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TAX ALERT - REVISIT R&D INCENTIVE PROPOSED CHANGES FOR 2019 YEAR
Lowe Lippmann Chartered Accountants
Introduction
During the delivery of the May 2018 Federal Budget, a number of changes to the Research & Development ("R&D") Tax Incentive scheme were announced.
These changes were made to encourage additional investment in R&D Projects, and will affect companies accessing the R&D Tax Incentive with income years commencing on or after 1 July 2018.
While the legislation to enact the changes is yet to be introduced to Parliament, given the 2019 tax year is well underway, we thought it may be useful to revisit the details of the announce changes.
Bill passed for Instant Asset Write-Off of $20,000 for 2024-25 There was no mention of the extension of the instant asset write-off ( IAWO ) within the Federal Budget delivered last Tuesday night, leaving many small business taxpayers frustrated and uncertain. However, the Treasury Laws Amendment (Tax Incentives and Integrity) Bill 2025 has now been passed through the Parliament, and it included the extension of the IAWO threshold of $20,000 for assets first used or installed ready for use between 1 July 2024 and 30 June 2025. After the Bill has now been passed by both the House of Representatives and the Senate, it now simply waits to receive Royal assent.
SUMMARY AND FULL COMMENTARY UPDATES
ATO appeals to High Court in the Bendel Case decision The Australian Taxation Office ( ATO ) has now applied to the High Court for special leave to appeal the Full Federal Court’s decision in FCT v Bendel [2025] FCAFC 15. Last month, we released a Tax Alert ( see here ) after the Federal Court delivered their unanimous decision that an unpaid present entitlement (or UPE ) owed by a discretionary trust to a corporate beneficiary is not a “loan” for Division 7A purposes. The ATO has also issued an Interim Decision Impact Statement ( DIS ) in response to the Full Federal Court decision. A DIS provides information for taxpayers and advisers, and includes: details of the case, a brief summary of facts, issues decided by the court or tribunal, and relevant legislation and case law.
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