Month: July 2019
Australian Immigration Visa Changes from 1st July 2019
Sponsored Parent Temporary Visa (870)As of 1 July 2019, where families have long been separated, this new visa enables parents and grandparents to reunite in Australia and live temporarily for up to 10 years. There is no capacity for permanent Australian residency and a ‘no work’ condition applies to this visa.
Australian citizens and permanent residents may apply to be sponsors. Upon sponsorship being granted and since 1 July 2019, a visa application may be lodged for one or two overseas parents at any one time.
The visa grant cap at this time is 15,000 visas per annum. Visas may be renewed after five years to a maximum of 10 years. Visa application fees are $5000 for up to three years and $10000 for up to five years. Australian sponsors must bear healthcare, living and accommodation costs of their visa-holder parent/s in Australia.
Visa Eligibility
Including but not limited to, a visa applicant must:
- Be sponsored by an approved parent sponsor – be a biological, adoptive or step-parent (approved)
- Be at least 18 years or older
- Be outside of Australia
- Provide evidence of access to funds
- Provide evidence of health insurance
- Satisfy health, character and national security criteria
The Australian Government has lowered its immigration cap to 160,000 per annum, a figure intended to be maintained for the next four years. Within this new cap figure, the number of regional visas has been increased: reserving a total of 23,000 places for new subclass 491 and subclass 494 visa holders.
Skilled Work Regional (Provisional) Visa (491)
In November 2019 a new regional visa, the Skilled Work Regional (Provisional) visa, will replace the existing subclass 489 visa. This new visa provides for five years’ living and working in a regional location via sponsorship from either an eligible family member, or a state government, situated in a designated area. There is an age limit of 45 years and the applicant is points-tested. The government has allocated 14000 places for subclass 491 visa holders.
Skilled Employer Sponsored Regional (Provisional) Visa (494)
Another new regional visa from November 2019 is the Skilled Employer Sponsored visa, replacing the existing 187 subclass visa. This new visa provides for five years’ living and working in a regional location via sponsorship from an eligible regional employer. There is an age limit of 45 years and the applicant and the sponsor employer must meet certain criteria. The government has allocated 9000 places for subclass 494 visa holders.
New Regional Visas – Pathways to Permanent Residency (PR)
From 2022, both subclass 491 and subclass 494 visa holders may be eligible to apply for Permanent Residency (PR) after a minimum of three years’ living and working under their visas, complying with applicable visa conditions and meeting their income tax obligations.
Visa Fee Increases
The Australian Government has increased visa application fees on applications lodged on or after 1 July 2019. Most visa subclasses are affected by the increases and these increases are generally greater than 5 per cent.
As migration agents specialising in advice to visa applicants and individual/employer sponsors, we at YML Migration strongly encourage you to make contact with us to discuss these new visa opportunities and for us to help you make living and/or working in Australia a reality.
How can YML help?
Talk to our YML Migration Team today to see how YML Group can assist you with your visa options. Contact us on (02) 8383 4400 or by visiting the Contact Us page on our website.
New Tax Relief Introduction – Parliamentary Bill 2019
The Australian Government’s new personal income tax cuts were passed in Parliament on 4 July 2019. Moderately reduced tax offsets are benefiting many employees immediately in their 2019 financial year tax returns.Changes for the 30 June 2019, 30 June 2020, 30 June 2021 and 30 June 2022 year
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Low and Middle Income Tax Offsets
Taxpayers may be eligible for the Low and Middle Income Tax Offset if their taxable income is less than $126,000 and if they are an Australian resident for income tax purposes and their taxable income is within the ranges below:
The offset can only reduce the amount of tax payable by taxpayers to zero and will not reduce the Medicare Levy. The current rates for the Low Income Tax Offset is in addition to the Low and Middle Income Tax Offset. |
Changes for the 30 June 2023 and 30 June 2024 years
The following table reflects changes in the tax rates for individuals for the 30 June 2023 and 30 June 2024 years:
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From financial year 2025
A third phase of income tax changes is proposed to benefit those workers earning significantly more than the average wage.
Changes would include the removal of a tax threshold and a tax rate cut for another threshold, resulting in four tax thresholds – instead of the current five – and the 32.5 per cent tax rate being cut to 30 per cent.
The 19 per cent tax rate would apply up to $45,000 per annum income – instead of up to the current $41,000 per annum income – and those workers earning more than $45,000 would be taxed at 30 per cent after $45,000 up to $200,000.
The following table reflects the new tax rates for individuals for the 30 June 2025 year:
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Low income workers and those on Newstart will not benefit from the new Bill.
Employer PAYG Obligations
Keeping up-to-date with your employees’ income tax obligations ensures accurate PAYG withholding tax obligations are met and reported to the ATO.
How can YML help?
Talk to our Accountants today to see how YML Chartered Accountants can assist you with your PAYG obligations. Contact us on (02) 8383 4400 or by visiting the Contact Us page on our website.
New Work Tax Exemption (WTE) granted to SMSF Members
You can make personal contributions to your superannuation fund anytime when you’re under 65 years of age, even if you’re not working. However, once you reach 65 years of age – and you’re yet to reach 75 years of age – you can only make contributions to your superannuation fund if you meet the Work Test criteria.The Work Test requires a person aged between 65 and 75 years of age to work “gainfully” at least 40 hours within 30 consecutive days in a single financial year before making any contributions in to their superannuation fund.
Do you want a year off work, but you still want to contribute to your SMSF?
To help those retirees with a superannuation fund balance of up to $300,000, a new Work Test Exemption (WTE) has commenced from 1 July 2019.
The WTE provides that for an additional year – a 12-month period after retirement – a member aged 65 years and over may make voluntary contributions in to their superannuation fund if the member’s balance is less than $300,000 at the end of the prior financial year. A member must also have satisfied the Work Test in the prior financial year.
This is a once-in-a-lifetime opportunity to help retirees improve their post-retirement wealth, so a person can stop working but still be contributing to their superannuation fund for a 12-month period. Yet, if they return to work, they may not use the WTE again when they finally retire.
How much can you contribute during the WTE period?
Currently, contribution caps apply during the WTE period: up to $25,000 concessional contribution and up to $100,000 non-concessional contribution.
Eligible retirees can maximise their superannuation contributions during the WTE period by carefully considering a mix of voluntary contributions, including a ‘downsizer’ contribution from selling the primary (family) home at this time in their lives. To read our newsletter article “Over 65? Downsize your home to contribute to your super!”, click here: https://ymlgroup.com.au/over-65-downsize-your-home-to-contribute-to-your-super/
It’s important to seek professional SMSF advice and to plan your WTE period of superannuation contributions to ensure you gain the most from this lawful advantage offered to eligible retirees.
How can YML help?
Talk to our YML Super Solutions Team today to see how YML Group can assist you with your WTE superannuation options. Contact us on (02) 8383 4400, or by visiting the Contact Us page on our website.
