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Australia to Provide $105m in Ukraine Aid
Australia will send a $105 million package of weapons along with humanitarian assistance to Ukraine following the Russian invasion.
Prime Minister Scott Morrison said $70 million of defensive support would be provided to Ukraine, which would include missiles and ammunition.
A further $35 million would be spent on humanitarian assistance such as shelter, food and medical care.
The decision came following a meeting of federal cabinet’s national security committee on Tuesday.
Mr Morrison said the majority of the defensive support to Ukraine would be lethal aid and distributed through a partnership with NATO.
However, he would not provide specifics on what weapons, or the amount of weapons, that would be sent to Ukraine due to national security concerns.
“I don’t plan to give the Russian government a heads up about what is coming their way, but I can assure them it is coming your way,” he told reporters in Canberra.
“We will be answering the call from (Ukrainian) President Zelenskyy. He said, ‘Don’t give me a ride, give me ammunition’, and that is exactly what the Australian government has agreed to do.”
The prime minister said the $35 million in humanitarian support, which would be provided to international organisations, would be the “opening contribution” from Australia.
Mr Morrison said it was expected there would be further requests made over time, and welcomed efforts from other countries to impose sanctions on Russia and its government following the Ukrainian invasion.
He said while the sanctions were working and having a serious impact on Russian progress, it was expected to lead to more aggression.
“It is also likely to lead to an even more violent response from Russia,” he said.
“Anyone who thinks the Russian government is just going to sit there, I think, doesn’t understand the intent and the outrageous objective of President Putin.” All outstanding visa applications for Ukrainians looking to come to Australia have been processed, the prime minister said.
About 100 applications are being received per day, which are being processed as the top priority due to the unfolding situation.
Mr Morrison said options were being prepared to support broader humanitarian efforts.
“We want to ensure we can provide the temporary refuge.”
Opposition Leader Anthony Albanese said earlier on Tuesday there was bipartisan support for action taken against Russian aggression.
“It’s important that there be a single direction going forward, as there has been up to this point, we would support any government action,” he told reporters in Melbourne.
The Labor leader said the opposition strongly supported the sanctions Australia had carried out against Russia, alongside international partners such as the United States, United Kingdom and European Union.
Opposition home affairs spokeswoman Kristina Keneally said Labor supported the actions of increased military support from Australia to Ukraine.
“This is a fast-moving situation, one provoked by Russia and upends the international order that has prevailed since the end of World War II,” she told Sky News.
Defence Minister Peter Dutton told reporters in Canberra that Russian forces would become more intense as they move towards the capital of Kyiv.
“Many people will die unless President Putin changes the action of the course he is on at the moment,” he said.
The Sydney Opera House will be lit up in the colours of the Ukrainian flag on Tuesday night.
It follows Parliament House in Canberra being lit up in the colours of the flag on Monday night in solidarity with Ukraine.
Andrew Brown (Australian Associated Press)
2022 TAX UPDATES
Temporary full expensing of depreciating assets
The majority of businesses are eligible to claim an outright deduction for the cost and installation of new assets. To qualify for full expensing, the asset must be first held and first used or installed ready for use between 7:30pm AEDT 6 October 2020 and 30 June 2023. This final date of temporary full expensing was extended by 12 months from a 2021 Federal Budget announcement and is now law. Unlike prior rules on instant asset write-offs, no limit applies to the cost of an asset under the full expensing rules. That is, an asset of any value may be fully deducted in the appropriate income year. For a business to qualify for the outright deduction, the entity must have an aggregated turnover of less than $5 billion. Certain large entities will have separate eligibility criteria. Since the original legislation was enacted, further amendments have been made to the laws to allow businesses a choice in using full expensing or not. In certain situations, it may be beneficial to spread out tax deductions over multiple years. However, no such option exists for small business entities using pooling for depreciation as the entire balance will be written off each year full expensing applies.
Announcement(6-Oct-2020) Consultation(11-May-2021) Introduced(27-Oct-2021) Passed(10-Feb-2022) Royal Assent Date of effect(6-Oct-2020)
Superannuation guarantee exclusion for low-income workers removed
The low-income earners’ exemption for employers calculating their superannuation guarantee shortfall will be removed from 1 July 2022. The low-income earners’ exemption states that an employer is not required to pay superannuation guarantee where their employee earns less than $450 in a calendar month. The change that is occurring is a repeal of the subsection of the legislation which provides the employer’s exemption from superannuation guarantee liability. The repeal will not be in place until 1 July 2022. Where a client of yours contracts out their payroll function to a third-party provider, best practice is to ensure a relevant update to the system is completed. This may involve contacting the third party or completing a “dry run” prior to making any payments.
