Date posted: 18/01/2018 2 min read

MYEFO tax-related measures

Announcements on redundancy payments, intangible asset depreciation, new start dates and GST compliance funding for the ATO.

In brief

  • Age below which individuals can receive genuine redundancy payments to be aligned with the age pension
  • Government scraps intangible asset depreciation measures proposed in 2015-16 under innovation agenda
  • ATO receives $467m over four years to extend GST compliance measures

The MYEFO Statement published on 17 December 2018 included the following tax-related announcements:

  • Age alignment for genuine redundancy payments. The Government will align the age below which individuals can receive genuine redundancy and early retirement scheme payments (genuine redundancy payments) with the Age Pension qualifying age. This means that all individuals below the Age Pension qualifying age will have access to the tax concession that makes part of any genuine redundancy payment free of income tax (the tax-free component). This measure takes effect from 1 July 2019.
  • No intangible asset depreciation. The Government will not proceed with the unlegislated 2015-16 MYEFO measure National Innovation and Science Agenda — intangible asset depreciation. The 2015-16 MYEFO measure was scheduled to apply to assets acquired from 1 July 2016.
  • Revised start dates. The Government changed the start date of the following measures: 
    • The start date for the 2017-18 Budget measure Tax Integrity Package "Improving the small business CGT concessions" has been revised from 1 July 2017 to 8 February 2018; 
    • The start date for the 2017-18 MYEFO measure Deductible Gift Recipient Reform "Strengthening governance and integrity and reducing complexity" will be revised from 1 July 2019 to 1 July 2020;
    • The start date for the 2018-19 Budget measure "Tax Integrity: removing the capital gains discount at the trust level for Managed Investment Trusts (MITs) and Attribution MITs" will be revised from 1 July 2019 to 1 July 2020; and
    • The start date for the 2018-19 Budget measure Black Economy Package "Introduction of an economy-wide cash payment limit" will be revised from 1 July 2019 to 1 January 2020. 
  • GST compliance funding boosted. The Government will provide $466.9 million to the ATO over four years from 2019-20, including $3.3 million in capital funding, to extend its range of GST compliance activities.
  • Gabon and El Salvador excluded from information-sharing. The Government will exclude Gabon and El Salvador from the updated list of information exchange countries announced in the 2018-19 Budget measure "International Tax — updating the list of information exchange countries". These two countries failed to enter into the necessary arrangements with Australia.

MYEFO Policy Measures Taken Since Last Budget

Revenue Measures on page 107 of the document.

View here

2018-19 MYEFO – Measures

Measures in Super and Tax

Download here

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