The Board of Taxation is a non-statutory advisory body charged with contributing a business and broader community perspective to improving the design of taxation laws and their operation.
Ideas for better tax regulation
Minor assets write off
The instant asset write of rules are great for eligible businesses, but larger corporate entities are still having to capitalise and depreciate low value assets for tax that are often expensed for book purposes. At a minimum, it would be beneficial to simply allow an immediate tax write off for minor assets that are expensed for accounting purposes (ie, those that fall below the asset recognition threshold). Current rules allow for the pooling of assets with a cost of less than $1,000, but fixed asset registers are often not able to simply apply the pooling mechanism. For assets with a cost over $1,000 but below an entities accounting write off threshold, having to separately capitalise and depreciate these assets for tax creates additional record keeping requirements and timing differences for very little gain to the revenue. If the low value pooling rules are applied correctly, these assets eventually need to be transferred to the pool, again increasing administrative compliance costs. It is pointless to be uploading a multitude of asset entries to a tax fixed asset register when these assets are written off for accounting - and then once these assets are depreciated to below the $1,000 threshold and qualify for pooling, they then need to be effectively individually removed from the tax asset register to form part of the pool balance. The low value pooling rules are not much of a concession when you consider the associated compliance costs. A minor asset write off aligned with accounting policies removes this compliance burden.
Australian Skills Share - Journey out of Covid
There are currently 3.5million Australians receiving the Job Keeper subsidy, and 1.3 Million receiving Job Seeker. Within those 4.8 Million Australians currently displaced, we have a lot of individuals who are highly skilled and educated outside of their occupation. For example, the below indicates different occupations that if given the Platform, could connect with each other. And either use their primary skills, or secondary skills to generate some kind of economic benefit. Create some kind of product, or service, or collaborative opportunity. This idea is also more like a Pilot concept, as the real benefits could be realised depending on the state of the economy by the end of the year. But matching people based on Skills is something new that would need to be fleshed out. I've attached an Idea Proposal that goes into further details.
I wasn't sure where to raise this issue but I think there is a big flaw in job keeper payment and that is that it is being paid to children still in high school doing their HSC who live at home with mum and dad and may typically work only a couple of shifts a week. I know an example of one girl who works 3 hours a week in a coffee shop and is now getting $750 per week because she is over 18. I think to alleviate the problem full time high school students should not be eligible even if they're 18. I do not think that job keeper should be extended to high school students with a casual job. I think this is a loop hole in system and a lot of 18 year olds are getting quite the windfall.
Meetings & events
- 21 Feb 2020 - Melbourne
- 27 Mar 2020 - Sydney
- 30 Apr 2020 - Brisbane
The Board has resumed round table consultations on its Review of CGT Roll-overs. Consultations currently being cond… twitter.com/i/web/status/1…1 0
Have your say on CGT Roll-overs. The BoT is conducting public consultation sessions in Melbourne, Sydney, Perth and… twitter.com/i/web/status/1…2 0
As part of its corporate tax residency review, the Board of Tax has released a second consultation paper setting ou… twitter.com/i/web/status/1…1 0