Dear clients,
It’s a new financial year and here is a list of changes that may affect your personal and business tax for FY 2022 (01/07/2021 to 30/06/2022)
BUSINESS TAXATION
CONTINUING
Temporary full expensing: extended to 30 June 2023
The Government will extend the temporary full expensing measure until 30 June 2023. It was otherwise due to finish on 30 June 2022.
Other than the extended date, all other elements of temporary full expensing will remain unchanged.
Loss carry-back extended by one year
Under the temporary, COVID driven restoration of the loss carry back provisions announced in the 2020-21 Budget, an eligible company (aggregated annual turnover of up to $5 billion) could carry back a tax loss for the 2019-20, 2020-21 or 2021-22 income years to offset tax paid in the 2018-19 or later income years.
https://www.ato.gov.au/Business/Loss-carry-back-tax-offset/
NEW
Expanded access to small business concessions
From 1 July 2021, businesses that are not small businesses because their turnover is $10 million or more but less than $50 million can also access these small business concessions:
- simplified trading stock rules
- PAYG instalments concession
- a two-year amendment period
- excise concession.
Small business to be able to pause disputed ATO debt recovery
On 8 May 2021, as part of the 2021–22 federal Budget, the Australian Government announced it will make it easier for small business to pause debt recovery action. This measure is not yet law.
SUPERANNUATION
NEW
Super guarantee rate increased to 10% from 1 July 2021
On 1 July 2021, the super guarantee rate will rise from 9.5% to 10%. If you have employees, you will need to ensure your payroll and accounting systems are updated to incorporate the increase to the super rate.
Concessional contribution cap and Non-concessional contribution cap raised
From 1 July 2021, the superannuation concessional and non-concessional contribution caps will be indexed. The new caps will be:
| Year | Concessional Cap | Non-Concessional cap |
| 2021-22 | $27,500 | $110,000 or $330,000 over 3 years |
https://www.ato.gov.au/Super/Sup/Super-contribution-caps-will-increase-from-1-July-2021/
PERSONAL TAXATION
CONTINUING
Tax rates
Personal tax rates are unchanged for 2021-22.
https://www.ato.gov.au/rates/individual-income-tax-rates/
Low and middle income earner tax offsets (LMITO) will continue to apply for 2021-22 income year.
Home office expenses
Temporary home office expenses shortcut method is extended to 30 June 2021
You can see these and other changes: at the following ATO link:
https://www.ato.gov.au/Tax-professionals/Prepare-and-lodge/Tax-Time-2021/Overview-of-key-changes/
Please call if required
THE VJC ACCOUNTING TEAM
General Advice warning: the information in this article is general in nature, it is not advice specific to your needs. If you want to act upon the information in this article then you should seek advice from a qualified professional. VJC WM accepts no liability to any party for acting from this information unless they have sought advice in a formal engagement with VJC WM for this purpose.
