Determining whether GST is for business or private use
The goods and services tax (GST) is applied to most goods and services sold in Australia, taxed at a rate of 10%. If you run a business, you are likely to have… Read More
ATOs small business benchmarks
The ATO small business benchmark guides are designed to help small businesses compare performance with similar companies in the same industry. These guides have been updated to include data from the 2016-2017… Read More
STP extension for small businesses
The ATO has released a statement in relation to transitioning to Single Touch Payroll (STP) for small businesses. Parliament has passed legislation to extend STP to include employers with fewer than 20… Read More
“Building a Better Tax system” What does this mean for you?
The Australian government has launched the Better Tax campaign in order to help inform the public of tax reforms coming into effect. Designed to “better Australia”, here is a look at what… Read More
Travel allowance and expenses
On the occasion that you are required to travel overnight for work, you may be eligible to receive a travel allowance from your employer for accommodation, food, drink or incidental expenses. The… Read More
Instant asset write-off for small businesses to be extended and increased
As of 29 January 2019, the Instant Asset Write-Off Scheme will be extended to 30 June 2020 for assets purchased under $25,000. The Instant Asset Write-Off affects small businesses with a turnover… Read More
How the ATO is teaching our kids about tax
Having a good knowledge of the Australian tax and super systems is important, this is why The School Education Program works with parents and teachers to help educate students. Tax, Super +… Read More
Single Touch Payroll to include all businesses in 2019
On 1 July 2018, the Australian Tax Office (ATO) rolled out Single Touch Payroll (STP) reporting. This changed the way employers with 20 or more employees reported their employees’ tax and super… Read More
Claiming deductions for business travel expenses
You can claim tax deductions for expenses related to business travel provided you follow the ATO’s rules. Eligibility requirementsYou must fulfil certain eligibility requirements for your tax deduction claims to be valid.… Read More
Avoid these small business tax errors
Unwanted attention and penalties from the ATO can jeopardise your small business. Protect your business by avoiding these common small business tax errors. Not using an accountantTax laws frequently change, and compliance… Read More
Getting to know the ATO Business Portal
The ATO has introduced the Business Portal to allow small business owners to manage their tax affairs online at their convenience. Connect your ABN to your myGov account or a compatible AUSkey… Read More
ATO update: Tax deduction rules on travel to rental properties
The ATO has enforced strict guidelines on tax deductions for rental property owner’s travel expenses. As a rental property owner you are not able to claim deductions for travel expenses relating to… Read More
ATO updates Taxpayer’s Charter
The ATO has updated the Taxpayer’s Charter which prioritises a relationship with the public built on mutual trust, courtesy and respect in all interactions. Your rights regarding review of ATO decisions are… Read More
ATO provisions for mental health
Small business owners suffering from mental health issues can seek the ATO’s help in meeting their taxation and super commitments. If you are going through tough times take advantage of ATO services… Read More
Record keeping for small businesses
Businesses that fail to keep accurate records may struggle to remain compliant at tax time and incur financial penalties from the ATO. Follow the ATO’s record keeping guidelines to stay organised. Basic… Read More
Tax implications of a business restructure
Tax exemptions may apply to small businesses going through a restructure provided they meet certain criteria. Typically when a business is sold, you would have to pay income tax due to transferring… Read More
When can the ATO issue a default assessment for overdue lodgements
A default assessment is an assessment of taxable income for overdue tax returns or the net amount or assessable amount-for late activity statements. Although the ATO’s preferred approach is to work with… Read More
