Welcome to the Services For Tax Practitioners Day 1 - 10 November 2020
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OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
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•
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Adelaide +61-8-7079-0394
Brisbane +61-7-3067-4844
Melbourne +61-3-9070-6484
Perth +61-8-6388-9974
Australia Toll +61-2-9053-7190
Australia Toll 2 +61-2-9338-2221
Services For Tax Practitioners – Day 1
Digital Partnership Office
AGENDA|DAY ONE
Welcome and introduction
Martin Mane
Individuals & Intermediaries agent experience update
Kerry O’Loghlin
Digital Wholesale Integration Service Update
Michael Rowell
Digital Services Gateway
2021 Program of work
DPO update
Customer Verification for tax agents
Change Advices
Substantiation
JobKeeper pre-fill for IITR
Mick Ferris
Sangitha Sivayogaraj
Sharna Maltman
Ben Spargo
Various
Karmin Van Groesen
Kelly Norwood
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OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
Reflections & future direction
Presented by:
Assistant Commissioner Martin Mane
Digital Partnership & Strategy
Australian Taxation Office
Presented by:
Assistant Commissioner Kerry O’Loghlin
Digital Services – Individuals & Intermediaries
Australian Taxation Office
Presented by:
Assistant Commissioner Michael Rowell
Digital Wholesale & Integration Services
Australian Taxation Office
REFLECTIONS FROM 2020 AND FUTURE DIRECTION
PA S T TA X Y E A R
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Streamlined PVT process
IITR Income Schedule delivered in XML
Improved technical specifications
PLS dashboard enhancements including visibility of delayed batches
19M IITR submissions from July to October 2020
o 50% increase in growth compared to last year.
•
•
M2M transition
myGovID and RAM enhancements e.g.
o name matching rules
o usability and performance
o advanced filter options
o ability to export authorisations into excel format
myGovID for OS4DSPs
•
•
•
•
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FUTURE
TA X T I M E
D I G I TA L I D E N T I T Y
TPAR transition to SBR2
Wholesale platforms (SBR2, SBR1 & BDE) maintained 99.5% availability
throughout Tax Time.
Native product alignment, improved resilience architecture, database split to
improve processing
Bushfire support
COVID-19 Stimulus measures delivered e.g.
o Cashflow boost
o Early Release of Super
o JobKeeper
P L AT F O R M & S E R V I C E S
SUPPORTING THE COMMUNIT Y
•
•
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Continue delivery of tax time forms and schedules in XML format
Further improvements to granular data reporting and display
Substantiation of expenses
•
Further myGovID and RAM enhancements. e.g.
o update myGovID email address
o improvement to document verification process
o myGovID for individual services
o face verification for higher level of identity enrolment & ID protection
•
•
Digital Services Gateway
New services to support Payment plans, Client Communications and
Preferences
Ongoing Platform Improvements – e.g. CHiRPP for STP Phase 2
PLS Improved Error Handling
•
•
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JobMaker plan including
o temporary loss carry-back to support cash flow
o hiring credits
o bringing forward the Personal Income Tax Plan
5
OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
Digital Services Gateway
Presented by:
Michael Ferris
Director, Digital Wholesale & Integration Services
ADSM – DSG Solution – The right service channels
PLATFORMS & INFRASTRUCTURE
To deliver different packets, parcels or messages efficiently & effectively we need different delivery capabilities
Nimble & can deliver to
every address. Parcel
delivery modes vary,
but great at meeting
individual needs for
small packages.
Inefficient way of
delivering very large
packages centrally.
Trains require defined
tracks to run on &
deliver to many
stations. Great for
distribution of
wholesale payloads.
Not good at delivering
to your door.
Cargo ships can only
dock at major ports.
Great for delivery of
massive payloads.
Not good at distributed
delivery.
Digital Services
Gateway
• Ultra fast, scalable,
responsive
• Cloud Native
• New formats
• Business & life event
transactions
Digital Reporting
Channel
• Faster, scalable, responsive
• Handles all existing
standards & formats
(EBMS3/AS4 – XBRL, XML)
Adopt flexibility of
digitalisation from the
ground up. Fresh services
delivered quickly.
Some SBR2 services
could/should be available
here. For example MBR
Services, Calculators, event
based data
Digital Reporting Channel is
primarily necessary to keep
industry partnerships such
as SuperStream & legacy
reports relevant.
ebMS as an example is a fit
for purpose protocol, not fit
for all purposes.
Lighter &
Individuals
Corporate Needs
Bulk Data Exchange
• Fit for purpose
• Trusted providers
• Built for large loads, file
based
• Handles multiple formats eg:
AIIR File – up to 12GB
Industrial sized offering,
trusted protocols limited
access. Currently fit for
purpose & meets industry
needs.
Industrial Strength
OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
7
ADSM – DSG Solution – DWIS - high level channel strategy
Services styles for now & future
ATO’s Digital Partners don’t just
deliver tax. They deliver value add
services to their target market.
ATO’s digital partnerships are
growing & becoming more diverse.
Programs like STP & MBR will drive
further increases.
Websites
Portals
Apps
Natural
systems
Partnering with the
Business management
software
digital ecosystem
As ATO shifts to event driven services there will be an increase in small lightweight API services.
There will also be services that make sense to be are bulk &/or batch, particularly as data-sharing
based services increase.
Lightweight APIs
Batch
services
Bulk services
ATO Digital M2M Services
The right platform
using the right technology
DSG
OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
to best deliver the service
SBR2
BDE
8
ADSM – DSG Solution – Our future digital services platform
A solution that achieves high service availability targets, is secure and efficient
The ATO is seeking a new innovative solution to deliver
lightweight digital services. This solution will enable clients to
interact and consume quick, small and data driven services. This
capability is referred to as the DSG.
Expected Outcomes
The ATO requires a solution or solutions that will service both
capabilities (DSG and DRC) and that can be deployed with
minimal disruption to the consumers of the current services.
