Latest News
Support available for businesses experiencing difficulties
By paying their tax bill in full and on time, taxpayers can avoid paying the general interest charge (‘GIC’), which is currently 11.34%, and which accrues daily for any overdue debts. The ATO advises taxpayers that, if their business is dealing with financial difficulties, there are some options to help make their tax bill “less […]
Getting trust distributions right
As trustees prepare for year-end distributions, they should do the following: review the relevant trust deed to ensure they are making decisions consistent with the terms of the deed; consider who the intended beneficiaries are and their entitlement to income and capital under the trust deed; notify beneficiaries of their entitlements, so that the beneficiaries […]
End of financial year obligations for employers
The ATO reminds employers they need to keep on top of their payroll governance. This includes: using their tax and super software to record the amounts they pay; withholding the right amount of tax; and calculating superannuation guarantee (‘SG’) correctly. As 30 June gets closer, employers should check their reporting obligations, along with any upcoming […]
ATO’s three focus areas this tax time
The ATO will be taking a close look this ‘tax time’ at the following common errors made by taxpayers: Work related expenses: Taxpayers using the ‘revised fixed rate method’ of calculating a working from home deduction must have comprehensive records to substantiate their claims, including records that show the actual number of hours they worked […]
Taxpayer unsuccessful in having excess contributions reallocated
The Administrative Appeals Tribunal (‘AAT’) recently held that a taxpayer was liable to pay excess concessional contributions tax in relation to contributions made on his behalf by his employer. In the 2021 income year, the taxpayer’s employer made concessional super contributions to his super fund totalling $31,737, which resulted in the taxpayer exceeding his concessional […]
NFPs Need To Get Ready For New Return
From 1 July 2024, non-charitable not-for-profits (‘NFPs’) with an active Australian Business Number (‘ABN’) will be required to lodge a new annual NFP self-review return with the ATO to confirm their income tax exemption status. Editor: This will include sporting, community and cultural clubs, among other organisations. Non-charitable NFPs that have an active ABN can […]
What’s New For Taxpayers
Before you complete your tax return for 2015, there are some changes you should be aware of in case they affect you. Mature age worker tax offset You can no longer claim the Mature age worker tax offset (MAWTO) in your tax return. Previously, to be eligible for the offset you needed to be an […]
Travel between home and work and between workplaces
While trips between home and work are generally considered private travel, you can claim deductions in some circumstances, as well as for some travel between two workplaces. If your travel was partly private and partly for work, you can only claim for the part related to your work. What you can claim You can […]
Investment Property – Claiming Repairs and Maintenance Expenses
Can you claim the cost of repairs you make before you rent out the property? You cannot claim the cost of repairing defects, damage or deterioration that existed when you obtained the property, even if you carried out these repairs to make the property suitable for renting. This is because these expenses relate to the […]
Gifts and donations
You can only claim a tax deduction for gifts or donations to organisations that have the status of deductible gift recipients (DGRs). Deductions for gifts are claimed by the person that makes the gift (the donor). For you to claim a tax deduction for a gift, it must meet four conditions: The gift […]
Capital gains tax checklist
The following questions will help you to identify possible capital gains tax (CGT) obligations. If you answer ‘yes’ to any of these questions, CGT may apply. Some questions are intended to highlight the possibility of a capital gain or loss arising in the current year, others to alert you to the possibility of a […]
Tax on Super Contributions
The tax you pay on your super contributions generally depends on whether the contributions were made before or after you paid income tax, you exceed the super contributions cap or you are a very high-income earner. Before-tax super contributions The super contributions you make before tax (concessional) are taxed at 15%. Types of before-tax contributions […]