Outcome of Budget 2020-21
- Cash Deficit of $134.20 Billion.
- Total Receipts increased by $20.10 Billion.
- Total Payments were reduced by $6.70 Billion.
- Net Debt was $592.20 Billion as of 30th June 2021 (Lower than forecasted previously).
ATO/ASIC Regulatory Updates
ATO expresses concerns on Income in disguise as Gifts/Loans
- The ATO is concerned about the taxpayers’ failure to declare the offshore assessable income in their Australian Income Tax Returns.
- The ATO also highlighted that the Australian Taxpayers, despite awareness of their residential status and tax implications, attempt to evade tax on their offshore income by disguising the funds received as Gifts/Loans from the related overseas entity.
- The ATO will be using its exchange of information power to gather information from other countries to cross verify the assessable income derived by the Australian Taxpayers.
Job Keeper – Disclosure requirements for Listed Companies
- ASIC has issued a notice creating an obligation for the Listed Companies to disclose the information relating to the Job Keeper payments received.
- This disclosure is to be made to comply with s323DB of the Corporations Act, 2001.
- This disclosure to the market is to be made by 13th November 2021 or within 60 days from the date of lodging their Financial Report to the ASIC, whichever is earlier.
Work from Home – Another Extension to the Shortcut Method
- The shortcut method of claiming the WFH expenses are again extended up to 30th June 2022.
ATO 2020-21 Annual Report
|Net Tax Collections||2020-21 – $451.40 Billion
2019-20 – $401.50 Billion
|Job Keeper Overpayments identified||Overall – $470 Million
Recovery – $180 Million up to 30th June 2021
|Stimulus Packages Delivered during 2019-20 and 2020-21||Job Keeper Payments – $88.80 Billion
Job Maker Hiring Credit Payments – $6.6. Million
Early release of Superannuation Payments – $37.80 Billion
Cash Flow Boost – $35.70 Billion
Extension to COVID – 19 relief
The below administrative concessions are extended up to 30th June 2022:
- SMSF Residency Test
- Temporary Rent Relief
- Loan Repayment Relief
- Limited Recourse Borrowing Arrangements
- In–House Assets
Governance of an SMSF – APRA Review Findings
- Many trustees failed to measure and assess the anticipated and achieved benefits to beneficiaries of expenses on marketing campaigns and related activities.
- In many instances, trustees were not able to demonstrate how additional benefits from sponsorship resulted in any improved outcomes for members.
- Some trustees relied overly on external parties for unlisted assets valuations.