Single entry point
ATO Digital Services
Modernisation Program
Digital Services Gateway
• Provide new light-touch and lightweight
messaging standards
• Service real time, digital event single
transactions
Contemporary,
stable, resilient
technology that is
seamlessly scalable
to meet future
demands
Proactive, real
time data
insights
Increased
confidence &
transparency
Enhanced
experience through
industry standard
standards &
practices
Increased
community trust &
confidence
Service
Integration
Internal ATO processing systems
OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
9
2021 Program of work
Presented by:
Sangitha Sivayogaraj
Director, Digital Wholesale & Integration Services
PROGRAM OF WORK | ATO Wholesale Services EVTE Product Roadmap FY 2020 / 2021
JULY
Validation
CBC
(0002.2020.SUBMIT)
FVS
(0002.2014.SUBMIT)
AUG
SEP
Interface &
Validation
Interface &
Validation
OCT
NOV
Interface &
Validation
Interface &
Validation
PMTPLN
(0003.2020.SUBMIT)
LDG
(0002.2019.GET)
LDG
(0002.2019.GET)
EPF
(sprrol.0003.2020)
CUADDR
(0003.2016.SUBMIT)
FBTLGCY
(0003.2021.SUBMIT)
Validation
LDG
(0002.2016.LIST)
Validation
CRS
(0002.2021.SUBMIT)
CURNN
(0002.2016.SUBMIT)
IITR
(0007.2020.SUBMIT)
COMMPREF
(0001.2019.GET)
DEC
Interface &
Validation
JAN
Validation
FBT
(0004.2021.SUBMIT)
ABNREG
(0004.2019.SUBMIT)
CLNTCOMM
(Single)
(0001.2020.LIST)
(
IITR
(0008.2021.GET)
(0008.2021.SUBMIT)
Interface &
Validation
CLNTCOMM (Single)
(0001.2020.GET)
CTR
(0012.2021.SUBMIT)
IITR (0008.2021.GET)
(0008.2021.SUBMIT)
TPAR (SBR2)
(0003.2021.SUBMIT)
COMMPREF
(0001.2019.SUBMIT)
PTR
(0009.2021.SUBMIT)
Validation
TRT
(0009.2021.SUBMIT)
FATCA
(0001.2017.SUBMIT)
SMSFAR (SBR2)
(0011.2021.SUBMIT)
PAYEVNT
(0004.2020.SUBMIT)
Validation
PAYEVNT
(0004.2020.UPDATE)
FEB
MAR
APR
MAY
JUN
Interface &
Validation
COMMPREF
(0001.2019.LIST)
LCMSF
(0003.2021.SUBMIT)
IITRPRFL
(0004.2021.GET)
Validation
LCMSF
(0002.2018.SUBMIT)
TRTAMI
(0002.2021.SUBMIT)
PMTPLNELG
(0003.2020.LIST)
FITR
(0007.2021.SUBMIT)
PMTPLN
(0003.2020.CALCULA TE)
PMTPLN
(0003.2020.SUBMIT)
Change description
Tentative:
Schedule under
review
Obligation
Management
Automatic Exchange
of Information
Business
Registrations
Income Tax
Base
Income Tax
Schedule
Activity
Statements
Employer
Obligations
Superannuation
Tax Practitioner
Practice Management
Tax Practitioner
Practice Management
Report
Future Work TBC
Code removal
Significant Global
Entity Obligations
OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
11
PROGRAM OF WORK | ATO Wholesale Services Production Product Roadmap FY 2020 / 2021
JULY
AUG
SEP
OCT
DEC
NOV
JAN
LDG
(0002.2019.GET)
IITR
(0007.2020.SUBMIT)
FEB
MAR
FVS
(0002.2014.SUBMIT)
TPAR (SBR2)
(0003.2021.SUBMIT)
IITR
(0008.2021.GET)
(0008.2021.SUBMIT)
SMSFVRFY
(0002.2020.GET)
CTR
(0012.2021.SUBMIT)
SMSFMBRVRFY
(0002.2020.GET)
PTR
(0009.2021.SUBMIT)
CUADDR
(0003.2016.SUBMIT)
CURNN
(0002.2016.SUBMIT)
CRS
(0002.2021.SUBMIT)
LDGLST
(0002.2016.LIST)
CBC
(0002.2020.SUBMIT)
FATCA
(0001.2017.SUBMIT)
EPF
(sprrol.0003.2020)
PAYEVNT
(0004.2020.SUBMIT)
FBTLGCY
(0003.2021.SUBMIT)
PAYEVNT
(0004.2020.UPDATE)
FBT
(0004.2021.SUBMIT)
APR
MAY
JUN
TRT
(0009.2021.SUBMIT)
SMSFAR (SBR2)
(0011.2021.SUBMIT)
FITR
(0007.2021.SUBMIT)
PMTPLNELG
(0003.2020.LIST)
TRTAMI
(0002.2021.SUBMIT)
PMTPLN (0003.2020.
CALCULATE)
IITRPRFL
(0004.2021.GET)
PMTPLN
(0003.2020.SUBMIT)
LCMSF
(0002.2018.SUBMIT)
LCMSF
(0003.2021.SUBMIT)
ABNREG
(0004.2019.SUBMIT)
Change description
Tentative:
Schedule under
review
Obligation
Management
Automatic Exchange
of Information
Business
Registrations
Income Tax
Base
Income Tax
Schedule
Activity
Statements
Employer
Obligations
Superannuation
Tax Practitioner
Practice Management
Tax Practitioner
Practice Management
Report
Future Work TBC
Significant Global
Entity Obligations
12
OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
Code removal
Online Services for DSPs
Presented by:
Sharna Maltman
Director, Digital Partnership Office
ONLINE SERVICES FOR DSPS | Where are we now?
In October 2018 we launched with 7 DSPs
Today…
Tickets Created, Tickets Resolved and Average Resolution Time
591
420+ active DSPs
790+ active contacts
5,470+ tickets raised since Jan 2020
5,580+ requests resolved since Jan 2020
Ticket Numbers
Created
Resolved
401
404
341
324
489
463
313
329
353
420
475
475
397
264
254
380
332
214
289
267
205
10.4
9.1
7.1
7.0
6.3
Days
5.4
7.3
6.8
5.0
3.5
6.7
Average Time to Resolution
Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20
14
OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
ONLINE SERVICES FOR DSPS | Improvements we’ve delivered
We have been working hard to make filling out a ticket as easy as possible and so you know exactly what we’re asking for!
