Our Recent Blogs
Stay off the ATO’s radar and lodge your TPAR on time.
Taxpayers who operate in certain industries and that make payments to contractors may need to report these payments in a TPAR.
Change to Deductions this Tax Time.
Taxpayers who are small business owners operating from home, or who use a vehicle for business purposes, need to be aware of some changes when claiming deductions this tax time.
Technology Investment Boost due to end 30 June 2023.
Last year the previous Coalition Government announced a Technology Investment Boost as part of the 2022/23 Federal Budget. The Boost was announced to support eligible small businesses by providing an incentive to invest in their digital capacity.
‘Side hustles’ in the ATO’s sights.
A recent ATO article highlights the fact that it is increasingly trying to bring more modern techniques of money-making into its tax net. ‘Side hustles’ have really grown over the past few years — everything from the gig economy and drop shippers, to content creators and influencers.
New 15% super tax to apply from 1 July 2025.
The Government recently announced it will be imposing a 15% additional tax on individuals that have more than $3 million in superannuation. The new measure is expected to commence from 1 July 2025.
ATO and Australian Federal Police crackdown on GST-fraud promoters.
A raft of enforcement activity has been undertaken across the country by the ATO-led Serious Financial Crime Taskforce, including the execution of search warrants and issuing of warning letters.
Transfer balance cap indexation.
An individual’s transfer balance cap (‘TBC’) determines the maximum amount they can commit to a retirement phase interest in their super fund, such as an account-based pension, without being subject to penal taxation.
Testamentary Trusts.
The only two things in life that are certain – taxes and death. However, there is a way to reduce the exposure to tax for beneficiaries by establishing a Testamentary Trust. Testamentary Trusts are established by a will and only come into effect when the person passes.
Tips to reduce study & training loan balances.
If you have a study and training loan balance (e.g., a HELP debt), it may be worthwhile to consider methods of reducing the balance to ensure you are not left with a large tax bill when your 2023 income tax return is lodged.
ATO Asset Betterment Assessments.
Asset betterment is where the ATO compares the assets & liabilities of a taxpayer to their reported taxable transactions and identifies unexplained wealth. The ATO can then issue a default assessment based on their assessment of what your income should have been.
Last chance to claim deductions under temporary full expensing.
Deductions under ‘temporary full expensing’ are only available in the 2021, 2022 and 2023 income years, and are expected to come to an end on 30 June 2023.
Employee v Contractor.
The ATO is allocating compliance resources to worker classification arrangements and have released draft Guideline PCG 2022/D5 to assist when classifying workers as employees or independent contractors. It also outlines the risk framework to assist in a self-assessing the likelihood of ATO Compliance action.
Minor, infrequent and irregular use for an FBT exempt vehicle.
When an employer provides a vehicle to an employee, the issue of whether FBT applies will arise. Where a workhorse vehicle (e.g. single cab ute, panel van) has been provided to an employee, employers can rely on safe harbour treatment to treat the vehicle as meeting the requirements to be FBT-exempt.
Electric Vehicle Electricity Costs - how do we calculate?
A fully electric vehicle means no fuel costs however, your electricity at home has probably increased from charging your vehicle. If your vehicle is salary sacrificed or provided by your employer, you may be wondering “how do we calculate how much the recharge is costing?”
FBT Exemption for Electric Cars.
From 1 July 2022, FBT is no longer payable on benefits provided for eligible electric cars and associated expenses.
Start thinking about your FBT obligations.
The 2023 FBT year ended on 31 March, so it is now time for employers to get ready to lodge their 2023 FBT returns, where they have provided benefits to their employees between 1 April 2022 and 31 March 2023.
Significant changes to claiming working from home deductions.
From 1 March 2023 there are significant changes to claiming working from home tax deductions, including changes to the method of calculation and new strict record keeping requirements.
ATO turns up the heat on holiday home deductions.
An alert from the ATO has recently been issued warning about applying the correct proportions when claiming holiday home deductions.
Changes to leave entitlements.
All full-time, part-time and casual employees who work for large or medium businesses will have access to paid family and domestic violence leave (“FDVL”) under the Fair Work Amendment (Paid Family and Domestic Violence Leave) Bill 2022.
Further eligibility age change for downsizer contributions.
Individuals over the age of 55 will now be able to make downsizer contributions now that the Treasury Laws Amendments (2022 Measures No. 2) Bill 2022 received royal assent on 12 December 2022.