
Reminder Re-Contribution of COVID-19 Early Release Super Amounts
Individuals can now re-contribute amounts they withdrew under the COVID-19 early release of super program without the re-contribution counting towards their non-concessional contributions cap.
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Penalties For Overdue TPAR
The Taxable payments annual report (‘TPAR’) must be lodged by 28 August each year.
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Cents per kilometer Deduction For Car Expenses – 2023 Income Years
The ATO has proposed for individual taxpayers that use the cents per kilometer method when calculating tax deductions for their work-related car expenses, that the rate per kilometer for the income year starting 1 July 2022 (the 2023 income year) will be 75 cents per kilometer.
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Reminder of March 2022 Quarter Superannuation Guarantee (‘SG’)
Employers are reminded that their SG obligation for the 1 January 2022 to 31 March 2022 quarter is due by 28 April 2022.
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Keeping and Maintaining SMSF Records
Trustees of SMSFs have been put on notice by the ATO that keeping and maintaining good records is one of their key responsibilities and legal obligations.
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New Shield Against Debt Recovery Proposed for Small Business
Small businesses are to be afforded the ability to apply to the Small Business Taxation Division of the Administrative Appeals Tribunal (‘the Tribunal’) for orders to stay (i.e., temporarily suspend) specific ATO debt recovery actions.
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12-Month Extension of the Temporary Loss Carry-Back Measure
As announced in the 2020/2021 Federal Budget, legislation has now passed to allow eligible corporate entities (i.e., with, amongst other things, an aggregated turnover of less than $5 billion) a 12-month extension to claim a loss carry-back tax offset in the 2023 income year.
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Current Business Performance Analysis
When operating a business, the owners should always be held accountable for how the business is currently performing.
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Government Extends SME Recovery Loan Scheme to 30 June 2022
The Government has recently extended the SME Recovery Loan Scheme by a further six months (to 30 June 2022) to support SMEs adversely economically affected by the Coronavirus Pandemic.
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Tax Deductibility of COVID-19 Test Expenses
After much speculation, the Government announced that COVID-19 tests, including Polymerase Chain Reaction (‘PCR’) and Rapid Antigen Tests (‘RATs’), will be both:
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COVID-19 Vaccination Incentives and Rewards
The ATO has reminded employers to consider their tax and super obligations when employees are provided with incentives or rewards for getting their COVID-19 vaccination.
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Are You Struggling To Set & Achieve Your Business Goals?
There is no denying that goals are an important part of running a successful business. They can give you a clear focus, motivate employees and set targets for your business to work towards.
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Organisational Mission Statements & Value Statements
An organisation's mission is its purpose for existence and the values it holds guides the organisation and its culture.
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ATO Support For Businesses In Difficult Times
The ATO has reminded taxpayers that it has a range of support available for small businesses experiencing difficult situations, such as natural disasters, mental health challenges or financial hardship.
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Are You Concerned About How Your Business Is Performing?
NOW is the perfect time to make real changes to your current business performance and take your business from zero to HERO!
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Managing Business Cash Flow
The ATO has issued a reminder to businesses that paying regular attention to their record-keeping and reporting tasks will help them better manage their cash flow and allow them to plan for the future.
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Beware of Scams
Scamwatch is warning that scams cost Australian consumers, businesses and the economy hundreds of millions of dollars each year and cause serious emotional harm to victims and their families.
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Super is Now Following New Employees
The ATO is reminding employers that, as of 1 November 2021, there is an extra step they may need to take to comply with the choice of super fund rules.
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AUSTRAC Transaction Report Information Data-Matching Program
The ATO will acquire transaction report information data from AUSTRAC for the period of 17 June 2021 through to 30 June 2027.
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Government Payments Data-Matching Program
The ATO will acquire government payments data from government entities who administer government programs for 2017/18 to 2022/23 financial years.
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Varying PAYG Instalments Due to COVID-19
Taxpayers can vary their pay as you go ('PAYG') instalments throughout the year if they think they will pay too much, compared with their estimated tax for the year.
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Preparing for the New Director ID Regime
As part of its Digital Business Plan, the Government announced the full implementation of the 'Modernising Business Registers' program.
