- Articles
- Changes to overseas working holiday tax
- Exciting new service offering at YML!
- Right Corporate Structuring
- Stamp Duty
- Annual Wage Review
- Interest Only Loans
- GOVERNMENT ANNOUNCES CHANGES TO THE WORKING HOLIDAY VISA MAKER PROGRAM
- Six Things that Can Keep a Business from Growing
- ATO ANNUAL REPORT
- How The Cloud and Automation Make Business Management Easier
- Avoiding the Wealth Creation Con Artists
- Why Business Owners Should Think Like Futurists
- Buying Property? Why You Should Care About Interest Rates
- Buying property through SMSF – what are the rules?
- 4 reasons to consider refinancing your home loan
- Big data for small business
- Does your super fund provide enough life insurance cover?
- HIFX - INTERNATIONAL PAYMENT EXPERTLY DONE
- Succession plan basics for small business
- Budget Alert – Should you put in place a Transition to Retirement strategy?
- FBT 2016 - WHAT YOU SHOULD KNOW
- How New Laws May Impact Your Use of an Earnout Right when Buying or Selling a Business.
- Transfer of Business Assets & Private Company Shares
- Financial Future Checklist
- Matters to Consider Before Setting Up an SMSF
- 6 Things that Work Better in The Cloud
- Can better inventory management improve business performance for Manufacturers?
- Should you register for GST?
- 5 Top Causes Of Stress for Small Business Owners Open page Preview for 5 Top Causes Of Stress for Small Business Owners
- 5 Reasons for Cash Flow Problems in Small Businesses
- Key man insurance, who do you need to insure?
- Finance options for buying a car
- Buying A Business? 5 Red Flags to Watch Out For
- Should You Take Your Small Business National?
- Upfront costs when buying a home and how you could save
- Insourcing vs outsourcing vs co-sourcing
- 7 Useful Web-Based Software Programs for SMEs
- Saving Tax Through Successful Loan Structuring
- Buy/sell agreements - do you need one?
- Newsletters
- New Work Tax Exemption (WTE) granted to SMSF Members
- YML Finance – LOOK at these loan Interest Rates…
- ‘PAYG Instalments’ – What is this system? When is it used?
- New Tax Relief Introduction – Parliamentary Bill 2019
- Australian Immigration Visa Changes from 1st July 2019
- Single Touch Payroll (STP) Phase 2: What Your Business Will Have to do to Comply and How YML can Help
- Land Tax Surcharge and You
- YML Insight April 2015
- Tax Liabilities to be reported to Credit Agencies
- Insurance in your Superannuation Policy
- Business Process Improvement
- Intelligent Process Automation (IPA) is here to stay
- Carry forward your unused Concessional Contributions
- 2015 Federal Budget Report
- Business Valuation
- Skilled Nominated Migration (190 Visa) – Live & Work in NSW
- YML Insight June 2015
- Prepaying Interest
- Superannuation Contributions at EOFY
- Financial Year End Planning
- It’s time to apply for a Director Identification Number (DIN)
- Small Business Cyber Security
- Australia’s Company Tax Rate lowered to 25%
- How Business Process Outsourcing can bring value to your customers through technology
- Economic Stimulus 2021 – Latest Government Incentives – What can your business receive?
- Equity Crowd-Funding
- Low and Middle Income Earners – Tax Offsets
- Mortgage Insurance
- RBA Cash Rate Reductions - What it means for your Loan
- Insurance in Super
- Gift or lend to your child?
- GENERAL SKILLED MIGRATION (GSM)
- Proposed Superannuation Guarantee Amnesty – Have you correctly paid your staff super?
- How RPA and Bots are making Employees happier
- It’s time to apply for a Director Identification Number (DIN)
- Super Guarantee – What Happens When You Get It Wrong
- Business Process Outsourcing – Take the Technology View
- The Importance of Estate Planning
- Transfer Balance Caps and what they mean for your Superannuation and Succession Plan
- PRINCIPAL-AND-INTEREST VS INTEREST-ONLY
- UPDATE YOUR WILL
- SAFE HARBOUR FOR DIRECTORS OF STRUGGLING COMPANIES
- COVID-19 and Estate Planning – Your Will
- Why wait for interest rates to go up before considering a fixed interest loan from 1.89% p.a.?
