LOSS CARRY BACK TAX OFFSET AND TEMPORARY FULL EXPENSING/INSTANT ASSET WRITE OFFS
The government has proposed to extend loss carry back tax offset and temporary full expensing by 12 months to 30 June 2023.
The loss carry back tax offset was a welcome announcement in the Federal Budget handed down on 6 October 2020. The temporary rules are designed to provide a cash flow support to eligible corporate entities that were previously in a tax paying position but now find themselves in a tax loss position due to the pandemic.
Loss carry back tax offset is also intended to interact with temporary full expensing and instant asset write off, encouraging new investment which may result in tax losses. Where the choice to carry back tax losses results in a tax refund, this will increase business cash flow.
To find out more about the eligibility and how to claim the tax offset, click on the button above. For further assistance please contact your BKM representative.
EMPLOYERS’ PAYROLL OBLIGATIONS
Super guarantee rate for the 2022 financial year (from 1 July 2021) is 10%, up from 9.5% for 2021.
From 1 July 2022, $450 per month threshold for super guarantee will no longer apply. Eligible employees earning less than $450 per month will be paid super guarantee.
Employers are required to report each pay run to the ATO by the pay day via Single Touch Payroll (STP).
From 1 July 2021, STP quarterly reporting concession for micro employers with 1 to 4 employees will end for most and only apply in exceptional circumstances. Please ensure your software includes STP reporting. Alternatively, there are no-cost and low-cost STP solutions listed below
From 1 January 2022, a 0.5% payroll tax surcharge will apply to businesses operating in Victoria with national payroll over $10 million a year.
COMPANY TAX RATES
Company tax rate for base rate entities (generally businesses with turnover up to $50 million) is now 25%, down from 26% in 2021 financial year.
Other companies are taxed at 30%.
From 1 July 2021, property transfers over $2 million will be subject to a new premium stamp duty rate, which will increase the stamp duty payable to $110,000 plus 6.5% of the dutiable value above $2 million.
City of Melbourne local government area: from 1 July 2021 to 30 June 2022, temporary concession applies to new residential properties with value up to $1 million.
A 50% concession applies to all new residential properties, and a full exemption applies to new residential properties that have remained unsold for at least 12 months.