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Documenting Gifts or Loans from Related Overseas Entities
The ATO is currently reviewing certain arrangements where Australian taxpayers seek to disguise undeclared foreign income as a gift or loan.
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Reminder for First-Time Share Investors to Declare Income
With the growth of micro-investment platforms helping new investors enter the market, the ATO has issued a reminder for first-time share and Exchange Traded Funds (‘ETF’) investors.
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Labor Commits to Income Tax Cuts and Certainty on Negative Gearing
The ALP has formally announced that, if elected to Government, they will deliver "the same legislated tax relief . . . as the Morrison Government".
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Reminder of SG Obligations for September 2021 Quarter
Under the Superannuation Guarantee (‘SG’) scheme, employers are required to make quarterly contributions on behalf of their employees.
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Additional ATO Support During COVID-19
The ATO is providing additional support to taxpayers having difficulty meeting their tax and superannuation guarantee charge obligations for employees because of COVID-19.
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ATO Support for Employers with Expansion of STP
As part of the expansion of Single Touch Payroll (known as STP Phase 2), from 1 January 2022, employers will need to report additional payroll information in their STP reports including:
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Paid Parental Leave Changes Support Parents in Lockdown
The Paid Parental Leave (‘PPL’) scheme has been amended to enable expectant parents whose work has been affected by COVID-19 lockdowns to access Parental Leave Pay or Dad and Partner Pay under the scheme.
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Extra Super Step When Hiring New Employees
Employers may soon need to do something extra when a new employee starts to work for them.
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Travel allowances and 'LAFHAs'
The ATO has released a Ruling explaining:
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ATO Warns Property Investors about Common Tax Traps
In 2019/20, over 1.8 million Australians owned rental properties and claimed $38 billion in deductions, so the ATO is reminding property investors to beware of common tax traps that can delay refunds or lead to an audit costing taxpayers time and money.
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Time running out to register for the JobMaker Hiring Credit
The JobMaker Hiring Credit scheme's third claim period is now open, so if a taxpayer has taken on additional eligible employees since 7 October 2020, they may be able to claim JobMaker Hiring Credit payments for their business.
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Div.293 Concessional Contribution Assessments have been Issued
The ATO has recently issued approximately 30,000 Division 293 assessments for the 2018/19 and 2019/20 financial years.
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Extending Administrative Relief for Companies to Use Technology
The Government has passed legislation renewing the temporary relief that allows companies to use technology to meet regulatory requirements under the Corporations Act 2001.
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Expansion of Support for SMEs to Access Funding
The Government is providing additional support to small and medium sized businesses ('SMEs') by expanding eligibility for the SME Recovery Loan Scheme.
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The ‘Gigs Up’ With a New Sharing Economy Reporting Regime
Treasury has released draft legislation introducing the long-awaited third party reporting regime (proposed to apply from 1 July 2022).
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New FBT Retraining and Reskilling Exemption Available
Recent legislative amendments mean that employers who provide training or education to redundant (or soon to be redundant employees) may now be exempt from fringe benefits tax (‘FBT’).
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Maximum Contributions Base For Super Guarantee
The maximum super contributions base is used to determine the limit on any individual employee's earnings base for superannuation guarantee purposes on a quarterly basis.
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Division 7A Benchmark Interest Rate For 2022 Remains Unchanged
The Division 7A benchmark interest rate for the 2022 income year remains unchanged from the 2021 rate of 4.52%.
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Reminder of Superannuation Caps Indexation for 2022
From 1 July 2021, the superannuation contributions caps have been indexed for the 2022 income year.
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New ATO Data-Matching Programs
The ATO has advised that it will engage in two new data matching programs, as outlined below:
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SMSF Limited Recourse Borrowing Arrangements Interest Rates
The ATO has confirmed that the following interest rates charged under a limited recourse borrowing arrangement ('LRBA') to an SMSF would be consistent with the safe harbour terms the ATO will accept for the 2021/22 financial year.
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Introducing SMSF Rollover Alerts
Since February 2020, the ATO has been issuing alerts via email and SMS when certain changes are made to a self-managed super fund ('SMSF').
