Government introduces first tax amendments
The Federal Government has introduced its first range of tax law amendments that will ensure superannuation lump sum payments are paid to the terminally ill.
The Tax Laws (2008 Measures No.1) Bill 2008 includes a number of changes, most notably for the terminally ill. The bill ensures super lump sum payments that are paid to a person suffering from a terminal medical condition will be tax free.
According to the Rudd Government, the bill brought forward the date of effect so that it applies to payments made on or after July 1, 2007, rather than September 12, 2007, as was originally announced by the Howard Government.
The bill will also remove the tax deductibility of political donations made on or after July 2008. The Government is repealing provisions that currently allow deductions for contribution and gifts to political parties and independent candidates up to a maximum of $1,500.
Other measures introduced with the bill include: tax deductibility for trees established in carbon sink forests; equine worker hardship wage supplement; tobacco industry exit grants; and farm management deposits.
AUTHOR
George Liondis
Recommended for you
The Governance Institute has said ASIC’s governance arrangements are no longer “fit for purpose” in a time when financial markets are quickly innovating and cyber crime becomes a threat.
Compliance professionals working in financial services are facing burnout risk as higher workloads, coupled with the ever-changing regulation, place notable strain on staff.
The Senate economics legislation committee has recommended Schedule 1 of the Delivering Better Financial Outcomes legislation be passed as it is a “faithful implementation” of the recommendations.
Treasurer Jim Chalmers has handed down his third budget, outlining the government’s macroeconomic forecasts and changes to superannuation.
