In addition to a range of macro considerations, the new President of the Tax Institute: Jerome Tse, lists some specific technical issues that will arise, for further consideration (if not resolution) in 2022. This was in the Institute’s first TaxVine email, to members, for the year.
What’s on the radar for 2022?
2022 will be another big year in tax. Beyond the Federal Budget and the election, there are a number of issues which our members will need to be on top of, including but certainly not limited to the following:
- Allocation of professional firm profits — Following the release of PCG 2021/4 on 16 December 2021, members can access a detailed overview of the PCG. We will also be running webinars and providing our members with various tools and resources to assist with the administrative requirements associated with this PCG.
- Section 100A and Division 7A — We eagerly await the release of new ATO guidance material (including a draft public ruling) concerning the purpose of s 100A (of the ITAA 1936) and the ‘ordinary family or commercial dealing’ exclusion, as well as new guidance on Division 7A. The ATO website advises that this is expected to be completed in February 2022. We will keep our members abreast of information as it comes to hand and provide various tools and resources to support our members.
- STP — Phase 2 of Single Touch Payroll (STP) reporting commenced on 1 January 2022 unless the employer’s digital service provider has a deferral. The ATO is allowing a flexible approach to transition by allowing employers to start reporting by 1 March 2022. The ATO has released detailed guidelines to assist employers transition to Phase 2 of STP reporting.
- Individual residency — In addition to the ATO’s decision impact statement on the Addy case, there is likely to be a significant overhaul to the residency rules for all taxpayers. Following the announcement in the Federal Budget 2021–22, the individual tax residency rules will be updated with a new framework as recommended by the Board of Taxation in its 2019 report.
- TPB — The implementation of the James’ review of the Tax Practitioners Board continues and we should see more public information in this regard.
[Tax Month – January 2022 – Previous 2021] 28.1.22