What Are The New Changes In Australian Taxation?

August 24, 2020    Tax Return Perth

The occurrence of Covid-19 had already had adverse consequences on the entire world. This has affected many people to fulfill their taxing duties properly. In response to this, the Australian Taxation Office has made a number of significant changes within Australia’s taxing system. So, let’s take a look at a few of these changes.

Zero Deductions for Empty Lands

Are you the owner of vacant land in Australia? Then, you cannot ask for any deductions related to its cost. You cannot claim deductions on:

  • Maintenance costs
  • Council rates
  • Land taxes
  • The interest which applies to the loan you needed to buy the land.

These amendments have come into effect from 1st July 2019. In case, you bought the land before that, you should still abide by this new protocol.

Read More:- 2020 Tax Updates: Deriving the Most Refunds

Unavailable Net Medical Costs

A certain tax offset for the net medical cost for attendants and aged care and disability aids was available until abolished. It was from 1st July 2019 that this facility was made completely unavailable.

Land Tax Changes

A number of changes have been made to the land tax system of Australia as well which are outlined below.

  • The Prime Minister of Western Australia has announced tax relief for commercial landlords. According to this, the relief will be equivalent to 25% of the landlord’s tax bill for 2019-2020. Landlords who are decreasing the rent for their small business tenants will only get this privilege inflicted by Covid-19.
  • The government of Southern Australia has also proclaimed a 25% relief for residential and commercial landlords for 2019-2020. This particular privilege is to provide a certain advantage to the tenants from March 2020. If required, this duration may be lengthened up to October 2020.

To get more information about all these facts, you can feel free to contact the top Tax Accountant Perth, Australia.

Constrained Tax Relief for Overseas Residents

Overseas residents of Australia cannot claim their CGT main residence tax relief. They cannot do so while selling a property in Australia provided if the property isn’t applicable to the following exceptions.

  • A property that they sold on or prior to 30th June 2020.
  • A property which they possessed before 7.30 pm (AEST) on May 9, 2017.

The foreign residents can claim the CGT main residence tax exemption. To become eligible, they will have to stay in Australia for 6 years or less than that. In case, a mishap occurs in between, they won’t be able to do so.

Cessation of CGT Small Business Concessions

Capital Gains Tax (CGT) includes making, transforming, changing, and ending of an interest. This particular interest or privilege is applicable to a person possessing the capital or income of a partnership. The members of this partnership cannot optimise the small CGT concessions provided if the following circumstances occur.

  • The right or interest isn’t regarded as a membership interest concerning its owner or
  • If the incident of CGT has taken place post 7.30 pm on 8th May 2018 (AEST).

In case, these two circumstances haven’t arrived, the eligible owner can claim the CGT concessions.

Read More:- The Most Common Mistakes Picked Up By the ATO During Tax Audits

Changes in Payment Summary Information

Is your employer using the Single Touch Payroll (STP)? If so, then your payment summary information will be termed as an income statement. This will be considered equal to payment rundown or group certificate in general terms. According to the new amendments, your employer isn’t liable to provide you an end-of-year summary for the STP based facts.

So, are you also planning to lodge your Tax Return Perth in Australia? Before that, you should read this post carefully to get familiar with the recent taxing changes in Australia for Covid-19.

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