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Monthly Update- April 2020

Date: April 15, 2020
Categories: Monthly Update

We are glad to share our April edition of Monthly update. Below are ATO and other major updates up to March 2020.

FBT – Living away from Home Allowance reasonable amounts

Taxation Determination TD 2020/4 sets out the weekly amounts, the ATO treats as reasonable for food expenses incurred by employees receiving a LAFH allowance Fringe Benefit for the 2020-21 FBT year as below:

Family Composition Amount/Week
1 adult $276
2 adults $414
3 adults $552
1 adult & 1 child $345
2 adults & 1 child $483
2 adults & 2 children $552
2 adults & 3 children $621
3 adults & 1 child $621
3 adults & 2 children $690
4 adults $690
For additional family members over the above $138 added for each adult & $69 added for each child

 

FBT – Private usage of a Motor Vehicle other than a Motor Car – FBT Year 2020-21

Vehicles with an Engine Capacity of up to 2,500 cc    56 cents/km
Vehicles with an Engine Capacity of over 2,500 cc    67 cents/km
Motorcycles    17 cents/km

 

ATO’s flags concerns about SMSFs & Property Development

  • The ATO said it is concerned about SMSFs entering certain arrangements with related or unrelated parties.
  • The mentioned arrangement involves the purpose & development of a real property for subsequent disposal & leasing.
  • Even though there are no prohibitions on such arrangements, the ATO says this could be used in diverting the income into the SMSF.
  • The ATO also said some arrangements appear to manipulate the members’ transfer balance accounts.
  • This manipulation can be by deliberately undervaluing an asset at retirement phase to allow a greater amount of earnings within the SMSF to be treated as exempt pension income.

 

Super Guarantee Amnesty Bill receives assent

  • The amnesty period runs from 24th May 2018 to 7th September 2020 (11:59 PM).
  • Employers who come forward to disclose the SG dues after 6th March 2020 need to apply for amnesty using the ATO approved amnesty form.
  • Under the scheme, self-correction of underpayments is allowed without any additional penalties. However, still the interest @ 10% is payable on the shortfall amount but the administration fee of $20 is waived.
  • Tax deduction for the SG payments made during the amnesty period are allowed.
  • Failing to take advantage of the amnesty scheme withing 7th September 2020 will result in a minimum of 100% penalty on top of the SG shortfall.

 

COVID-19 Economic Response Bills receive Assent

The COVID-19 Economic Response Package of Bills have received Royal Assent. The package of 8 bills, which are now law include the below:

  • Coronavirus Economic Response Package Omnibus Bill 2020
  • Boosting Cash Flow for Employers (Coronavirus Economic Response Package) Bill 2020
  • Assistance for Severely Affected Regions (Special Appropriation) (Coronavirus Economic Response Package) Bill 2020
  • Appropriation (Coronavirus Economic Response Package) Bill (No. 1) 2019-20
  • Appropriation (Coronavirus Economic Response Package) Bill (No. 2) 2019-20
  • Structured Finance Support (Coronavirus Economic Response Package) Bill 2020
  • Australian Business Growth Fund (Coronavirus Economic Response Package) Bill 2020
  • Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Bill 2020