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ATO Update (April 2022)

Date: April 8, 2022
Categories: Monthly Update

Tax Relief for Flood-Affected Communities

The below relief measures are announced to alleviate pressures of small businesses & individuals in flood-affected areas of QLD & NSW:

  • Additional time to meet any upcoming BAS/IAS obligations.
  • Option to vary the quarterly PAYG Income Tax Instalments & claim a refund from the ATO.
  • Fast-tracked GST refunds to help small businesses fund their recovery efforts.

 

QLD – Extraordinary Disaster Assistance Recovery Grants & Loans

Program Eligibility

Grants
  • Eligible participants can receive up to $50K.
  • The above $50K is split into $15K (to support initial claims) & $35K (to support subsequent claims).
  • Available for directly impacted businesses.
  • This can be used for clean-up activities, repairs, flooring, replacing lost stock, etc.

Disaster Assistance Loans
  • Up to $250K for businesses directly impacted by the rainfall & flooding events.
  • This can be used for repairs, replacing assets/stock, meeting occupancy costs like rent/rates, etc.

Disaster Assistance (Essential Working Capital)
  • Up to $100K for businesses directly impacted by the rainfall & flooding events.
  • This can be used for repairs, replacing assets/stock, meeting occupancy costs like rent/rates, etc.

 

The applications for Grants & Loans close by 5 September 2022 & 31 December 2023 respectively.

Programs declared as COVID – 19 Business Support

The state government programs are declared as COVID – 19 Business Support programs that will be effective from 17 March 2022:

State Program

NSW
  • 2021 Land Tax Relief (since it relates to Commercial tenants)
  • 2022 Small Business Support Grant
  • Alfresco Restart Rebate
  • Commercial Landlord Hardship Fund

SA
  • Business Hardship Grants (December 2021 & January 2022)
  • Tourism & Hospitality Support Grant
  • Tourism, Hospitality & Gym Grants

 

Work Test repealed for people under 75

  • The work test for individuals aged between 67 years & 75 years has been repealed.
  • From 1 July 2022, Superannuation Funds will be allowed to accept downsizer contributions from members aged from 60 years.
  • This allows members aged under 75 years to make non – concessional contributions (including the bring forward rule) or salary sacrifice contributions without meeting the work test.
  • However, on a contradictory note, though the work test for downsizer contributions has been repealed from the SIS act, an individual aged between 67 years & 75 years will still need to meet the work test as per ITAA 1997 in order to claim a tax deduction for personal superannuation contributions from 1 July 2022.