WA Bushfires 2021
If you’re facing problems with your tax affairs due to bushfires, the ATO will work with you to get things back on track. Depending on your circumstances, they may: give you extra time to pay tax or lodge tax forms, such as activity statements or other returns find your tax file number (TFN) by verifying […]
STP data-sharing with Services Australia
Single Touch Payroll (STP) allows the ATO to share data in real-time with other government agencies The purpose is to “help them deliver government services to the Australian community”. As part of the ATO’s data-matching program, it has a STP data-sharing arrangement with Services Australia to help them administer Australia’s welfare system. This means that […]
How to avoid getting dodgy advice
Be wary of untrustworthy advice recommending inappropriate or illegal behaviour The ATO has warned taxpayers who may be thinking about pausing, changing or closing their business, due to the current economic conditions. This could include illegal phoenix activity, where businesses intentionally remove their assets prior to winding up so that they can be used in […]
COVID-19 and loss utilisation
The ATO understands the way some businesses operate has been impacted as a result of COVID-19. Some of these impacts may have resulted in changes that affect whether they are able to utilise their carried-forward losses in the current or a future income year. For companies to utilise their carried-forward losses in a particular year, […]
Deferrals of interest due to COVID-19
Many lenders have recently allowed borrowers with investment property loans to defer repayments for a period of time. While repayments are being deferred, interest (and fees) will usually be added to the loan balance (i.e. the deferred interest will be “capitalised”). However, it is important to recognise in such situations that, while repayments are not […]
Simplified home office expense deduction claims due to COVID-19
Update to ATO home office expense deduction claims Given that many Australians continue to work from home due to COVID-19, the ATO has updated its Practical Compliance Guideline. The Practical Compliance Guideline now allows taxpayers working from home to claim a rate of 80 cents per hour, by keeping a record of the number of […]
Employers need to apply recent tax cuts as soon as possible
The ATO has now updated the tax withholding schedules They reflect the 2020/21 income year personal tax cuts. Updated schedules are available at ato.gov.au/taxtables. The ATO has said that employers now need to make adjustments in their payroll processes and systems in order for the tax cuts to be reflected in employees’ take-home pay. Employers […]
Tax deductions for work-related vehicles
Deduction for work-related vehicle expenses disallowed In a decision of the Administrative Appeals Tribunal, a taxpayer, Mr Bell, was a denied a deduction for $21,565.73 of work-related vehicle expenses for the 2016 income year. Mr Bell, was a construction worker who predominantly worked on a construction site in an eastern suburb of Melbourne and lived […]
Superannuation guarantee amnesty ends today
Super Guarantee Amnesty Update Time runs out today for employers to apply for the Superannuation Guarantee (SG) amnesty to catch up on past unpaid super without incurring a penalty. The ATO encourages employers to apply for the amnesty and make payments as early as they can. Importantly, eligible amnesty amounts paid by 7 September 2020 […]
JobKeeper audits underway
First reports of ATO audits lands one small business in debt Imagine going through all the rigmarole to apply for JobKeeper when COVID-19 restrictions were rife, only to have your application rejected months later by Tax Office auditors? That is what has now happened to one small business owner in Melbourne who took a DIY […]
