A Different Perspective

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ATO Says: "Be Cyber Wise, Don't Compromise"

Throughout the 2022 income year, one cybercrime was reported every seven minutes. The ATO encourages taxpayers to implement the following four quick steps to protect themselves.

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Losses In Crypto Investments For SMSFs

Over the last few income years, the ATO has seen some instances of SMSF trustees losing their crypto asset investments.

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Care Required In Paying Super Benefits

Generally, before SMSF trustees pay a member's super benefits, they need to ensure that:

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Notice Of Visa Data-Matching Program

The ATO will acquire visa data from the Department of Home Affairs for the 2024 to 2026 income years, including the following:

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Deduction For Contributions Denied Due To Notice Requirement Problems

The Administrative Appeals Tribunal (‘AAT’) recently held that a claim for a deduction for personal super contributions should not be allowed, as the relevant 'notice requirements' were not satisfied.

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Tax Issues For Businesses That Have Received A Support Payment

Taxpayers who have received a government support grant or payment recently to help their business recover from COVID-19 or a natural disaster should check if they need to include the payment in their assessable income.

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Choosing The Right PAYG Instalment Method

The ATO advises that Pay as you go (‘PAYG’) instalments are calculated using either the instalment amount method or the instalment rate method.

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Remember The Unused Concessional Contributions Cap Concession

ThAs from 1 July 2018, individuals with a total superannuation balance of less than $500,000 as at 30 June of the previous income year may be entitled to contribute more than the general concessional contributions cap (i.e., and make additional concessional contributions to utilise any unused cap amounts).

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Luxury Car Tax: Determining A Vehicle's Principal Purpose

The ATO recently explained how to determine the principal purpose of a car for ‘luxury car tax’ (‘LCT’) purposes (since LCT is not payable on the supply or importation of cars whose principal purpose is the carriage of goods rather than passengers).

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Taxpayers Need To Get Their 'Rental Right'

On The ATO reminds rental property owners and their tax agents to take care when lodging their tax returns this tax time. When preparing their tax returns, taxpayers should make sure all rental income is included, including income from short-term rental arrangements, renting part of a home, and other rental-related income.

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Different Meanings Of 'Dependant' For Superannuation And Tax Purposes

On a person’s death, their superannuation benefits can only be paid directly to one or more ‘dependants’ as defined for superannuation purposes, unless they are paid to the deceased’s legal personal representative to be distributed in accordance with the deceased’s Will.

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NALI Provisions Did Not Apply To Loan Structure

The Administrative Appeals Tribunal (‘AAT’) has held that interest income derived by a self-managed superannuation fund (‘SMSF’) as the sole beneficiary of a unit trust was not non-arm’s length income (‘NALI’), and so this income could still be treated as exempt current pension income.

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Appointing An SMSF Auditor

The ATO reminds SMSF trustees that they need to appoint an approved SMSF auditor for each income year, no later than 45 days before they need to lodge their SMSF annual return.

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ATO Gives 'Green Light' To Lodge

The ATO is giving taxpayers with simple affairs the ‘green light’ to lodge their annual income tax returns.

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Reallocation Of Excess Concessional Contributions Denied

The Administrative Appeals Tribunal (‘AAT’) has held that there were no special circumstances in relation to a taxpayer who made excess concessional contributions in a financial year, such that the ATO could allocate some of those contributions to the previous financial year.

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Changes 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, including the following.

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Downsizer Contribution Measure Eligibility Has Been Extended

The downsizer contribution concession was introduced to allow older Australians selling an eligible dwelling to make additional contributions into their superannuation fund.

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Claiming GST credits for employee expense reimbursements

Employers may be entitled to claim GST input tax credits for payments they have made to reimburse employees for expenses that are directly related to their business activities.

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Lodging of Taxable payments annual reports

The ATO reminds taxpayers that it is now time for them to check if their business needs to lodge a Taxable payments annual report (‘TPAR’) for payments made to contractors providing the following services:

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Proportional Indexation of Transfer Balance Caps From 1 July 2023

The ATO reminds taxpayers that, on 1 July 2023, the general transfer balance cap will be indexed. Individuals will have a personal transfer balance cap between $1.6 and $1.9 million, based on the highest ever balance of their transfer balance account between 1 July 2017 and 30 June 2023.

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Masters Course Fees Not Deductible As Self-Education Expenses

The Administrative Appeals Tribunal (‘AAT’) has held that tuition fees for a public policy Masters course were not deductible, on the basis that the course did not relate to the taxpayer's work as a music teacher.

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Minimum Annual Payments For Super Income Streams

Businesses that have employees, or hire eligible contractors, will need to ensure that their payroll and accounting systems are updated to reflect the new super guarantee rate of 11% for payments of salary and wages that are made from 1 July 2023.

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Know Your Private Company Loan Arrangements Before You Lodge

The ATO advises taxpayers that, if they or an associate take a loan from their private company, they should not forget the requirements of repaying a private company loan for income tax purposes.

