Exempting granny flat arrangements from capital gains tax
On 5 October, the Government announced that it would provide a targeted Capital Gains Tax (CGT) exemption for granny flat arrangements where there is a formal written agreement in place.
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 disability.
The measure may commence as early as 1 July 2021, subject to the passing of legislation.
Federal Budget 2020
On 6 October, the Government handed down the 2020 Federal Budget.
The announcement included bringing forward personal income tax cuts already legislated and a one-off additional benefit from the low and middle income tax offset.
The Treasurer also announced a range of taxation benefits for small and medium businesses, intended to stimulate the business sector leading to jobs growth.
In addition, further superannuation reforms were proposed, aimed at reducing duplicate accounts and improving efficiency, as well as several funding measures in the aged care sector.
More information is available on the Federal Budget 2020 page of our website.