5 minute read
TAX UPDATES
2022 TAX UPDATES
Queensland COVID-19 business grants and assistance
Apprentice wage subsidy programs
Temporary fuel excise cut and fuel tax credits
50% minimum pension drawdowns extended for another 12 months
Minimum drawdowns for superannuation pensions have been halved again for the 2022–23 income year. This extension means that the reduction of minimum drawdowns will be available for self-funded retirees from 1 July 2019 through 30 June 2023.
This measure is intended to support retirees in managing the impact of the:
• recent volatility in financial markets, and • prevailing low interest rates on their retirement savings.
All eligible businesses who employ an apprentice between 5 October 2020 and 30 June 2022 are eligible to receive a 50% wage subsidy. The wage subsidy is available for 12 months from commencement of employment. The maximum available subsidy is $7,000 per quarter per apprentice.
This wage subsidy is a stimulus payment announced to effectively boost employment for young people and help businesses transition away from the COVID-19 downturn.
These payments will be received via the Australian Apprentices Incentives Program. This program currently services employers by providing cash payments when apprentices meet certain targets.
Another program for apprentices that was in place prior to 5 October 2020 dealt with keeping apprentices employed (as opposed to employing new apprentices). These subsidies were to combat rising unemployment and an expected economic downturn due to COVID-19.
The wage subsidy was based on which apprentices remained in employment with their employer on 1 March 2020 and 1 July 2020. Originally, only small business employers were eligible to participate. From 1 July 2020, the government extended the measure to include medium-sized businesses. The original wage subsidy commenced for employers from 1 January 2020 and ran through to 31 March 2021.
Excise and excise-equivalent customs duty that applies to petrol and diesel will be temporarily reduced by 50%. The reduction of the fuel excise will be in place for 6 months, beginning at 12:01am on 30 March 2022 and ending at 11:59pm on 28 September 2022. The new temporary excise rate of 22.1 cents per litre will bring excise below the road user charge for businesses who claim fuel tax credits.
Minimum drawdowns for superannuation pensions have been halved again for the 2022–23 income year. This extension means that the reduction of minimum drawdowns will be available for self-funded retirees from 1 July 2019 through 30 June 2023.
This measure is intended to support retirees in managing the impact of the:
• recent volatility in financial markets, and
Announced: 22-Mar-2020 Updated: 12-Apr-2022
Announced: 12-Mar-2020 Updated: 12-Apr-2022
Announcement(29-Mar-2022) Consultation Introduced(30-Mar-2022) Passed(30-Mar-2022) Royal Assent(31-Mar-2022) Date of effect(30-Mar-2022)
Announced: 22-Mar-2020 Updated: 12-Apr-2022
2022 TAX UPDATES
Queensland land tax to include interstate landholdings
Temporary fuel excise cut and fuel tax credits
Sole traders and partners in a partnership may be able to utilise a safe harbour to deduct non-commercial losses against other assessable income.
The draft PCG bypasses the Commissioner’s discretion under the non-commercial loss rules, where a business has been directly affected by floods, bushfires or the COVID-19 pandemic.
The business will be required to show necessary evidence to support using the safe harbour.
Once finalised, the draft guideline will apply to the 2019–20, 2020–21 and 2021–22 income years.
Sole traders and partners in a partnership may be able to utilise a safe harbour to deduct non-commercial losses against other assessable income. The draft PCG bypasses the Commissioner’s discretion under the non-commercial loss rules, where a business has been directly affected by floods, bushfires or the COVID-19 pandemic. The business will be required to show necessary evidence to support using the safe harbour. On 23 February 2022, the ATO released TR 2022/D1 and PCG 2022/D1 in relation to distributions made by trustees of discretionary trusts. This was complemented by TA 2022/1, which discusses parents benefitting from the trust entitlements of the adult children. All 3 documents focus on schemes where income is diverted from an intended beneficiary in order to reduce tax liabilities. The rulings discuss these at detail and include significant attention to an important carve out for dealings that are “ordinary family or commercial” dealings. These dealings are excluded from the anti-avoidance provisions. Following on from the release of the draft guidance, the ATO has reiterated its stance in many areas relating to s 100A. In particular, where situations would generally come under an ordinary family or commercial dealing. Trustees need to make sure that their distributions are in accordance with the expectations of the ATO, otherwise they may be subject to an audit. Helping them understand their obligations is paramount coming up to the end of the current income year. Once finalised, the draft guideline will apply to the 2019–20, 2020–21 and 2021–22 income years.
Queensland has become the first jurisdiction in Australia to change land tax rules relating to taxable landholdings.
Under the proposed changes, a landholder will have their land tax calculated based on their total Australian landholdings. The calculation will then be pro-rated to reflect a taxpayer’s Queensland-only taxable landholdings.
Once passed, the new legislation will commence from 1 January 2023, meaning that the first calculation under the new rules will take place on 30 June 2023.
Excise and excise-equivalent customs duty that applies to petrol and diesel will be temporarily reduced by 50%.
The reduction of the fuel excise will be in place for 6 months, beginning at 12:01am on 30 March 2022 and ending at 11:59pm on 28 September 2022.
The new temporary excise rate of 22.1 cents per litre will bring excise below the road user charge for businesses who claim fuel tax credits.
Announcement(11-May-2022) Consultation period(21-Jun-2022) Released
Announcement(23-Feb-2022) Consultation period(29-Apr-2022) Released
Announcement(21-Jun-2022) Consultation Introduced(21-Jun-2022) Passed(24-Jun-2022) Royal Assent Date of effect
Announcement(29-Mar-2022) Consultation Introduced(30-Mar-2022) Passed(30-Mar-2022) Royal Assent(31-Mar-2022) Date of effect(30-Mar-2022)
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