2022 TA Potential end for Div 7A and sub-trust arrangementsa A draft determination has changed the ATO’s position on how sub-trust arrangements apply within the context of Div 7A. Effectively, when a corporate beneficiary and trustee of the trust are ultimately the same people, Div 7A will apply directly to unpaid present entitlements (UPEs). The assumed provision of financial accommodation in practice means that sub-trust arrangements will have no benefit when it comes to deferral of tax or repayments of loans. When finalised, the determination will apply from 1 July 2022. A
Announcement(23-Feb-2022) Consultation period(29-Apr-2022) Released
consultation period has recently been extended to 29 April 2022 and stakeholders are encouraged to have their say with the ATO.
One-off cost of living payment for social security recipients Individuals who are currently in receipt of an Australian government allowance or pension will receive a one-off payment of $250 to ease the cost of living pressures. Certain concession card holders will also get
Announcement(29-Mar-2022)
the payment. Originally announced in the 2022 Federal Budget, this one-off payment has been legislated
Consultation
through parliament and will be exempt from tax. The payment will also be exempt from counting towards
Introduced(30-Mar-2022)
and individual’s income for social security purposes. It is expected that the payments will flow through to eligible recipients from 28 April 2022.
Passed(30-Mar-2022) Royal Assent(31-Mar-2022) Date of effect(29-Mar-2022)
One-off cost of living payment for social security recipients Individuals who are currently in receipt of an Australian government allowance or pension will receive a one-off payment of $250 to ease the cost of living pressures. Certain concession card holders will also get
Announcement(29-Mar-2022)
the payment. Originally announced in the 2022 Federal Budget, this one-off payment has been legislated
Consultation
through parliament and will be exempt from tax. The payment will also be exempt from counting towards
Introduced(30-Mar-2022)
and individual’s income for social security purposes. It is expected that the payments will flow through to eligible recipients from 28 April 2022.
Passed(30-Mar-2022) Royal Assent(31-Mar-2022) Date of effect(29-Mar-2022)
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. From December 2021, density restrictions in place may have meant that your client may have experienced a decline in turnover. These support measures included: •
automatic payments for those also that previously received the COVID-19 Tourism and Hospitality Support Grant
•
automatic payments for gym who qualified for the Additional COVID-19 Business Support Grant
•
one-off grants for other eligible businesses that experienced a reduction in turnover, and
•
new grants available for major events that were cancelled or postponed.
In the 2022 Federal Budget, a number of South Australian grants were added to the non-assessable nonexempt list, meaning they are tax free for businesses who received them. For previous measures that were in place in South Australia, refer to our state COVID-19 page.
Announcement(29-Mar-2022) Consultation Introduced(30-Mar-2022) Passed(30-Mar-2022) Royal Assent(31-Mar-2022) Date of effect(29-Mar-2022)
