Taxpayer claims for various ‘home business’ expenses rejected
Taxpayer’s $40,000 Deduction Claims Rejected by Tribunal Unsubstantiated and Private Expenses Lead to Full Denial of Tax Deductions In a recent decision, the AAT rejected in full a taxpayer’s claims for “several classes or categories of deductions.” For the relevant period of 1 July 2021 to 30 June 2022, the taxpayer was (according to his […]
ATO reminder about family trust elections
Family Trust Elections: Key Considerations for Trustees Understand the Benefits, Risks, and Family Group Implications to Avoid Costly Taxes Taxpayers may be considering whether they should make a family trust election (‘FTE’) for a trust, or an interposed entity election (‘IEE’) for a trust or other entity. Making an FTE provides access to certain tax […]
AAT rejects taxpayer’s claims for work-related expenses
Work-Related Deductions Denied AAT Rejects Taxpayer’s Expense Claims Lack of evidence and use of company vehicles led the AAT to disallow nearly $10,000 in work-related deductions for a traffic controller. In a recent decision, a taxpayer’s claims for various work-related expenses were rejected by the AAT. The taxpayer was employed as a traffic controller in […]
Reminder of December 2024 Quarter Super Guarantee
Superannuation Deadline ‘SG’ Approaching Don’t Miss the 28 January Cut-Off Ensure Compliance with the 11.5% SG Rate to Avoid Penalties and Interest Employers are reminded that employee superannuation contributions for the quarter ending 31 December 2024 must be received by the relevant super funds by 28 January 2025. If the correct amount of SG is […]
Deductions for financial advice fees
Understanding Tax Deductions for Financial Advice Fees When individuals can claim deductions on financial advice fees linked to income generation and tax management. The ATO has provided guidance about when an individual not carrying on an investment business may be entitled to a deduction for fees paid for financial advice. An individual is entitled to […]
Christmas Parties and Gifts December 2024
Year-end (and other) staff parties With the well-earned December/January holiday season on the way, many employers will be planning to reward staff with a celebratory party or event. However, there are important issues to consider, including the possible FBT and income tax implications of providing ‘entertainment’ (including Christmas parties) to staff and clients. FBT and […]
ATO’s notice of government payments data-matching program
ATO to Collect Government Payments Data for Enhanced Compliance Data matching for 2024–2026 will track payments to 60,000 service providers annually, improving tax transparency and accuracy. The ATO will acquire government payments data from government entities which administer government programs for the 2024 to 2026 income years, matching data on government payments made to service […]
FBT on plug-in hybrid electric vehicles
Changes to FBT Exemptions for Plug-In Hybrid Vehicles Starting April 2025 Employers must have binding agreements in place to retain FBT exemptions for PHEVs, with new restrictions on eligibility for electric car exemptions. From 1 April 2025, a plug-in hybrid electric vehicle (‘PHEV’) will not be considered a zero or low emissions vehicle under fringe […]
Could your staff celebration attract FBT?
Consider if fringe benefits tax (FBT) may apply or you could end up with an unexpected FBT liability. With the holiday season kicking off, you may be planning a celebration with your staff. Before you hire a restaurant or book an event, make sure you work out if the benefits you provide your employees are […]
ATO’s notices of data-matching programs
ATO Expands Data Acquisition for Enhanced Compliance from 2024 to 2027 New initiatives will gather comprehensive information from various sources, impacting millions—understand what data the ATO will collect and its implications for taxpayers The ATO will acquire officeholder data from ASIC and other bodies for the 2024 to 2027 income years, including name, address, date […]
