Proposed removal of the small business instant asset write-off of $6,500 with effect from 1 January 2014
At the conclusion of the parliamentary sittings for the week ending 13 December 2013, the Minerals Resource Rent Tax Repeal and Other Measures Bill 2013 had not been passed by the Senate.
Changes to how super excess concessional contributions are taxed
Excess superannuation concessional contributions made from 1 July 2013 are included in an individual’s assessable income and taxed at their marginal tax rate. As part of the assessment process taxpayers will receive a non-refundable tax offset of 15% of their excess concessional contributions along with an additional excess concessional contribution (“ECC”) charge.
Timetable for small business asset write-off changes announced
If you are contemplating low cost equipment or vehicle purchases, you may wish to bring forward your purchase.
During the recent Federal Election campaign, the Coalition announced that if elected it would make the small business asset write-off rules less generous as follows:
ATO activity: further crack-down on the use of trusts in the 2013/14 financial year announced
With very little fanfare the 2013/14 federal budget allocated an additional $67.9 million to the ATO over the next four years to target the misuse of trusts.
These funds are intended to enable to ATO to further increase its audit capacity in this area, something of a windfall for an ATO under increasing pressure to maximise tax receipts given the size of the federal deficit in recent years, After considerable ATO activity in this area in the past few years, and while the ATO acknowledges that trusts are still often legitimately used for managing business and family affairs, the ATO also claims that its “recent compliance operations have uncovered evidence of increased manipulation of trusts as vehicles that can be at the centre of tax avoidance or evasion arrangements”.
Federal Opposition announces a series of measures for the small business sector
With the Federal Election just weeks away, the Federal Opposition announced a series of measures for the small business sector on 20 August 2013, including:
Superannuation funds: Retain pension exemption after death
Recent legislation amendments introduced by the government are intended to provide deceased estates with ‘tax certainty” in the situation where a person has died while in receipt of a superannuation income stream.
Government defers $2,000 cap on self-education tax deductions for one year
The Commonwealth Government has decided to defer the introduction of the $2,000 cap on self-education tax deductions for a year (as announced on page34 of its Economic Statement).
ETS bring forward to be partly funded by abolition of FBT statutory formula method for company cars
The Prime Minister and the Treasurer have today formally announced that the Government will bring forward the start date of emissions trading to 1 July 2014. From that date, a floating price on carbon will apply. Under the previous arrangements, the carbon price was to be $25.40 per tonne from 1 July 2015. Under a floating price, the figure is expected to be around $6 a tonne. Government assistance to emissions-intensive trade-exposed industries will continue unchanged.
Top earners to have reduced concessions
Backdated to July 1, 2012, the legislation reducing superannuation contributions tax concessions to top earners has only recently passed Parliament.
ATO targets returning expatriates
The Australian Taxation Office (ATO) is currently targeting expatriates returning to Australia, sometimes after an extended time living and working overseas.
The ATO approach may be to suggest an expatriate was an Australian tax resident during the period they were overseas and therefore the expatriate’s income earned from overseas employment should be reported as taxable in their Australian income tax returns.