John Morgan is a tax specialist lawyer of more than three decades experience now practicing at the Victorian Bar - w: www.FJMtax.com e: f.john.morgan@vicbar.com.au

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…

*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…

Australia and the US sign agreement on FATCA and enabling Act will follow [72]

The Treasurer has announced that Australia and the United States on Mon 28.4.2014 signed an intergovernmental agreement (IGA) to reduce the burden on Australian financial institutions in complying with the United States’ Foreign Account Tax Compliance Act (FATCA). FATCA is a US information-reporting regime that will commence on 1 July 2014 and will affect a large part…