Tax and super legislation wrap up for 2020
By Linda Daniele
Parliament has completed its December 2020 sittings and is scheduled to resume on Tuesday, 2 February 2021. Following is a summary of the status of tax, superannuation and related Bills as at the end of the December sittings.
The following Bills have been enacted:
- Treasury Laws Amendment (2020 Measures No 5) Bill 2020 (Act No 118 of 2020) makes eligible state and territory business grants as non-assessable non-exempt income, facilitates superannuation payments to KiwiSaver accounts and specifically lists a new deductible gift recipient.
- Treasury Laws Amendment (2020 Measures No 6) Bill 2020 (Act No 141 of 2020) provides greater flexibility for accessing temporary full expensing and changes the definition of a basic religious charity.
- Foreign Investment Reform (Protecting Australia’s National Security) Bill 2020 (Act No 114 of 2020) improves and updates the operation of the foreign investment review framework.
- Foreign Acquisitions and Takeovers Fees Imposition Amendment Bill 2020 (Act No 115 of 2020) simplifies existing fee arrangements, with the fees applicable for foreign investors refined to ensure that they are fairer and simpler while ensuring that foreign investors, not Australian taxpayers, bear the costs of administering the foreign investment system.
- Financial Sector Reform (Hayne Royal Commission Response) Bill 2020 (Act No 135 of 2020) implements several recommendations made by the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
- National Emergency Declaration (Consequential Amendments) Bill 2020 (Act No 129 of 2020) creates an alternative test for declaring an event to be a disaster for the purpose of deducting a gift made to a disaster relief fund, where the Governor-General has declared the event is a national emergency.
- Anti-Money Laundering and Counter-Terrorism Financing and Other Legislation Amendment Bill 2019 (Act No 133 of 2020) contains measures to strengthen Australia’s capabilities to address money laundering and terrorism financing risks, and to gain some regulatory efficiencies.
The following Bills are before the Senate:
- Treasury Laws Amendment (More Flexible Superannuation) Bill 2020 contains amendments to the bring forward rule, as part of measures to give individuals aged over 65 years more flexibility in making voluntary superannuation contributions.
- Treasury Laws Amendment (Reuniting More Superannuation) Bill 2020 facilitates the exit of all eligible rollover funds from the superannuation system by 30 June 2021.
- Treasury Laws Amendment (Self Managed Superannuation Funds) Bill 2020 contains amendments to increase the maximum number of allowable members in SMSFs from 4 to 6 (originated in Senate).
The following Bills are before the House:
- Financial Sector Reform (Hayne Royal Commission Response No 2) Bill 2020 contains amendments to improve protections for superannuation members from fees for no service.
- Treasury Laws Amendment (2020 Measures No 4) Bill 2020 makes refunds of large-scale generation shortfall charges non-assessable non-exempt income.