There are a number of superannuation measures that were proposed in the 2020 Federal Budget that come into effect on 1 July 2021:
- Concessional (before-tax) contributions cap to increase from $25,000 to $27,500
- Non-concessional (after-tax) contributions cap to increase from $100,000 to $110,000
- General transfer balance cap to increase from $1.6 million to $1.7 million.
Reducing Superannuation Minimum Drawdown Rates
The 50% reduction in the minimum pension drawdown requirements remain for the 2021–22 income year, to support retirees with account-based pensions and similar products from having to sell investment assets in their self-managed super funds (SMSF) to fund minimum drawdown requirements.
Capital Gains Tax
Exempting Granny Flat Arrangements
From 1 July 2021, a targeted capital gains tax (CGT) exemption will be provided for granny flat arrangements where there is a formal written agreement.
The exemption will apply to arrangements with older Australians or those with a disability.
Small Business CGT Concessions
Be aware of the additional basic condition for the small business CGT concessions if the CGT asset is a share in a company or interest in a trust.
Fringe Benefits Tax
FBT Rates & Thresholds for 31 March 2022
- FBT rate remains at 47%
- Record keeping exemption threshold increased to $8,923
- Car parking threshold increased to $9.25
- Statutory or benchmark interest rate decreased to 4.52%
- Small business turnover threshold for FBT concessions is $50 million
The ATO has released an update to broaden the definition of what constitutes a commercial parking station which could potentially increase the FBT liability of some businesses. Car parks such as shopping centres, hospitals, hotels and the like that were previously not considered commercial for the threshold and valuation tests may now fall within the new definition.
If you are not sure whether your business is eligible for car parking FBT exemption or is potentially affected by the new definition of a commercial car park, please contact us for advice.
If you need any support with reviewing your business systems and performance monitoring tools, call my office on 3399 8844 and we will give you a FREE Business Systems Check. You can also visit our website at www.straighttalkat.com.au and complete your details on our Home page to request a free appointment.
Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.