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Court Penalises AMP $24 Million For Charging Deceased Customers

The Federal Court has found that four companies that are or were part of the AMP Group breached the law when charging life insurance premiums and advice fees from the superannuation accounts of more than 2,000 deceased customers.

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The Super Guarantee Rate Is Increasing

Businesses that have employees, or hire eligible contractors, will need to ensure that their payroll and accounting systems are updated to reflect the new super guarantee rate of 11% for payments of salary and wages that are made from 1 July 2023.

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ATO Advice Regarding Year-End Trustee Resolutions

The ATO has advised that, in the lead up to 30 June, trustee clients who wish to make beneficiaries presently entitled to trust income for the 2023 income year should ensure their trustee resolutions are effective.

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'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.

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ATO Ride Sourcing Data-Matching Program

The ATO will acquire ride sourcing data relating to approximately 200,000 individuals to identify individuals that may be engaged in providing ride sourcing services during the 2022/23 financial year.

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Know The Rules For Accessing Superannuation

The ATO has reminded SMSF trustees that their SMSF must be operated for the sole purpose of providing retirement benefits for its members.

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2023/24 Budget Update

On 9 May 2023, Treasurer Jim Chalmers handed down the 2023/24 Federal Budget.

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In The ATO's Sights This Tax Time

The ATO has announced its three key focus areas for this Tax Time:

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Residential Investment Property Loan Data-Matching Program

The ATO has advised that it will acquire residential investment property loan data from authorised financial institutions for the 2021/22 through to 2025/26 financial years, including:

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Electric Vehicle Home Charging Rates: Cents Per Km

The ATO recently released draft guidelines setting out a methodology for calculating the cost of electricity when an electric vehicle ('EV') is charged at an employee's or individual's home.

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Taxpayers Not Carrying On An Agistment Business

The Administrative Appeals Tribunal (‘AAT’) has held that two taxpayers were not carrying on a business of providing services to a company (which they owned) and consequently were not entitled to various deductions.

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Tips To Reduce Study And 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.

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Reminder Of March 2023 Quarter Superannuation Guarantee (‘SG’)

Employers are reminded that the SG obligation for the 1 January 2023 to 31 March 2023 quarter is due by 28 April 2023.

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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.

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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 (i.e., the start of the 2026 income year).

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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 (or their associates) between 1 April 2022 and 31 March 2023.

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FBT Exemption For Electric Cars

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 (or their associates) between 1 April 2022 and 31 March 2023.

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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.

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Significant Change To Claiming Working From Home Expenses

Before 1 July 2022, an individual taxpayer that incurred additional deductible expenses as a result of working from home, had a choice of three methods to claim these expenses.

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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.

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Electric Vehicle FBT Exemption Legislation Is Now Law

Certain zero or low emissions vehicles provided as a car benefit on or after 1 July 2022, can be exempt from FBT.

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Further Eligibility Age Change For Downsizer Contributions

In another recent legislative change, the eligibility age to make a downsizer contribution into superannuation has been reduced to 55 from 1 January 2023.

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Chef Spending Most Of A Year On Cruise Ships Still A 'Resident'

The AAT has also held that a taxpayer, an Australian chef with over 20 years’ experience both in Australia and overseas, was an Australian resident for taxation purposes in the 2016 income year.

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Requesting Stapled Super Fund Details For New Employees

The ATO is reminding employers that, when they have new employees that have not provided them with their choice of super fund, super contributions should be made into:

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ATO Warning To SMSFs: "Paying The Price For Non-Compliance"

There are various courses of action available to the ATO when trustees of self-managed super funds ('SMSFs') have not complied with the super laws, including applying administrative penalties.

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ATO's Record-Keeping Tips

The ATO has reminded taxpayers that they should understand the record-keeping requirements for their business and keep accurate and complete records as they occur, as this should help them avoid penalties that may apply and reduce the possibility of the ATO denying their expense claims.

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Input Tax Credits Denied Due To Lodging BASs Late

The Administrative Appeal Tribunal ('AAT') has held that a taxpayer could not claim $91,239 of input tax credits ('ITCs') at least partly because it lodged the relevant BASs more than 4 years too late.

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Varying PAYG Instalments

The ATO is reminding taxpayers that they can vary their pay as you go ('PAYG') instalments if they think the amount they pay now will be more or less than their expected tax liability for the year, by lodging a variation through myGov or Online services for business.

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Why Are Credits And Refunds Being Offset?

The ATO has reached out to small businesses who may have recently received a letter advising that they have a debt on hold and any credits or refunds would be offset against this debt.

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ATO Advice For SMSFs Thinking About Investing In Crypto Assets

The ATO recommends that trustees of self-managed super funds ('SMSFs') thinking about investing in crypto assets should seek professional advice from a licensed financial adviser.

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Input Tax Credits Denied Due To Lodging BASs Late

The AAT has held that a partnership’s entitlement to $16,361 of input tax credits claimed for the quarterly periods of 1 July 2012 to 31 March 2017 had ceased by the time the associated BASs were lodged with the ATO on 21 June 2021, and therefore the ATO did not need to pay the taxpayer a refund.

