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The small business CGT concessions can save businesses some serious tax – and help business owners significantly boost their superannuation – but it’s essential that you keep the right records, particularly for when the time comes to sell. Find out what your business should be doing now to keep the ATO at bay in the future.
Being a smart taxpayer means knowing what resources are available to you and understanding how the ATO deals with individuals as tax problems arise. Here are three simple things all individuals can do to help keep their tax affairs as stress-free as possible this tax time.
Got a passive corporate entity that holds an investment property or perhaps plant and equipment? The ATO has confirmed it takes a broad approach to when a company carries on a “business”, which means some company taxpayers may be entitled to business tax concessions they hadn’t previously considered. Find out if your company is affected.
The stricter Age Pension assets test came into force more than a year ago, but it is probably only now that the impact of this change is being felt, especially by middle-income wage earners.
If you run a “bucket company” as a beneficiary of a family trust you will be interested to hear that a new Bill has been introduced in Parliament that will exclude companies that fail a “passive income test” from the lower corporate tax rate of 27.5 per cent.
To help you prepare for your tax return, here are some tips on the types of claims that are now coming under scrutiny by the ATO, and what you need to do to minimise your chance of being audited.
Are you a business that has had a GST refund held up as a part of the ATO’s risk assessment program to verify GST refunds? The Inspector-General of Taxation (IGT) has recently completed and released his review into ATO’s practice and the findings are surprisingly good for the ATO. Even so, as a part of the review, the IGT made several recommendations to improve the process which the ATO has mostly agreed to.
Specifically, new laws commencing on 1 July 2019 will prevent an employer from claiming a deduction for payments to employees such as salary, wages, commissions and bonuses.
It might seem like a horror movie cliché, a monster that follows you wherever you go, but did you know that your higher education debts under the Higher Education Loan program (HELP), Trade Support Loan (TSL) or the Higher Education Contribution Scheme (HECS) debts follow you wherever you go in the world?
Rather than simply looking at the time spent in Australia, the question is whether your behaviour over a considerable period of time (6 months according to the ATO) has the degree of continuity, routine, or habit that is consistent with residing in Australia.
It's been a little over a year since the dual changes of the pension transfer balance cap and the reduction of tax concessions for transition to retirement pensions were implemented by the government. Recent research has indicated that these changes has achieved their policy outcome by making almost 25% of previously tax-free SMSF assets lose their status and become taxable.
Sustainability of tax revenue is key to any government's fiscal sustainability, that is, the ability to meet both current and future financial obligations (including debt servicing obligations) without major policy adjustment.
The ATO is reminding ride-sharing drivers of the importance of complying with the tax laws. Assistant Commissioner, Tom Wheeler, said the ATO is, "still working to educate ride-sourcing drivers, but now focus is shifting to drivers who are ignoring their obligations."
Some foreign vendors may choose to absorb the cost of the GST rather than passing it on to the consumer, but they will still need to include the GST component in the price of their goods and periodically remit this to the Australian Tax Office (ATO).
Have you looked at your trust deed recently? If you have a trust, chances are it was set up by your accountant or solicitor, and you didn't have to do too much of the legwork. Look closely at your deed and you'll notice that it will specify a date on which the interests in the trust vest and contain a clause which specifies the consequences of that date being reached.
The tax benefits available from salary sacrificing into superannuation are largely determined by the difference between the individual's marginal tax rate and tax treatment of the contributions in the superannuation fund's hands.
Key small business tax concessions introduced in 2015 include a company tax rate cut for small business entities and a tax discount for entities that are not incorporated.
Taxpayers who can't pay their tax by the due date should consider whether to request a payment arrangement with the ATO.
An amount paid by your employer to cover expenses such as accommodation, food, or drinks while you travel for business is typically know as a travel allowance. There is also another type of allowance, called the living-away-from-home allowance (LAFHA), which compensates you for additional expenses when you are required to live away from home due to work duties. So what is the difference between the two?