Income Tax Point-in-Time Service Updates

The Income Tax Point-in-Time Service has been updated to include the Territories Stolen Generations Redress Scheme (Consequential Amendments) Act 2021 (Cth) (Act 141 of 2021), Veterans’ Affairs Legislation Amendment (Exempting Disability Payments from Income Testing and Other Measures) Act 2021 (Cth) (Act 142 of 2021), and the Financial Sector Reform Amendment (Hayne Royal Commission Response—Better Advice) Regulations 2021 (Cth).

Act 141 of 2021

An Act to deal with consequential matters in connection with the establishment of the Territories Stolen Generations Redress Scheme, and for related purposes.

As the redress payment is in recognition of the harm caused by forced removal and is aimed at healing, the objective of the Act is to ensure that eligible participants will receive the full benefit of the redress payment and that receipt of the payment does not adversely affect income testing for other Commonwealth payments or benefits. 

Act 142 of 2021

This Act gives effect to the Government’s response to the Review commissioned by the Prime Minister into the Totally and Permanently Incapacitated (TPI) Payment which was undertaken by Mr David Tune AO PSM. It also responds to recommendation 15.1 of the Productivity Commission’s review – A Better Way to Support Veterans.

It exempts certain Department of Veterans’ Affairs payments known collectively as Adjusted Disability Pension (ADP) from the social security income test under the Social Security Act 1991, repeals the collective definition of ADP from the Veterans’ Entitlements Act 1986 (VEA) and as a result of the social security income test exemption removes the need for the Defence Force Income Support Allowance (DFISA) as social security payments will increase as a result of the exemption. This Act also repeals the operation and definition of the DFISA and DFISA Bonus from the VEA and consequentially removes all references to it from Commonwealth primary legislation.

Financial Sector Reform Amendment (Hayne Royal Commission Response—Better Advice) Regulations 2021

The Regulations amend the Australian Securities and Investments Commission Regulations 2001, the Corporations Regulations 2001 and the Tax Agent Services Regulations 2009 to:

• prescribe criteria for when ASIC must convene an FSCP;
• set allowances for witnesses summoned to appear at a hearing of an FSCP;
• provide that specified civil penalty provisions are not taken to be significant (and therefore may not be reportable) under the breach reporting regime;
• prescribe sanctions that must be included on the Register of Relevant Providers;
• provide for the Minister to be able to delegate the functions and powers to approve foreign qualifications to officers in the Department of Treasury;
• extend the deadline for certain existing providers to pass the financial adviser exam;
• set requirements (including eligibility criteria, fees and transitional provisions) for non-relevant providers (individuals, companies and partnerships) who provide tax (financial) advice services to be registered as tax agents under the TAS Act; and
• make consequential amendments to the Tax Agent Services Regulations 2009 to remove references to tax (financial) advisers and recognised tax (financial) adviser associations.

These amendments have been updated in the Point-in-Time Income Tax Service current to 13 January 2022 (NB: subscription required).

If you are not already a subscriber to this or other Point-in-Time Services then please contact us to find out more or to take a free trial.