APPLYING FOR A DIRECTOR IDENTIFICATION NUMBER
Recent legislation has introduced new obligations for company directors requiring them to obtain a personal director identification number (‘Director ID’).
So, we are writing to highlight your new obligations and provide the appropriate information to ensure your ongoing director compliance.
This is particularly important as failure to comply with these new Director ID requirements may result in both civil and criminal penalties.
Practice Update – December 2020
Improvements to be made to full expensing measure
The government will expand eligibility for the temporary ‘full expensing measure’, which temporarily allows certain businesses to deduct the full cost of eligible depreciable assets in the year they are first used or installed.
The government will also allow businesses to opt out of temporary full expensing and the backing business investment incentive on an asset‑by‑asset basis.
This change will provide businesses with more flexibility in respect of these measures, removing a potential disincentive for them to take advantage of these incentives
2020/21 Federal Budget
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.
JobKeeper Payment Scheme
Yesterday the Federal Government announced what they are calling the JobKeeper Payment to support businesses significantly affected by the Coronavirus crisis and to help keep Australians employed.
COVID-19 – Government Stimulus Package Announced: What You Need to Know
Dear Clients
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
BREAKING NEWS – Government announces increased tax benefits in response to the Coronavirus
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.
The ATO’s Bushfire crisis response
In response to the devastating bushfires across large parts of Australia, the ATO has been keen to advise those impacted that it understands peoples priority is their family and community.
MYEFO – 2019/20
Treasury has released its Mid-Year Economic and Fiscal Outlook (‘MYEFO’) for 2019/20 forecasting a surplus of approximately $5 billion.
Disclosure of business tax debts – Declaration made
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.
Lifestyle assets continue to be an ATO audit target
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.
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