!! UPDATE – 30 SEP 22 !!

It is being reported today that Queensland Premier Annastacia Palaszczuk has decided to “shelve” the controversial land tax changes (outlined below).  We will provide more details as they come to hand. 

Queensland Land Tax Changes

From 30 June 2023, Queensland land tax will be calculated using the total of your Australian landholdings.

The total of your Australian landholdings will be used to determine:

• whether the tax-free threshold has been exceeded;
• the rate of land tax that will be applied to the Queensland proportion of the value of your landholdings.

The current tax-free thresholds are $600,000 for individuals (other than absentees) and $350,000 for companies, trustees and absentees.

You’ll only pay tax on the land you own in Queensland (ie. Queensland land tax is not being imposed on land outside of Queensland).

Queensland land only

If you only own land in Queensland, you will not be affected by this change.

Queensland and interstate land

If you own land in Queensland and in another state or territory, you will need to declare your interstate landholdings.

You will need to setup a QRO online account and complete the declaration (including land description, value and percentage of ownership).

From 30 June 2023, you will need to complete this declaration by the earlier of the following:

• within 30 days of receiving a land tax assessment notice
• on or before 31 October.

Calculation land tax with interstate land

The land tax rate that applies depends on what type of owner you are and the value of your land.  This rate (and surcharge, if applicable) is applied to the total value of your Australian land.  Then this figure is applied to the Queensland proportion to get the annual land tax liability.

You can use the interstate estimator to get an idea of how much land tax you may have to pay from 30 June 2023.

Exclusions

For land in Queensland, you may be eligible for a land tax exemption depending on the ownership and use of the land.  If your interstate land meets certain eligibility criteria requirements, you can apply to have its value excluded from the land tax calculation.

Exclusions available for Qld and interstate land

• Home (principal place of residence)
• Primary production
• Supported accommodation
• Moveable dwelling (caravan) park
• Retirement village
• Transitional home
• Charitable institutions
• Aged care

Exemptions available for Queensland land only

• Government land
• Port authority land
• Societies, clubs and associations

Action to take

If you own land in Queensland and interstate, you need to:

1. Review the total value of your landholdings;
2. Setup a QRO online account and complete the declaration of your landholding.
3. Calculate your potential land tax liability using the online calculator to ensure you budget for the new liability.

---

 

DISCLAIMER: The information in this article is general in nature and is not a substitute for professional advice.  Accordingly, neither TJN Accountants nor any member or employee of TJN Accountants accepts any responsibility for any loss, however caused, as a result of reliance on this general information.  We recommend that our formal advice be sought before acting in any of the areas.  The article is issued as a helpful guide to clients and for their private information.  Therefore it should be regarded as confidential and not be made available to any person without our consent.

Small Business Skills and Training Boost – Draft Legislation

The Federal Government has recently released Exposure Draft Legislation for the Small Business Skills and Training Boost.  The Boost is a temporary measure to incentivise small businesses to upskill their employees or train new employees.  Under the Boost, businesses will be able to claim a 120% deduction for eligible expenditure.

* Please note, that the Boost has only been released as Exposure Draft Legislation and will not be law until the relevant legislation has been passed by Parliament.  We will keep you updated on the status of the proposed measures.

Who is eligible?

Businesses with an aggregated turnover of less than $50 million are eligible for the bonus deduction.

As discussed in more detail below, sole traders, partners in a partnership and independent contractors are not eligible for the bonus deduction.

What can be claimed?

The bonus deduction applies to expenditure incurred for in-person or online training for your employees.  The training must be provided by a registered training organisation.  The services provided must be within the scope of the registered provider’s registration (which can be checked at www.training.gov.au).

The training cannot be provided by an associate of the employer.  In-house training or on-the-job training is also not eligible. 

Only the amount charged by the registered training organisation is eligible for the bonus deduction.  If there are incidental costs to the training (eg. books or equipment), it will only be eligible for the bonus deduction if the training provider charges your business for these.

There is no cap on the amount claimed.

When does it apply?

It applies to expenditure incurred from 7:30pm on 29 March 2022 to 30 June 2024.

Any expenditure incurred between 29 March 2022 and 30 June 2022 will be claimed in the 2023 tax return.

What is excluded?

Sole traders, partners, independent contractors

As the draft legislation currently stands, the bonus deduction is only available for spending on external training for employees.  The explanatory memorandum for the draft legislation specifically states that the bonus deduction is not available for sole traders, partners in a partnership and independent contractors (as they are not “employees” of the business).