ATO reminder: fuel tax credit rates have increased
Fuel tax credit rates have increased on 1 August. The ATO reminds you to use the new rates to calculate claims on your next business activity statement (BAS). How to simplify fuel… Read More
ATO announces $20,000 instant asset write-off
The ATO has extended the $20,000 threshold to 30 June 2019. If you buy an asset and it costs less than $20,000, you may write off the business portion in your tax… Read More
Claiming tax when working from home
The ATO is seeking to increase their attention on home office expenses due to the high level of questionable claims made by taxpayers. There has been an increase in the number of… Read More
ATO developing software to stop tax avoidance
The ATO is in the midst of developing advanced data programs to find individuals who are leaving a source of income out of their tax return. Analytical tools have been developed to… Read More
Authorisations for Single Touch Payroll
On the 1 July 2018, the Australian Government introduced Single Touch Payroll (STP) for employers with 20 or more employees. The new scheme requires employers to report payment activities each time employees… Read More
Changes to FBT for Utes
The Australian Tax Office (ATO) has released draft guidelines changing its previous stance on Fringe Benefits Tax (FBT) for utes. Amendments originated from reports that dodgy tax returns were responsible for a… Read More
Income tax return: what to report
The time to report and lodge your annual tax return for your business is fast approaching. Remember, what you must report will depend upon the type of business entity you have. Sole… Read More
TPRS extension to contractors
From 1 July 2018, businesses that supply cleaning or courier services must report payments made to contractors (if payments are for cleaning or courier services) via the Taxable payments annual report (TPAR)… Read More
Tax deduction for landcare operations
You may be able to claim a tax deduction for capital expenditure on a landcare operation in Australia in the year it is incurred. Providing you are a primary producer, a rural… Read More
Rental property and tax
The Tax Office is reminding individuals who either own or are looking to purchase a rental property that there are essential record-keeping and taxation obligations that they must meet. Examples of records… Read More
Avoid these top tax misconceptions
As tax time continues, the ATO has announced the top misconceptions many individuals make when completing their claims for tax deductions. Four popular tax misunderstandings include: 1. Individuals can give credit card… Read More
Cents per kilometre rate rises for work-related car expenses
The Tax Office has confirmed the rate for work-related car expenses will rise to 68 cents per kilometre for the income year beginning 1 July 2018. The new rate will affect those… Read More
Income tax gap results
The ATO has released its latest findings on the tax gap for Australian individuals. The estimated gap in 2014-15 is approximately $8.7 billion or 6.4 per cent. The income gap is an… Read More
Avoid scams this tax time
The Australian Tax Office (ATO) is reminding individuals to remain vigilant against any scams that may pop up this year around tax time. With over 37,000 scam attempts reported to the ATO… Read More
Penalty relief for taxpayers
From 1 July 2018, the Tax Office is advising Australians that if they find an error in their tax return or activity statement they will not incur a penalty but will advise… Read More
Avoid these five common Tax Time mistakes
Tax Time is now upon us, with the ATO Assistant Commissioner announcing the top five mistakes commonly made when Australians complete their annual tax returns. Common mistakes some taxpayers are making include:… Read More
Personal Income Tax Plan passed
The Personal Income Tax Plan announced as part of this year’s Federal Budget has been passed by Parliament. The plan introduces: – a new low and middle-income tax offset to reduce the… Read More
Claiming clothing this tax time?
The Australian Tax Office (ATO) is cracking down on claims for work-related clothing and laundry expenses this tax time. Last year total claims for work-related clothing and laundry expenses totalled nearly $1.8… Read More
Importing goods worth $1,000 or less?
