The government introduced changes to the capital gains tax (CGT) discount, previously known as the ‘CGT 50% discount’. In the 2012–2013 Budget, the government announced changes to the application of the CGT discount. These changes became law on 29 June 2013.
Individuals, including beneficiaries of a trust and partners in a partnership, may no longer be entitled to receive the full CGT discount on a capital gain received after 8 May 2012 if they are:
From 8 May 2012, foreign or temporary resident individuals must meet certain eligibility conditions to apply the CGT discount.
For CGT events occurring after 8 May 2012, the application of a CGT discount percentage will depend on:
You are not affected by this change if the CGT event occurred before 8 May 2012.
HOW DO THE CHANGES AFFECT FOREIGN OR TEMPORARY RESIDENTS?
You must calculate the CGT discount you can apply to the capital gain if you are a foreign or temporary resident individual and, after 8 May 2012, you have a discount capital gain from a CGT event.
If you were a foreign or temporary resident on 8 May 2012, you may wish to get a market value for the CGT asset as at 8 May 2012 and use a market value calculation. This will apportion the CGT discount to take into account the capital gain you have that was accrued before 8 May 2012.
HOW DO THE CHANGES AFFECT AUSTRALIAN RESIDENTS?
You must calculate the CGT discount you can apply to the capital gain you have if you are an Australian resident and, after 8 May 2012, you have:
The period of foreign or temporary residency after 8 May 2012 is taken into account when calculating the CGT discount you can apply to your capital gain.
INDIVIDUALS - INCORRECT CLAIMS FOR WORK-RELATED EXPENSES
The ATO will continue to maintain a focus on incorrectly claimed deductions, concessions, offsets and credits. This year the ATO will pay particular attention to high claims made by:
They will also look closely at high work-related travel expense claims across individual income tax returns.
EMPLOYERS - WORKERS INCORRECTLY TREATED AS CONTRACTORS
Across a number of industries, the ATO continues to see purported contracting arrangements being misused by employers with the intention of avoiding employment overheads.
The ATO will investigate employers that intentionally try to avoid their tax and superannuation obligations by improperly treating workers as contractors rather than employees. They will assist employers to understand and meet their obligations. Where non-compliance is detected penalties will be applied.
Every time an employee tells the ATO that their employer has not paid their superannuation guarantee entitlement, they investigate. In the coming year the ATO expects to contact around 12,000 employers as a result of these complaints.
Employers in some industries present a higher risk than others of not complying with their superannuation guarantee obligations. The ATO will audit employers in the following industries:
Employers may be held accountable for their company’s unpaid superannuation guarantee debt under the new director penalty regime.
21 OCTOBER 2013
• Annual pay as you go (PAYG) instalment notice (Form N) – due date for payment. Lodgement is only required if you vary the instalment amount or use the rate method to calculate the instalment.
21 OCTOBER 2013
• September 2013 monthly activity statements - final date for lodgement and payment.
28 OCTOBER 2013
• Superannuation guarantee contributions for Quarter 1 (July - September 2013) are to be made to the fund by this date.
31 OCTOBER 2013
• Final date to appoint a tax agent to the income tax role for any new client. If you advise us of your appointment after this date, your 2013 income tax return may not be covered by the concession in our tax agent lodgement program.
• Income tax returns for all entities where one or more prior year income tax returns were outstanding as at 30 June 2013. This means all prior year returns must be lodged, not just the immediate prior year. If all outstanding prior year returns have been lodged by this date, the ATO system will reset the 2013 return due date as per the normal program. Self-managed super funds (SMSF) in this category must lodge their complete Self-managed superannuation fund annual return by this date.
• Income tax return for all entities prosecuted for non-lodgement of prior year income tax returns and advised of a lodgement due date of 31 October 2013. Some prosecuted clients may have been given a different lodgement due date. Refer to the letter you received on this matter for the applicable due date. Self-managed super funds (SMSF) in this category must lodge their complete Self-managed superannuation fund annual return by this date.
21 NOVEMBER 2013
• October 2013 monthly activity statements - due date for lodgement and payment.
25 NOVEMBER 2013
• Quarter 1 activity statements (July - September 2013) - due date for lodgement and payment if you are lodging via electronic commerce interface (ECI), electronic lodgement service (ELS), Tax Agent Portal, BAS Agent Portal or Standard Business Reporting (SBR).
28 NOVEMBER 2013
• Due date for lodging Superannuation guarantee charge statement - quarterly and paying the super guarantee charge for Quarter 1 (July – September 2013), if the employer did not pay enough contributions on time.
1 DECEMBER 2013
• Income tax for taxable large/medium businesses, companies and super funds - due date for payment. Lodgement of return is due 15 January 2014.
• Income tax for companies and super funds where lodgement of the income tax return was due 31 October 2013 - due date for payment.
21 DECEMBER 2013
• November 2013 monthly activity statements - final date for lodgement and payment.
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