New super and tax rules passed in Parliament
Some of the last sitting days before this year’s Federal election saw changes to the tax and super rules finally pass through both houses of Parliament. Here’s a roundup of some of the key developments.
Loss carryback extended and super rules changed
Several reforms to the tax and super rules were legislated during the final marathon full Parliamentary session before this year’s Federal election. They include an extension of the business loss carry-back tax offset for the 2022-23 financial year and an extension to 30 June 2023 for the temporary full expensing regime.
Removal of the current $450-per-month threshold for payment of Superannuation Guarantee (SG) contributions means from 1 July 2022, employers will be required to make contributions for employees earning less than this amount.
Other key changes to the super rules include application of the work test to super contributors aged 67 to 74 who claim a deduction for personal contributions. However, from 1 July 2022 contributors over age 67 will be able to make or receive non-concessional super contributions using a bring-forward arrangement.
The new legislation also includes a reduction in the age limit for downsizer super contributions to 60 and an increase to the maximum allowable amount of contributions under the First Home Super Saver Scheme from $30,000 to $50,000.
Loss carryback tool launched
To help businesses correctly claim the loss carryback (LCB) tax offset in their company tax return, the ATO has launched a new online tool to help prevent errors and ensure correct completion of LCB labels in your return.
The interactive tool helps companies work out their eligibility for the tax offset and calculate the maximum offset they can claim. It also displays labels that must be completed in the company tax return.
Focus on small business CGT concessions
The ATO has announced it’s paying closer attention to businesses mistakenly claiming small business capital gains tax (CGT) concessions to which they are not entitled.
Anyone claiming one or more small business CGT concessions in a recent income tax return may receive an ATO letter asking you to check your claim and ensure you meet the basic eligibility conditions.
The taxman is also encouraging taxpayers planning to claim a small business CGT concession to check what attracts its attention in this area.
