Yearly Archives: 2017

Employee share scheme tax rules – reform put on hold [6]

It had been expected that the Budget might announce long-awaited changes to essentially simplify Div 83A ITAA 1997 governing the application of the employee share scheme (ESS) rules, however, the Budget was silent on this. The rules, which have operated since 1 July 2009, have been repeatedly criticised as too complex and in need of simplifying and that…

Reduction in R&D offset rates by 1.5% – refundable from 45% to 43.5% and non-refundable from 40% to 38.5% [5]

The rates of the refundable and non-refundable R&D tax offsets will be reduced by 1.5 percentage points, with effect from 1 July 2014. This means that the refundable offset will be reduced to 43.5% and the non-refundable offset will be reduced to 38.5%. The refundable offset is available to R&D entities with an aggregated annual turnover of…

*SME instant asset write-off up to $6,500 – small businesses still in limbo over threshold [4]

The mining tax legislation as originally passed contained associated income tax measures, one of which was increasing the instant asset write-off (ie the outright deduction for low value assets) for small business entities (ie generally, those with aggregated turnover of less than $2m) to $6,500. However, the Government’s Minerals Resource Rent Tax Repeal and Other…

*Announced but unenacted measures: further progress – charities; s 25-90; consolidation; foreign residents; etc [3]

The Budget papers contain further developments in relation to various tax and superannuation measures that have been announced by former governments but not yet legislated. These are set out under the headings below. Exempt income of charities: no change The previous Government announced in the 2011-12 Budget that the tax concessions provided to charities and…

Medicare levy thresholds for families increased for 2013-14 from $33,693 to $34,367 [2]

From the 2013-14 income year, the Medicare levy low-income thresholds for families will be increased to $34,367 (up from $33,693 for 2012-13). The additional amount of threshold for each dependent child or student will also be increased to $3,156 for 2013-14 (up from $3,094). Note that the Medicare levy low-income threshold for individuals will remain…

*Budget deficit levy (tax) of 2% to apply for 3 years from 1 July 2014 for incomes over $180,000; FBT rate increase [1]

As foreshadowed before the Budget, the Government announced the introduction of a Budget deficit levy (tax), to apply for 3 years commencing on 1 July 2014. It is formally known as the Temporary Budget Repair Levy. The temporary levy will apply at 2% for incomes over id=”mce_marker”80,000 ie 2% on taxable income in excess of id=”mce_marker”80,000. Individuals…

Tax Month – May 2014

M o r g a n’ s   T a x   M o n t h – May 2014 Developments – This is a collection of developments in Australian tax law and practice that occurred in May 2014 and which aims at being of relevance to tax lawyers.* F John Morgan A member of the Victorian…