conferences – not to mention the official “leaks”, a mainstay of 21st Century politics as it exists within a 24-hour news cycle. The question therefore was “What else is in there?”
SuperStream is coming..are you ready?
SuperStream for Employers
SuperStream is a new process requiring employers to pay their employees’ superannuation contributions using the government’s new data standards.
From 1 July 2015, employers with 20 or more employees will be required to comply with the following:
- The payment must be made electronically to the nominated superfund; and
- Details of the payment transaction, such as the employee’s name, Tax File Number and superannuation fund member number are also sent to the superfund.
Employers with 19 or less employees have until 1 July 2016 to comply.
Two new major tax integrity measures announced today
The Treasurer, Joe Hockey, announced yesterday (11 May 2015) two “new major tax integrity measures” to be included in tonight’s Federal Budget.
Taxpayers receive hoax emails purporting to be from the ATO
Some taxpayers have recently received fraudulent or hoax emails purporting to be from the Australian Taxation Office (“ATO”).
The various variations of these phishing emails often share a number of the following characteristics;
• The email requests personal information by:
- requesting that the taxpayer completes a form requiring personal information; or
- requesting that the taxpayer verifies their identify by emailing photographs or copies of their personal identification documents.
Discussion Paper on Tax Regime Overhaul Released
Australian Treasurer Joe Hockey has published Re:think, a discussion paper that marks the launch of the long-awaited Tax White Paper process.
The discussion paper begins a formal government process for considering future directions for Australia’s tax system. The paper provides information about the challenges the system faces, identifies potential opportunities for reform and points to some of the “trade-offs” that would need to be considered. The Government is seeking feedback on whether the current tax system can be refined or whether it requires more fundamental change, and where fairness can be improved. The discussion paper asks how important it is to reform taxes to boost economic growth, and to what extent reducing complexity should be a priority.