Successfully transitioned from AUSkey to myGovID
(March 2020)
Implemented complex internal automation
functionality for our tickets (October 2020)
Expanded knowledge hub & collaboration space
(ongoing)
We have implemented complex internal automation
functionality for our tickets All ticket fields have been reviewed and updated
Allowed IP1 myGovID identity strength users access to
OS4DSPs (September 2020)
(October 2020)
Created request types to support our clients with new
initiatives and global challenges (March 2020)
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OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
ONLINE SERVICES FOR DSPS | Improvements we’re currently working on
Activity
Scheduled for
completion
November 2020
Building a solution for ABSIA board members that will enable access to
OS4DSPs
Late November 2020
Automating the Operational Framework Annual Review ticket for
quicker/simplified processing
Early December 2020
Building a STP Phase 2 support solution for our clients within the service
Early December 2020
Revamping DSP Profile Pages to make them more meaningful
Early 2021
Tailoring the experience for entities that have multiple departments working
under the same ABN
Early-mid 2021
Building a Super Funds portal for Superannuation Funds where they can
nominate their DSP when raising an incident – this will streamline issue
resolution and provide visibility greater visibility for DSPs.
Early-mid 2021
June 2021
OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
16
ONLINE SERVICES FOR DSPS | Future improvements
14
December
2020
March 2021
The ATO is updating to a
new Incident management
platform (Service Now) and
we will need to ensure
OS4DSPs stays integrated
Continue to deploy the
Online Services for
Superannuation funds
solution
June 2021
June 2021
Investigating opportunities to
give DSPs greater permission
control for their users
Improving our management of
contact and company
maintenance by making it
easier for clients to view and
update their details in real time
Implementing Single Sign On
capability for internal ATO staff
Implement the ability for the
DPO to auto generate
knowledge articles and fact
sheet based on request raised
July 2021
September
2021
17
OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
Customer verification for tax agents
Presented by:
Ben Spargo - Director, Client Engagement & Director
CURRENT ENVIRONMENT DIGITAL ECONOMY | COVID-19
OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
▪
New and better services with Digital Economy
▪
Expanded technology and digital capability
▪
Benefits realised in COVID 19 environment
▪
Less face-to-face interactions
▪
Client assurances with easier access
▪
Risks realised with identify theft
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CURRENT THREAT | Identity Theft
OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
▪
Opportunities for cybercriminals in digital environment
▪
ID theft results in loss for all parties
▪
Financial cost to individuals
▪
Reputation and business loss for agents
▪
Decreased trust and confidence in the ATO
▪
Impact increasing every year
20
CURRENT PROBLEM | Protecting Personal Information
OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
▪
Increased instances of fraud observed in ATO
▪
Stimulus attractive to ID criminals
▪
Multiple sources used to build identity profile
▪
Vulnerable systems with less safeguards are targeted
▪
Breaches not restricted to specific agents types
21
Lunch break
CA 2021-009| Addressing the tax gap for individuals- Granular Data for Tax Professionals
BACKGROUND
This work was announced as part of the Personal income tax 2018–19 budget measure to maintain the current
tax gap level by continuing existing income matching programs, and to reduce the tax gap through increased
targeted action and deterrence strategies.
The provision of Granular data for tax professionals is part of a broader program of work to deliver on the new
policy proposal (NPP) commitment to government. A key strategy of the NPP is to ensure consistency in data
collection for Individual Income Tax Returns (IITRs) across all electronic channels. Changes implemented in
2019 and 2020 provide the detailed granular data for tax agent-lodged returns, in line with existing myTax
processes.
•
Tax Time 2019: new granular data Deductions schedule
•
Tax Time 2020: remaining granular data products:
•
Income schedule
•
Multi-property rental schedule, including disabling Single property rental schedule for IITR (remains
available for NITR)
•
CGT schedule & NRFI schedule (little or no impact for DSPs/tax agents)
BUSINESS REQUIREMENTS
The existing Copy of Return service has been expanded to include the granular data from the above schedules,
allowing DSPs to offer their tax agent clients a service that brings in this data from returns lodged by another tax
agent or through myTax. Granular data is the detailed line item information provided to the ATO when completing
IITRs, including the descriptive, textual elements.
2020 Copy of Return service (LDG.Get), including granular deductions, income, multi-property rental, CGT and
NRFI data (available EVTE now, production release December)
OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
Presented by:
Bronwen Arthur
Forms impacted:
2020 Copy of return
service
23
CA 2021-020| Real-time analytics (IITRPRFL) – sole trader enhancement
Background:
The IITR Profile Compare (IITRPRFL) service is a functionality for tax agents acting on behalf of individuals.
The IITRPRFL service:
• is intended to help tax agents and their clients lodge a correct IITR, to be used during preparation of the
return
• is discretionary, enabling tax agents to call the ATO risk modelling system for one or more specified items on
a tax return
• provides messaging where a real-time risk assessment identifies data at certain fields as anomalous (such as
where claims appear high compared to similar taxpayers, or where it appears that data may be missing
based on prior-year information)
• returns the equivalent response as myTax real-time analytics
Presented by:
Jason Gunton
Bronwen Arthur
Forms impacted:
PLS
This service currently provides messaging for clients for the following risk areas:
Work-related expenses
Interest and dividend income
Cost of managing tax affairs
Other deductions label
Rental interest deductions
Summary:
The existing service is being expanded to include checks for sole trader income and deductions. Further expansion
in the small business market is planned for future years.
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OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
CA 2021-020| Real-time analytics (IITRPRFL) – sole trader enhancement
IMPACTS
Work summary:
• Expansion of existing IITRPRFL service to include information from the Business and Professional Items
schedule:
Cost of sales
Total expenses
Presented by:
Jason Gunton
Bronwen Arthur
Forms impacted:
PLS
• Scheduled for delivery for Tax Time 2021
25
OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
BM 2021-001| Super Reform package
Information on this measure is currently available in the factsheet on the Budget website.
Presented by:
Michael Brooks
26
OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
CA 2021-002| Improving the taxation of Testamentary Trusts
SUMMARY
To allow clients who receive income from a Testamentary Trust to correctly identify that income when
completing their tax returns, for 2021, we are adding this code into the corresponding tables in a number of
returns.
Note: We are taking this opportunity to also add the Special Disability Trust code to these returns.
