News

The following articles outline key announcements of the May 2015 Federal Budget.

The Government confirmed that a 10% cap will apply to the “deductible amount” for pension income received from a defined benefit superannuation scheme for the purposes of the social security income test. Recipients of Veterans’ Affairs pensions and defined benefit income streams paid by military superannuation funds are exempt from this measure. In addition, the...

The Government confirmed that the Age Pension assets test threshold for a single homeowner will be increased to $250,000 (up from $202,000) and $375,000 for a homeowner couple (up from $286,500) from January 2017. The assets test threshold (or assets free area) for non-homeowners will be increased to $450,000 (single) and $575,000 (couple). The assets...

The Treasurer said the Government will stop people from claiming parental leave payments from both the Government and their employers – he said this was effectively double dipping. This would apply from 1 July 2016.

The Government announced it will establish a new and simpler mainstream Child Care Subsidy from 1 July 2017. Key points include the following: • Abolition of the current Child Care Benefit, Child Care Rebate and Jobs, Education and Training Child Care Fee Assistance programmes. • A single means tested Child Care Subsidy for all families,...

The Government has announced that it will impose GST on offshore intangible supplies to Australian consumers with effect from 1 July 2017. The measure has been cited in the media as the “Netflix” tax. The Government released draft legislation which contains the details of the changes. The key concept in determining if a supply is...

Significant changes to the employee share schemes (ESS) rules were announced in October 2014. Additional changes announced in the Budget will: • exclude eligible venture capital investments from the aggregated turnover test and grouping rules (for the start-up concession); • provide the CGT discount to employee share scheme interests that are subject to the start-up...

From 1 April 2016, ie the start of the 2016–2017 FBT year, the Government will allow an FBT exemption for small businesses that provide employees with more than one qualifying work-related portable electronic device, even where the items have substantially similar functions.

The Government has confirmed that it will allow small businesses with an aggregated annual turnover of less than $2 million to change legal structure without attracting a CGT liability at that point. The measure recognises that new small businesses might choose an initial legal structure that they later find does not suit them when the...

The Government will allow businesses to immediately deduct a range of professional expenses associated with starting a new business, such as professional, legal and accounting advice. The measure will be available to businesses from the 2015–2016 income year.