As announced, the Government will make technical amendments to clarify the corporate residency test in relation to companies incorporated offshore. This measure is consistent with the Board of Taxation’s key recommendation in its 2020 report: Review of Corporate Tax Residency.
The Treasurer has unleashed a number of JobMaker plans aimed at supporting the economy recovery through cutting red tape, driving progress through digitisation and enabling more women to enter, and stay in the workplace.
In the 2020-21 Federal Budget, it was announced that the Government would be providing funding over a three year period, beginning from 2020-21 for the Australian Charities and Not-for-profits Commission (ACNC) Review Program.
In order to support more effective and efficient foreign investment application processing and compliance activities, the Federal Government has announced in the 2020-21 Budget Measures Paper they will commit $86.3 million over four years to implement a new online platform and a new consolidated Register of Foreign Ownership of Australian Assets. This measure is expected to increase the underlying cash balance by $54.7 million from 2020 to 2024.
In welcome news, the Government has announced a new Modern Manufacturing Strategy as part of its JobMaker plan to stimulate the Australian economy through its recovery from the COVID-19 pandemic.
The Government has announced that business support grants received by small and medium-sized businesses will be treated as non-assessable, non-exempt income (NANE income). The measure is currently applicable for any grant payments received by Victorian businesses under the ‘Business Resilience Package’ announced by the Victorian Government.
In the 2017-18 Federal Budget, the Government announced that it would provide funding to the Australian Taxation Office (ATO) to target serious and organised crime in the tax system. This integrity measure was implemented to enable the ATO to continue its compliance work against such crime.
The Government will provide additional funding over four years to implement changes to protect superannuation member’s retirement benefits via increased levies on regulated financial institutions.