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ATO Updates (August 2021)

Date: August 9, 2021
Categories: Superannuation, Tax

INDUSTRY UPDATES: 

New Services to attract Foreign Businesses

  • The ATO has launched its New Investment Engagement Service (NIES) on 1st July 2021.
  • The purpose of launching these services is to promote confidence & assist foreign Investors in understanding potential tax risks arising from their proposed investment.
  • This will offer the Foreign Investors, ‘tailored engagement services’ with the ATO specialists.
  • This service is available to all Foreign Businesses making investments into Australia for $250 Million and above.

 

ATO UPDATES/CHANGES TO LEGISLATIONS:

3 main reasons for delayed refunds

  • The taxpayer missing out on reporting the correct income in the tax return.
  • The taxpayer trying to lodge the tax return even before the annual information gets filled into the Pre – Filling Report.
  • The taxpayer doesn’t update their bank account details in the tax return.

 

Travel Per Diems for FY2021-22

Nature of Expense Amount/day
Overtime meals $32.50
Meal expenses for employee truck drivers Breakfast – $26.15
Lunch – $29.85
Dinner – $51.50

 

COVID-19 SUPPORT MEASURES:

NSW COVID-19 package 2021

Grants
  • Extension to the previously announced business grants program.
  •  Eligible businesses with Australian wages < $10 million can claim grants between $7,500 & $15,000 to cover up for the 1st 3 weeks of restrictions.
  • $1,500/fortnightly payment for micro-businesses with a turnover between $30,000 & $75,000 experiencing a 30% decline in the turnover.
  • One-time payment of $1,500 for residential landlords reducing rent for tenants.
Payroll Tax
  • 25% waiver for businesses with Australian wages of between $1.2 million and $10 million witnessing a 30% decline in the turnover.
Land Tax
  • Relief is equal to the value of rent reductions to financially distressed tenants up to 100% of the 2021 tax liability
Job saver program
  • Businesses with turnover from $75,000 to $50 million maintaining their staff headcount are eligible.
  • The eligible amount is 40% of their weekly payroll payments.
  • The amounts range from a minimum of $1,500 to a maximum of $10,000 per week.
  • These payments will be tax-free.
  • Eligible non – employing businesses will receive $1,000/week. 

 

Victoria & South Australia COVID-19 package 2021 (Both states shares the same data)

Hours lost/week during the lockdown Amount/Week
>20 $600
80 to 20 $375

 

Tax Exemption status to the below Victorian Government Grants

  • Alpine Support Program
  • Business Costs Assistance Program Round 2
  • Impacted Public Events Support Program
  • Licensed Hospitality Venue Fund 2021
  • Live Performance Support Program
  • Sustainable Event Business Program

 

SUPERANNUATION UPDATES:

Super Guarantee (SG) rate

  • With the SG rate increased from 9.50% to 10% on 1st July 2021, the ATO has reminded us that the rate used to calculate SG contributions depends on which quarter the employee is paid.
  • This means the increased rate of 10% applies when an employee is paid in July 2021 for work done in June 2021.

Super pension drawdowns – 50% reduction extended

  • The SIS regulations have been amended to extend the temporary 50% reduction in minimum annual payment for superannuation pension & annuities up to 30th June 2022.