Build-to-Rent Determination
The Government has issued the Income Tax Assessment (Build to Rent Developments) Determination 2024, outlining the criteria for a dwelling to be classified as an “affordable dwelling” within the build-to-rent framework.
The primary requirements are as follows:
- The rent payable for the dwelling must be 74.9% or less of the market value for the right to occupy the dwelling under the lease.
- The dwelling must be tenanted (or available for tenancy). For the most recent income year for which the Commissioner has issued a notice of assessment, the tenant(s) must fall into one of the following categories:
– An adult living alone with a taxable income of less than 120% of average annual earnings.
– Two or more adults living together with a combined taxable income of less than 130% of average annual earnings.
– One or more adults living with one or more dependent children, with a combined taxable income of less than 140% of average annual earnings.
Royal Assent
Superannuation (Objective) Bill 2023
This Bill, which establishes the objective of superannuation in legislation, has passed both Houses of Parliament and has received Royal Assent. It requires policymakers to evaluate any future changes to superannuation legislation to ensure they align with this objective.
Treasury Laws Amendment (Fairer for Families and Farmers and Other Measures) Bill 2024
Additionally, the Bill made amendments to the list of Deductible Gift Recipients (DGRs) and will take effect from 1 January 2025. The following entities were removed from the listed DGRs:
- Don Chipp Foundation Ltd
- Ian Clunies Ross Memorial Foundation
- Ian Thorpe’s Fountain for Youth Limited
- Layne Beachley — Aim for The Stars Foundation Limited
- National Congress of Australia’s First Peoples Limited
- Sir William Tyree Foundation
- SouthCare Helicopter Fund, and
- Lingiari Policy Centre.
Skip Foundation Ltd has been included in the list of DGRs for 30 June 2024 up to 1 July 2029.
Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Bill 2024
The bill makes several amendments, including:
- Incentives for investors to support new build-to-rent developments include increasing the capital works deduction rate to 4% and reducing the final withholding tax rate on eligible managed investment trust payments to 15%.
- The TAA 1953 is amended to introduce new reporting obligations for large multinational enterprises.
- The Medicare Levy Act 1986 is also amended to ensure low-income taxpayers receive concessional treatment despite receiving eligible lump sum payments.
Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2024
Royal assent has been given to the Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2024. The bill extends the anti-money laundering and counter-terrorism financing regime to “higher-risk services” offered by real estate professionals, and professional service providers, including accountants, lawyers and trust and company service providers.
Universities Accord (Student Support and Other Measures) Bill 2024
Universities Accord (Student Support and Other Measures) Bill 2024 has received Royal Assent. The amendments include:
- Calculation of accumulated HELP debt will consider changes in CPI and WPI.
- Offering an indexation credit to people’s HELP accounts to make sure the new HELP indexation cap has effect from 1 June 2023.
- From 1 June 2025, amendments to the timing of the HELP debt indexation factor will be checked by reference to CPI index numbers or WPI index numbers for 4 quarters ending on 31 December.
Treasury Laws Amendment (2024 Tax and Other Measures No. 1) Bill 2024
Treasury Laws Amendment (2024 Tax and Other Measures No. 1) Bill 2024 has received Royal Assent. The bill includes tax-related measures, such as:
- Changes to the foreign resident capital gains withholding payments regime will be increased from 12.5% to 15%, and the threshold for withholding will be removed entirely.
- Employers will now be allowed to make single-touch payroll declarations for extended periods.
- The Commissioner of Taxation will have the authority to retain tax refunds for a period of 90 days in order to obtain the necessary financial institution details for issuing the refund.
- The time limit for small or medium business taxpayers to apply for amendments to a tax assessment will be extended from 2 years to 4 years.
Treasury Laws Amendment (Mergers and Acquisitions Reform) Bill 2024
The Bill which changes the Competition and Consumer Act 2010 to replace the current framework for mergers review with an essential administrative system for acquisitions, with the Australian Competition and Consumer Commission as the first instance administrative decision-maker, has now received Royal Assent.
Aged Care Bill 2024
The Bill has various reforms that change the way in which aged care is funded in Australia and the contribution made by those receiving care. The Bill has received Royal Assent.