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.
Changes in reporting requirements for sporting clubs.
Not-for-profits ('NFPs'), including sporting clubs, societies and associations with an active ABN, need to lodge an annual NFP self-review return to continue accessing their income tax exemption.
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.
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. It recently provided the following two case studies to illustrate the two methods.
Different meanings of ‘dependant’ for super & 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.
Masters course fees not deductible as self-education expenses.
Case: 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 a taxpayer's work as a music teacher.
Proportional indexation of transfer balance caps from 1 July 2023.
The ATO reminds taxpayers that, from 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.
Minimum Annual Payments for Super Income Streams.
The ATO reminds taxpayers that an SMSF must pay a minimum amount each year to a member who is receiving a pension that commenced on or after 20 September 2007 (e.g. account based pensions). If the minimum payment is not made by 30 June, this can result in adverse taxation consequences for the member.
Testamentary Trusts.
The only two things in life that are certain – taxes and death. However, there is a way to reduce the exposure to tax for beneficiaries by establishing a Testamentary Trust. Testamentary Trusts are established by a will and only come into effect when the person passes.
Minor, infrequent and irregular use for an FBT exempt vehicle.
When an employer provides a vehicle to an employee, the issue of whether FBT applies will arise. Where a workhorse vehicle (e.g. single cab ute, panel van) has been provided to an employee, employers can rely on safe harbour treatment to treat the vehicle as meeting the requirements to be FBT-exempt.
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.
Small Business Tax Incentives: Skills and Training Boost.
The Government is consulting on exposure draft legislation to introduce a Skills and Training Boost to support small businesses to train and upskill their employees resulting in more staff productivity and retention.
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.
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. For downsizer contributions made prior to 1 July 2022, eligible individuals must have been aged 65 years or older at the time of making their contribution.
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.
2022/23 Federal Budget: Other budget announcements including Superannuation.
The latest Federal Budget was announced last week. Here are some of the most important things you need to know for this new financial year.
2022/23 Federal Budget: Personal income tax changes.
The latest Federal Budget was announced last week. Here are some of the most important things you need to know for this new financial year.
2022/23 Federal Budget: Changes affecting business taxpayers.
It's time to look at the latest Federal Budget announcement, and at important changes affecting business taxpayers. Here are some of the most important things you need to know.
ATO Offers Support For Small Businesses Going Through Difficult Times.
Helping Small Businesses To Get Back On Track: A blog about the ATO's Taxpayer Assistance Program and what it offers to small businesses.