Individuals

• Superannuation guarantee increased to 10.5%.
• Work test repealed for people under 75 to receive non-concessional or salary sacrifice super contributions (the work test still applies to personal deductible contributions).
• Age for downsizer super contributions reduced to 60 years and older.
• Value of voluntary super contributions that can be withdrawn under the First Home Saver Scheme increased to a total of $50,000.
• New ATO guidelines on trust distributions come into effect primarily impacting distributions to adult children.
• Home loan guarantee scheme extended to 35,000 per year for first home buyers and 5,000 per year for single parents.

Guidance on COVID-19 related deductions

In completing individual tax returns for the 2022 income year, taxpayers should be aware that there have been some changes with respect to claiming deductions for expenses relating to COVID-19.

One of the key things to remember is that individuals can claim a deduction for the cost of COVID-19 tests that were required for work-related purposes (e.g., to determine if they can attend or remain at work).

Further, some individuals may be able to claim a deduction for the cost of protective items that protect against the risk of illness or injury while performing work duties. This can apply for workers in close proximity to customers and at risk of contracting COVID-19, who may be able to claim a deduction for protective items such as gloves, face masks or sanitiser.

The ATO also confirms the tax treatment of various support payments that may have been received by individual clients including:

• JobSeeker: this is included in assessable income.
• COVID-19 disaster payment (delivered through Services Australia): this is not taxable.
• Pandemic Leave Disaster Payment: this is assessable income.

ATO refocus on debt collection

The ATO has not pursued many business tax debts during the pandemic and allowed tax refunds to flow through even if the business had a tax debt. That position has now changed and the ATO has resumed debt collection and offsetting tax debts against refunds.

If you have a tax debt that has been on-hold, expect the ATO to offset any refunds against this debt, and take steps to actively pursue the payment of the debt. Small businesses account for around two-thirds of the total debt owed to the ATO. If you have a tax debt, it is important that you engage with the ATO to work out how this debt will be paid.

Need help?



If you need some assistance navigating these changes, please get in touch. Email us or phone our friendly team on (02) 9899 3044.