Latest News
Christmas Parties & Gifts 2025
Year-end (and other) staff parties Editor: With the well earned December/January, and Christmas parties & gifts 2025 on the way, many employers will be planning to reward staff with a celebratory party or event. However, there are important issues to consider, including the possible FBT and income tax implications of providing ‘entertainment’ (including Christmas parties) to […]
GST held to apply to sales of subdivided lots
The Administrative Review Tribunal (‘ART’) recently held that some sales of subdivided farmland were subject to GST as they were made by the taxpayer in the course of carrying on an enterprise. The taxpayer owned farmland near Adelaide. He entered into an agreement with a developer, under which the developer sought rezoning and development approvals, […]
SMSF non-compliance with release authorities
Release authorities are documents issued by the ATO to super funds, authorising the release of money from a member’s super account to pay specific liabilities, including in relation to excess concessional contributions, excess non-concessional contributions, and Division 293 tax assessments. The ATO is seeing a rise in SMSFs that receive a release authority and are […]
New ATO Data-Matching Programs
The ATO acquires and uses data for pre-filling, detecting dishonest or fraudulent behaviour, and identifying areas where it can educate taxpayers to help them understand their tax obligations. When data does not match, the ATO may contact tax agents and their clients to find out why. Rental Income Data-Matching Over the coming months, the ATO […]
ATO’s focus on small business
The ATO is ‘detecting and addressing’ recurring errors in specific industries when businesses have a turnover between $1 million and $10 million. These industries include property and construction (including builders, contractors and tradies), and professional, scientific and technical services (including engineering, design, IT and consulting professionals). In these industries, the ATO continues to see recurring […]
ATO reminder: Business expenses that can (and cannot) be claimed
Taxpayers can claim a tax deduction for most business expenses, provided they meet the ATO’s three ‘golden rules’: The expense must be for business use, not for private use. If the expense is for a mix of business and private use, they can only claim the portion that is used for business. They must have […]
ATO’s tips for correctly claiming deductions for rental properties
Taxpayers who have work done on their rental property should consider the following factors in determining claims for expenses. Repairs and general maintenance are expenses for work done to remedy or prevent defects, damage or deterioration from using the property to earn income. These expenses can be claimed in the year the expense occurred. Initial […]
Notice of online selling data-matching program
The ATO will acquire Australian sales data from online selling platforms for the 2024 to 2026 income years, including full names, dates of birth, addresses, emails, business names, ABNs, contact phone numbers and account details. The ATO estimates the total number of account records to be obtained will be between 20,000 and 30,000 each income […]
Small business energy incentive available for the 2024 income year
Businesses with an aggregated annual turnover of less than $50 million that had upgraded or purchased a new asset that helps improve energy efficiency during the 2024 income year should consider the small business energy incentive. This new measure gives them the opportunity to claim a bonus deduction equal to 20% of the cost of […]
Importance of good record keeping when claiming work-related expenses
The ATO is advising taxpayers that having records to substantiate claims is essential to prove deductions can be claimed, having regard to the following in particular: A bank or credit card statement on its own will generally not be enough evidence to support a work-related expense claim. Taxpayers instead need detailed written evidence such as […]
SMSFs acquiring assets from related parties
SMSFs cannot acquire an asset from a ‘related party’ (such as a member or their spouse or relative) unless it is acquired at market value and is: a listed security (e.g., shares, units or bonds listed on an approved stock exchange); ‘business real property’ (broadly, land and buildings used wholly and exclusively in a business); […]
Federal Court overturns AAT’s tax resident decision
The Federal Court has recently overturned an Administrative Appeals Tribunal (‘AAT’) decision that a taxpayer was a resident of Australia for tax purposes (even though he was mostly living and working overseas during the relevant period). The taxpayer was a mechanical engineer who became an Australian citizen in 1978. He lived and worked in Dubai, […]