Category: Budget Update

Against a more sobering backdrop of economic data and a record Budget deficit, the Treasurer announced the first stage of “budget repair work” in the form of tax integrity measures. The government will spend at least $1.4bn on extending the Personal Income Taxation Compliance Program, the Shadow Economy Program, and Tax Avoidance Taskforce to increase the amount of tax receipts by a projected $3.7bn. The Second Commissioner, in a recent address, pointed to three areas that the ATO will be focusing on in terms of individuals.

Click to read our article: Tax crackdown coming (0.70 MB PDF)

The Federal Budget 2022-23 has been handed down by Treasurer Jim Chalmers among challenging economic conditions. An underlying cash deficit of $36.9 billion is expected for 2022-23 while the economy is expected to grow by 3.25% in 2022-23 and slow to 1.5% for 2023-24. Against this backdrop, the Treasurer has sought to exercise fiscal “restraint” so as not to put more pressure on prices, rather, the Budget sets out a 5-point plan for cost-of-living relief in the areas of child care, expanding paid parental leave, medicines, housing, and getting wages moving.

Click to read our article: Federal Budget 2022-23 (0.90 MB PDF)

Practical Compliance Guideline PCG 2019/5 has recently been updated by the ATO to explicitly include the effects of COVID-19. The guideline outlines how the CGT main residence exemption may apply in cases where a dwelling is disposed, either in the capacity of an individual beneficiary or a trustee of a deceased estate. It now includes specific examples to illustrate the complexity in claiming the safe harbour within the background of COVID-19 restrictions and economic effects.

Click to read our article: Deceased estates and CGT: disposal of dwelling (0.80 MB PDF)

Parents could soon be paying less for childcare if the government’s affordable early childhood measures pass Parliament. The Bill seeks to amend the Child Care Subsidy (CCS) so that families earning up to $80,000 will be able to receive a CCS percentage of 90% compared to the current maximum subsidy rate of 85% for those on a maximum family income of $72,466. It will also increase the upper family income threshold to ensure that those that earn below $530,000 will receive the CCS.

Click to read our article: Affordable childcare measures coming soon (0.90 MB PDF)