Capital allowances: Effective life reviews
The ATO has started a review of the assets used in the following industries, with a view to making new effective life determinations (and to ensure that their effective life determinations cover all assets commonly used by these industries, and reflect current industry practices and expectations):
The Government has announced that more than 10 million Australians will receive immediate tax relief following the passage of legislation through the Parliament.
The Bill increases the top threshold for the 19% tax rate from $41,000 to $45,000 and increases the low-income tax offset from $645 to $700 in 2022/23.
In combination with the legislated removal of the 37% tax bracket in 2024/25, the Government “is delivering structural reform to the tax system” by reducing the 32.5% tax rate to 30%.
Together, these tax relief measures are intended to create a flatter and better tax system that will reportedly ensure that 94% of Australians will face a marginal tax rate no higher than 30% in 2024/25.
Ref: Prime Minister’s media release, 4 July 2019
The ATO has reminded employers that any ‘cash in hand’ payments made to workers from 1 July 2019 will not be tax-deductible.
‘Cash in hand’ refers to cash payments to employees that do not comply with pay as you go (‘PAYG’) withholding obligations.