Objective of super
Superannuation (Objective) Bill 2023
The Bill, which enshrines the objective of superannuation, has passed both Houses of Parliament and awaits Royal Assent. The objective is to preserve savings for a dignified retirement, alongside government support, equitably and sustainably. This will ensure future policy changes align with the objective.
Foreign resident capital gains withholding changes, single touch payroll
Treasury Laws Amendment (2024 Tax and Other Measures No. 1) Bill 2024
This Bill has passed through both Houses of Parliament and has different tax-related measures, including:
- Changes to the foreign resident capital gains withholding payments regime will increase the withholding rate from 12.5% to 15% and eliminate the threshold for when withholding applies.
- Additionally, employers will be able to make single-touch payroll declarations for extended periods.
The Commissioner of Taxation has the power to hold tax refunds for a 90-day period to allow the Commissioner to acquire financial institution details for the refund to be paid into; and
- The time restriction for small or medium business taxpayers to apply to have a tax assessment amended is maximised from 2 years to 4 years.
Aged care reform
Aged Care Bill 2024 & Aged Care (Consequential and Transitional Provisions) Bill 2024
The Bill introduces significant reforms to aged care funding in Australia, altering the financial contributions of those receiving care. It has successfully passed through both Houses of Parliament.
Build-to-rent incentives, $20k instant asset write-off removed
Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Bill 2024
This Bill has passed through both Houses of Parliament and has the following measures:
- Incentives for investors to help with the construction of new build-to-rent developments by maximising the capital works deduction rate to 4% per year and minimising the final withholding tax rate on eligible fund payments from eligible managed investment trust investments to 15%;
- The amendment to TAA 1953 introduces a new reporting obligation for specific large multinational enterprises.
Originally, Schedule 7 of the Bill included provisions to extend the $20,000 instant asset write-off for an additional 12 months, until June 30, 2025. However, this extension was removed by the Senate before the Bill was passed. At this time, it remains unclear what the Government intends to do regarding this measure.
BEPS Pillar 2 Package
The package of Bills has now passed both Houses of Parliament and awaits Royal Assent. It will implement the 15% global minimum rate in Australia. The package includes three bills:
- Taxation (Multinational—Global and Domestic Minimum Tax) Imposition Bill 2024
- Taxation Bill 2024
- Treasury Laws Amendment Consequential Bill 2024.
HELP student loan indexation Universities
Accord (Student Support and Other Measures) Bill 2024
The Universities Accord Bill 2024 makes amendments to the indexation of Higher Education Loan Program (HELP) loans, and has now passed both Houses of Parliament, and awaits Royal Assent.
Hydrogen and critical minerals tax offsets
Future Made in Australia (Production Tax Credits and Other Measures) Bill 2024
A new Bill in Parliament introduces tax incentives for hydrogen and critical minerals production.
- Hydrogen Production Tax Incentive: Aimed at encouraging medium to large-scale renewable hydrogen production.
- Critical Minerals Production Tax Incentive: A refundable 10% tax offset on eligible expenditures for refining and processing critical minerals.
Fuel efficient cars
Treasury Laws Amendment (Tax Incentives and Integrity) Bill 2024
A bill in Parliament proposes tax-related amendments, including:
- Extending the ATO notification time for holding refunds.
- Denying deductions for SIC and GIC amounts.
- Tightening the meaning of a fuel-efficient vehicle for luxury car tax purposes
Build-to-rent integrity measures
Capital Works (Build to Rent Misuse Tax) Bill 2024
A bill has been introduced that imposes a 1.5% levy on build-to-rent developments that do not meet specific eligibility criteria. The proposed changes aim to protect the integrity of build-to-rent tax concessions by ensuring the levy is applied if an entity incorrectly claims one or both of these concessions.