- ACT NOW – YML can help you with Phase 2 Single Touch Payroll (STP)
- ATO is Auditing Rental Property Expense Claims
- JobKeeper 2.0 – Extension 1 and Extension 2
- How a Mortgage can improve your Financial Position / How a Mortgage can grow your Wealth
- Cryptocurrency – What are the Taxation Implications?
- Trust Distribution Minutes – SIGN before 30 June 2022
- REMINDERS! LAND TAX REGISTRATION and DEED OF VARIATION
- 2020-21 Federal Budget – Update
- Economic Stimulus 2022 – Latest Government Incentives – What can your business receive?
- UPDATING SMSF TRUST DEEDS
- SMSF - $1.6 MILLION TRANSFER BALANCE CAP
- ACT NOW – YML can help you with Phase 2 Single Touch Payroll (STP)
- CONTRACTOR vs. EMPLOYEE – EMPLOYER OBLIGATIONS
- FBT
- Economic Stimulus 2022 – Latest Government Incentives – What can your business receive?
- RPA for VEHICLE FLEET MANAGEMENT
- CRYPTOCURRENCY
- Using your Equity to Lower your Rate AND to Invest
- TRUST DISTRIBUTION IN 2018
- TAX PLANNING
- Superannuation Guarantee – Quarter 2 Late Payments Due and New 2022 Threshold Removal
- THE IMPORTANCE OF WITHDRAWING YOUR MINIMUM PENSION
- Bookkeeper Service – Why does your business need it?
- AUDIT INSURANCE – ATO Increasing Audit Activity in the Areas of Income Tax and Supe
- 5 Everyday Examples of IPA in Practice
- Transferring asset ownership to a SMSF is an in specie contribution
- Deed of Variation – NSW Surcharge Land Tax
- Deed of Variation – NSW Surcharge Land Tax
- Is Your SMSF Investment Strategy Compliant?
- GST on Property Transactions has changed from 1 July
- INVESTMENT LOANS – IS IT WORTH TAKING OUT PRINCIPAL + INTEREST at 3.89% RATE*?
- GLOBAL TALENT SCHEME – Get the expertise your company needs…
- Business Intelligence (BI) in Small Business
- It’s started – Single Touch Payroll (STP)
- CAR LOAN – HERE’S AN OFFER
- Should you pay principal + interest on your investment property?
- Over 65? Downsize your home to contribute to your super!
- NEW Skilling Australians Fund (SAF) Levy
- Limitations to the Superannuation Death Benefit
- Did you know YML Group offers CFO Services?
- Trust Distributions – Draft Section 100A – What you need to know?
- JobKeeper 2.0 – Extension 2 Commencing Soon
- It’s time to apply for a Director Identification Number (DIN)
- NSW State Budget 2020-21 – Economic Stimulus Packages
- Do yourself a Service – Partner with YML’s Bookkeeping Service and be ready for FYE 2022
- Would your business withstand one of its key people falling ill or dying?
- Superannuation Guarantee Amnesty – Self-Correct your past Super Guarantee Liability
- Be ready before refinancing or applying for a new loan
- Non-Residents and SMSFs – Tax Alert!
- Managing your Money through this Crisis!
- Proposed Partner Visa Changes – NEW Two-Step Process
- YML Insight – Special Edition COVID-19
- Divorce Order – Self-Managed Superannuation Funds (SMSF
- FBT 2020 – What do you need to consider?
- Annualised Salaries – New Rules from 1 March 2020
- ATO Increased Audit Activity – Including JobKeeper
- JobMaker Hiring Credits – Explained
- Economic Stimulus Package – JobKeeper Payment
- Superannuation and Pension Payment Changes
- Should I ‘fix’ my home loan?
- Economic Stimulus Package – Small Business Grants
- Working with Remote Staff – Business Process Outsourcing
- HR in the Australian Hospitality Sector – Specialist Service Available
- ATO Payment Arrangements – Avoid Overseas Travel Ban
- Australian Director Identification Number (DIN) – Introduction
- Refinance and get up to $4k bonus OR renegotiate with your current lender?
- JOBKEEPER INCENTIVE – ENROLMENT REQUIRED 30/04/20
- GOVERNMENT INCENTIVES UPDATE
- Taxable Payments – New Compliance for Couriers and Cleaners
- Superannuation Guarantee Amnesty 2020
- Government announces Changes to the Working Holiday Maker Programme
- NEWS! CGT Main Residence Exemption to End for Foreign Residents
- EOFY Removal of Main Residence CGT Exemption for Non-residents
- YML Insight July 2015
- Economic Stimulus Package Updates
- Land Tax NSW – Have you registered? Will you pay a surcharge?