Incidental costs

As noted above, incidental costs (like books or equipment) cannot be claimed unless the registered trainer charges for these.

Action to take

1. Review all expenditure incurred from 29 March 2022 to 30 June 2022 to identify whether your business has incurred any costs eligible for the bonus deduction.  Document these costs and have them ready for your 2023 tax return.  If you are one of our business clients, please feel free to email the invoices for these costs through to us and we will retain these on file for your 2023 tax return.
2. Setup a separate expense account in your chart of accounts to track eligible training expenses for the 2023 and 2024 year (to make it easier to identify and claim at year end).
3. For all eligible expenditure, ensure you have an appropriate invoice from the registered training organisation (and that the services provided come within their scope of their registration).  If you are using accounting software like Xero, you can attach these invoices to the relevant expense entry (making it easier at year end for your accountant to review the eligibility of the expense).
4. For all eligible expenditure, ensure it has been incurred for employees (ie. that the relevant employee is recorded on the payroll of the business and that appropriate payroll data has been lodged via Single Touch Payroll for the employee).
5. Review your current training programs for your staff and consider whether additional training is required.  If so, ensure the training is undertaken prior to 30 June 2024 to be eligible to the bonus deduction.

 

---

 

DISCLAIMER: The information in this article is general in nature and is not a substitute for professional advice.  Accordingly, neither TJN Accountants nor any member or employee of TJN Accountants accepts any responsibility for any loss, however caused, as a result of reliance on this general information.  We recommend that our formal advice be sought before acting in any of the areas.  The article is issued as a helpful guide to clients and for their private information.  Therefore it should be regarded as confidential and not be made available to any person without our consent.

Small Business Technology Investment Boost – Draft Legislation

The Federal Government has recently released Exposure Draft Legislation for the Small Business Technology Investment Boost provides businesses with a 120% deduction for expenditure to support their digital technologies. 

* Please note, that the Boost has only been released as Exposure Draft Legislation and will not be law until the relevant legislation has been passed by Parliament. We will keep you updated on the status of the proposed measures.

Who is eligible?

Businesses with an aggregated turnover of less than $50 million are eligible for the bonus deduction.

What can be claimed?

Eligible businesses can claim a bonus 20% deduction on expenditure to support digital operations.  The expenditure must be incurred wholly or substantially for the purposes of a business’ digital operations or digitising the entity’s operations.  This may include:

• Digital enabling items – computer and telecommunications hardware and equipment, software, systems and services that form and facilitate the use of computer networks
• Digital media and marketing – audio visual content that can be created, accessed, stored or viewed on digital devices; and
• e-commerce – supporting digitally ordered or platform enabled online transactions.

It only applies to expenditure up to $100,000 per income year (which would give the business an maximum additional $20,000 deduction per income year).

When does it apply?

It applies to expenditure incurred from 7:30pm on 29 March 2022 to 30 June 2023.

Any expenditure incurred between 29 March 2022 and 30 June 2022 will be claimed in the 2023 tax return.

What is excluded?

A bonus deduction cannot be claimed on the following costs:

• Salary and wages
• Capital works claimable under Division 43 (building depreciation)
• Financing costs
• Training and education (see the Small Business Skills and Training Boost)
• Spending associated with training stock.

The boost is not intended to cover general operating costs relating to employing staff, raising capital, the construction of the business premises and the cost of goods and services that the business sells.

Action to take

1. Review all expenditure incurred from 29 March 2022 to 30 June 2022 to identify whether your business has incurred any costs eligible for the bonus deduction.  Document these costs and have them ready for your 2023 tax return.
2. Setup a separate expense account in your chart of accounts to track these expenses for the 2023 year (making it easier to identify and claim at year end).
3. For all eligible expenditure, ensure you have appropriate invoices to support the cost.  If you are using accounting software like Xero, you can attach these invoices to the relevant expense entry (making it eaiser at year end for your accountant to review the eligibility of the expense).
4. Consider whether your business needs to make further investments to support their digital operations.  If so, ensure these costs are incurred before 30 June 2023.

---

 

DISCLAIMER: The information in this article is general in nature and is not a substitute for professional advice.  Accordingly, neither TJN Accountants nor any member or employee of TJN Accountants accepts any responsibility for any loss, however caused, as a result of reliance on this general information.  We recommend that our formal advice be sought before acting in any of the areas.  The article is issued as a helpful guide to clients and for their private information.  Therefore it should be regarded as confidential and not be made available to any person without our consent.