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New purchase price allocation rules came into effect from 1 July 2021.  The objective of the rules is to ensure both purchaser and vendor apply symmetrical tax treatment to the various categories of assets disposed of.  Click here to find out more.

A new business continuity test came into effect with respect to the 2021 income year which, when satisfied, will enable tax losses to be carried forward to future income years despite a breach of shareholder continuity.  The BCT is not a free for all and there are plenty of fishhooks which need to be considered.  For more detail click here.

In March 2021 the Government proposed new rules around limiting interest deductibility for evil residential rental property investors.  The changes are due to take effect from 1 October 2021.  A 143 page discussion document was issued in early June 2021 seeking submissions on the proposals.  The proposed rules will be extremely complex and will mean most residential property investors will have no hope of completing their own tax returns.  You can find a summary of some of the keys issues here.

Together with the announcements on limiting interest deductions, the Government also extended the bright-line period from 5 to 10 years.  This included significant changes to the main home exemption which will impact a number of taxpayers.  Find out more here.