Government releases exposure draft legislation to reduce tax burden on granny flat arrangements and employer-provided retraining

first_imgGovernment releases exposure draft legislation to reduce tax burden on granny flat arrangements and employer-provided retraining Australian TreasuryThe Government has today released draft legislation to give effect to two measures announced in the 2020‑21 Budget.On 5 October 2020, the Government announced a targeted capital gains tax (CGT) exemption for granny flat arrangements where there is a formal written agreement in place.Tax consequences can be a key impediment to families creating formal and legally enforceable granny flat arrangements. When faced with a potentially significant CGT liability, families may opt for informal arrangements which can leave open the risk of financial abuse and exploitation.Under the measure, CGT will not apply to the creation, variation or termination of a formal written granny flat arrangement providing accommodation for older Australians or people with disabilities.The Exposure Draft Bill and Explanatory Memorandum for this measure is available on the Treasury website.On 2 October 2020, the Government announced a targeted fringe benefits tax (FBT) exemption for employer-provided retraining and reskilling benefits for redundant (or soon to be redundant) employees where the benefits provided enable the employee to gain new employment.FBT is generally payable when an employer provides education or training to redundant employees if the benefits provided do not have sufficient connection to their current employment. This measure will provide an FBT exemption to employers for retraining and reskilling benefits, incentivising employers to retrain redundant employees so they are better prepared to transition to their next career.The Exposure Draft Bill and Explanatory Memorandum for this measure is available on the Treasury websiteSubmissions for both measures will be accepted between 16 April 2021 and 29 April 2021. /Public Release. This material comes from the originating organization and may be of a point-in-time nature, edited for clarity, style and length. View in full here. Why?Well, unlike many news organisations, we have no sponsors, no corporate or ideological interests. We don’t put up a paywall – we believe in free access to information of public interest. Media ownership in Australia is one of the most concentrated in the world (Learn more). Since the trend of consolidation is and has historically been upward, fewer and fewer individuals or organizations control increasing shares of the mass media in our country. According to independent assessment, about 98% of the media sector is held by three conglomerates. This tendency is not only totally unacceptable, but also to a degree frightening). Learn more hereWe endeavour to provide the community with real-time access to true unfiltered news firsthand from primary sources. It is a bumpy road with all sorties of difficulties. We can only achieve this goal together. Our website is open to any citizen journalists and organizations who want to contribute, publish high-quality insights or send media releases to improve public access to impartial information. You and we have the right to know, learn, read, hear what and how we deem appropriate.Your support is greatly appreciated. All donations are kept completely private and confidential.Thank you in advance!Tags:abuse, agreement, AusPol, Australia, Australian Treasury, career, education, Effect, Employees, employment, exposure, Government, legislation, tax, websitelast_img

Leave a Reply

Your email address will not be published. Required fields are marked *