A Different Perspective
ATO Impersonation Scam Update
Unbelievably, scammers are still successfully bilking Australians out of tens of thousands of dollars, as a recent ATO scam report shows.
Using the Cents Per Kilometre Method
The ‘cents per kilometre’ method broadly allows an individual taxpayer to claim up to a maximum of 5,000 business kilometres per car, per year without the need to keep any written evidence (e.g., receipts) of car expenses.
Deductions for a Company or Trust Home-Based Business
The ATO has reminded taxpayers that, if they run their home-based business as a company or trust, their business should have a genuine, market-rate rental contract (or similar agreement) with the owner of the property.
Motor Vehicle Registries Data Matching Program Protocol
The ATO will match the data provided by the State and Territory motor vehicle registering authorities against the ATO’s taxpayer records with the objective of identifying those who may not be meeting their registration, reporting, lodgment and payment obligations.
"Outrageous" Deductions Rejected
The ATO has published some of the most unusual claims that they disallowed last financial year.
Cash Receipt Limit Bill
The Currency (Restrictions on the Use of Cash) Bill 2019 has been introduced to establish the cash payment limit of $10,000 and offences for entities that make or accept cash payments of $10,000 or more from 1 January 2020, unless otherwise permitted.
ATO Watching for Foreign Income this Tax Time
The ATO is urging taxpayers who receive any foreign income from investments, family members or working overseas to make sure they report it this tax time.
Division 293 assessments
The ATO has been issuing ‘Additional tax on concessional contributions (Division 293) assessments’ with respect to liabilities relating to the 2018 income year.
Division 293 imposes an additional 15% tax on certain concessional (i.e., taxable) superannuation contributions.
It applies to individuals with income and concessional superannuation contributions exceeding the relevant annual threshold.
Claims for home office expenses increased
The ATO has updated the hourly rate taxpayers can use to determine deductions for home office expenses from 45 cents to 52 cents per hour for individual taxpayers, effective 1 July 2018 (i.e., from the 2019 income year).
According to the ATO’s recently updated PS LA 2001/6, individual taxpayers who claim deductions for either work or business-related home office running expenses may either:
MYEFO report
The Mid-Year Economic and Fiscal Outlook (‘MYEFO’) report was recently released.
It indicates that the underlying Budget deficit is expected to be $5.2 billion in 2019 (down from the $14.5 billion deficit estimated in the 2018/19 Federal Budget).
The substantial deficit reduction is reportedly a result of increased tax collections, with individual tax collections up $4.1 billion and company tax collections up $3.4 billion.
