Late last year, the Government released a number of Tax and Superannuation measures in its Mid-year Economic and Fiscal Outlook (MYEFO).
Cash payment limit — the 1 July 2019 start date for the proposed 2018 Budget measure to introduce an economy-wide cash payment limit of $10,000 will be revised to 1 July 2020.
Tax debt information disclosure — a 2016-17 MYEFO measure allowing the ATO to disclose to credit reporting bureaus, the tax debt information of businesses with tax debt of more than $10,000 and who have not effectively engaged with the ATO to manage these debts, will be amended to limit the disclosure to businesses with a tax debt of more than $100,000. The start date of the measure will also be changed from 1 July 2017 to the day after assent of amending legislation.
Genuine redundancy payments — from 1 July 2019, the age below which individuals can receive genuine redundancy and early retirement scheme payments will be aligned with the Age Pension qualifying age. This will ensure all individuals below the Age Pension qualifying age will have access to the tax concession that makes part of a genuine redundancy payment tax-free. Currently, individuals aged 65 and over are not eligible to receive a genuine redundancy payment, including the tax-free component, because of their age at the time of their dismissal.
Deductible Gift Recipient (DGR) administrative reforms — the start date of reforms to the administration of DGRs announced in December 2017, including ensuring that non-government DGRs will be automatically registered as a charity with the Australian Charities and Not-for-profits Commission, will be revised from 1 July 2019 to 1 July 2020.
The government confirmed that it will not proceed with the self-assessment of the effective life of acquired intangible assets that are depreciating assets.
Superannuation guarantee obligations — employers who fail to come forward during the proposed 12-month superannuation guarantee amnesty and are subsequently caught will face an increased minimum penalty of 100 per cent of the superannuation guarantee charge (increased from 50 per cent).
Comprehensive income products in retirement — superannuation trustees will be required to develop and offer a comprehensive income product for retirement to members from 1 July 2022, and provide information and guidance to help members choose suitable retirement income products from 1 July 2020.
Early access to superannuation — victims of certain crimes, such as serious violent crimes, with unpaid or partially paid compensation orders will be able to access money held in their perpetrator’s superannuation to pay the outstanding compensation. The measure will commence 12 months after the relevant legislation receives assent.
For more information about any of these measures, please don’t hesitate to contact our office.