Instant asset write-off Bill passes
The Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Act 2023 received Royal Assent on 28 June 2024 as Act No 52 of 2024. Among other things, it provides that for assets acquired from 1 July 2023 to 30 June 2024, the instant asset write-off will be available for expenditure incurred of up to $20,000. (Note: In the 2024-25 budget, the Government announced that the write-off will be extended for 12 months until 30 June 2025.)
No entitlement to input tax credit for purchase of related entity
A taxpayer, which operated an investment management business that provided financial services in the agricultural sector, has been unsuccessful before the AAT in its claim for an input tax credit of $340,000. The claim arose in relation to the purchase of a related company which held assets that were said to be used by the taxpayer in its business. The AAT arrived at its decision on the basis of finding that the taxpayer did not provide any consideration – and nor was it liable to provide any consideration – in connection with the sale of business agreement. (Ecosse Group Holdings Pty Ltd and FCT [2024] AATA 2073, 26 June 2024.)
Consultation: proposed hydrogen and critical minerals production tax incentives
As part of the 2023-24 Budget, the Government announced a Critical Minerals Production Tax Incentive and a Hydrogen Production Tax Incentive. Treasury has now released the following consultation papers in relation to the proposed measures: the Hydrogen production tax incentive (under which it is proposed that eligible producers will be entitled a refundable tax offset for a maximum of 10 years); and the Critical minerals production tax incentive (under which it is proposed that eligible entities will be entitled to claim 10% of eligible expenditure for processing and refining defined critical minerals). Submissions are due by 12 July 2024.
APRA supervisory levies for 2024-25
The Australian Prudential Regulation Authority Supervisory Levies Determination 2024 has been made. It sets out the financial institutions’ supervisory levies for the 2024-25 financial year. They will apply to superannuation funds other than pooled superannuation trusts, small APRA funds and single member approved deposit funds.
NSW: Coal royalty changes from 1 July 2024
The NSW Revenue has released information on coal royalty changes, which take effect on 1 July 2024. The information deals with the increase in coal royalty rates, the date of effect of Value of Coal Recovered Ministerial Determination 2024 and beneficiation rates increase.