The Bottom Line Business Advisory

Where your business grows

The Bottom Line Business Advisory Pty. Ltd.
is a CPA Practice

What’s new in tax this year?

What’s new in tax this year?

Super changes
From 1/7/2022, your super will increase to 10.5% from the first dollar you earn; this is because the $450 per month eligibility threshold for when SG is paid is being removed.
Are you eligible for the lower company tax rate?
If your company is a ‘base rate entity’ (aggregated turnover is <$50mil), your company tax rate is 25% from the 2021–22 income year onwards. The rate was previously 27.5% from the 2017–18 to 2019–20 income years and 26% in the 2020–21 income year.
ATO is prioritising support for debt collection efforts
The ATO is offering support and assistance to taxpayers with overdue debts. Payment arrangements can be organised. The ATO focus will be on taxpayers with higher debts and those who refuse to engage and cooperate with the ATO.
Do you need a Director ID?
If you are a director of a company, registered Australian body, registered foreign company, you need a Director Identification Number (Director ID). This is to prevent the use of false or fraudulent director identities.
What are the client verification guidelines?
As more technology is being used now, strong client verification is required to help protect us as tax practitioners, our clients, and Australia’s tax and superannuation systems from misuse and abuse due to identity theft. Hence, our clients will be asked to verify their identity. Verification methods include visual ID check, ATO sourced data and/or Document Verification Service through a 3rd party.
LMITO increase
The base amount for the LIMITO (low and middle income tax offset) in 2021–22 income year has increased to $675 and the full amount is $1,500. These offsets can only reduce your tax payable to zero, it is not a bonus payment. To be eligible for both the tax offsets you need to be an Australian resident for income tax purposes; pay tax on your taxable income; have a taxable income that is below certain income thresholds.
Resident tax rates 2021-22*
Taxable income Tax on this income
0 – $18,200 Nil
$18,201 – $45,000 19 cents for each $1 over $18,200
$45,001 – $120,000 $5,092 plus 32.5 cents for each $1 over $45,000
$120,001 – $180,000 $29,467 plus 37 cents for each $1 over $120,000
$180,001 and over $51,667 plus 45 cents for each $1 over $180,000

*The above rates do not include the Medicare levy of 2%

Foreign Resident tax rates 2021-22
Taxable income Tax on this income
0 – $120,000 32.5 cents for each $1
$120,001 – $180,000 $39,000 plus 37 cents for each $1 over $120,000
$180,001 and over $61,200 plus 45 cents for each $1 over $180,000
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