January 3, 2012
Andrew Lovett


November 2011 - A day in the tax life of…


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

… previously on tax life …

Sam had got the new business off the ground and been through the ups and downs of winning orders and then weathering a quiet patch in the business cycle. It was time for some long-term personal and financial planning.


Sam's husband Joe had been on at her for quite some time about going to see a financial planner. Sam had been dubious about doing this because she was not interested in investing in shares or complicated managed funds. Joe continued to nag… Financial planners don't just put you into shares… There are a lot of things to think about. Right now you don't have any income protection insurance or life insurance. Your superannuation balance is not what it should be!

Finally Sam relented and together they went along to see Joe's old mate Brett Hooper. In an industry that, in the past, has been shrouded in some disrepute with failed financial planners, complex commission structures and sales techniques, Brett was quite a conservative type.

He went through a thorough checklist gathering all the facts and circumstances of Sam's financial situation and tried to tease her long-term financial objectives out of her. Apart from their home and a very small superannuation balance, Sam had put everything into the business. It was time to now start planning towards pulling some funds out of the business and protecting them for the long-term.

It really surprised her to think through what was necessary in terms of the capital base to support a comfortable lifestyle in retirement. A modest weekly retirement income of $700 or $800 per week or around $40,000 per year during retirement might cover off the bare essentials but they would surely want to do a lot of international travel and want to live better than that.

Apparently you need to have the least $900,000 put away to live comfortably in retirement and many people would need more than $1.5 million.Sam left the meeting galvanised to start saving towards retirement particularly when she found out that women receive less than 50% of the superannuation benefit payouts that men receive, when the averages are taken into account.

The plan was starting to come together:

  • Review of life, disability and income protection insurances;
  • Review of estate planning documents;
  • Plan to substantially increase contributions to superannuation and consider establishing a self-managed superannuation fund;
  • Better management and optimising the tax-deductibility of Sam's loans and debt; and
  • The start of succession planning (long-term) for the business.

It's a good thing to start getting is underway now, she thought to herself.

… Stay tuned …


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