Overseas businesses that meet the GST registration threshold (A$75,000) will be required to charge GST on goods purchased from the 1 July 2018. Specifically, GST will be charged on goods that are:… Read More
Preparing for tax time
With the end of the financial year fast approaching, preparing ahead will help to take off the pressure of running your business and organising your tax affairs this tax season. Business owners… Read More
Targeted amendments to Division 7A
The Government is widening the scope of Division 7A to include unpaid present entitlements from 1 July 2019. This will apply where a related private company is entitled to a share of… Read More
GST at settlement
As of 1 July 2018, purchasers of new residential premises or potential land are required to withhold an amount from the contract price and pay the amount to the ATO before settlement.… Read More
Focus on work-related car expenses
The Tax Office has flagged work-related car expenses as a concern this tax time. The ATO is targeting those who make mistakes or deliberately lodge false claims. Examples include: – Claiming things… Read More
Budget 2018: creating a level-playing field
The Government will continue its commitment to strengthen the economy by focusing on improving its integrity measures to create a fairer level-playing field for all. Funding new ATO enforcement Additional funds will… Read More
Budget 2018: building resilience
The 2018 Federal Budget is built on the back of a historically strong post-mining boom Australian economy, triggering fairly conservative changes to tax policy. The Budget’s strategy is to provide sustainable tax… Read More
ATO clarifies claims made in recent media coverage
The Australian Tax Office is standing by its actions undertaken that were presented on a recent current affairs program. The ATO says where taxpayers fail to lodge tax returns and BAS returns… Read More
Employing holiday makers on a visa
Employers can employ holiday makers on either a Working Visa (subclass 417) or a Working and Holiday Visa (subclass 462). Employees on either visa are taxed at 15 per cent from the… Read More
Changes to GST payments at settlement
Buyers of new residential premises or subdivisions of potential residential land will need to pay the GST component of the purchase price to the Australian Tax Office (ATO) as of 1 July… Read More
Fuel tax credit mistakes
Fuel tax credits are provided to businesses who acquire, manufacture, import or use fuel in part of running a business. These credits can greatly benefit business owners but it is important to… Read More
ATO targeting holiday homes
The Tax Office has rental property owners in its sights this tax season with a large number of mistakes, errors and false claims made by some using their own property for personal… Read More
Bitcoin tax scammers
The Australian Tax Office (ATO) is warning taxpayers to be aware of scammers impersonating the Tax Office and demanding cryptocurrency such as Bitcoin as payment for fake tax debts. The ATO became… Read More
Employers urged to act now for Single Touch Payroll
The Australian Tax Office (ATO) is urging employers with 20 or more employees to prepare for the introduction of Single Touch Payroll. Single Touch Payroll will be introduced from 1 July 2018,… Read More
Tax tips for property investors
Property investors can access a wide range of tax deductions and items subject to depreciation for their rental property yet many miss out on unknown tax breaks, foregoing an average of $20,000… Read More
Work-related expenses
The Australian Taxation Office is continuing to pay close attention to claims made as ‘work-related expenses’ throughout 2018. Making incorrect claims of work-related deductions can land you in hot water with the… Read More
Tax deductible legal expenses
While we like to think of business ventures as a platform to make money, there are also many expenses that will be incurred through running one. Luckily, there are many tax deductions… Read More
The ATO targeting record keeping of small businesses
The Australian Tax Office is honing in on small businesses failing to comply with guidelines regarding appropriate record keeping. Findings from the ATO’s Protecting Honest Business campaign indicated that one of the… Read More
Minimising the risk of fraud
The Australian Taxation Office is urging all businesses and individuals to take care in relation to avoiding the risk of fraud. With a focus on criminals lodging fraudulent returns in order to… Read More
ATO cracking down on developers avoiding GST
This year, the Australian Taxation Office has placed a greater focus on property developers and are particularly watching company directors with a history of GST obligations avoidance. As of May 2017, the… Read More
ATO reforms on deductible gift recipients
