2021 TA Super contribution age limits to change Members of regulated superannuation funds now have no restrictions for making voluntary contributions prior to reaching 67 years of age.
nnouncement(17-Apr-2019)
The new legislation also extends the ability for members to make bring forward contributions, making more individuals eligible to make 3 years' worth of contributions.
Consultation(3-Apr-2020) Introduced(13-May2020) Passed(17-Jun-2021) Royal Assent(23-Jun-2021)
The legislative and regulatory changes only relate to voluntary contributions, as employer contributions
Date of effect(1-Jul-2020)
have different rules relating to individuals over the age of 65.
FBT exemption for retraining and reskilling An exemption from fringe benefits tax has been proposed for when an employer provides an employee with retraining or reskilling opportunities at or prior to redundancy. This new law takes effect from 2 October 2020, and is now law.
Announcement(6-Oct-2020) Consultation(29-Apr-2021) Introduced(26-May2021) Passed(24-Jun-2021)
These measures may provide a tax incentive for employees to change careers, in particular if they are
Royal Assent(29-Jun-2021)
about to be made redundant. For employers, it is an opportunity to provide a group of employees with
Date of effect(2-Oct-2020)
training opportunities in situations where part of the business is due to close down in coming years.
Low and middle income tax offset The low and middle income tax offset (LMITO) was introduced in the 2018 federal budget to commence from 1 July 2018. The offset runs in conjunction with the low income tax offset as a targeted reduction of income tax for Australian residents. Originally due to run over 4 years, in the 2020 federal budget phase 2 of the 3-phase 7-year income tax plan was brought forward. This effectively put an end date on LMITO of 30 June 2021. Announcement(8-May-2018)
In the 2021 federal budget it was announced that LMITO would be extended to the 2021-22 income year.
Consultation(11-May-2021)
Legislation to enact this change has been passed by both houses of parliament and will become law in
Introduced(26-May-2021)
the very near future.
Passed(25-Jun-2021) Royal Assent(29-Jun-2021)
The LMITO will provide an additional offset of up to $255 for individuals on a taxable income of $37,000 or
Date of effect(1-Jul-2021)
less. Taxpayers up to $48,000 will get an increased LMITO up to the maximum amount of $1,080. The maximum LMITO is available for Australian residents on incomes up to $90,000 and will tapers off to $0 for individuals with a taxable income of $126,000.
Granny flat arrangements set for CGT exemption A "targeted" capital gains tax exemption relating to granny flat arrangements has passed through parliament and will become law. The intention of the new legislation is to remove financial impediments when a granny flat arrangement is legally created. A formal arrangement would generally trigger CGT event D1, which often leads to informal
Announcement(6-Oct-2020) Consultation(29-Apr-2021) Introduced(26-May-221)
arrangements. As family is usually involved, often it is these informal arrangements which can inevitably
Passed(25-Jun-2021)
lead to financial and elder abuse.
Royal Assent(29-Jun-2021)
The CGT exemption will have effect from 1 July 2021 after receiving royal assent.
Date of effect(1-Jul-2021)