IMPACTS
Business requirements:
Presented by:
Helen Adamovich
Forms impacted:
IITR Supplementary
section
CTR
SMSF annual return
TTR
PTR
Add new ‘Testamentary Trust’ and ‘Special Disability Trust’ codes in the following:
•
Item 13 ‘Partnerships and trusts’ labels L and U next to the amount fields of the Individual Income Tax Return
Supplementary Section
•
Item 6 ‘Calculation of total profit or loss’ label E next to the amount field of the Company Tax Return
•
Item 11 ‘Income’ label M next to the amount fields of the SMSF Annual Return
•
Item 8 ‘Partnerships and trusts’ labels Z and R next to the amount fields of the Trust Tax Return
•
Item 8 ‘Partnerships and trusts’ labels Z and R next to the amount fields of the Partnership Tax Return
27
OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
CA 2021-008| Better Targeting Research and Development
SUMMARY
On 8 May 2018, the Government announced that they would amend the Research & Development Tax
Incentive (R&DTI) to encourage additional investment in Research & Development (R&D) while also ensuring
the integrity and fiscal affordability of the R&DTI. The 2020 Budget changes were introduced to parliament
and received Royal assent on 14 October 2020.
The changes will apply to the first income year commencing on or after 1 July 2021.
Presented by:
Rhonda Elliot
Forms impacted:
CTR
Research & Development
tax incentive schedule
IMPACTS
Key features of the new legislation include:
• Increase the R&D expenditure threshold from $100 million to $150 million per annum.
• For companies with an aggregated turnover of $20 million or more, replace the current 38.5% non-refundable
offset with a 2 tier intensity premium:
o 0-2% an 8.5% premium to the company tax rate
o >2% an 16.5% premium to the company tax rate
• For companies with an aggregated turnover below $20 million, replacing the current 43.5% refundable offset
with an offset of 18.5 percentage points above the claimant's company tax rate.
• Improving the transparency of the program by publicly disclosing R&D claims
• Amendments to the feedstock and clawback provisions
• Minor technical amendments that will not require system changes
28
OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
CA 2021-008| Better Targeting Research and Development
BUSINESS REQUIREMENTS SUMMARY
Changes to the Company tax return and R&D schedule will be required for the 2022 tax returns. The design will
remain largely the same as previously consulted on and included in change advices. Noting:
the changes to the tiers;
the cap on the refundable tax offset with a clinical trials exemption is no longer required.
The additional information labels included in June 2020 change advice will not be required and should not be
completed for any lodgments. These will be built into the 2022 R&D schedule
Presented by:
Rhonda Elliot
Forms impacted:
CTR
Research & Development
tax incentive schedule
29
OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
CA 2021-015| JobMaker Plan – temporary loss carry-back to support cash flow
BACKGROUND
Following the 2020–21 Budget announcements, the government has legislated a number of temporary tax
incentives (including temporary full expensing) to support new investment and increase business cash flow. The
existing treatment of corporate tax entity losses would limit the effectiveness of some of these measures as the
losses would only be able to be carried forward for use in future income tax years.
The loss carry back regime will temporarily allow eligible corporate tax entities to offset tax losses against
previously taxed profits (i.e. paid tax in relevant previous years) to generate a tax refund (refundable tax offset).
This will allow eligible corporate entities to “use” their current losses immediately rather than carry them forward.
Eligible corporate tax entities with less than $5 billion aggregated turnover can generally choose to claim a
refundable tax offset up to the lesser of:
• the amount of tax paid in previous relevant years (i.e. their income tax liabilities);
• their closing franking account balance for the year that they claim the refundable tax offset; and
• the amount of eligible tax losses carried back multiplied by their applicable tax rate in the loss year.
Eligible corporate tax entities can claim the loss carry back tax offset by carrying back losses made in the 2019–20,
2020–21 and 2021–22 years to a prior year's income tax liability in the 2018–19, 2019–20 and 2020–21 years.
Presented by:
Laura Bagnato
Heydon Wardell-Burrus
Forms impacted:
CTR
Losses schedule
Notice of assessment
SUMMARY
We are still working through the design for this measure, however, changes will be required to the company tax
return and losses schedule. As a minimum we expect that the design will largely follow the previous loss carryback measure from 2012-13, however due the scale of this measure, there may be
additional labels. These remain under consideration.
30
OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
CA 2021-006| Increase in SMSF membership from 4 to 6
BACKGROUND
Currently Self-managed super funds (SMSFs) and Small APRA Funds (SAFs) can only have a maximum of 4 active
members. If legislation passes from the 1st quarter after Royal Assent is received, SMSFs and SAFs will be able to
have up to 6 active members.
Updates of the electronic channels for fund registration, for changing fund details and SAR lodgments are required
to allow:
• an SMSF to have up to 6 members and, either up to 6 individual trustees or up to 6 directors of the
corporate trustee
BUSINESS REQUIREMENTS SUMMARY
Superannuation Entities Registration and Change of Details
Change of Details for Superannuation Entities online form
1. Where an SMSF updates their fund membership, the electronic form must allow them to report up to six
active members and individual trustees or directors of corporate trustee.
2. Where an SMSF updates their associates via ABR any existing front facing validation rules and suspense errors
are to apply for the new maximum limit of 6 members, individual trustees or directors of corporate trustee.
3. Where an SMSF reports a change in membership, the form must be updated to enable up to six individual
trustees or directors of corporate trustee to complete the notice of election.
4. Where an SMSF attempts to complete new labels and labels updated as part of this feature, the online form
must contain supporting information and guidance material.
Presented by:
Kerry Lake
Forms impacted:
Electronic ABN registration
for superannuation
entities form
Electronic Change of
details for superannuation
entities form
Electronic 2021 SAR
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OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
CA 2021-006| Increase in SMSF membership from 4 to 6
Application for ABN registration for superannuation entities online
5. Where an SMSF submits an ABN registration application online either via ABR UI directly or through a Digital
Service Provider’s product, the electronic form must allow them to report up to six active members,
individual trustees or directors of corporate trustee.
6. Where an SMSF adds associates via ABR any existing front facing validation rules and suspense errors are to
apply for the new maximum limit of 6 members, individual trustees or directors of corporate trustee.