The Government has announced a reform of the Deductible Gift Recipient (DGR) status to strengthen governance arrangements, reduce administrative complexity and ensure trust and confidence in the sector. The reforms are as… Read More
FBT issues that raise ATO attention
With the FBT year-end just around the corner, it is a good time to review your FBT compliance to avoid raising attention from the Australian Tax Office (ATO). The ATO is currently… Read More
FBT parking exemptions for small businesses
It is quite common for small businesses to provide their staff with car parking benefits, however, many business owners may not take into account the effect parking has for fringe benefits tax… Read More
ATO targeting mischaracterised lifestyle assets and private pursuits
The Australian Tax Office (ATO) is targeting privately owned and wealthy groups that display specific behaviours and characteristics in relation to their tax affairs and lifestyle. A large focus is currently on… Read More
Earning income from the sharing economy
The holiday season is a peak time for activities in the sharing economy to increase. During this time those participating in the sharing economy must not forget their tax obligations. The most… Read More
Annual ATO closure
The Australian Tax Office (ATO) will be closed from midday Friday 22 December 2017 to 8.00am Tuesday 2 January 2018 over the festive season. The Tax Agent Portal Dashboard and BAS Agent… Read More
Early payments
Taxpayers are being reminded they can prepay amounts towards their expected tax bill to help stay on top of their tax and avoid falling into debt. To make a prepayment to the… Read More
Hiring for the holiday season
The holiday season is a busy time of year for many businesses and it is not uncommon to hire staff particularly for this period. If your business is one with an influx… Read More
ATO’s data matching programs
The Australian Tax Office (ATO) has sophisticated data matching programs in place to ensure individuals and businesses are complying with their obligations and to uphold the integrity of the tax system for… Read More
Using the margin scheme for property sales
Those selling property as part of a business sale may be eligible for the margin scheme. The margin scheme is a way of working out the GST you must pay on the… Read More
Changes to GST on low-value imported goods
Australian goods and services tax (GST) will be implemented on sales of low-value goods imported into Australia by consumers as of 1 July 2018. According to the ATO, business will have to… Read More
ATO to focus on cash-only businesses
To protect honest, compliant Australian businesses, the Australian Taxation Office has placed a strong emphasis on targeting the cash and hidden economy. The ATO is visiting businesses that deal predominantly in cash,… Read More
Assistance for new business owners
The ATO has established the ‘Business Assistance Program’ to help new business owners understand their tax obligations associated with running a business. Small businesses that have recently registered for an ABN, registered… Read More
Selling your home and CGT
When it comes time to sell your home, you may be wondering if you will need to pay capital gains tax (CGT). Generally, if you live in the home you are selling… Read More
Protecting honest businesses
In its effort to facilitate a fair business environment, the ATO has offered continued support for honest businesses. With an estimated $40 billion lost to the hidden economy, the need for strong… Read More
Reporting SMSF changes
Self-managed super fund trustees must notify the Australian Tax Office (ATO) if there are changes to their SMSF. Trustees must provide written notice within 28 days if there are changes to: the… Read More
Imported services and GST
Under the new law introduced on 1 July 2017, Australian GST registered businesses that import services or digital products for business purposes do not have to pay GST. These businesses will need… Read More
Ride sourcing – Claiming car expenses
Those who participate in ride-sourcing (i.e., Uber, GoCatch) as a driver can access a number of tax deductions come tax time. You may be able to claim expenses such as: Parking fees… Read More
Sharing economy and tax
The ATO is reminding those who work in the sharing economy to be aware of their tax obligations. The sharing economy connects buyers (users) and sellers (providers) through a facilitator who usually… Read More
Single Touch Payroll for streamlined reporting
From 1 July 2018, employers with 20 or more employees will report payments to the Australian Taxation Office at the same time as they pay their employees, using the Single Touch Payroll… Read More
Claiming the small business income tax offset
The small business income tax offset can help reduce the tax small businesses pay on business income by up to $1,000. This offset is available from the 2015-16 income year onwards. Small… Read More
Have you received personal services income?
