WAP030 - All about Omnibus

Hello and welcome to episode 30 of the Wise Accounting Podcast! Well this week we saw some changes to the Government’s Omnibus Bill, and it has far reaching impacts.  Perhaps not as dire as previously, but far reaching nonetheless.  We also speak primary production income averaging, and what the ATO is doing about small business penalties and interest.  Get it all below:   The new Omnibus proposal involves retaining the existing framework but lowering the non- concessional contribution limit from 1 July 2017 to $100,000 a year (or $300,000 over three years if they are under age 65). However, a new eligibility condition will be imposed which precludes any person who holds a balance of more than $1.6m at the start of the financial year (ie 1 July) from making any further contributions in that financial year. The Tax and Super Laws No 2 Bill contains amendments to allow primary producers to access income tax averaging 10 income years after choosing to opt out, instead of that choice being permanent. The measure assists primary producers as averaging only recommences when it is to their benefit (they receive a tax offset) and they can still opt out if averaging no longer suits their circumstances. The ATO is seeking the views of small business and individuals on the ATO’s approach to penalties for failing to lodge a return or statement on time, or for failure to take reasonable care. In a consultation paper on its Let’s Talk hub, the ATO proposes to give clients one chance before applying a penalty in certain circumstances:  for certain small business and individual clients where false or misleading statements are made, for failure to take reasonable care for errors made in income tax returns and activity statements, and failure to lodge on time for late lodgement of income tax returns and activity statements.   Plenty more coming in the future weeks with more legislation set to be passed, so be sure and check back regularly, or even better, head to your podcatcher and hit that subscribe button!   If you are already a subscriber, a review sure would be appreciated!  Good or bad, any feedback will help the direction and improvement of this show.