7. When sending new member information from ABR to the SMSF‘s superannuation role in ICP, existing rules are
to apply for the now increased number of six members, individual trustees or directors of corporate trustee.
8. Where an SMSF attempts to complete new labels and labels updated as part of this feature the electronic
form must contain supporting information and guidance material.
Changes to the 2021 financial year SAR and onwards
Section F: Member information
1. Insert two new member sections:
• MEMBER 5
• MEMBER 6
i.
ii.
Presented by:
Kerry Lake
Forms impacted:
Electronic ABN registration
for superannuation
entities form
Electronic Change of
details for superannuation
entities form
Electronic 2021 SAR
The paper SAR is to apply the same fields to the two new members as what is applied to the existing
four members
SARs lodged via SBR2 are to apply the same fields, formatting and front facing validation rules to the
two new members as what is applied to the existing four members
32
OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
CA 2021-006| Increase in SMSF membership from 4 to 6
Section G: Supplementary member information
2. Insert two new member sections:
• MEMBER 7
• MEMBER 8
i.
ii.
iii.
Re-number the remaining member sections to:
• MEMBER 9
• MEMBER 10
• MEMBER 11
• MEMBER 12
SARs lodged via SBR2 are to apply the same fields, formatting and front facing validation rules to the
two new members as what is applied to the existing four members
Advice, guidance and SAR instructions to be updated to provide explanation of reporting
requirements.
Presented by:
Kerry Lake
Forms impacted:
Electronic ABN registration
for superannuation
entities form
Electronic Change of
details for superannuation
entities form
Electronic 2021 SAR
33
OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
CA 2021-001: 60% CGT discount for affordable housing
Presented by:
Presenter’s name: Yuliya White
Business area: IAI New Measures
Australian Taxation Office
CA2021-001: AFFORDABLE HOUSING | Additional 10% CGT discount
• On 12 December 2019, the law changed to allow an additional capital gains tax discount of up to 10% for Australian
resident individuals who invest in affordable housing
• To qualify for the discount, an investor must have provided affordable housing:
• on or after 1 January 2018 for a period or periods totalling not less than 1,095 days and
• must have done so either directly, or through a trust, a managed investment trust or a partnership (not a public unit
trust or superannuation fund).
• Investors can claim up to an extra 10% affordable housing discount once they have sold the qualified dwelling
• Only the individual investor can claim the affordable housing discount, it cannot be claimed at the trust level
35
OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
CA2021-001: AFFORDABLE HOUSING | Additional 10% CGT discount
• The dwelling must be property managed by a registered Community Housing Provider (CHP)
• An individual investor who has invested directly in affordable housing should receive an annual affordable housing
certificate from their CHP showing the number of days their dwelling was used to provide affordable housing
• An individual who invests through a trust or managed investment trust, may need to contact their trustee to get the
number of affordable housing days in order to work out their additional affordable housing discount percentage
36
OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
CA2021-001: AFFORDABLE HOUSING | How to calculate the additional CGT discount
The affordable housing discount percentage is equal to:
Discount percentage that would
apply to discount capital gain
5
x
Affordable housing days less any period of foreign or temporary
residency during the time the dwelling was used for affordable housing
Total ownership days less any period of foreign or temporary residency
where:
• capital gain discount percentage is generally 50%.
• Affordable housing days are the number of days the dwelling was used to provide affordable housing (from 1 January
2018) during its ownership period less the number of days when the individual receiving the affordable housing capital
gains discount was a foreign or temporary resident.
• Total ownership days are the number of days the dwelling was held from the time it was acquired until a CGT event
occurred, excluding any period of foreign or temporary residency after 8 May 2012.
37
OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
CA2021-001: AFFORDABLE HOUSING | Updates for 2021
• Label 18M will be changed to ‘Have you applied an exemption, rollover or additional discount?’
• New Exemption/Rollover/Discount code ‘W – Affordable housing discount’ will be added to the existing codes
• CGT Record Keeping Tool will be updated to assist clients to record events regarding eligible affordable housing dwellings
• New question ‘Is this property eligible for the affordable house additional discount?’ will be displayed in the CGT Record
Keeping Tool when Asset type is ‘Australian real estate’
• New validation will be added to cater for the affordable housing discount being between 50% and up to 60% in the IITR
associated form – Capital Gains Tax
• The detailed information will be available on the ato.gov.au website soon
38
OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
CA 2020-305: Jobseeker payment (update)
Cessation of Sickness allowance
Presented by:
Presenter’s name: Yuliya White
Business area: IAI New Measures
Australian Taxation Office
CA2020-305: WELFARE REFORM | Sickness Allowance
•
From 20 March 2020 there were no new grants of Sickness Allowance.
•
On 20 September 2020 Sickness Allowance ceased completely as all remaining recipients would have either
returned to their jobs or transferred to JobSeeker payment after their medical certificates expired.
•
Sickness Allowance was included in a specific Medicare levy exemption category. Based solely on the receipt of
Sickness Allowance, individuals were entitled to a Medicare levy exemption for the period during the year that they
were receiving the Sickness Allowance.
•
JobSeeker payment is not included in a specific Medicare levy exemption category. Individuals receiving
JobSeeker payment are not entitled to a Medicare levy exemption based solely on the receipt of this payment.
•
Medicare levy exemption for Sickness Allowance recipients is only allowed from 1 July 2020 to 19 September
2020 this financial year.
•
Social Services Legislation Amendment (Welfare Reform) Act 2018.
40
OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
GST at Settlement
Presented by:
Jonno Colman
Director, GST New Measures
GST AT SETTLEMENT | Content
• Key elements
• Process
• Risk identification and common errors
• Property data
• Software providers
• Additional information
42
OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
GST AT SETTLEMENT | Key elements
Key elements of the GST at settlement measure
• From 1 July 2018, most purchasers of new residential premises or land that could be used to build new residential
property ('potential residential land') are required to pay a withholding amount from the contract price at the date of
settlement. This is paid directly to the ATO rather than to the property supplier.
• The purchaser will remit 1/11th of the contract price to the ATO and the remaining money to the property supplier,
or a lower 7% rate of withholding where the margin scheme applies. 10% of the GST exclusive market value
applies for certain supplies between associates.
