To help your business navigate through these extremely difficult times, the Government has provided some financial assistance with their recently announced ‘Business Resilience Package’. Due to the Victorian Government’s Stage 3 & Stage 4 Restrictions put in place to combat the Corona Virus, businesses have had to adapt and operate in a limited capacity or, in some instances, have had to completely close up shop.

1. Personal income tax changes

1.1 Changes to personal income tax rates

The Government has announced that it will bring forward changes to the personal income tax rates that were due to apply from 1 July 2022, so that these changes now apply from 1 July 2020 (i.e. from the 2021 income year). These changes involve:-

• increasing the upper threshold of the 19% personal income tax bracket from $37,000 to $45,000; and
• increasing the upper threshold of the 32.5% personal income tax bracket from $90,000 to $120,000

The corona virus pandemic has, and continues to have, a significant impact on Victoria from both a health and economic perspective. The State Revenue Office has summarised the corona virus tax and fee relief measures that they are administering below:-

The JobKeeper Payment is a scheme, administered by the Australian Taxation Office (ATO), aimed at supporting businesses and not-for-profit organisations significantly affected by COVID-19, to help keep more Australians in jobs.

Whilst it was originally due to run until 27 September 2020, it will now continue to be available to eligible businesses (including the self-employed) and not-for-profits until 28 March 2021.

The COVID-19 pandemic is impacting Australians health and back pocket. The Government have taken some bold steps to provide incentives like income supplements and tax breaks to keep the economy going.

Following the enactment of legislation in late 2019, the ATO can disclose certain business tax debt information to external credit reporting bureaus.

This assistance will support businesses to manage cash flow challenges and help businesses retain their employees. These two measures are designed to support employing small and medium enterprises and to improve business confidence. In addition, the wage subsidy for apprentices and trainees will help to ensure the continued development of the skilled workforce that employers need.

The ATO has revealed it will request a further five years’ worth of policy information from over 30 insurance companies about taxpayers who own marine vessels, thoroughbred horses, fine art, high value motor vehicles and aircraft.

The Government recently tabled legislation, making its second attempt to deny access to the CGT main residence exemption for individuals who are foreign residents (i.e., non-resident taxpayers for Australian tax purposes).

In a presentation at the Australian Institute of Superannuation Trustees Chairs Forum, the ATO’s Deputy Commissioner confirmed that as a result of STP, the ATO now has an “unprecedented level of visibility” of super information.