Car expenses: cents per km rates
The ATO has finalised a legislative determination that from 1 July 2022, work-related car expense under cents per kilometer has increased from 72 c/km to 78 c/km.
ATO Reasonable Travel Allowances
ATO has released its annual ruling setting out the amounts it treats as reasonable for 2022-23 in relation to employee claims for travel and meal expenses. The 2022-23 reasonable amount for overtime meal expenses is $33.25. Reasonable amounts given for meals for employee truck drivers are as follows:
• Breakfast $26.80
• Lunch $30.60
• Dinner $52.75
For full details, including domestic and overseas allowances in accordance with salary levels, refer to the below link. https://atotaxrates.info/allowances/ato-reasonable-travel-allowances/#Allowances-for-2021-22
New JobMaker Hiring Credit
The seventh claim period for JobMaker Hiring Credit payments is now open; it ends on 31 October 2022.
Eligible businesses can claim the JobMaker Hiring Credit for up to a year for each eligible employee hired between 7 October 2020 and 6 October 2021.
Assets wash sales
The ATO has warned taxpayers not to engage in “assets wash sales” to artificially increases their losses and reduce gains. The capital loss will be rejected if the ATO identifies this behavior. Ruling TR 2008/1 contains the ATO’s views on wash sales and the potential application of Pt IVA.
Financial Planning
ASIC Information Sheet on warning and reprimands given to financial advisers
ASIC has the capacity to give warnings and reprimands to financial advisers in specified circumstances as part of the measures implemented by the Financial Sector Reform (Hayne Royal Commission Response-Better Advice) Act 2021. It has now released Information Sheet 270 Warnings and Reprimands (INFO 270) which explains:
- What warnings and reprimands are.
- When ASIC will give a warning or reprimand.
- How ASIC will communicate the giving of a warning or reprimand.
- When and to whom ASIC will provide procedural fairness before giving a warning or reprimand, and
- The adviser’s right of review of ASIC’s decision to give a warning or reprimand.
Retirement income covenant implementation:
APRA/ASIC guidance APRA and ASIC has published a new set of FAQs on the implementation of the retirement income covenant introduced by the Government. The FAQs assist registrable superannuation entity (RSE) licensees in developing their retirement income strategies to meet the requirements of the covenant. The FAQs cover information on:
- APRA’s expectations in relation to retirement income strategy development and meeting requirements of the covenant.
- APRA’s position on submissions seeking its feedback on draft retirement income strategies.
- What RSE licensees need to do from 1 July 2022.
- Available guidance on reviewing the outcomes of retirement income products; and
- Whether the income strategy can cover the provision of financial product advice.
Superannuation
NALI/NALE rules: ATO extends its transitional compliance treatment
The ATO issued Law Companion Ruling LCR 2021/2 on 28 July 2021, which sets out its views on the effect of changes to the NALI rules. Previously, on 1 June 2020, the ATO issued PCG 2020/5 setting out its transitional compliance approach for the application of the NALE rules to complying superannuation funds. By way of quick summary, PCG 2020/5 established the transitional compliance approach as the ATO recognised that super trustees may not have realised that the amendments apply to NALE of a general nature. In it, the ATO confirms that it will not allocate compliance resources to determine whether the NALI provisions apply to a complying super fund where the fund incurred NALE of a general nature that has a sufficient nexus to all ordinary and/or statutory income derived by the fund. However, this transitional compliance approach does not apply where the fund incurred NALE that directly related to the fund deriving particular ordinary or statutory income.
Family law super splits: interest rate for adjusting base amount
The Family Law (Superannuation) (Interest Rate for Adjustment Period) Determination 2022 specifies the interest rate to be used for adjusting the “base amount” allocated in a court order or a superannuation agreement under the Family Law Act 1975 that splits a future defined benefit superannuation interest or an interest in an SMSF. Where the adjustment period is the financial year beginning on 1 July 2022, the interest rate is set at 4.7% (down from 5.7% in the previous year) for the purposes of reg 45D(3) of the Family Law (Superannuation) Regulations 2001.
Source: IPA Australia.