Personal services income (PSI) is income mainly produced from your personal skills or efforts. There are special tax rules that apply if your income is classified as PSI. Almost any trade, industry… Read More
Tax penalty remissions
The Australian Taxation Office distributes penalties to ensure individuals are not making misleading or false statements regarding income, business and wealth matters. Studies indicate there is over $5.5 billion lost every year… Read More
Fuel tax credits – rate change
On 1 August 2017, fuel tax credit rates increased. Some of these rates also changed on 1 July 2017, due to a change in the road user charge and an annual increase… Read More
Lodge nil BAS in advance
Activity statements generally issue from the ATO by the end of the month but in some circumstances they can be generated early. Business owners can access activity statements early in the following… Read More
Using the $20,000 instant asset write-off
Small businesses with a turnover of less than $10 million from 1 July 2016 can write-off assets costing less than $20,000 each up until 30 June 2018. The simplified depreciation rules apply.… Read More
ATO targeting work-related expenses
The ATO is cracking down on individuals who are over-claiming work-related expenses. The Tax Office is reminding individuals that they can only claim a work-related deduction if: – they have spent the… Read More
Using the right business industry code
Employers must use the correct business industry code on their tax returns to ensure their return is lodged in the correct category. Using the correct business industry code reduces the risk of… Read More
Withholding from unused leave payments on termination of employment
When an employee leaves, business owners may be required to withhold from unused leave payments, under the PAYG withholding system. There are special rules for withholding that apply to payments made to… Read More
Reminder: Trust income deadline approaching
Trustees are required to make resolutions to distribute trust income by 30 June 2017 to ensure that the resolutions create present entitlement for tax law purposes. The ATO is reminding trustees to… Read More
Simpler BAS on the way
From 1 July 2017, the ATO is reducing the amount of information needed for the business activity statement (BAS). Small businesses with a GST turnover of less than $10 million will use… Read More
Changes to personal super contributions
From 1 July 2017, the 10 per cent maximum earnings condition will be removed for those individuals who wish to claim a deduction for personal super contributions. In 2016-17, individuals can claim… Read More
Claiming GST credits
Employers can claim a credit for any GST included in the price of any goods and services they buy for their business. To claim GST credits, business owners must be registered for… Read More
Franking credits – rate change
For 2016-17, the small business company tax rate has been reduced to 27.5 per cent and the maximum franking credit small businesses can allocate has decreased from 30 per cent to 27.5… Read More
ATO cracks down on super non-compliance
The Australian Tax Office (ATO) is cracking down on super guarantee (SG) non-compliance, addressing around 21,000 SG non-compliance cases in 2015-16 alone. Since 2010-11, the ATO has transferred almost $2 billion in… Read More
Extension of the asset write-off scheme for small business
The 2017 Budget sees an extension for the $20,000 asset write-off scheme for small businesses. The 2015-16 Budget introduced an instant asset write-off for small business; allowing small businesses to immediately deduct… Read More
Keeping taxpayers honest
The Budget focuses on maintaining the integrity of Australia’s tax system to ensure it is fair and secure to all and covers five key areas. Avoidance The Government will continue to crack… Read More
Staying on top of your records
A good record keeping system is essential for small business owners. Staying on top of your records helps to manage cash flow and prepare your business activity statements (BAS) and tax returns… Read More
Taxation of defined benefit income streams
The ‘defined benefit income cap’ limits the tax-free income one can receive from a capped defined benefit income stream and will be introduced as of 1 July 2017. The defined benefit income… Read More
Single Touch Payroll on the way
From 1 July 2017, ‘Single Touch Payroll’ will be available for a small number of employers to help streamline tax and superannuation affairs. Single Touch Payroll is a government initiative which allows… Read More
New measure to combat franked distributions funded by capital raisings
The Government has announced a new measure in the 2016-17 Mid-Year Economic and Fiscal Outlook to prevent the distribution of franking credits where a distribution to shareholders is funded by particular capital… Read More
Lump sum payments received by healthcare practitioners
The ATO has provided further guidance for healthcare practitioners dealing with lump sum payments from healthcare centre operators. The Tax Office is concerned with some practitioners who have received lump sum payments… Read More
ATO to report unpaid debts to credit agencies
The Mid-Year Economic and Fiscal Outlook 2016-17 (MYEFO) announced that from 1 July 2017, the ATO will disclose tax debt information of businesses who have not effectively engaged with the ATO to… Read More
Preparing for the FBT year-end
With the fringe benefits tax (FBT) year ending 31 March 2017, now is the time for business owners to get their FBT affairs sorted. When calculating FBT liability, employers must gross-up the… Read More
Easier GST reporting for food retailers
Many small food retailers buy and sell products that are both taxable and GST-free. Depending on the point-of-sale equipment used, identifying and recording these sales can be difficult for business owners. The… Read More