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Rent or Lease Payment Changes Due to COVID-19
The ATO has provided updates regarding the tax implications when a landlord gives, or a tenant receives, rent concessions (such as waivers or deferrals of rent) as a result of COVID-19.
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Lost, Damaged or Destroyed Tax Records
The ATO knows that many taxpayers are facing lasting impacts left in the wake of natural disasters, so if they find their records have been lost or destroyed, whether in cyclones, floods or bushfires, the ATO can help. According to ATO Assistant Commissioner Tim Loh:
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Taxable Payments Annual Reports (‘TPARs’) Due 28 August
2021 TPARs are due to be lodged for businesses who have paid contractors to provide the following services:
- building and construction;
- cleaning;
- courier, delivery or road freight;
- information technology (‘IT’); or
- security, surveillance or investigation.
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New ATO Data-Matching Programs Involving Property
The ATO has advised that it will engage in two new data matching programs dealing with property transactions, as outlined below:
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Super Guarantee Contribution Due Date for June 2021 Quarter
The due date for employers to make super guarantee contributions for their employees for the June 2021 quarter is 28 July 2021.
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Extension of Time to Make Repayments on Division 7A Loans
Under a complying Division 7A loan from a private company, the borrower must make minimum yearly repayments ('MYR') before the end of the lender’s income year to avoid the loan being treated as an assessable dividend.
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ATO Warns On ‘Copy/Pasting’ Claims
The ATO is alerting taxpayers that its sights are set on work-related expenses like car and travel claims that are predicted to decrease in this year’s tax returns.
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Car Parking Threshold for 2022 FBT Year
The car parking threshold for the FBT year commencing on 1 April 2021 is $9.25.
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Luxury Car Tax Thresholds
The ATO has updated the luxury car tax ('LCT') thresholds for the 2021/22 financial year.
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Cryptocurrency Under The Microscope This Tax Time
The ATO is concerned that many taxpayers believe their cryptocurrency gains are tax-free, or only taxable when the holdings are cashed back into Australian dollars.
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Temporary Reduction in Pension Minimum Drawdown Rates Extended
The Government has announced an extension of the temporary reduction in superannuation minimum drawdown rates for a further year to 30 June 2022.
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Super Guarantee Rate Rising From 1 July 2021
The super guarantee rate will rise from 9.5% to 10% on 1 July 2021, so businesses with employees will need to ensure their payroll and accounting systems are updated to incorporate the increase to the super rate.
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Passenger Movement Data-Matching Program
The ATO will access data from the Department of Home Affairs on passenger movements during the 2016/17 to 2022/23 financial years, and match it with certain sections of ATO data holdings to identify taxpayers that can be provided with tailored information to help them meet their tax and superannuation obligations, or to ensure compliance with taxation and superannuation laws.
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ATO Asks Businesses To Check If They Are Still Using Their ABNs
The ATO has advised that, if a business hasn’t used its ABN for a while, the ATO may contact them about cancelling their ABN.
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Independent Review Service For Small Businesses Made Permanent
Following a successful multi-year pilot, the ATO’s small business independent review service will be offered permanently as a dispute resolution option for eligible small businesses.
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ATO "Keeping JobKeeper Payment Fair"
The ATO is using its compliance resources to maintain the integrity of the JobKeeper measure.
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Government Proposal To Modernise Business Communications
The Government has committed to modernising certain laws so that they are 'technology neutral', to enable easier communication between businesses, individuals and regulators.
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New Succession Planning Guide For Family Businesses
The Australian Small Business and Family Enterprise Ombudsman, in conjunction with Family Business Australia, has released a new online guide to succession planning — the “Introductory Guide to Family Business Succession Planning” — which provides a step-by-step guide to passing the family business on to the next generation.
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Warning Regarding New Illegal Retirement Planning Scheme
The ATO has recently identified a new scheme where SMSF trustees were informed that they could set up a new SMSF to roll-over the fund balance from the old SMSF and then liquidate their old SMSF, in an attempt to avoid paying potential tax liabilities.