- BUY / SELL Insurance – What is it and how can it help your business?
- YML Insight August 2015
- Working from home: What deductions can you claim?
- CBA has increased its 4-year Fixed Rate – Is now the time to fix your loan
- COVID-19 – Rent Moratorium + Financial Support
- Applying For A Mortgage Is No ‘Walk in the Park’
- NEW Superannuation Contribution Caps from 1 July 2021
- MyGov – What is it and how do you apply?
- SMSF – Would it suit you?
- Cryptocurrency – What are the Taxation Implications?
- Small Business – Fees & Charges Rebate – Up to $1500
- Economic Stimulus Package – Small Business Grants
- Small Business Instant Asset Write-Off : NOW up to $25,000
- POWER BI - BUSINESS DATA TOOL
- Employees : Time and Attendance Platforms
- When are Superannuation Pensions available to Younger People?
- COVID-19 – Travel Bans and Exemptions
- Australia’s Federal Budget 2021-22 – What’s new and what’s in it for you?
- Australian Taxes Payable as a Foreign Resident
- COVID-19 – Workers Compensation and JobKeeper
- Car Loans - In your Business or Personal Name?
- Funding to help small businesses re-open after COVID-19
- Is it time you outsourced your business processes with YML?
- Digital Automation supporting Remote Work
- The Importance of Estate Planning
- Superannuation Increases – Trust Members + Contribution Caps + Guarantee Contribution Base + Pension Caps – from 1 July 2021
- Is your lender charging your SMSF a KILLER interest rate?
- Property Development – Deed of Partition and Transfers (NSW)
- Buying Property through your SMSF
- FBT 2019 – What’s new?
- Tax Time Checklist for Individuals
- Single Touch Payroll – NOW Mandatory for ALL Businesses
- Economic Stimulus Package Updates
- Should I leave my savings in the offset or in the redraw?
- Virtual Bookkeeping at your Service
- Splitting your Superannuation Contributions with your Spouse – A Way to a Better Retirement for Couples
- Tax Planning and Restructuring to suit your Business
- Economic Stimulus 2021 – Latest Government Incentives – What can your business receive?
- Federal Budget 2019 – Immigration to Australia NEWS
- Superannuation Contribution Laws are changing – Boost your Retirement Savings from 1 July 2022
- NOW is the time to consider your Year-End Super Contributions
- Economic Stimulus 2021 – Latest Government Incentives – What can your business receive?
- Federal Budget May 2016 - Superannuation and Social Security
- Buy your own Premises NOW – Business Loans at 2.45% per annum
- Federal Budget 2014-15 Update
- NOW is the time to re-look at your SMSF loan’s interest rate
- Federal Election 2019 Outcome – What it means for you
- Deduction of Interest on Vacant Land – Draft Ruling
- STP – COMPULSORY Cloud-based Payroll Reporting
- 2022 Year-End Tax Planning – Our Tips
- AI and RPA changing the Future of Work
- SuperStream Deadline for Small Employers
- Superannuation Year End Considerations Continue!
- YML Insight February 2015
- Happy NEW Financial Year – ATO Changes Update
- Economic Stimulus Package Updates – JobKeeper 2.1
- Does your SMSF have an investment strategy?
- Business Process Outsourcing (BPO) – Remote / Offshore
- YML Insight March 2015
- General Outsourcing Services provided by YML
- How to get on top of your finances post COVID-19
- Other Topics
- RPA
- FAMILY TRUST DEED VARIATION
- ENCOURAGING NEWS FOR Permanent residency (pr) APPLICANTS
- WORK RELATED CAR EXPENSES - WHAT'S LEGAL?
- WHAT IS THE BEST WAY TO PAY OFF YOUR DEBTS?
- Business Protection Insurance
- Aiming to Make a Final Non Concessional Superannuation Contribution for 2016? Be Careful!
- Getting Organized and Planning Effectively This EOFY
- New Withholding for Non Residents
- Four Per Cent Stamp Duty Surcharge for Overseas Investors Buying Residential Real Estate in NSW
- Co-Sourcing: An Alternative To Out-Sourcing
- What Small Business Expenses Can You Claim?
