During the Tax Time 2019 session at Synergy, we covered; what lies ahead for you in 2019, tax changes you need to know, how it will impact you and your clients when preparing all the tax returns types.
Here are 5 items that might be of interest this tax time.
1. Personal income tax plan
Summary
The Personal Income Tax Plan was announced in the 2018-19 Budget and delivers a new low and middle-income tax offset, changes to the existing low-income tax offset and various threshold changes over the next seven years.
There were further changes announced in the 2019-20 federal budget which will affect the existing offsets and thresholds if enacted.
Impacts
Changes have been made to the live tax estimate, the estimate summary and the audit trail in Tax Assistant and Onvio.
2. Combined HELP measures
Summary
This legislation changes the minimum repayment income thresholds and repayment rates effective from 1 July 2019.
From 1 July 2019, the Student Financial Supplement Scheme (SFSS) under the Student Assistance Act 1973 and Social Security Act 1991 will become part of the repayment hierarchy, where it will be repaid after the payment of the HELP debt.
Impacts
Standard annual changes to the repayment income thresholds and rates for HELP, SSL, ABSTUDY SSL, TSL and SFSS.
From 1 July 2019, all study and training loans will be covered by one set of thresholds and rates.
3. Expanding accelerated depreciation for small business
Summary
The instant asset write-off threshold has increased to $30,000 for each asset from 7.30pm (AEDT) 2 April 2019 and the instant asset write-off has been extended to 30 June 2020.
Impacts
Businesses with a turnover from $10 million to less than $50 million may be eligible for the instant asset write-off for assets purchased for less than $30,000 each from 7.30pm (AEDT) 2 April 2019 to 30 June 2020. For assets purchased for $30,000 or more, the general depreciation rules must be used.
4. Payment summary changes through Single Touch Payroll
Summary
If an employer reports through Single Touch Payroll they are not required to provide a payment summary to their employees.
Income statements will replace payment summaries. Employees can access their income statements through ATO online services via myGov, at any time. Employees will receive a notification from us in their myGov inbox when their income statement is ‘Tax ready’, so they can complete their tax return.
Employees will be able to contact the ATO for a copy of their income statement if they do not have access to myGov.
5. Downsizer contributions into superannuation
Summary
The contributing the proceeds of downsizing to superannuation measure was one of several measures announced in the 2017-18 Budget as part of the Government’s package of reforms to reduce pressure on housing affordability.
Older Australians choosing to sell their home and downsize or move from homes that no longer meet their needs are provided with the benefit of being able to contribute the proceeds from the sale of their home into superannuation.
Schedule 2 to the Bill allows an individual to use the proceeds in relation to one sale of their main residence to make contributions (downsizer contributions) of up to $300,000 to their superannuation provider if they are 65 years of age or over and meet all the eligibility requirements.
Impacts
Two new labels have been implemented in Tax Assistant to accommodate this change:
- Members Statement – Labels H1 and H2.
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