The return of the Scott Morison led Liberal government signals a raft of new tax changes on the horizon. Fortunately the majority will be for the positive, as opposed to the Labour party alternative which would have sent shockwaves through the Australian economy.
We can look forward to personal tax cuts, including changes to the tax thresholds and rates delivering tax savings, along with 83 tax and superannuation changes that were put on hold when the federal election was announced.
The most notable of these includes :
- Tax deductions for certain deductions denied where associated withholding obligations have not been complied with. For example, payments for salaries and wages are denied where PAYG withholding obligations have not been withheld or no notification is made to the commissioner. Should you find PAYG withholding obligations that have not been met, we recommend making a voluntary disclosure to the commissioner.
In addition, contractor arrangements should be closely examined to ensure correct classification. An employer will not only be at risk for unpaid PAYG withholding and compulsory superannuation guarantee payments, but will also be at risk of being denied a tax deduction for such payments if the withholding obligations are not complied with.
- The instant asset write-off has been expanded to include a threshold increase to $30,000, and to include medium-sized businesses with a turnover of less than $50 million.