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JUNE 2021 | FIND KNOX
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Federal Budget 2021–22: Impacts To Businesses And Their Owners
ACCOUNTANT By Warren Strybosch
On 11 May 2021, Treasurer Josh Frydenberg handed down the 2021–22 Federal Budget. Here is a list of some of the major tax announcements that may impact private businesses and their owners: Extension of Temporary Full Expensing and Loss Carry Back The Government will extend the temporary full expensing and the loss carry-back measures into 2023. This measure entitles businesses with an aggregated turnover of under $5 billion to an immediate deduction for ‘eligible capital assets’ acquired from 7.30pm AEDT on 6 October 2020 and needs to be installed or used before 30 June 2022. If legislated, the 30 June deadline will be extended to 30 June 2023. The loss carry-back measure amended the tax losses regime to temporarily allow eligible corporate entities (with a turnover capped at $5 billion) to use losses that are incurred in the income
years 2019–20, 2020–21 or 2020–22 to be retrospectively applied against profits made in the 2018–19 year or later years. If the proposed changes are legislated, the measure will also apply to losses incurred in the 2022–23 income years. Minor changes to Individuals Claiming Self-Education Expenses For those paying self-education expenses, the first $250 paid is not deductible. This has caused confusion for many people who have submitted their own returns. The government will remove the $250 non-deductible amount so that the full amount of self-education expenses can be claimable. Unfortunately, this Budget measure still does not allow individuals to deduct education and training expenses they incur, where the expense is not related to their current employment. The self-education expenses must be in connection with the individual’s current employment and production of their assessable income.
enhance transparency and the reporting obligations for not-for-profits entities (NFP) claiming income tax exemptions. Currently, non-charitable NFPs are able to self-assess their eligibility for income tax exemptions and do not need to submit tax returns each year. From 1 July 2023, the ATO will require income tax exempt NFPs to submit online annual self-review forms to ensure that only eligible NFPs are accessing income tax exemptions.
At Find Accountant, we provide SMSF tax advice. Our senior accountant is also an award-winning financial advisor. If you require SMSF advice or are considering whether or not to wind up your SMSF, then speak to Warren Strybosch at Find Accountant Pty Ltd.
Warren Strybosch You can call them on 1300 88 38 30 or email info@findaccountant.com.au www.findaccountant.com.au
Not-for-profits — Greater transparency of income tax exemptions The ATO will receive funding from the Government to build an online system to JUNE 2021 | FIND KNOX
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