AX UPDATES Partial abolition of the superannuation work test The work test for making non-concessional or salary sacrifice superannuation contributions will be removed from 1 July 2022. Prior to the change, super fund members over the age of 65 are required to work at least 40 hours over a 30 day period in a relevant financial year when making a contribution. Removing this test for non-concessional contributions (including the bring forward rule) will allow members to contribute more to
Announcement(11-May-2021) Consultation Introduced(27-Oct-2021)
super throughout their lifetime, subject to meeting other requirements. However, it should be noted that the
Passed(10-Feb-2022)
work test for individuals between 67 and 74 years will continue to apply for personal deductible contributions.
Royal Assent(22-Feb-2022)
However, an individual may be entitled to a ‘one-off’ work test exemption in limited circumstances (see
Date of effect(1-Jul-2022
event ‘Work test exemption for low balance retirees’).
First home super saver scheme maximum set to increase The maximum amount of contributions that can be released from superannuation under the first home super saver (FHSS) scheme will increase from $30,000 to $50,000. The increase will apply to withdrawal requests from 1 July 2022 as amending legislation has now passed and been given royal assent. Individuals can withdraw funds out of their superannuation account to be used for a first home deposit. The scheme began on 1 July 2017, with voluntary contributions up to $15,000 per year able to be used for an FHSS scheme withdrawal. The withdrawal also includes deemed earnings on the voluntary contributions. The scheme is
Announcement(10-May-2017) Consultation(4-Aug-2017) Introduced(27-Oct-2021)
intended to provide an incentive to enable first home buyers to build savings faster for a home deposit, by
Passed(10-Feb-2022)
accessing the tax advantages of superannuation. The scheme also is available for non-first home buyers
Royal Assent(22-Feb-2022)
in limited circumstances. Other administrative changes from the amending legislation include allowing
Date of effect(1-Jul-2018)
individuals to withdraw or amend their application for release prior to receiving payment. Individuals who withdraw or amend an application will not lose their ability to re-apply for a FHSS release in future. These administrative changes will apply retrospectively from 1 July 2018.
Employee share scheme tax and regulatory changes New legislation will remove ‘cessation of employment’ as a deferred taxation point on employee share schemes (ESS) from 1 July 2022. Further regulations have been released by the Treasury around changing both the taxation and regulatory framework for Australian businesses. Overall, combining both the new legislation and regulations for ESS participants and businesses may change traditional structuring of
Announcement(10-May-2021) Consultation(25-Aug-2021) Introduced(25-Nov-2021) Passed(10-Feb-2022)
arrangements. Further, it will allow greater flexibility and clarity for businesses to make ESS offers to participants
Royal Assent(22-Feb-2022)
in the future. These updates will commence for ESS interests entered into on or after 1 July 2022.
Date of effect(1-Jul-2022)
AAT extended power to pause or modify ATO debt recovery (2021 federal budget measure) Small businesses (aggregated turnover less than $10 million) will be able to apply to the Administrative Appeals Tribunal (AAT) to pause or modify ATO debt recovery action for debts being disputed in the AAT.
Announcement(8-May-2021)
Currently, small businesses are required to go through the court system to pause or modify ATO debt recovery
Consultation(12-Jan-2022)
action. Taxpayers are otherwise required to pay disputed tax liabilities by the due date or enter into a 50/50
Introduced(17-Feb-2022)
arrangement with the ATO to defer recovery action. In the 2021 federal budget, it was announced that the AAT would be empowered to pause or modify ATO debt recovery action until the underlying dispute is resolved.
Passed Royal Assent Date of effect
AAT extended power to pause or modify ATO debt recovery (2021 federal budget measure) The NSW Government has introduced a financial assistance package for small and medium-sized businesses under pressure in early 2022 as a result of COVID-19. Specifically, eligibility for the Small Business Support Program will be based on turnover levels in January 2022 or the first fortnight of February 2022. The program
Announced: 30-Jan-2022
is similar in nature to the JobSaver program available to businesses in NSW during 2021. Businesses will
Updated: 25-Feb-2022
receive payments based on their level of payroll if they have experienced a minimum decline in turnover. Applications need to be made through Service NSW and close 31 March 2022.
MARCH 2022 | FIND CASEY
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