Temporary reduction in pension minimum drawdown rates extended"
The Government has announced an extension
of the temporary reduction in superannuation
minimum drawdown rates for a further year to 30
As part of the response to the coronavirus pandemic (and the negative effect on the account balance of superannuation pensions), the Government reduced the superannuation minimum drawdown rates by 50% for the 2019/20 and 2020/21 income years.
This 50% reduction will now be extended to the 2021/22 income year.
Super Guarantee rate rising from 1 July 2021
The super guarantee rate will rise from 9.5% to 10% on 1 July 2021, so businesses with employees will need to ensure their payroll and accounting systems are updated to incorporate the increase to the super rate.
ATO warns on ‘copy/pasting’ claims
The ATO is alerting taxpayers that its sights are
set on work-related expenses like car and travel
claims that are predicted to decrease in this year’s
Assistant Commissioner Tim Loh noted that COVID-19 has changed people’s work habits, so the ATO expects their work-related expenses will reflect this.
“We know many people started working from home during COVID-19, so a jump in these claims is expected,” Mr Loh said.
“But, if you are working at home, we would not expect to see claims for travelling between worksites, laundering uniforms or business trips.”
The ATO will also look closely at anyone with significant working from home expenses, that maintains or increases their claims for things like car, travel or clothing expenses:
“You can’t simply copy and paste previous year’s claims without evidence.”
“But we know some of these unusual claims may be legitimate. So, if you explain your claim with evidence, you have nothing to fear.”
Family assistance payments
The ATO has reminded individuals receiving Child
Care Subsidy and Family Tax Benefit payments
from Services Australia that they and their partners
must lodge their 2019/20 Individual tax returns by
30 June 2021. Lodgment deferrals with the ATO
do not alter this requirement.
Services Australia needs such individuals' income details to balance payments for Child Care Subsidy and Family Tax Benefit.
If tax return lodgment is not made by 30 June 2021:
- clients receiving Child Care Subsidy may lose their ongoing entitlement and/or receive a debt from Services Australia and have to repay the amount received in the 2019/20 financial year; and
- clients receiving Family Tax Benefit may miss out on additional payments, may also receive a debt from Services Australia and/or may have their fortnightly payments stopped.
Do you use the Small Business Superannuation Clearing House?
The ATO has advised employers intending to
claim a tax deduction for super payments that they
make for employees in the 2020/21 income year
that any such payments must be accepted by the
Small Business Superannuation Clearing House
('SBSCH') on or before 23 June 2021.
This allows processing time for the payments to be received by their employees' super funds before the end of the 2020/21 income year.
Car parking threshold for 2022 FBT year
The car parking threshold for the FBT year
commencing on 1 April 2021 is $9.25.
This replaces the amount of $9.15 that applied in the previous FBT year commencing 1 April 2020.
Luxury car tax thresholds
The ATO has updated the luxury car tax ('LCT')
thresholds for the 2021/22 financial year.
The LCT threshold for fuel efficient vehicles in 2021/22 is $79,659 (up from $77,565 in 2020/21) and the LCT threshold for other vehicles in 2021/22 is $69,152 (up from $68,740 in 2020/21).
Editor: Note that these thresholds determine whether LCT is payable, and are different from the luxury car depreciation limit of $60,733 for 2021/22.
New ATO data-matching programs involving property
The ATO has advised that it will engage in two new data matching programs dealing with property transactions, as outlined below::
- The ATO will acquire property management data from property management software providers for the 2018/19 through to 2022/23 financial years (relating to approximately 1.6 million individuals); and
- The ATO will acquire rental bond data relating to approximately 350,000 individuals from state and territory rental bond regulators bi-annually through to 30 June 2023.
Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.