September 20, 2017
Andrew Lovett


FIFO workers now have superannuation opportunity


Recent changes are outlined below:

July 1, 2022

  • Loss carry back for eligible companies extended to cover 2023 income year.
  • Professional firm profits diverted to the professional's spouse or other associates to be reviewed under new Tax Office guidance.
  • Corporate collective investment vehicle legislative regime introduced.
  • Temporary full expensing of depreciating assets extended to include 2023 income year.
  • Depreciable assets of a company joining a tax consolidation group have tax costs setting rules modified for assets depreciated under temporary full expensing rules.

December 9, 2021

  • Reduced Pandemic leave disaster payment of $750 per week made available through to 30 June 2022.

August 5, 2021

  • COVID-19 Disaster Payments are non-assessable non-exempt income in 2021 income year and later. Payments phasing out as vaccination rates increase.

July 1, 2021

  • New Investment Engagement Service launched for businesses planning significant new investments in Australia.
  • Tax Office small business independent review service made permanent for businesses with turnover < $10m, for income tax, GST, exercise, luxury car tax, wine equalisation tax and fuel tax credits. Requested  before amended assessment issued.
  • Small business income tax offset for individuals increased to provide a reduction of 16% for a tax payable up to $1,000.
  • Self-managed superannuation funds can now have six members, increased from four members previously.

July 1, 2021

  • Some COVID -19 state and territory business grants received by small and medium enterprises are non-assessable, non-exempt income for 2021 and 2022 income years.
  • Certain state, territory and local government financial support for individuals and businesses suffering COVID-19 impacts made exempt where businesses have turnover less than $50 million and only in eligible programs.

March 31, 2021

  • JobKeeper payments scheme ended.

October 5, 2020

  • Boosting apprenticeship commencements subsidy (up to 50% of apprentice's wages) is assessable income.

June 4, 2020

  • Homebuilder grant for new home or substantial renovation construction is not subject to income tax.

April 1, 2020

  • COVID-19 cash flow boost payments are not subject to income tax

A big superannuation disadvantage existed for fly-in fly-out resources professionals working overseas for a foreign company. The foreign company is not obliged and probably not able to make superannuation contributions and the professional was not able to make deductible personal contributions.The problem for an overseas FIFO professional was this:

  • She is likely a resident of Australia for tax purposes
  • The foreign employer can’t or won’t make superannuation contributions
  • The mining professional would like to get tax deductions for personal contributions
  • The requirement was, in effect, to be ‘self-employed’ and satisfy the 10% test
  • That test requires less than 10% of overall income to come from ‘employment’
  • The FIFO arrangement was deemed ‘employment’ for super guarantee purposes
  • The 10% rule could not be met
  • Reasonable and substantial tax deductions are not available and
  • She is assessed for tax in Australia on the foreign income.

The Government announced Budget measures to fix this problem in May 2017. Good news! They have now eliminated the 10% test and, provided the contribution is to a complying superannuation fund and the appropriate paperwork is completed, a deduction is available for the FIFO worker.Always seek specific advice tailored to you own affairs before making financial decisions.12 September 2017Andrew Lovett

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