Our Recent Blogs
New ATO guidance on “who is an employee?”
The ATO recently issued a ruling which explains when an individual is an 'employee' of an entity for pay as you go ('PAYG') withholding purposes.
Random ATO audits ensure employment tax compliance for businesses.
The ATO has recently initiated random audits on businesses to assess their employment tax compliance and proper record-keeping.
Sale of land subject to GST.
The AAT recently held that the sale of land by a taxpayer was subject to GST, as it was a supply made in the course of an enterprise being carried on by the taxpayer.
Stay off the ATO’s radar and lodge your TPAR on time.
Taxpayers who operate in certain industries and that make payments to contractors may need to report these payments in a TPAR.
‘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. ‘Side hustles’ have really grown over the past few years — everything from the gig economy and drop shippers, to content creators and influencers.
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.
ATO Asset Betterment Assessments.
Asset betterment is where the ATO compares the assets & liabilities of a taxpayer to their reported taxable transactions and identifies unexplained wealth. The ATO can then issue a default assessment based on their assessment of what your income should have been.
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.
Contractor or Employee Argument: 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.
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). Wash sales are a form of tax avoidance that the ATO is focused on this tax time.
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. Note that the super guarantee rate in relation to salary and wages paid on or before 30 June 2022 is 10%.
Get on the front foot with business tax debts.
The ATO have advised us that they have resumed their debt collection activities in the small-business sector after a pause last year during lockdown. This means businesses need to really focus on clearing the debt as the ATO pursues harder collection measures.
Penalties for overdue TPAR.
The Taxable payments annual report (‘TPAR’) must be lodged by 28 August each year. Taxpayers who operate in certain industries and that make payments to contractors may need to report these payments in a TPAR.
Fuel Tax Credit Rate Increase 1 Feb 2022.
Fuel tax credit rates increased on 1 February 2022, so don’t forget to use the new rates when you calculate your claims on your next BAS. Fuel tax credit rates do change regularly. They are indexed twice a year, in February and August, in line with the Consumer Price Index.
ABN ‘intent to cancel’ program.
The ATO is reviewing Australian business numbers ('ABNs') to identify potentially inactive ABNs for cancellation, and it has introduced a new automated process to allow taxpayers (or their tax agents) to confirm if their ABN is still required via a secure voice response system.
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.
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.
Government payments and AUSTRAC data-matching programs.
The ATO will acquire government payments data from government entities who administer government programs for 2017/18 to 2022/23 financial years.
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.
To assist taxpayers who continue to be affected by Covid-19, the ATO has stated that it will not apply penalties or interest on varied instalments for the 2021/22 income year for excessive variations when the fund has taken reasonable care to estimate its end of year tax.
Government follows through on SG $450 threshold scrapping.
The Australian Government is finally delivering on its 21-2022 budget promise to scrap the $450 per month superannuation guarantee threshold.