1. Personal income tax changes
1.1 Changes to personal income tax rates
The Government has announced that it will bring forward changes to the personal income tax rates that were due to apply from 1 July 2022, so that these changes now apply from 1 July 2020 (i.e., from the 2021 income year). These changes involve:
• increasing the upper threshold of the 19% personal income tax bracket from $37,000 to $45,000; and
• increasing the upper threshold of the 32.5% personal income tax bracket from $90,000 to $120,000.
Special COVID-19 Superannuation Condition of Release Extended
Regulations that extend the time frame of the special condition of release to access $10,000 from superannuation for individuals experiencing financial difficulties due to COVID-19 have been formally registered.
The ability to withdraw up to $10,000 from superannuation (if certain conditions are met) was initially set to expire on 24 September 2020.
The Victorian Premier, Daniel Andrews this morning announced Step 1 measures to be imposed in Victoria at 12.00 midday yesterday, to contain the Coronavirus. The Premier’s announcement focused on limiting peoples attendance at social venues, including;
- Pubs, registered and licenced clubs (excluding bottle shops attached to these venues), hotels (excluding accommodation)
- Gyms and indoor sporting venues
- Cinemas, entertainment venues, casinos, and night clubs
- Restaurants and cafes will be restricted to takeaway and/or home delivery
- Religious gatherings, places of worship, weddings or funerals (in enclosed spaces and other than very small groups and where the 1 person per 4 square metre rule applies).
There are no fixed timelines attached to these restrictions being lifted. Unless VACC members fall into one of the above categories they should continue with the running of their businesses but with all care taken to maximise social distancing. Where staff can work from home employers should consider if this is an option for them.Read More
The Government has announced its economic response to the Coronavirus in the form of a $17.6
billion economic stimulus package. The package has been marketed as a measure to protect
the economy by maintaining confidence, supporting investment and keeping people in their jobs.
It is expected that an appropriate package of Bills (which will provide further detail in relation to the
proposed measures) will be introduced into Parliament in the final sitting week in March 2020 (i.e.,
presumably from 23 March 2020) for urgent consideration and passage.
Following the enactment of legislation in late 2019, the ATO can disclose certain business tax debt information to external credit reporting bureaus.
This information will primarily be used when issuing external creditworthiness reports in relation to relevant businesses, effectively treating tax debts in a similar manner to other business debts.
The ATO has revealed it will request a further five years’ worth of policy information from over 30 insurance companies about taxpayers who own marine vessels, thoroughbred horses, fine art, high-value motor vehicles and aircraft.
The ATO expects to receive information about assets owned by around 350,000 taxpayers from 2016 to 2020 as part of its data-matching program.
This information (provided by insurers) is intended to be used by the ATO as part of its compliance profiling activities.
Parliament has just passed legislation to include GST in the Director Penalty Notice Regime, and it comes into effect on 1 April 2020.