April 2022 Newsletter
Please click on the following link to view this month's newsletter for April 2022. We would like to highlight the following articles:-
Temporary full expensing of assets extended
The temporary full expensing of depreciating assets has been extended for another year until 30 June 2023. Businesses with an aggregated turnover below $5 billion or those that meet an alternative eligibility test can deduct the full cost of all new eligible capital assets of any value that are first held and first used or installed ready for use for a taxable purpose from 6 October 2020 until 30 June 2023.
Eligible assets don't include:
assets allocated to a low-value pool or a software development pool
certain primary production assets
buildings and other capital works you can deduct amounts for under Division 43
assets that will never be located in Australia or won't be used principally in Australia for the principal purpose of carrying on a business.
Second-hand assets if the entity that holds them has an aggregated turnover of $50 million or more.
Special rules also apply to cars, where the temporary full expensing is limited to the business portion of the car limit (currently $60,733).
Work test changed for super contributions
From 1 July 2022, individuals under age 75 will be allowed to make or receive non-concessional (including under the bring forward rule) and salary-sacrificed contributions to their superannuation without the need to pass the work test or satisfy the work test exemption criteria.
These changes are designed to provide older Australians with more flexibility to contribute to their super and add to their comfort in retirement.
Downsizer contributions: age limit change
To help those nearing retirement boost their super balances, people aged 65 and over can currently make downsizer contributions to their super of up to $300,000 from the proceeds of the sale of their home.
From 1 July 2022 the age limit for those making downsizer contributions will be decreased to include individuals aged 60 years or over. Optimistically, the government expects the decrease in the age threshold will encourage more older Australians to downsize sooner and free up the stock of larger homes for younger families.
Please do not hesitate to contact us if you have any queries in relation to your tax and accounting matters.