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TAX UPDATES
2021 TAX UPDATES
SA COVID-19 stimulus and relief package
Throughout the COVID-19 pandemic, the South Australian Government has implemented a range of stimulus payments for residents and businesses.
In response to the July 2021 South Australian lockdown: • businesses with a reduction in turnover are eligible for emergency cash grants of up to $3,000 • further grants of up to $6,000 for businesses who had a delayed reduction in turnover from the lockdown • specific business support grants of up to $3,000 available for businesses in eligible industries, with continuing top-ups paid automatically • eligible events suffering significant losses from being cancelled or postponed can access funding of up to $100,000, and • individuals outside the federal government’s declared hotspot areas who lose work hours will be entitled to the COVID-19 Disaster Payment.
In addition to these grant payments to affected businesses, in the past relief from payroll tax and land tax has been available. In particular, smaller employing businesses have been given a waiver of payroll tax from March 2020 to May 2021. Land tax deferrals were available to landlords during the 2020 land tax year. Also, landlords who provided rent relief, or commercial property owner-occupiers who were eligible for JobKeeper, were eligible for reduction in land tax liabilities up to 30 April 2021.
COVID-19 Disaster Payment to be phased out
In its response to the current COVID-19 lockdowns across August 2021, the Queensland Government has implemented support grants for businesses across the state. The support package is jointly funded by the Commonwealth and Queensland governments. The grants have recently been extended to include businesses on the border to NSW who have struggled due to the border closure. Assistance is available from 14 August 2021. Grants of up to $15,000 will be available to eligible small and medium businesses across all industries. Support payments of up to $30,000 will also be provided to eligible impacted large hospitality and tourism businesses. Applications for grants opened on 16 August 2021. Non-employing sole traders may also be eligible for a one-off $1,000 grant, with more information to be released soon. A COVID-19 cleaning rebate of up to $10,000 has also been introduced for eligible small and medium businesses and not for profit organisations. Tourism and hospitality businesses have also been given the option to defer payment of their July or August 2021 monthly payroll tax liability for 6 months.
The COVID-19 Disaster Payment provides a federally funded assistance payment for people who have lost work in 2021 as a result of state-based lockdowns. Originating in June 2021, it has been recently announced that this tax-free payment will be phased out once a state reaches COVID-19 vaccination targets for eligible populations. Depending on when the payment is received, a recipient would receive between $320 and $750 per week. Those in receipt of other Government support would be entitled to either $100 or $200 per week. The payment may also be available to individuals who have lost working hours and live outside a Commonwealth declared hotspot provided they meet other criteria. The accessibility of these payments is at the discretion of state-based policy. Like other support payments, it will be available through Services Australia. Further details on the payment and key eligibility dates can be accessed on the Services Australia website.
Announced: 26-Mar-2020 Updated: 27-Sep-2021
Announced: 8-Apr-2020 Updated: 29-Sep-202
Announced: 3-Jun-2021 Updated: 1-Oct-2021
Victoria COVID-19 business grants and assistance
The Victorian Government has recently announced that critical assistance and hardship programs for businesses will begin being phased out in October 2021. It is expected that most ongoing business support programs will cease once the state reaches a COVID-19 vaccination target of 80% of people aged 16 years and older. These support grants commenced in July 2021 for certain businesses impacted by the lockdown and was extended in September. Many of these payments are made automatically to businesses and sole traders that received grants under established COVID-19 support programs. The Commercial Tenancy Relief Scheme has been reintroduced to provide support for eligible tenants and landlords. Other industryspecific support packages were also rolled out across 2020-21. Eligible businesses include those expected to be highly impacted by drops in turnover from extended COVID-19 restrictions, such as the alpine regions, Melbourne CBD or the City of Ballarat. Most of the grants assisted with unavoidable business expenses that are not support by other government funding.
Announced: 9-Apr-2020 Updated: 6-Oct-2021
2021 TAX UPDATES
ACT COVID-19 stimulus package
In its response to the COVID-19 lockdowns beginning on 13 August 2021, the Australian Capital Territory (ACT) Government has implemented support grants for businesses. The package is jointly funded by the Commonwealth and ACT governments. Grants of up to $20,000 will be available to eligible small and medium businesses where turnover has declined by at least 30% over the lockdown period. These grants have recently been extended for October 2021. Businesses do not need to re-apply as payments will be automatically paid. Landlords and commercial owner-occupiers may be eligible for new land tax relief in 2021, which has been increased and extended as the lockdown continues. Other support of up to $75,000 in rebates is also available for eligible impacted accommodation, hospitality and tourism businesses.
Announced: 22-Mar-2020 Updated: 6-Oct-2021
Tasmania COVID-19 stimulus package
The Tasmanian and Australian governments recently announced a support package designed to assist micro and small businesses that are impacted by lockdowns and restrictions that are affecting other states. Grants of up to $110,000 will be provided to eligible businesses that have suffered a reduction in turnover as a direct result of lockdowns and border closures reducing the:
• number of visitors being able to travel to Tasmania, and/or • ability to provide, sell or import/export goods and services.
The grants are available in 3 stages and businesses will need to meet eligibility criteria on multiple occasions in order to receive the full benefit. Applications for the grant opened on 17 August 2021 and will close on 8 October 2021. Payroll tax support will be available in the second half of 2021 for eligible industries.
Director Identification Numbe
The Director Identification Number (DIN) regime was passed by parliament and is now law. Under the new law, all directors of companies registered under the Corporations Act will need to have a unique identifier. The DIN is a measure that limits the opportunities for a company and its directors to engage in phoenixing activities. This new measure requires all directors to confirm their identity before receiving a DIN, and there will be civil and criminal penalties for system misuse. The Commissioner of Taxation has been appointed the Commonwealth Registrar in charge of the DIN process. The new online service for DIN registrations is due to be available in November 2021. All of ASIC’s business registers and the ABR will be integrated over time into one system at the ATO. A finalised instrument has also been published, which states a transitional period to 30 November 2022 for existing directors to register.
Announced: 20-Mar-2020 Updated: 11-Oct-2021
Announcement(3-Dec-2019) Consultation(3-Dec-2019) Introduced(4-Dec-2019) Passed(12-Jun-2020) Royal Assent(22-Jun-2020) Date of effect(22-Jun-2022)
Self-managed superannuation funds may have simplified reporting options for their income tax calculation from 1 July 2021 subject to the passing of legislation. The 2019 federal budget announcement intends to allow SMSFs to choose a preferred method of calculating the exempt current pension income (ECPI). There are two current methods an SMSF may calculate the ECPI, being either the segregated assets or proportionate method. However, higher compliance costs occur in some circumstances where an SMSF must use both the proportionate method and the segregated assets method in the same year. Also, a requirement for an SMSF to get an actuarial certificate due to the assets being considered “disregarded” has been removed. In this instance, an SMSF in full pension phase can use the segregated assets method.
Announcement(12-Jun-2019) Consultation(18-Jun-2021) Introduced Passed Royal Assent Date of effect
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