ATO: One million directors still need to apply for director ID
The ATO has advised that around one million directors still need to apply for their director ID before the 30 November deadline. The Australian Business Registry Services, which administers the new system, is urging directors not to leave it to the last minute to apply.
Tax Bill for previous announced measures introduced
The Treasury Laws Amendment (2022 Measures No. 4) Bill 2022 was introduced to Parliament on Wednesday, 23 November 2022. Among other things, it will:
- Introduce a refundable tax offset in relation to eligible expenditure incurred in the development of digital games. Date of effect: for expenditure incurred in relation to eligible game development from 1 July 2022.
- Clarify that digital currencies (such as bitcoin) continue to be excluded from the income tax treatment of foreign currency. Note: For the purpose of these amendments, the term digital currency does not include digital currencies issued by, or under the authority of, a government agency (‘government-issued digital currency’) which continue to be taxed as foreign currency. Date of effect: from the 2021/22 and later income years.
- Reduce compliance costs for employers finalising their FBT returns by empowering the Commissioner to allow them, where it is appropriate to do so, to rely on adequate alternative records holding all the prescribed information instead of seeking that information again by way of statutory evidentiary documents, such as prescribed employee declarations. Date of effect: for FBT years starting on or after the first 1 January, 1 April, 1 July or 1 October that occur after the day the Bill receives the Royal Assent.
- Provide small businesses (with aggregated annual turnover of less than $50m) with temporary access to a bonus deduction equal to 20% of eligible expenditure for external training provided to their employees. Date of effect: applicable to eligible expenditure incurred from 7:30pm on 29 March 2022 until 30 June 2024.
- Provide small businesses (with aggregated annual turnover of less than $50m) with temporary access to a bonus deduction equal to 20% of their eligible expenditure on expenses and depreciating assets for the purposes of their digital operations or digitising their operations. The bonus deduction applies to the total of eligible expenditure of up to $100,000 per income year or specified time period, up to a maximum bonus deduction of $20,000 per income year or specified time period. Date of effect: applicable to eligible expenditure incurred from 7:30pm on 29 March 2022 until 30 June 2023.
- Amend the Corporations Act, the ASIC Act and the SIS Act to extend and adapt the financial reporting and auditing requirements in Chapter 2M of the Corporations Act to apply to registrable superannuation entities. Date of effect: 1 July 2023. (See also Assistant Treasurer’s media release – “Increasing super fund transparency”.)
- List, or extend, the following entities as deductible gift recipients (DGRs): Melbourne Business School Limited, Leaders Institute of South Australia Incorporated, St Patrick’s Cathedral Melbourne Restoration Fund, Jewish Education Foundation (Vic) Ltd, Australian Education Research Organisation Limited, and Australians for Indigenous Constitutional Recognition Ltd; Sydney Chevra Kadisha and Australian Women Donors Network. It will also remove the DGR listing of the Mt Eliza Graduate School of Business and Government Limited. Dates of effect: Various, as relevant
- Modify the Clean Energy Finance Corporation Act 2012 to enable the CEFC to receive additional funds to implement Rewiring the Nation, establish the Powering Australia Technology Fund and streamline the ability of the government to provide the Clean Energy Finance Corporation with additional funds in the future.
- Confirm the tax treatment of certain defined military superannuation benefit pensions following the Full Federal Court decision in FCT v Douglas [2020] FCAFC 220. It also provides a non-refundable tax offset for recipients of invalidity benefits paid in accordance with the Military Superannuation Benefits Scheme and the Defence Force Retirement and Death Benefits Scheme to ensure they do not pay additional income tax because of the Douglas decision. Date of effect: the day after Royal Assent.
Modernising Business Communications Bill introduced
The Treasury Laws Amendment (Modernising Business Communications and Other Measures) Bill 2022 was introduced to Parliament on Wednesday, 23 November 2022. Among other things, it will:
- Amend the Corporations Act to modernise communication methods available to consumers, businesses and regulators when interacting with each other by: (a) extending the global communications regime, allowing members of certain entities to elect to receive documents in hard copy or electronic form, and providing relief to entities that are unable to contact members; (b) updating payment provisions in Treasury laws to allow electronic payments to be used; and, (c) replacing requirements to publish notices in newspapers with a requirement that notices be published in an accessible and reasonably prominent manner. Date of effect: day after Royal Assent (generally).
- Implement recommendations and improvements identified by the Australian Law Reform Commission in Interim Report A to simplify and improve the navigability of Australia’s financial services laws. Date of effect: day after Royal Assent (generally).
- Amend the Corporations Act and the National Consumer Credit Protection Act 2009 to transfer longstanding and accepted matters currently contained in ASIC legislative instruments into the primary law in order to improve navigability of the law and provide industry and consumers with greater certainty and clarity. Date of effect: day after Royal Assent.
