Date posted: 7/04/2020

Tax Policy Measures affected by COVID-19 Crisis

Joint bodies write to Treasurer regarding Tax Policy Measures affected by COVID-19 Crisis.

Chartered Accountants Australia and New Zealand, Corporate Tax Association, CPA Australia, Institute of Public Accountants, Law Council of Australia and The Tax Institute (the Joint Bodies) wrote to the Treasurer regarding tax policy issues affected by the COVID-19 crisis.

Measures discussed in the letter include:

  • Division 7A, Income Tax Assessment Act 1936 (Cth) – announce deferral of new measures till 1 July 2022, temporarily reduce benchmark interest rate, and temporary relief from minimum yearly loan repayments.
  • Non-resident CGT Main Residence exemption - Extend the transitional measures to disposals on or before 30 June 2022.
  • Superannuation Guarantee Amnesty - Extend to 30 June 2022.
  • Superannuation Guarantee Charge - Provide the Commissioner with the temporary power to defer the reporting and payment of the Superannuation Guarantee Charge or waive the application of penalties for the late lodgement of Superannuation Guarantee Charge Statements and payments.
  • Division 129 GST Act (GST on new residential premises for sale, not rent ) - Announce that increasing adjustments following a change in use under Division 129 should be waived (not just deferred) until further notice.
  • Fringe Benefits Tax - introducing a temporary COVID-19 FBT exemption for the provision of new benefits supplied to employees by employers after a certain date (say 23 January 2020) that are due to COVID-19.
  • R&D Bill currently before Parliament- Announce the deferral of the start date for the Bill to 1 July 2021.

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