43
OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
ATO
PURCHASER
2. Form 1 processed:
• Creates Purchaser GST
Withholding account in ICP
• PRN and LRN provided on
submission of form
1. Deposit
paid direct to
Supplier
2. Form 1
sent to the
ATO
3. Email 1
4/5. Form 2 processed:
• Liability raised on Purchaser GST
Withholding account
• Payment is credited to Purchaser
GST Withholding account
4/5. On settlement:
• Form 2 is sent to the ATO
• GST withholding payment sent
to the ATO
• Balance of contract price paid
to Supplier
6. Email 2
1. Withholding
notification
sent to
Purchaser
ATO
SUPPLIER / DEVELOPER
1.
Agreement
reached
4/5. Receives
payment
8. Triggers auto transfer
of credit from Supplier
GST Property Credit
account in ICP to their
GST account
OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
8. Lodge BAS
and report
property sale
7. Email 3
7. Supplier GST
Property Credit account
in ICP is created and
credit allocated
44
GST AT SETTLEMENT | Risk identification and common errors
Risk Identification and Common Errors
• GST at settlement risk model
o
Linked to data submitted via the two online forms
o
Comparing property sales against BAS labels
• Common errors identified
o
Not lodging the BAS
o
Lodging the BAS but not reporting the property transaction
o
Incorrectly reporting the property transaction (eg Confusion on eligibility to use the margin scheme and
how it is calculated)
o
Incorrectly including the withholding amount on the BAS
o
A credit has been allocated to one entity but the property reported on the BAS on another entity
45
OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
GST AT SETTLEMENT | Property data
Property data
During 2018-19
o
Lodgment Channel
% of BAS
lodgment
ATO Online* – lodgements via ATO Online or the
portals
63%
Standard Business Reporting - bulk lodgment
by registered agents using SBR-enabled
software
8%
Standard Business Reporting - single lodgment
using SBR-enabled commercially available
software
8%
Web services/Standard Business Reporting –
lodged using SBR-enabled software via portal
channel.
8%
Other (including paper)
13%
Approximately 50,000 property
transactions
o
Approximately 10,500 suppliers
o
The average number of properties sold
by these suppliers is 5, but the median is
2 (given the higher volume from larger
suppliers)
*Note – some clients may manage their transactions in software but
lodge via ATO Online channels
46
OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
GST AT SETTLEMENT | Software providers
Software providers
• Received interest to provide access to the GST property credit account
o
Currently viewable via Online Services for Individuals & sole traders, Online Services for Agents and the
Business Portal
o
This would require a wholesale API (being considered internally)
• Provide access to information on GST at settlement
o
Link to ATO webpages
o
Guidance on how to record these property transactions in your software
o
Potentially link to guidance on an association webpage
47
OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
GST AT SETTLEMENT | Additional information
Additional information
Web information
• GST at settlement ato.gov.au/gstatsettlement
o
GST at settlement – a guide for purchasers and their representatives
o
GST at settlement – a guide for suppliers and their representatives
• GST property settlement online forms and instructions ato.gov.au/gstpropertyforms
• Law Companion Ruling LCR 2018/4
Other
• Podcast on our podcast channel Tax InVoice (search QC54552)
• Recorded webinars are available at tv.ato.gov.au
48
OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
CA 2021-012| GST on property
BACKGROUND
Currently, there is no wholesale solution to retrieve GST Property Credit Account information. Based on
requests from Digital Service Providers (DSP) and acknowledging the ATO’s desire to provide consistency in
channel offerings, there is a need to provide a wholesale service for clients via the SBR2 channel. This will
allow for third party software providers to retrieve information on the credit amounts from the GST Property
Credit account.
Presented by:
Jonathon Colman
Forms impacted:
BAS
SUMMARY
Key elements:
From 1 July 2018, most purchasers of new residential premises or land that could be used to build new residential
property ('potential residential land') are required to pay a withholding amount from the contract price at the
date of settlement. This is paid directly to the ATO rather than to the property supplier.
The purchaser will remit 1/11th of the contract price to the ATO and the remaining money to the property
supplier, or a lower 7% rate of withholding where the margin scheme applies. 10% of the GST exclusive market
value applies for certain supplies between associates
49
OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
CA 2021-007| JobMaker Plan – bringing forward the Personal Income Tax Plan and retaining
the low- and middle-income tax offset
BACKGROUND
The Government has brought forward stage 2 of its Personal Income Tax Plan for the 2020–21 income year and
later years.
Presented by:
Paul Prieditis
SUMMARY
The measure:
• increases the low income tax offset (LITO) from $445 to $700 and adjusts the phase out rules
• increases the top threshold of the 19% personal income tax bracket from $37,000 to $45,000
• increases the top threshold of the 32.5% personal income tax bracket from $90,000 to $120,000
• retains the low and middle income tax offset for the 2020–21 income year but will not apply for the 2021–22
income year and later years.
The measure brings forward most of phase 2 of the previous personal income tax plan, changes some tax rate
thresholds, increases to LITO. It also includes retention of LMITO for the 2020-21 income year.
Further phases of the personal income tax plan (as legislated) are expected to be delivered in future years
50
OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
CA 2021-013| Lower Taxes for Small and Medium businesses – reducing company tax rate cut
SUMMARY
For base rate entities with an aggregated turnover of less than $50m, the corporate tax rate will reduce to
- 26% for the 2020-21 income year
- 25% for the 2021-22 income year
IMPACTS
A summary of the company tax rates is listed in the table below:
Presented by:
Moran Yin
Forms impacted:
CTR
TTR
R&D schedule
• Incorporate the 25% corporate tax rate in PAYG Instalments calculations for base rate entities with aggregated
turnover of less than $50 million for their 2021-22 income years
• The lower tax rates apply to entities taxed as corporate entities and the maximum franking credit.
51
OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
CA 2021-014| Lower Taxes for Unincorporated Small Business Entities – Small Business Income Tax Offset
SUMMARY
The tax discount for unincorporated small businesses will increase incrementally from 13% from 1 July 2020
until it reaches 16% on 1 July 2021, as outlined below:
- increase from 8% to 13% from 1 July 2020;
- increase to 16% in 2021-22, where it will remain.
