Late last year, the government made a number of tax and superannuation announcements that may affect Chan & Naylor clients.
Cash payment limit – the start date for the proposed 2018 Budget measure to put in place an economy-wide cash payment of $10,000 of 1 July 2019 will be revised to 1 July 2020.
Tax debt information disclosure – a 2016-17 Mid-year Economic and Fiscal Outlook (MYEFO) measure that allowed the ATO to disclose to credit reporting bureaus the tax debt information of businesses with tax debt of more than $10,000 and who have not productively engaged with the ATO to manage these debts, will be revised to limit the disclosure to businesses with a tax debt of more than $100,000.
The commencement date of this measure will also be adjusted from 1 July 2017 to the day after the assent of amending legislation.
Genuine redundancy payments – starting 1 July 2019, the age below which individuals can be given genuine redundancy and early retirement scheme payments will be aligned with the age pension qualifying age. This is to ensure that all individuals who are below the age pension qualifying age will have access to the tax concession that makes part of a genuine redundancy payment tax-free.
Presently, individuals who are 65 years old and over are not eligible to receive a genuine redundancy payment, which includes the tax-free component, due to their age at the time of their dismissal.
Deductible Gift Recipient (DGR) administrative reforms – the 1 July 2019 start date for the reforms to the administration of DGRs that were announced in December 2017, which includes assuring that non-government DGRs will be automatically registered as a charity with the Australian Charities and Not-for-profits Commission, will be revised to 1 July 2020.
Superannuation guarantee commitments – the minimum penalty for employers who fail to come forward during the proposed 12-month superannuation guarantee amnesty and are later caught has increased from 50% to 100% of the superannuation guarantee charge.
Comprehensive income products in retirement – superannuation trustees will be ordered to develop and provide a comprehensive income product for retirement to members starting 1 July 2022 as well as offer information and guidance to help members choose the appropriate income products.
Early access to super – individuals who are victims of certain crimes such as serious violent crimes with partially paid or unpaid compensation orders will be able to access their perpetrator’s money held in super to pay the outstanding compensation. The measure will start 12 months after the applicable compensation receives assent.
Should you have any questions in regards to the above changes, please do not hesitate to contact your nearest Chan & Naylor tax accountant here.
Aside from guidance with your taxation and superannuation matters, have a look at our other accounting and advisory services that we do to help you achieve greater financial success.
The Chan & Naylor Group has national offices in North Sydney, South West Sydney, Sydney, Pymble and Parramatta in New South Wales, Melbourne, Moonee Ponds and Hawthorn in Victoria, Brisbane and Capalaba in Queensland, and East Perth in Western Australia that can assist you with your taxation and superannuation matters. Contact us today.