Daily Archives: June 13, 2021

Assessing the Federal Government’s fiscal policy response to the COVID-19 pandemic

The 2021-22 Federal Budget marks the final main instalment in the Federal Government’s fiscal policy response to the COVID-19 pandemic, barring any mishap in which there is a severe outbreak before most of the population has been fully vaccinated. So, it is timely to assess fiscal policy in the COVID-19 era. Five lessons are drawn…

Year end tax planning Part 2 – Div 7A minimum payment ‘hardship’ relief; start of 25% corporate ‘base rate’; temporary ‘full expensing’ measures; and no deductions for holding costs on vacant land or travel expenses to inspect rental properties

Further year end tax planning points (many of them less obvious) include: making hardship applications, if Div 7A minimum payments can’t be made, this year; the start of the 25% tax rate and franking rate, for ‘base-rate’ companies, with an aggregate turnover under $50m; JobKeeper derivation; crypto-currencies realisation issues; vendors claiming a credit for any tax…

Year end tax planning Part 1 – Div 7A sub-trust arrangements maturing, new TFNs to ‘closely held trusts; ‘family trust elections’ & distributions; year end superannuation contribution issues for members and employers

The end of the financial year is coming (30.6.21) and here is a short discussion of a list of some of the more esoteric issues that can trap the unwary – Div 7A ‘sub-trust’ arrangements that mature this year; reporting TFN’s to new trustees or for new beneficiaries of ‘closely held trusts’; distributions by trusts…