In this Sky Update, we bring you all the latest tax news along with some other items that may pique your interest.
Federal Budget 2021-2022
The Government has announced that the 2021-2022 Federal Budget will be handed down on Tuesday the 11th of May 2021.
In the lead-up to the budget we can expect the usual rumours, leaks and pre-emptive announcements.
To keep you fully informed, we will provide comprehensive coverage of the budget in the days following.
2020 Tax Lodgement Deadline Approaching
For the majority of taxpayers who use a Tax Agent, the deadline for lodgement of the 2020 income tax return is the 17th of May 2021.
An automatic deferral to the 5th of June will apply in many instances provided that any tax payable is paid at the time of lodgement.
If you have not yet lodged your 2020 income tax return, we encourage you to get in touch to make arrangements for it to be prepared and lodged.
Changes to Casual Employment
As reported last month the Fair Work Amendment (Supporting Australia’s Jobs and Economic Recovery) Bill 2021 has been passed by Parliament and has received Royal Assent.
This Bill amended the Fair Work Act to change workplace rights and obligations for casual employees that came into effect on the 27th of March 2021.
These changes introduce a:
- Casual Employment Information Statement;
- Definition of Casual Employment; and
- Pathway for casual employees to move to full-time/part-time employment.
The Fair Work Ombudsman has since published guidance material to assist employers to adapt to the new rules, including a copy of the Casual Employment Information Statement (CEIS).
Small business employers need to give their existing casual employees a copy of the CEIS now. Other employers must provide the CEIS as soon as possible after 27 September 2021.
ATO Data-Matching Program Announced
The ATO has issued a Gazette Notice detailing a data-matching program where they will access data from the Department of Home Affairs on passenger movements during the 2016/17 to 2022/23 financial years.
This data-matching program is expected to give the ATO access to records relating to approximately 670,000 people per year. The objective of the data-matching program is to use the data obtained to ensure that income tax returns are lodged with the correct tax residency status and to ensure that income is being correctly assessed for tax in Australia.
Australia’s tax residency rules are highly complex and it is often challenging to determine the tax residency status of individuals coming to or departing Australia. Additionally, the income that is subject to Australian tax and the rates of tax that apply are directly impacted by a persons tax residency status.
In light of the announcement of this data-matching program, we recommend that anyone who has come to Australia and Australians who have spent time outside of Australia (other than for short holidays) since the 2016/17 year carefully review their tax residency status.
If you need assistance to understand the tests for determining tax residency status and the implications for how you are taxed, please get in touch.
Director ID Update
As part of the Modernising Business Registers (MBR) Program, the Federal Government has announced the establishment of the new Australian Business Registry Services (ABRS) which will unify 31 ASIC business registers with the Australian Business Register into a single system.
On the 4th of April, the Commissioner of Taxation was appointed as the Registrar for the ABRS. As part of this, ASIC registry staff will move to the ATO in a “Machinery of Government” administrative change.
The Registrar’s role is to implement the MBR program, including the Director ID system. The ABRS will progressively rollout from 2021 and is expected to be completed by 2024. It has been indicated that the introduction of the Director ID regime will take place earlier in this timeframe.
At the current time, no action is required. We will continue to monitor the progress of these changes and update you as new information emerges.
Quote of the Month
“Watch out for people who think it’s embarrassing not to know”.
We are all human and not capable of knowing everything there is to know. People who are embarrassed about not knowing something tend to hide their lack of knowledge leading to the dangerous situation where they are in over their head without any support.
This embarrassment is often reflective of an organisational culture where people are judged harshly or punished for not knowing.
The best, most successful organisations like Ray Dalio’s Bridgewater Associates seek to create a safe environment where not knowing is not a crime. They seek to be organisations that value honesty, learning and growth and harness that culture to achieve extraordinary things.
Sky Accountants Ballarat
Phone: 1300 328 855
Office Address: 902 Howitt Street, Wendouree, Victoria 3355, Australia
Postal Address: PO Box 2234, Bakery Hill, Victoria 3354
Sky Accountants Gisborne & Macedon Ranges
Phone: 03 97444522
Office Address: 45 Hamilton Street, Gisborne, Victoria 3437, Australia
Postal Address: PO Box 270 Gisborne Victoria 3437