Tax Update: Budget 2021
On 11 May 2021, the Australian Government released its Federal Budget for the 2021/22 year and here are some of the key taxation policies that may affect you.
- The Low and Middle-Income Tax Offset (LMITO) will continue to apply for the 2021/22 financial year, which provides tax offsets of up to $1,080 for individuals or $2,160 for dual-income earners.
- From 1 July 2022, low-income earners who earn less than $450 per month will be entitled to receive Superannuation Guarantee Charges payments from their employers.
- From 1 July 2022, the minimum age of the downsizer superannuation contribution will be lowered from 65 to 60 years old.
- Australians aged 67 to 74 will have the ‘work test’ removed for non-concessional and salary sacrificed superannuation contributions to allow for flexibility in making superannuation contributions.
- From 1 July 2022, employers are required to pay the Superannuation Guarantee Charge to employees earning less than $450 per month.
- Eligible businesses can continue to deduct the full cost of eligible assets, including the cost of improvements to existing assets, incurred between 7.30 pm (AEDT) on 6 October 2020 and 30 June 2023. Eligible businesses are businesses with turnover or statutory and ordinary income below $5 billion.
- Companies with turnover below $5 billion can also continue to recoup tax previously paid on prior-year profits, as far back as the 2018/19 income year, using 2022/23 tax losses.
If you would like to know how these tax measures can affect your estate planning or business restructuring, contact one of our friendly taxation solicitors for more information:
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Related Blog – Resumption of Tax Compliance Activities by the ATO