- Israeli Tax of Trusts
- New Superannuation Rules
- YML Group App - Coming Soon
- Obtaining a Business Skills Visa
- Quick Tips to Pay Off Your Mortgage Sooner
- FBT on Christmas Gifts and Tax Deductibility of Christmas Parties
- Changes to the Assets Test for Centrelink Aged Pensions from January 1st 2017
- Why You Should Consider Co-Sourcing for your Business
- Is It Worth Fixing Your Loan?
- Co- Sourcing
- Shareholder's Agreements
- Tax
Integrated Financial Services
Australia’s Federal Budget 2021-22 – What’s new and what’s in it for you?
The Australian Government’s 2021-22 Federal Budget is based on numerous assumptions: a vaccinated Australian population, state borders remaining open, mitigation of COVID-19 outbreaks and a restrained, calculated reopening of Australia’s international border.Treasurer Josh Frydenberg stated in Parliament last night, “Mr Speaker, this pandemic is not over”. The Government’s priority is to keep Australia and its inhabitants safe from COVID-19, thus the Treasurer began early with the announcement of an injection of $1.9 billion for the vaccine rollout and $1.5 billion for COVID-19-related health costs.
Generally, the Budget extends many existing schemes and policies, expanding some with additional funds to create further stimulus and maintain momentum of Australia’s economic recovery. Job recovery support, training support and tax relief are key areas of focus for the Government and these, along with Australia’s financial status and this Budge’s incentives for Australians, are explained.
Australia’s Economy
Australia’s Treasurer, Josh Frydenberg, has revealed a lower-than-expected deficit of $161 billion in 2020-21, revised down by $52.7 billion. He announced a deficit fall to $57 billion by 2024-25. Australia’s deficit remains a ‘structural’ one for the foreseeable future.
Australia’s gross debt is expected to be 40.2% of GDP ($829 billion) this year and then stabilise at around 51% of GDP in the medium term, whilst Australia’s net debt will increase to 30% of GDP ($617.5 billion) this year and then peak at nearly 41% of GDP in 2024-25.
Although debt levels are high, the Treasurer spoke of the economy rebounding effectively from the depths of last year’s pandemic-related ‘recession’.
Unemployment remains above 5 per cent this year but is lower than the previously predicted 8 per cent or more. By 2022-23 unemployment is anticipated to be at a rate of 4.75 per cent.
International Borders
The Government will begin a measured approach to reopening Australia’s international border by mid-2022 with limited and gradual inbound and outbound flows.
TAXATION – BUSINESS
Extension – Capital Asset Investment Deductions & Carry-back Company Losses
The Treasurer announced the extension of two business tax incentives to help businesses that invest in their future. These two schemes will lift productivity and employment, leading to a boost in GDP, over the short to medium term and together they will deliver an additional $20.7 billion in tax relief over the next three to four years.
Under the Capital Asset Investment Deductions Scheme, businesses with less than $5 billion in turnover who invest in their future, may fully expense new depreciable assets – uncapped purchase cost – and the cost of improvements to existing eligible assets in the first year of use – acquisition of eligible capital assets from 7:30pm AEDT on 6 October 2020 and first used or installed by 30 June 2023.
The full expensing of capital asset investment will generate tax losses for some companies. Therefore, for eligible companies with less than $5 billion in turnover, losses may be applied against taxed profits in a previous year, thereby generating a refundable tax offset in the year in which a loss is made. The Carry-back Company Losses Scheme has been extended for another year to include losses up until 30 June 2023.
NEW – Tax Incentives for Innovation
To encourage investment in Australian medical and biotech technologies, on 1 July 2022 the Government will introduce a ‘patent box’ – to keep patents in Australia – that will reduce taxes – to a 17% concessional rate – on income from innovative research undertaken in Australia. This incentive complements the previously announced (Budget 2020-21) Research and Development Tax Incentive (due to be reviewed by the end of 2021).
To encourage Australia’s digital games industry and foster its growth, the Government will introduce a 30 per cent refundable tax offset – capped at $20 million a year – to digital game developers for eligible Australian games expenditure.
TAXATION – INDIVIDUALS
Extension – LMITO
The Treasurer announced an injection of $7.8 billion to continue the tax cuts for 10.2 million low- to middle-income earners. This extension of the LMITO (Low and Middle Income Tax Offset) will mean a tax reduction of up to a maximum of $1,080 for individuals with a taxable income of between $48,000 and $90,000 during the 2021-22 financial year. Couples will receive a tax reduction of up to a maximum of $2,160.
