There will be increased funding for mental health services and for doctors and nurses in regional and remote Australia.
Superannuation fund members
Changes include increasing the possible number of self-managed super fund (SMSF) members from four to six, caps on passive fees on small balance super funds, banning super fund exit fees, and changing the work test for those 65-74 years of age who make voluntary contributions to super.
The government will stop super funds from forcing people aged under 25 with low balances to pay for life insurance policies they did not ask for or need. The government also announced a three-year audit cycle for SMSFs.
The black economy
In the context of the government’s response to the black economy taskforce review, there will be new compliance obligations for some businesses by further extending the TPRS (Taxable Payments Reporting System) to security and investigation services, road freight transport and computer design and related services.
There will be a A$10,000 limit on cash payments across the economy, to reduce money laundering and tax evasion.
Employers and contractors who do not meet withholding obligations will be denied tax deductions.
Morrison says the measures will bring in A$5.3 billion over the next four years.
Tougher rules for illegal phoenixing activities are proposed, including increased liabilities for directors.
The Australian Taxation Office (ATO) will receive additional funding to ramp up its debt collection activities – for both tax and super liabilities.
Businesses using the research and development tax concession
There are potential losers from a crackdown on businesses using the concession, as the government forecasts savings of A$2 billion over four years by tightening access to the incentive.