Announcement(11-May-2021) Consultation Introduced(27-Oct-2021) Passed(10-Feb-2022) Royal Assent(22-Feb-2022) Date of effect(1-Jul-2022)
Downsizer contributions to superannuation
Downsizer contributions have been available to members of complying superannuation funds since 1 July 2018. From this date, a person aged 65 years or older has been able to make a contribution up to $300,000 from the proceeds of selling their main residence. A legislative amendment originally from the 2021 Federal Budget will reduce the age limit from 65 to 60 from 1 July 2022.To be eligible to make a downsizer contribution, an individual must have owned their main residence for at least 10 years. It is available to both members of a couple for the same home, even if only one is on the title deed.
Downsizer contributions are in addition to existing rules and caps and are exempt from the:
• age test • work test, and • $1.6 million total superannuation balance test
for making non-concessional contributions.
nouncement(10-May-2017) Consultation(11-May-2021) Introduced(27-Oct-2021) Passed(10-Feb-2022) Royal Assent(22-Feb-2022) Date of effect(1-Jul-2018)
Loss carry-back available for companies
For 4 income years, many corporate tax entities will be eligible to claim a refundable tax offset when they incur a taxable loss. This optional offset is available only to corporate businesses and is a recoupment of prior year income tax paid, but is only available for recent income years. The loss carry-back is available to businesses with turnover under $5 billion. Any refundable tax offset is limited to prior year tax paid and the balance of the franking account. The loss carry-back tax offset has been extended by 12 months to include losses in the 2022–23 income year. The amendment is now as the legislation has been given royal assent.
Announcement(6-Oct-2020) Consultation(6-Oct-2020) Introduced(7-Oct-2020) Passed(9-Oct-2020) Royal Assent(14-Oct-2020) Date of effect(1-Jul-2021)
2022 TAX UPDATES
Partial abolition of the superannuation work test
First home super saver scheme maximum set to increase
Employee share scheme tax and regulatory changes
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 super throughout their lifetime, subject to meeting other requirements. However, it should be noted that the work test for individuals between 67 and 74 years will continue to apply for personal deductible contributions. However, an individual may be entitled to a ‘one-off’ work test exemption in limited circumstances (see event ‘Work test exemption for low balance retirees’).
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 intended to provide an incentive to enable first home buyers to build savings faster for a home deposit, by accessing the tax advantages of superannuation. The scheme also is available for non-first home buyers in limited circumstances. Other administrative changes from the amending legislation include allowing 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.
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 arrangements. Further, it will allow greater flexibility and clarity for businesses to make ESS offers to participants in the future. These updates will commence for ESS interests entered into on or after 1 July 2022.
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. Currently, small businesses are required to go through the court system to pause or modify ATO debt recovery action. Taxpayers are otherwise required to pay disputed tax liabilities by the due date or enter into a 50/50 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.
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 is similar in nature to the JobSaver program available to businesses in NSW during 2021. Businesses will 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.
Announcement(11-May-2021) Consultation Introduced(27-Oct-2021) Passed(10-Feb-2022) Royal Assent(22-Feb-2022) Date of effect(1-Jul-2022
Announcement(10-May-2017) Consultation(4-Aug-2017) Introduced(27-Oct-2021) Passed(10-Feb-2022) Royal Assent(22-Feb-2022) Date of effect(1-Jul-2018)
Announcement(10-May-2021) Consultation(25-Aug-2021) Introduced(25-Nov-2021) Passed(10-Feb-2022) Royal Assent(22-Feb-2022) Date of effect(1-Jul-2022)
Announcement(8-May-2021) Consultation(12-Jan-2022) Introduced(17-Feb-2022) Passed Royal Assent Date of effect
Announced: 30-Jan-2022 Updated: 25-Feb-2022
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TOGETHER WE CAN HELP MORE KIDS
We have all had a tough couple of years, none more so than those already facing hardship. The shadow pandemic of a mental health crisis combined with significant economic impact on many families means there are more and more children at risk of disengagement who will benefit enormously from a holiday at Cottage by the Sea.
In anticipation of an ever greater need for programs in the wake of COVID-19, Cottage by the Sea has over 50 camps booked for 2022, providing opportunities for close to 1,700 children. It goes without saying that an increased number of children brings an increased cost and your ongoing support is invaluable to the Cottage in helping keep the doors open to more children.