Presented by:
Moran Yin
Forms impacted:
IITR
IMPACTS
A summary of the company tax rates is listed in the table below:
• The aggregated annual turnover eligibility threshold remains at $5 million
• The capped discount remains at $1,000 per individual (unincorporated small business entity) in an income year
• PAYG instalments will take into account the
o 13% discount rate for the 2020-21 instalment year for those taxpayers who have lodged and claimed the
offset in their 2020 return
o 16% discount rate for the 2021-22 instalment year for those taxpayers who have lodged and claimed the
offset in their 2021 return.
OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
52
CA 2021-003| LCMSF Schema v3.0
SUMMARY
The Local/Master File (LCMSF) service will be updated with LCMSF Schema v 3.0 from 1 July 2021. The
proposed schema has been provided in the change advice for DSP review and feedback prior to release. LCMSF
Schema v 3.0 will continue to be available via SBR and Bulk Data Exchange BDE channels
Presented by:
Liem Le
Forms impacted:
SGE obligations
Local/Master file submit
BUSINESS REQUIREMENTS
The overarching changes to the service schema are:
• Statements relating to reporting periods starting on or after 1 January 2020 must not be lodged using earlier
schema (LCMSF 2017 (v 1.0) or LCMSF 2018 (v 2.0, v 2.1)) from 1 July 2021 onwards.
• Statements relating to reporting periods starting before 1 January 2020 may continue to lodge using earlier
schema, though we will encourage the use of LCMSF 2021 (v 3.0) for all reporting periods starting before 1
January 2020.
53
OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
Substantiation
Presented by:
Karmin Van Groesen
Director, Strategic Integration and Communications Experience and Government
SUBSTANTIATION PROPOSAL OVERVIEW | Background
Background
•
Through the Individual not in business tax gap program we have identified incorrect deduction claims for work related expenses as a
key source of revenue leakage. In addition to the revenue costs, incorrect claims undermine the fairness of the tax system. The high
level of non-compliance in relation to work related expense claims is driven in part by individuals viewing the risk of detection as
acceptably low.
•
The digital substantiation proposal seeks to request evidence/ information from individual taxpayers for high risk work -related
expense claims at the time of lodgment (and post lodgment) via easy online mechanisms for individuals and their agents. This will
allow assessment of claims and processing of returns in a more timely manner and support individuals and their agents to provide
evidence when they are likely to have it readily available.
•
Other benefits of the proposal include:
o
A new secure online upload facility will make it easier for individuals and agents to provide evidence to substantiate their claims.
Rather than using mail, fax or an unsecure email system.
o
Reduced likelihood of a tax debt arising from post-issue audits.
o
The proposal aims to drive behavioural change by making compliance action more visible to high risk claimers during the
lodgment process. All substantiation evidence would be checked by an ATO officer, reinforcing the consequences of claiming
unsubstantiated expenses.
55
OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
JobKeeper pre-fill for IITR
Presented by:
Kelly Norwood
Director, Small Business Experience
TT2021 JOBKEEPER PREFILL INFORMATION REPORT| Summary
• The JobKeeper (JK) wage subsidy program received Royal Assent on 9 April 2020 and again on 3 September 2020 for JK2 extension until 28
March 2021
• The JK payment is a temporary scheme open to eligible businesses and Not for Profits impacted by the Coronavirus (COVID-19) which is
then passed on to an eligible employees. The JK payment is also be available to self-employed individual nominating as a sole trader or
eligible business participant (EBP)*. Business owners operating in partnership or through a trust or company can also access the JK payment
if they qualify as an EBP.
• JK payments are required to be reported as business income of the entity that receives the payment from the ATO
• We expect that some JK payment recipients may not realise this requirement and under-report their business income
• For Tax Time 2019-20, an ATO initiated Outbound email campaign was undertaken to remind clients to include JK payments in the 2019-20
financial year as business income
• For Tax Time 2020-21, a prefill solution will be implemented to assist with the preparation of the 2020-21 individual income tax return:
• Prefill solution will be delivered in myTax for sole traders receiving JK payments as EBP and available to tax agents (via Online
Services for Agents and Standard Business Reporting)
• The JK payment amount will be provided to clients as information only and will not be mapped to a label. Clients and their agents are
then prompted to to review and include the JK amount with the business income when completing the individual income tax return
• The ATO will be initiating an Outbound communication campaign for all EBPs and their tax agents, which will inform them of the total JK
payment amount via myGov (for self-preparer sole traders); email (without JK amount instead an instructional message on how to
access the JK amount will be provided) or paper (as the final attempt to advise taxpayers of their JK payment amount)
• The new prefill data service will be made available on 1 July 2021 for self preparer individual taxpayers (sole traders) and their tax agents
Disclaimer: the final detailed designs are still being work through internally and subject to change. We will notify you of any changes should that occur.
*Eligible business participants (EBPs) are individuals who are not permanent employees of the particular business entity or another employer but who are actively engaged in the business carried on by a
sole trader, partnership, trust or company (i.e. not passive partners, shareholders or director and beneficiaries).
57
OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
TT2021 JOBKEEPER PREFILL INFORMATION REPORT
LIMITATIONS
IMPACTS
Out of scope
Impacted taxpayers.
o
o
Non-individual entities (partnership, company or trust) that
qualify as an EBP will not receive the JK payment prefill
information, as the prefill framework is only available for
individuals
Self-employed Individuals that do not qualify as an EBP,
but received JK payments for their eligible employees only
Data quality
o
Only high confident quality data match of the Client identity
that received JK payment will be exposed for prefill
During 2019-20:
o
Approximately 906k received JK payments
o
Approximately 613k (68%) claimed JK payments as an EBP
Technical package/artefacts including Schema, the
Message Structure Table (MST) and the Business
Implementation Guide (BIG) will be available by March
2021
OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
Approximately 354k (58%) were Individuals EBP and
o
Approximately 259k (42%) were non-Individuals EBP
Client/market segment
o
Self-employed individuals (i.e sole traders) EBP and their tax
agents will have access to the additional data for JK payments
Expected business outcomes
o
Increased support for taxpayers to correctly report their JK
payments in their 2020-21 income tax returns
o
Minimise the number of amendments required
o
Fewer compliance activities undertaken having to raise
adjustments and minimise the number of overpayments (debt
recovery cases post ITR lodgment)
System specifications
o
o
Lodgment Channel for Individuals EBP (354k)
% of ITR
lodgment
ATO Online – lodgements via ATO Online for Individuals or myTax
11%
PLS
84%
Other (including paper)
5%
58
TT2021 JOBKEEPER PREFILL INFORMATION REPORT
Tax agent user experience (access the prefill info report
via OSfA)
Self-prepared individual taxpayer user experience (view
the prefill info data via myTax)
Tax agents can access their clients JK payments details, from the prefill information report
available via OSfA. Below is an illustration example of the agents might expect to see in
OSfA.
