We are glad to share our April edition of Monthly update. Below are ATO and other major updates up to March 2020.
FBT – Living away from Home Allowance reasonable amounts
Taxation Determination TD 2020/4 sets out the weekly amounts, the ATO treats as reasonable for food expenses incurred by employees receiving a LAFH allowance Fringe Benefit for the 2020-21 FBT year as below:
|1 adult & 1 child||$345|
|2 adults & 1 child||$483|
|2 adults & 2 children||$552|
|2 adults & 3 children||$621|
|3 adults & 1 child||$621|
|3 adults & 2 children||$690|
|For additional family members over the above||$138 added for each adult & $69 added for each child|
FBT – Private usage of a Motor Vehicle other than a Motor Car – FBT Year 2020-21
|Vehicles with an Engine Capacity of up to 2,500 cc||56 cents/km|
|Vehicles with an Engine Capacity of over 2,500 cc||67 cents/km|
ATO’s flags concerns about SMSFs & Property Development
- The ATO said it is concerned about SMSFs entering certain arrangements with related or unrelated parties.
- The mentioned arrangement involves the purpose & development of a real property for subsequent disposal & leasing.
- Even though there are no prohibitions on such arrangements, the ATO says this could be used in diverting the income into the SMSF.
- The ATO also said some arrangements appear to manipulate the members’ transfer balance accounts.
- This manipulation can be by deliberately undervaluing an asset at retirement phase to allow a greater amount of earnings within the SMSF to be treated as exempt pension income.
Super Guarantee Amnesty Bill receives assent
- The amnesty period runs from 24th May 2018 to 7th September 2020 (11:59 PM).
- Employers who come forward to disclose the SG dues after 6th March 2020 need to apply for amnesty using the ATO approved amnesty form.
- Under the scheme, self-correction of underpayments is allowed without any additional penalties. However, still the interest @ 10% is payable on the shortfall amount but the administration fee of $20 is waived.
- Tax deduction for the SG payments made during the amnesty period are allowed.
- Failing to take advantage of the amnesty scheme withing 7th September 2020 will result in a minimum of 100% penalty on top of the SG shortfall.
COVID-19 Economic Response Bills receive Assent
The COVID-19 Economic Response Package of Bills have received Royal Assent. The package of 8 bills, which are now law include the below:
- Coronavirus Economic Response Package Omnibus Bill 2020
- Boosting Cash Flow for Employers (Coronavirus Economic Response Package) Bill 2020
- Assistance for Severely Affected Regions (Special Appropriation) (Coronavirus Economic Response Package) Bill 2020
- Appropriation (Coronavirus Economic Response Package) Bill (No. 1) 2019-20
- Appropriation (Coronavirus Economic Response Package) Bill (No. 2) 2019-20
- Structured Finance Support (Coronavirus Economic Response Package) Bill 2020
- Australian Business Growth Fund (Coronavirus Economic Response Package) Bill 2020
- Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Bill 2020