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Category Archive for: ‘News’

ATO warns over-claiming easy to detect

The ATO warns that over-claiming is easier to detect than ever.  In relation to 2014/15 individual income tax returns to be lodged this year, the ATO says it will be focusing on:- unusually high work-related expense claims across all industries and occupations expenses claimed that have already been reimbursed by employers; and claims for private expenses such as travel from …

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Phone Scam Alert – ATO Imposters

There have been a number of incidents of phone scams. Fraudsters are calling random public members, posing as ATO personnel advising that they owe money.  Anyone owing money to the ATO would have been advised in writing and would have had more than one piece of communication.  So don’t be fooled.  One way of dealing with calls of this nature is to ask for …

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Online Selling Data Matching

The ATO will request and collect, from eBay Australia & New Zealand Pty Ltd (a subsidiary of eBay International AG, which owns and operates www.ebay.com.au), online selling data relating to between 15,000 and 25,000 individuals that sold goods and services of a total value of $10,000 or more for the period from 1 July 2013 to 30 June 2014. This …

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Rich and Poor – Gap Growing in Australia

Rich and poor; the gap is growing in Australia between those with the most and those with the least.  A report just released by The Australia Institute has drawn the conclusion, from ABS data, that the wealth in the hands of a mere seven Australian citizens is more than the combined wealth of the poorest 20% of the population — …

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Are your contractors really employees?

Are your contractors really employees? The ATO continues to enjoy a high success rate challenging the treatment of contractors under the superannuation guarantee (SG) legislation.  Despite recent comments made by the Government that the ATO should ‘relax’ its approach to contractors, the ATO has no reason to simply walk away from such a potentially lucrative revenue stream – why would …

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SMSFs and protecting assets

SMSFs and protecting $558 billion in assets Access to, and the use of, the $558 billion in assets currently held in Australian Self Managed Superannuation Funds (SMSFs) is a touchy subject.   From 1 July 2014, the ATO has new powers to deal with delinquent trustees including directly levying financial penalties. Trustees should read the bolstered ATO powers more broadly as …

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The push for change; impact for business

The push for change; impact for business The Senate composition changed on 1 July and with it, the Government’s opportunity to push for change through its reform agenda.  The reintroduced repeal Bills for the Carbon Tax and Mining Tax have already passed the House of Representatives with high expectations of being passed by the new Senate when it sits on …

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Clear out the old: End of Financial Year housekeeping

Clear out the old: End of Financial Year housekeeping For business, July is the month you need to make sure you have properly closed off the last year and can start the New Year the right way.  Here is the essential checklist to prevent last year overflowing into this year:   •   Reconcile your GST control account. •   Does the …

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Fringe Benefits Tax rate increase

Fringe Benefits Tax rate increase The Fringe Benefits Tax (FBT) rate will increase by 2% from 47% to 49% from 1 April 2015 until 31 March 2017.  The increase is to prevent individuals attempting to use the FBT system to avoid the 2% Temporary Budget Repair Levy.    The cash value of benefits received by employees of public benevolent institutions …

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Higher education loans: Repayment income and rates

Higher education loans:  Repayment income and rates. If you’re studying to achieve professional development and are looking for higher education loans, the ATO has issued the following updates to the repayment incomes and repayment rates for the Higher Education Loan Program (HELP).  The repayment thresholds and rates for 2014 are listed below. HELP repayment thresholds and rates 2014/15 HELP repayment …

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More tax returns will need to provide bank account details

More tax returns will need to provide bank account details From 1 July 2013 individual income tax returns lodged with the ATO required banking details to be available where a return was estimated.  From 1 July 2014, banking details will also be required on other types of returns; and they are:- •   FBT return (from 1 April 2014) •   Company …

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Data matching: Childcare Service and Educator Payments

The ATO will, through data matching, acquire details of more than 12,000 taxpayers receiving taxable Childcare Service and Educator Payments from the former Department of Education, Employment and Workplace Relations (now the Department of Education), for the 2011/12 and 2012/13 financial years. These will be electronically matched with certain sections of ATO data holdings to identify non-compliance with lodgement and payment …

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Data matching: Qld State Government payments and grants

The ATO will acquire details of entities receiving taxable payments and grants from the Queensland State Government for the 2010/11, 2011/12 and 2012/13 financial years from various State Government departments and authorities. Records matched under this program are expected to exceed 5,000 individuals and will be electronically matched with certain sections of the ATO data holdings to identify recipients of …

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ATO gets serious with the ‘Big Boys’

Following an interview that the ATO gave to the Financial Review, it was reported that the ATO is investigating 86 multinational companies in Australia. The new ATO Deputy Commissioner, Mark Konza, says;  “At the moment – and I should say this process is ongoing, so other cases will be identified over time – these 86 cases where we felt that …

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Self Education – You can claim – No Limits!

Good News for self-education – Nurses, doctors, teachers, tradies, marketers and other professionals are the big winners in the recent announcement by Treasurer Joe Hockey to dump the tax that the federal labour government had proposed to implement in 2014. The law would have limited deductions for work related studies to a total of $2000 per year. The cap would …

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BUSINESS CONCESSIONS LOST

From 1 July 2012, as part of the introduction of the Carbon Tax and the Mineral Resources Rent Tax (MRRT), policies were introduced to provide small business entities to some very favourable depreciation deductions. Specifically, *  An immediate write off for depreciating assets that cost less than $6500 *  An immediate deduction for the first $5000 for any motor vehicle …

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Data Matching – Motor Vehicles – ATO ramping

The Tax Office announced a motor vehicle data matching program that is aimed at identifying all vehicles sold, transferred or newly registered in 2011-12 and 2012-2013 where the transfer or market value is $10,000 or greater. This will; Identify taxpayers whose expenditure is in excess of their reported income Identify businesses that sell vehicles and do not report, or under-report …

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