Tax agent user experience (SBR Prefill report)
The JobKeeper wage subsidy amount will be provided as part of informational
prefill in the income section of the Prefill response.
DSPs should advise agents of this amount and that it should be included at the
relevant Business income section.
Disclaimer:
the final detailed designs and wordings are still being work through internally and subject to change. We
will notify you of any changes should that occur.
59
OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
CA 2021-017| TEMPORARY FULL EXPENSING (TFE)
SUMMARY
• Available for businesses with aggregated turnover of < $5 billion
• Generally, TFE applies for an asset in precedence to Instant Asset Write Off (IAWO) and Backing
Business Investment (BBI) accelerated depreciation.
• Eligible businesses can deduct the cost of the following (for the 2020-21 and 2021-22 income years):
• Eligible depreciating assets that are first held, and first used or installed for a taxable purpose,
A
from 7:30pm AEDT on 6 October 2020 (Budget time) to
30 June 2022
– For small and medium sized businesses (aggregated turnover < $50 million) this also applies to
second-hand depreciating assets.
B • Improvements made to eligible depreciating assets from Budget time to 30 June 2022, whether
those assets were acquired before or after the 2020 Budget time.
IMPACT ON THRESHOLDS
TEMPORARY FULL EXPENSING
AGGREGATED
TURNOVER
All
businesses
(<$5b)
ASSET COST
THRESHOLD
No limit
DEDUCTION
TYPE
ELIGIBLE PERIODS
2020
A Eligible
depreciating
assets
B
Improvements
made to
eligible
depreciating
assets
2021
FIRST USED OR INSTALLED
FOR A TAXABLE PURPOSE
ACQUIRED
Acquired before or
after budget time
• Certain assets are not
eligible for application of
TFE
• Limits apply to the
deduction available for
certain kinds of asset.
Presented by:
Angela Hucker
LEGISLATIVE MEASURE
Introduced as part of Treasury Laws
Amendment (A Tax Plan for the
COVID-19 Economic Recovery) Act
2020.
Policy Intent
This measure aims to improve cash
flow for qualifying businesses that
purchase eligible assets and bring
forward new investment to support
economic recovery.
Related measures
• Instant asset write-off
• Backing business investment –
accelerated depreciation.
FIRST HELD
6 Oct
from 7.30pm
2022
• Small businesses (with
aggregated annual
turnover of less than $10
million) can deduct the
balance of their simplified
depreciation pool at the
end of the income year
while full expensing
applies.
IMPROVEMENTS MADE
30 Jun
30 Jun
IAWO STILL IN EFFECT
60
OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
CA 2021-016| SMALL BUSINESS ENTITY TURNOVER THRESHOLD INCREASE
SUMMARY
Government announced an extension to certain small business concessions (previously available to small
business entities with aggregated turnover of $10 million) to those with aggregated turnover < $50 million per
annum.
Presented by:
Angela Hucker
IMPACTS
Eligible businesses will have access to a range of small business concessions.
CONCESSION
LEGISLATIVE REFERENCE
2020
INCOME
TAX
FBT
INCOME
TAX
EXCISE
GST
Immediate deduction for
certain start-up expenses
s 40-880(2A) of the ITAA 1997
Immediate deduction for
certain prepaid expenditure
s 82KZM of the ITAA 1936
FBT exemption for car parking
benefits
s 59GA of the FBTA 1986
FBT exemption for multiple
work-related portable
electronic devices
s 58X(2)(a) and s 58X(4) of
the FBTA 1986
Simplified trading stock rules
Subdiv 328-E of the ITAA 1997
Remit PAYG instalments based
on GDP-adjusted notional tax
s 45-130(1)(d) of Schedule 1
to the TAA 1953
Two-year amendment period
Item 2 of the table in s 170(1)
of the ITAA 1936
Settle excise duty monthly on
eligible goods
s 61C of the Excise Act 1901
Settle excise-equivalent customs
duty monthly on eligible goods
s 69 of the Customs Act 1901
Simplified accounting method
determination for GST purposes
s 123-5 of the GSTA 1999
Affects
around
START DATE
2021
20,000 businesses
1 JUL
1 APR
1 JUL
61
OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
CA 2021-011| Backing business investment – accelerated depreciation and enhanced Instant Asset Write Off
SUMMARY
The operation of Backing business investment – accelerated depreciation and enhanced Instant Asset Write-Off
has changed for assets first held as of the 2020 budget time with the introduction of Temporary full expensing.
Also, as of 2020-21, company, partnership and trust returns will have new labels.
Presented by:
Sean Bielanowski
Moran Yin
IMPACTS
1. Availability of BBI and enhanced IAWO for assets first held from 7.30pm 6 October
• BBI cannot be used if the business and asset meet temporary full expensing eligibility requirements
(businesses cannot choose to not use TFE).
• For enhanced IAWO, the same applies.
• For assets that do not qualify for temporary full expensing, eligible businesses now have an additional 6
months to have an asset first used or installed ready for use (i.e. until 30 June 2021).
• For small business entities, with temporary full expensing, the balance of the pool is written-off in full at
the end of an income year until 30 June 2022.
2. Tax return labels: introduction of two labels for BBI & an additional label for IAWO
• Turn taxpayers minds to the measures and facilitates understanding of take-up.
• Added at the Depreciation labels of Company, Partnership and Trust tax returns.
• BBI: one collects 1st year deductions, and the other, subsequent year deductions.
• IAWO: total IAWO claim label for those taxpayers who do not use the Simplified depreciation rules
(includes some Small business entities as well as larger entities with aggregated turnover less than $500
million).
• See change advice, for the label specifics.
62
OFFICIAL External – Services for Tax Practitioners 10 – 11 November 2020
Wrap up