We are pleased to supply you with the latest edition of Client Alert, which contains information on a number of important taxation developments up to and including 18 February 2022.

  • Work-related COVID-19 tests may be deductible – The Federal Government is hoping for some good press with the announcement that it intends to legislate to make both PCR tests and RATs tax-deductible for individuals who buy them for a work-related purpose, and exempt from FBT for employers providing work-related tests to employees.
  • Natural love and affection: commercial debt forgiveness – The ATO has recently finalised a determination that explicitly states the exclusion for debts forgiven for reasons of natural love and affection requires the creditor (but not necessarily the debtor) to be a “natural person”.
  • Last chance to claim the loss carry-back – Businesses that need a little more financial help will have one last opportunity to claim the refundable loss carry-back offset in their 2021–2022 income tax returns.
  • Tax debts may affect business credit scores – Laws were passed in 2019 which allow the ATO to disclose information about overdue business tax debts to credit reporting agencies.
  • Contributions into SMSFs: minimum standards – One of the simplest but most important compliance obligations for trustees of SMSFs is ensuring that contributions from members can be accepted into the fund.
  • SMSFs investing in crypto-assets: be informed and keep records – ASIC warns that while crypto-asset investments are allowed for SMSFs, they are high risk and speculative, as well as being an attractive area for scammers targeting uninformed investors.
  • Key superannuation changes – Several superannuation proposals announced in the 2021 Federal Budget were introduced into Parliament in the Treasury Laws Amendment (Enhancing Superannuation Outcomes for Australians and Helping Australian Businesses Invest) Bill 2021.
  • Agricultural overview: December quarter 2021 – The gross value of agricultural production in 2021–22 is forecast to be a record amount.
  • Single Touch Payroll – Single Touch Payroll (STP) changed on 1 January 2022. You are now required to report additional information on or before each pay day.
  • Tasmania: Land tax threshold Increased – The tax-free threshold for land tax in Tasmania is increasing.
  • Reminder: new round of business hardships grants for SA – Business Hardship grants are now open for eligible businesses.

Please do not hesitate to reach out if you wish to discuss any of the points raised in this Alert.

Yours sincerely,
The Team at PHA

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