Corporate collective investment vehicles
The Corporate Collective Investment Vehicle Framework and Other Measures Act 2022 establishes the regulatory and tax frameworks for corporate collective investment vehicles (CCIVs).
The CCIV tax framework leverages the existing trust taxation framework and the existing attribution flow-through regime (that is, the Attribution managed investment trust (AMIT) regime), rather than by creating a new bespoke tax regime.
A CCIV sub-fund trust that satisfies the applicable AMIT eligibility requirements in Division 276 of the ITAA 1997 for an income year will be treated as an AMIT for that year. Such a CCIV sub-fund trust must lodge an Attribution CCIV sub-fund tax return for that income year.
If a CCIV sub-fund trust fails to meet the modified AMIT eligibility criteria in Division 276 of the ITAA 1997, it will be taxed in accordance with the general trust provisions including where the trust is taxed as a public trading trust under Division 6C of Part III of the Income Tax Assessment Act 1936 (ITAA 1936). This type of CCIV sub-fund trust must lodge a Trust tax return for that income year, or if Division 6C applies to the trust, a Company tax return.
Small business skills and training boost
This change is now law.
The Treasury Laws Amendment (2022 Measures No. 4) Act 2023 provides for a temporary skills and training boost for small businesses in the form of a bonus deduction. Small businesses (with an aggregated annual turnover of less than $50 million) can claim the bonus deduction as an additional 20% deduction, on top of their ordinary deduction, for expenditure incurred for the provision of external training courses to employees by certain registered training providers in Australia.
It applies to eligible expenditure incurred from 7:30 pm (AEDT) on 29 March 2022 until 30 June 2024. Special rules provide for the income year in which the bonus deduction can be claimed.
Small business technology investment boost
This change is now law.
The Treasury Laws Amendment (2022 Measures No. 4) Act 2023 provides for a temporary technology investment boost for small businesses in the form of a bonus deduction. Small businesses (with an aggregated annual turnover of less than $50 million) can claim the bonus deduction as an additional 20% deduction, on top of their ordinary deduction, for eligible business expenditure incurred for the purposes of their digital operations or digitising their operations. This includes expenditure on a depreciating asset provided the asset was first used or installed ready for use by 30 June 2023. The maximum additional deduction is $20,000 per income year.
It applies to eligible expenditure of up to $100,000 per income year incurred from 7:30 pm (AEDT) on 29 March 2022 until 30 June 2023. Special rules also apply if claiming the bonus deduction for eligible expenditure on a depreciating asset.
Interest on early payment
Item 7 – Credit for interest on early payments – amount of interest has been removed from the trust tax return for the 2022–23 income year onwards.
Interest on early payments (IEP) has now been automated for eligible early payments made from 1 July 2021. As a result, there is no longer a requirement to complete item 7 – label W.
A summary of key changes and new measures affecting your clients when lodging 2023 trust tax returns.