Taxable Income Amount | LMITO |
$37,000 or less | $255 |
> $37,000 but < $48,000 | $255 plus 7.5% of the amount > $37,000 |
> $48,000 but < $90,000 | $1,080 |
> $90,000 but < $126,000 | $1,080 minus 3% of the amount > $90,000 |
This table shows Current Tax Thresholds for Individuals in Australia:
Tax Thresholds | ||
Tax Rate | Current | From 1 July 2020 |
0% | $0 - $18,200 | $0 - $18,200 |
19% | $18,201 - $37,000 | $18,201 - $45,000 |
32.5% | $37,001 - $90,000 | $45,001 - $120,000 |
37% | $90,001 - $180,000 | $120,001 - $180,000 |
45% | >$180,000 | >$180,000 |
LITO | Up to $445 | Up to $700 |
INCENTIVES FOR SENIORS
Superannuation
From 1 July 2021 Australians over the age of 60 years – previously 65 years – will be able to make a one-off, post-tax contribution to their superannuation fund. This contribution may be up to $300,000 for one person or up to $600,000 for a couple and may be made only upon the sale of their home.
The purpose of this new policy is to encourage older Australians to “consider downsizing… freeing up the stock of larger homes for younger families” (Treasurer Josh Frydenberg).
Pension Loan Scheme
For those retirees not wanting to sell their home and downsize but who do want to improve their retirement income, the Pension Loan Scheme has been changed in this Budget to enable lump-sum cash payments from superannuation funds to eligible retirees.
By borrowing against their homes, retirees can receive a cash lump sum up to $12,385 for singles and up to $18,670 for couples with the loan payable upon the eventual sale of their homes.
The Government intends to encourage uptake of this scheme by spending $21.2 million, partly on targeted communication.
UNDERWRITING HOME OWNERSHIP
Extensions – Home Ownership Schemes
A temporary extension and expansion of the First Home Loan Deposit Scheme will see an additional 10,000 New Home Guarantees in 2021-22, available from 1 July 2021 and enabling eligible buyers to purchase a home for a minimum of 5% deposit without mortgage insurance.
The First Home Super Saver Scheme has also been expanded to enable eligible first home buyers to access up to $50,000 – an increase from $30,000 – of their tax-free superannuation contributions to boost their deposits.
NEW – Home Ownership Scheme
The Australian Government’s new Family Home Guarantee Scheme will provide financial assistance in the form of a deposit guarantee to a select 10,000 new home buyers over four years – specifically, eligible single parents with dependent children – of 18% of the purchase price of a home, leaving the home buyer to purchase a home with a 2% deposit.
JOBS AND TRAINING
Extension – JobTrainer and Boosting Apprenticeship Commencements
To help the economy prosper post-COVID-19, JobTrainer, the Government’s investment in skills of young people and job seekers, providing 450,000 free and low-fee training places (in fields of skills shortages such as digital and aged care), has been extended until 31 December 2022. It has also been expanded by an additional $500 million commitment from the Federal Government – to be matched by state and territory governments, thus supporting hundreds of thousands of eligible people to enter the workforce.
An additional $2.7 billion will be allocated by the Government to extend the Boosting Apprenticeship Commencements program and support 170,000 apprenticeships and traineeships who commence by 31 March 2022. This commitment by the Government will see the continuation of a 50% wage subsidy available to eligible businesses that take on a new or recommencing Australian apprentice or trainee. This wage subsidy is capped at a maximum of $7,000 per quarter.
This year the Government has announced it will deliver policy to see services for 5,000 women to enter non-traditional apprenticeship.
FAMILIES
Childcare
To give parents, especially women, the opportunity to start a job or to undertake more work, a $1.7 billion investment in childcare will procure an average of $2,200 a year for families who have more than one child in childcare. Benefiting low- to middle-income families, this incentive is expected to deliver higher workforce involvement by parents.
For more info, visit Federal Budget 2021-22.
How can YML help?
We hope that this guide helps you to navigate the 2021-22 Federal Budget. Please talk to our Accountants today if you would like to engage YML Chartered Accountants to manage your ‘road to recovery’. Contact us on (02) 8383 4400 or by visiting the Contact Us page on our website.
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