Depreciation – 1 July 2020 to 30 June 2022

By Bjorn Kirberg

Instant asset write-off tables – based on entity aggregated turnover

50% Accelerated Depreciation (Assessable income $500 million and under) – Over $150k

A 50% deduction applies from 12 March 2020 until 6 October 2020 and is only available to new assets (not second-hand) purchased for $150,000 or more and first held by 6 October 2020.

The 50% deduction is available in the year of installation with the remainder of the asset’s cost being depreciation under the usual depreciation rules.  

Instant Asset Write-Off Implications and Restrictions

Only available for Australian businesses, where the asset is used and located in Australia.

Not available for equipment purchased in a related entity such as a machinery hire company or a service entity which on-charges the operating business for use of the asset.

Not available for Division 43 capital works assets or assets allocated to a low-value pool.

For companies, this could cause a loss which may be beneficial if wanting to use loss carry back.

General Small Business Pools

Entity’s with a small business pool must write off the full pool balance in the 2021 financial year.

Meet The Staff – Renee Bettenay

Renee started with Harris Black in 1997 and has since progressed to become a Director in 2006. Renee has a Bachelor of Business (Accounting) from QUT and is a Fellow of the Chartered Accountants Australia and New Zealand.

Some interesting facts about Renee – if she could live anywhere, Renee would live near the water and the most relaxing place she has been to is her Mum and Dad’s place on the Tweed River. Renee learnt how to water ski from her Dad, but a skill she would like to master is piano. If she could only take 3 items with her to a deserted island, Renee would take a kindle, sunscreen, and an unlimited supply of champagne!

An excerpt of the interview with Renee is below:

Superannuation Rates And Thresholds For 2021-22

Contribution Caps

The concessional contributions cap is set to increase to $27,500 for the 2021-22 financial year (up from $25,000 since 2017-18).

The non-concessional contributions cap (which is set at 4 times the concessional cap) is $110,000 for 2021-22 (or $330,000 under the bring-forward rule over 3 years, subject to the other eligibility requirements).

Working From Home Deductions: “Shortcut” Rate Until 30 June 2021

The ATO advises that the “shortcut” rate for claiming work-from-home running expenses has been extended again, in recognition that may employees and business owners are still required to work from home due to Covid-19.  This shortcut deduction rate was previously extended to 31 October 2020, but will now available until at least 30 June 2021.

Eligible employees and business owners therefore can choose to claim additional running expenses incurred between 1 March 2020 and 30 June 2021 at the rate of 80 cents per work hour, provided they keep record (such as timesheet or work logbook) of the number of hours worked from home during the period.

Super Transfer Balance Cap Increase From 1 July 2021 From $1.6 Million To $1.7 Million

At the time you first commence a retirement phase superannuation income stream, your, “personal transfer balance cap” is set at the general transfer balance cap for that financial year.

Essentially, the transfer balance cap is a lifetime limit on the total amount of super that you can transfer into retirement phase income streams, including most pensions and annuities.

When the general transfer balance cap is indexed to $1.7 million from 1 July 2021, there won’t be a single cap that applies to all individuals.  Rather, every individual will have their own personal transfer balance cap of between $1.6 million and $1.7 million, depending on their circumstances.

Important Tax Dates

21 April 2021

• Lodge and pay quarter 3, 2020-2021 PAYG instalment activity statement for head companies of consolidated group
• Lodge and pay March 2021 monthly business activity statement

28 April 2021

• Lodge and pay quarter 3, 2020-2021 activity statement if electing to receive and lodge by paper and not on active STP reporter.
• Pay quarter 3, 2020-2021 instalment notice
• Make super guarantee contributions for quarter 3, 2020-21 to the funds by this date.

30 April 2021

• Lodge TFN report to closely held trusts if any beneficiary quoted their TFN to a trustee in quarter 3, 2020-2021

15 May 2021

• Lodge 2020 Tax Returns for all entities that did not have to lodged earlier and are not eligible for the 5 June concession.

21 May 2021

• Lodge and pay April 2021 monthly business activity statement

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