Our Recent Blogs
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.
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.
Employee v Contractor.
The ATO is allocating compliance resources to worker classification arrangements and have released draft Guideline PCG 2022/D5 to assist when classifying workers as employees or independent contractors. It also outlines the risk framework to assist in a self-assessing the likelihood of ATO Compliance action.
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.
Electric Vehicle Electricity Costs - how do we calculate?
A fully electric vehicle means no fuel costs however, your electricity at home has probably increased from charging your vehicle. If your vehicle is salary sacrificed or provided by your employer, you may be wondering “how do we calculate how much the recharge is costing?”
FBT Exemption for Electric Cars.
From 1 July 2022, FBT is no longer payable on benefits provided for eligible electric cars and associated expenses.
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 between 1 April 2022 and 31 March 2023.
Significant changes to claiming working from home deductions.
From 1 March 2023 there are significant changes to claiming working from home tax deductions, including changes to the method of calculation and new strict record keeping requirements.
ATO turns up the heat on holiday home deductions.
An alert from the ATO has recently been issued warning about applying the correct proportions when claiming holiday home deductions.
Changes to leave entitlements.
All full-time, part-time and casual employees who work for large or medium businesses will have access to paid family and domestic violence leave (“FDVL”) under the Fair Work Amendment (Paid Family and Domestic Violence Leave) Bill 2022.
Further eligibility age change for downsizer contributions.
Individuals over the age of 55 will now be able to make downsizer contributions now that the Treasury Laws Amendments (2022 Measures No. 2) Bill 2022 received royal assent on 12 December 2022.
Important Fuel Tax Credit Rate changes.
Fuel tax credit rates increased on 1 February 2023, so don’t forget to use the new rates when you calculate your claims on your next BAS.
Electric Vehicle Exemption receives Royal Assent.
Since the Government announced the introduction of the Treasury Laws Amendments (Electric Car Discount) Bill in July 2022 we have all been eagerly awaiting royal assent for the Bill to become law. We are pleased to announce that royal assent was given on 12 December 2022 which means an FBT exemption is now available for eligible electric vehicles that are both first held and used on or after 1 July 2022.
Festive Season and FBT.
With the festive season well and truly on its way, many of you may be in the midst of organising gifts and Christmas parties. Unfortunately, the provision of these benefits may give rise to Fringe Benefits Tax (“FBT”). However, there are some simple things to consider when planning your event to maximise tax benefits:
Input Tax Credits denied due to lodging BASs late.
The operation of the GST Act means that, unless an extension of time to lodge a BAS has been granted prior to the expiry of 4 years after the day on which it was required to be given to the ATO, the entitlement to input tax credits immediately ceases.
‘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.
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.
Electric car taxes and rebates revealed.
The Federal Government recently introduced the Treasury Laws Amendments (Electric Car Discount) Bill 2022, which will reduce the upfront and ownership cost of electric vehicles (“EVs”) so that more families who want them, can afford them. If enacted it not only be good for motorists, employees and their workers and most of all for climate action.
Important fuel tax credit rate changes.
Fuel tax credits (“FTC”) regularly change, so it’s important to know the correct rate to apply to your business activity statement (“BAS”). Multiple rates may apply to your September 2022 Quarter BAS.
Register “.au” domain or risk a costly battle later on.
Businesses that already have a “.com.au” domain can priority register for their shortened .au domain before 9:59am AEST on 21 September 2022 or risk it going to someone else.