On 3 March 2022, Cottage by the Sea is holding a Giving Day that will harness the generosity of all Cottage supporters to raise funds for the ever increasing numbers of children in need. On 3 March, each individual donation will be matched by a group of generous matching donors who, on this day, will increase your impact.
With your help Cottage by the Sea can help even more children!
Cottage by the Sea programs have a real and lasting impact on children’s wellbeing. An independent study into the work of the Cottage found “The most significant outcome experienced by kids is an increase in confidence. Further outcomes include, an increased ability to form healthy relationships, a sense of belonging and increased hope for the future. This creates positive social value for their families, parents and carers and the wider community, as well as generating positive value for the children and young people themselves.” It further revealed that the impact of the Cottage typically influences the children beyond 12 months and can effect positive change that can last a lifetime. (Social Ventures Australia)
You can be a part of this positive change when you donate to Cottage by the Sea on 3 March 2022. Because each donation made on the Giving Day is matched, so eachdonation can help twice as many children. Children like a group who recently came to camp all the way from East Gippsland.
“At the start of 2021 we were able to have an invitation to come to Cottage by the Sea and it was like a lifeline for us,” explains Michelle Young, Principal Bruthen Primary School. “For our kids, it was a breath of fresh air. It was a chance to be kids again and it was a chance for them to put the bushfires behind them and a chance for them to realise that life goes on and that things do get better and you survive challenges and you overcome adversity. Cottage by the Sea provided our kids with an opportunity to just be kids again at a really important time in their lives and it really did set them up to be very successful.”
Through 2022 and beyond, the Cottage will continue to welcome groups from regions impacted, and still recovering from the bushfires of 2019/20. Along with children from across metropolitan Melbourne and regional Victoria. The five-star experience of a Cottage camp gives these children access to opportunities they would otherwise never have. Opportunities and experiences that will increase their confidence and give them hope for a better future.
Be part of this story of hope. Donate on 3 March 2022 and increase your impact.
Looking for Gold Nuggets
Another reflection from Justin Coulson’s great little book, ‘What Your Child Needs from You’. I thoroughly recommend going on line and ordering yourself a copy. Coulson compares parenting to a gold digger with the following illustration: A young inexperienced digger arrived at the goldfields intent on finding nuggets but all he uncovered after much gruelling work were rocks. Despondent, he made preparations to leave. An old digger asked where he was going. The young man explained that he was giving up looking for gold since all he could find was rocks. To his amazement the old man gave the young man a glimpse of his bulging pouch full of gold flecks and then to the young man’s further surprise the old man began splitting the young man’s rocks pointing out the shiny little flecks inside. Coulson suggests that as parents we are often like the young man making the mistake of looking for nuggets in our family life rather than seeing the little flecks of gold that are often hidden in the midst of the mundane and difficult times. As I reflected on Coulson’s words I thought about how much of our lives are made up of the mundane and routine events of life. Finding meaning and purpose in those times isn’t easy. Although we don’t like it, dealing with these times produces character and getting through the hard times develops resilience. Judi (my wife) and I with three young children, spent two years living and teaching in a small village in Samoa in the 1990’s. Our first year there was not easy to say the least. I have distinct memories of the tears, sweat, culture shock, conflicting expectations and feelings of frustration during that time. And yet now we recognise that those years were some of the most important and formative in the life of our family. It’s hard to see the flecks of gold in the difficulties or routines of life. But it’s so important to continue to model consistency and kindness during those times. Our children still need to be loved and understood in the midst of a demanding week. At such times we need to ‘hang in there’ and continue to give out for their sake. Coulson states, ‘When we learn patience, compassion, charity, service and sacrifice for our children and do these things willingly, something interesting happens. We see our role as parents, as an opportunity for our own development and our children’s development. Our focus is on being the best we can be for our children. And we become better people as a result. More than this, we do better as well.’ Keep up the good work everyone. All the best. Kindest regards, Rob. LPS Chaplain. Robert.Hunter@education.vic.gov.au
Look What’s Arrived
If you’ve been past Estuary Reserve lately you may have noticed a new addition to the groundworks. FC Leopold are very excited to see the arrival of the first part of the pavilion modular building. Time to get excited for the season ahead! The pavilion is expected to be completed from mid May.
The season pre planning is well underway with lots of work happening behind the scenes organising teams, coaches, kits and team entries.