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FBT rates and thresholds for the 2021/22 FBT year
The ATO has updated its webpage containing the fringe benefits tax ('FBT') rates and thresholds for the 2017/18 to 2021/22 FBT years.
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ATO's Taxable Payments Reporting System Update
The ATO has confirmed that more than 60,000 businesses have not yet complied with lodgment requirements under the taxable payments reporting system ('TPRS') for 2019/20.
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First Criminal Conviction for JobKeeper Fraud
A person claiming to be a sole trader was convicted of three counts of making a false and misleading statement to the Commissioner of Taxation, in order to receive $6,000 in JobKeeper payments to which he was not entitled, as he was not operating a genuine business and he had already agreed to be nominated by his full-time employer for the allowance.
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ATO Loses Case on JobKeeper and Backdated ABNs
On 24 March 2021, the Full Federal Court handed down its decision in a case concerned with the requirement that an entity claiming JobKeeper must have had an ABN on 12 March 2020, or a later time allowed by the ATO.
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JobKeeper Comes to an End
The ATO has advised that the final JobKeeper payment will be processed in April 2021.
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Avoiding Disqualification From SG Amnesty
The superannuation guarantee (‘SG’) amnesty ended on 7 September 2020. Employers who disclosed unpaid SG amounts and qualified for the amnesty are reminded that they must either pay in full any outstanding amounts they owe, or set up a payment plan and meet each ongoing instalment amount so as to avoid being disqualified and losing the benefits of the amnesty.
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Paper PAYG and GST Quarterly Instalment Notices
The ATO has previously advised that it will no longer issue paper activity statements after electronic lodgment. Instead, electronic activity statements will be available for access online, three to four days after the activity statement is generated.
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Changes to STP Reporting Concessions From 1 July 2021
Small employers (19 or fewer employees) are currently exempt from reporting ‘closely held’ payees through Single Touch Payroll ('STP'). Also, a quarterly STP reporting option applies to micro employers (four or fewer employees). These concessions will end on 30 June 2021.
The STP reporting changes that apply for these employers from 1 July 2021 are outlined below.
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Cash Payment Limit Bill Shelved
It appears that the Government has decided not to proceed with its proposal to limit cash payments in Australia to $10,000.
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ATO Data-Matching Programs
The ATO has announced it will engage in the following data-matching programs:
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SMSF Related Party Rental Income Deferrals Due to COVID‑19
The ATO has made a determination to ensure that trustees of SMSFs do not inadvertently breach the "in-house asset rules" where the fund allows a related party to defer the payment of rent under a lease agreement (on arm’s length terms) because of the financial impact of COVID‑19.
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AAT Decision on JobKeeper and Backdated ABNs
On 21 December 2020, the AAT handed down its decision in a case relating to a taxpayer's eligibility for JobKeeper payments, in circumstances where the Registrar of the Australian Business Register decided to reactivate a previously cancelled ABN after 12 March 2020, with a backdated effective date on or before 12 March 2020.
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Shortcut Rate for Claiming Home Office Expenses Extended
The ATO has extended (again) the ability to utilise the "shortcut rate" for claiming home office running expenses to 30 June 2021 (it previously only applied until 31 December 2020).
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New Measures Applying From 1 January 2021
The Government has provided an update of a number of new measures which came into effect from 1 January 2021, including (among others):
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JobMaker Hiring Credit Scheme: Claims open from 1 February 2021
The JobMaker Hiring Credit is being administered by the ATO and provides a wage subsidy payment directly to employers as an incentive to employ additional job seekers aged 16 to 35 years.
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Happy Australia Day!
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Magic Message Beans
During the Christmas period, we received Magic Message Beans from our clients ShareStory. These magic beans have messages engraved onto the seed and when the bean plant grows, the message appears on the bean!
Last week we decided to put our green thumbs to use. The beans were slowly but surely growing and over the weekend have exploded.
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JobKeeper Extension 2
The second extension period covers the JobKeeper fortnights between 4 January 2021 and 28 March 2021.
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Getting the Margin Scheme Right
If a property owner wants to use the margin scheme when selling property, they must be eligible before the property is offered for sale.
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