Earn
Budget could see big changes to tax and super, warns BT
Given the impact of COVID-19, the government may consider announcing some significant changes to the taxation of super in the budget this year, BT Technical Services has said.
Budget could see big changes to tax and super, warns BT
Given the impact of COVID-19, the government may consider announcing some significant changes to the taxation of super in the budget this year, BT Technical Services has said.
BT head of financial literacy and advocacy Bryan Ashenden said the federal budget, due to be handed down on 6 October, could be a very interesting one this year depending on how the government responds to the economic impact of COVID-19.
“If the government wants to make some significant changes to the way things have worked in the past, they may decide this is the time to do it,” Mr Ashenden said in a BT Technical Services webinar.
Mr Ashenden said the government may consider whether the age pension system or welfare system is operating effectively and whether there needs to be changes in terms of income testing and asset testing.
“Will they [increase] the preservation age to encourage people to work for longer?” he questioned.
“Is it a time where [they decide] to change the taxation of the superannuation system? Where we move from a 15 per cent flat rate and zero per cent rate in retirement to having some taxation on earnings? Will it become the marginal tax rate less 15 per cent during accumulation?”
Mr Ashenden said all of these types of questions could come up for consideration, depending on the outcomes of the retirement income review.
The other item the government may announce, he said, is what the government plans to do in relation to the income tax rate changes.
“There has already been talk about bringing forward the changes that were initially due to take effect from 1 July 2022 and whether they will be brought forward to 1 July 2021, or even brought forward to apply to this financial year and whether those other changes that were due to take effect 1 July 2024 will also be brought forward,” he said.
Tax refund
Proposed Coalition tax cuts blasted in new ad campaign
Critics of the Morrison government’s proposed early stage 3 tax cuts are demanding that Treasurer Josh Frydenberg move away from high income tax breaks and instead look towards social spending, a n...Read more
Tax refund
Does Australia need an aged care tax?
The royal commission into aged care has found that an increase in funding is required to adequately care for residents, according to new research. ...Read more
Tax refund
$180k all for himself: Tax fraudster took advantage of clients
A Mount Druitt tax professional will spend time behind bars after he was found to be lodging false tax return amendments on behalf of clients without their knowledge. ...Read more
Tax refund
Australians tipped to overpay the taxman $1.1bn
New working-from-home deductions are seeing Australians at risk of missing out in over $1 billion in tax refunds, new research reveals. ...Read more
Tax refund
Is your tax agent the real deal?
Australians are being warned against entrusting their tax matters to “bogus” tax agents. ...Read more
Tax refund
The best way to use your 2019-20 tax return
Putting cash away for a rainy day and paying down debt are two “sensible strategies” for using your 2019-20 tax return, according to an accountant. ...Read more
Tax refund
Cosmetic surgery, a clown suit and caravanning: Bizarre tax deductions
An accountant spills the beans on some of the weirdest and wackiest tax return deduction claims he has seen. ...Read more
Tax refund
ATO records ‘biggest 1 July ever’ with 640% spike
Over 1.7 million Australians have now lodged their tax returns in the first two weeks of the new financial year, leading the ATO to issue a cautionary note on trending mistakes with early lodgements. ...Read more
Tax refund
Proposed Coalition tax cuts blasted in new ad campaign
Critics of the Morrison government’s proposed early stage 3 tax cuts are demanding that Treasurer Josh Frydenberg move away from high income tax breaks and instead look towards social spending, a n...Read more
Tax refund
Does Australia need an aged care tax?
The royal commission into aged care has found that an increase in funding is required to adequately care for residents, according to new research. ...Read more
Tax refund
$180k all for himself: Tax fraudster took advantage of clients
A Mount Druitt tax professional will spend time behind bars after he was found to be lodging false tax return amendments on behalf of clients without their knowledge. ...Read more
Tax refund
Australians tipped to overpay the taxman $1.1bn
New working-from-home deductions are seeing Australians at risk of missing out in over $1 billion in tax refunds, new research reveals. ...Read more
Tax refund
Is your tax agent the real deal?
Australians are being warned against entrusting their tax matters to “bogus” tax agents. ...Read more
Tax refund
The best way to use your 2019-20 tax return
Putting cash away for a rainy day and paying down debt are two “sensible strategies” for using your 2019-20 tax return, according to an accountant. ...Read more
Tax refund
Cosmetic surgery, a clown suit and caravanning: Bizarre tax deductions
An accountant spills the beans on some of the weirdest and wackiest tax return deduction claims he has seen. ...Read more
Tax refund
ATO records ‘biggest 1 July ever’ with 640% spike
Over 1.7 million Australians have now lodged their tax returns in the first two weeks of the new financial year, leading the ATO to issue a cautionary note on trending mistakes with early lodgements. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