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Valuing Fund Assets For An SMSF's Annual Returns

The ATO has provided the following reminder and general advice for SMSF trustees regarding their obligations to value the assets annually.

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'Talking Tax' With New Workers

The ATO is reminding employers that have taken on new employees that those employees can complete a TFN declaration through ATO online services, and that this is an easy way for them to provide both their employer and the ATO with the information needed.

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How The MyGov Update Affects Taxpayers

Clients using myGov will see that it has recently been updated with a new look and more features.

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Banking Business Income To A Private Account

The ATO has stated that it has "no concerns" with business owners banking their business takings or other sales in private accounts, but that this may become an issue when this income isn't reported.

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Super Guarantee Due 28 October 2022

It is important for employers to make sure the SG contributions for their employees are paid in full and on time.

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Small Business Tax Incentives Back On The Table

The Albanese Government has confirmed its commitment to implementing two tax incentives aimed at supporting small businesses to train and upskill employees, and improve their digital and tech capacity.

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Rental Properties And Second-Hand Depreciating Assets

The ATO is reminding taxpayers that have a residential rental property, to take care when making claims for ‘second-hand depreciating assets’ used in their properties.

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ATO Reminder About Appointing An SMSF Auditor

The ATO is reminding trustees of self-managed super funds (‘SMSFs’) that they need to appoint an approved SMSF auditor no later than 45 days before the lodgment of their fund’s SMSF annual return (for example, for the 2022 income year).

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Super Comparison Tool Updated

The YourSuper comparison tool helps individuals compare MySuper products and choose a super fund that meets their needs.

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TD 2022/11 – Discretionary Trusts And Corporate Beneficiaries

When a trustee of a trust makes a decision to create an entitlement to income of the trust in favour of a corporate beneficiary (i.e., a privately held company), certain steps need to be taken to ensure that if the entitlement to the distribution remains unpaid (that is, no cash equal to the amount of the entitlement is paid to the corporate beneficiary), that this does not trigger what is called a ‘deemed dividend’ in the hands of the trust.

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Pandemic Leave Disaster Payment Reinstated

In recognition of the risks associated with more infectious new Covid-19 variants through the winter period, the Federal Government has agreed to reinstate the ‘Pandemic Leave Disaster Payment’ to 30 September 2022, which was otherwise set to end as of 30 June 2022.

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Sessional Lecturer Entitled To Superannuation Support

The Federal Court has agreed with the ATO that a lecturer providing services to a higher education provider was a common law employee and therefore entitled to superannuation support, despite being engaged as an independent contractor.

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Super Guarantee Contribution Due Date For June 2022 Quarter

The due date for employers to make super guarantee contributions for their employees for the June 2022 quarter is 28 July 2022.

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Tax Time Focus On Rental Property Income And Deductions

The ATO is focusing on four major concerns this tax season when it comes to rental properties.

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ATO To Target ‘Wash Sales’ This Tax Time

The ATO is warning taxpayers to not engage in ‘asset wash sales’ to artificially increase their losses to reduce gains (or expected gains).

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Downsizer Contributions Age Changes From 1 July 2022

From 1 July 2022, people aged 60 years and over will be eligible to make downsizer contributions of up to $300,000 per person ($600,000 per couple) from the sale proceeds of their home into their super.

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ATO Targeting SMSFs That Fail To Lodge Annual Returns

The ATO has observed an increase in the number of SMSFs that fail to lodge their first annual return and become what the ATO refers to as ‘NEVER’ lodgers.

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ATO’s Small Business Focus For 2022 Income Year

The ATO announced that it will be focusing on the following matters for small business tax returns for the 2021/22 year:

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ATO Updates ‘Cents Per Kilometre’ Rate For Individuals

The ATO has updated the cents per kilometre rate relating to individual car expenses for the 2023 income year to 78 cents per business kilometre.

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Employers Need To Prepare For Changes Under STP Expansion

Single Touch Payroll ('STP') reporting has been expanded.

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Get Ready for Super Changes From 1 July 2022

As the new financial year approaches, employers need to be aware of two important super changes.

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ATO Warns About GST Fraud

Taxpayers are being warned to be on the lookout for dodgy online ads, often on social media platforms, promising easy GST refunds.

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High Court Rejects Attempt to Disclaim Interest in Trust Distributions

The High Court has rejected a taxpayer’s attempt to disclaim an interest in trust income that arose as a result of a default beneficiary clause being triggered.

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ATO Priorities This Tax Time

The ATO has announced four key areas that it will be focusing on for Tax Time 2022:

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Avoid Double Dipping On Your Deductions

Taxpayers are reminded not to make the mistake of ‘double dipping’ on deductions (that is, claiming expenses twice) in their tax return this year.

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Disclosure of Business Tax Debts

The ATO is in the process of writing to taxpayers that may be eligible to have their tax debts disclosed to credit reporting bureaus (‘CRBs’).

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No Reduction In The Private Health Insurance Rebate As Of 1 April 2022

An event that we have become accustomed to every 1 April, is that the amount of the Private Health Insurance (‘PHI’) rebate decreases.

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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.

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.