Excise Point-in-Time Service Updates

The Excise Point-in-Time Service has been updated to include the Treasury Laws Amendment (A Tax Plan for the COVID-19 Economic Recovery) Act 2020 (Cth) (Act No 92 of 2020).

Act 92 of 2020

Schedule 1 to the Act amends the income tax law to reduce the tax payable by individuals in the 2020-21 income year and later income years by bringing forward to 2020-21 the changes to income tax thresholds that were to commence in the 2022-23 income year. Schedule 1 to the Act also amends the income tax law to bring forward the increase in the amount of the low income tax offset to $700 (from $445) by two years to the 2020-21 income year and later income years (instead of the 2022-23 income year and later income years); and retain the low and middle income tax offset for the 2020-21 income year, with the offset now ceasing to be available from the 2021-22 income year onwards.

Schedule 2 to the Act amends the income tax law to allow corporate tax entities with an aggregated turnover of less than $5 billion to carry back a tax loss for the 2019-20, 2020-21 or 2021-22 income year and apply it against tax paid in a previous income year as far back as the 2018-19 income year.

Schedule 3 to the Act enables eligible entities with an aggregated turnover of $10 million or more and less than $50 million to access a number of small business entity tax concessions.

Schedule 4 to the Act reforms the R&D Tax Incentive to help businesses that invest in R&D manage the economic impacts of the Coronavirus pandemic while providing incentives to undertake additional investments in R&D. Schedule 5 to the Act enhances the integrity of the R&D Tax Incentive by ensuring that R&D entities cannot obtain inappropriate tax benefits and by clawing back the benefit of the R&D Tax Incentive to the extent an entity has received another benefit in connection with an R&D activity. Schedule 6 to the Act improves the administrative framework supporting the R&D Tax Incentive by making information about R&D expenditure claims transparent, enhancing the guidance framework to provide certainty to applicants and streamlining administrative processes.

Schedule 7 to the Act amends the income tax law to allow businesses with an aggregated turnover of less than $5 billion to deduct the full cost of eligible depreciating assets that are first held, and first used or installed ready for use for a taxable purpose, between the 2020 budget time and 30 June 2022. Businesses are also able to deduct the full cost of improvements to these assets and to existing eligible depreciating assets made during this period. Schedule 7 to the Act also amends the income tax law to extend the time by which assets that qualify for the enhanced instant asset write-off must be first used or installed ready for use for a taxable purpose until 30 June 2021.

These amendments have been updated in the Point-in-Time Excise Service current to 25 October 2020. (NB: Subscription required).

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