Tax Office clarifies Division 7A position
The ATO has clarified five common myths about Division 7A tax legislation.
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 […]
Avoiding common Division 7A errors
Navigating Division 7A: Ensuring Compliance with Private Company Obligations Guidelines for Business Owners to Manage Payments, Benefits, and Loans from Private Companies Private company clients who receive payments, benefits or loans from their private companies need to ensure compliance with their additional tax obligations (which are often referred to as their ‘Division 7A’ obligations). There […]
Private company loan arrangements
Know your private company loan arrangements before you lodge The ATO advises taxpayers that, if they or an associate take a loan from their private company, they should not forget the requirements of repaying a private company loan for income tax purposes. Otherwise, they could find the loan treated as a Division 7A deemed dividend […]
Taxpayers not carrying on an agistment business
AAT finds taxpayers not carrying on a business of providing services to their company Taxpayers not entitled to various deductions for agistment and animal husbandry services provided to their own company, AAT rules The Administrative Appeals Tribunal (‘AAT’) has held that two taxpayers were not carrying on a business of providing services to a company […]
2022/23 October Federal Budget
Federal Budget overview On 25 October 2022, Treasurer Jim Chalmers handed down an updated 2022/23 Federal Budget, the first for the Albanese Labor Government. Key measures Certainty for unlegislated taxation and superannuation measures Digital Currency – Clarifying that digital currencies are not taxed as foreign currency Depreciation – Reverse the self-assessment of the effective life […]
Director identification numbers
Preparing for director IDs If you want to become a director or are already one, you’ll need a director ID. Apply for a director ID from November 2021 here: https://www.abrs.gov.au/director-identification-number Director identification numbers (director ID) are a new requirement for all company directors, designed to help combat illegal activity by making it easier to trace […]
Business tax update October 2021
Extending administrative relief for companies to use technology The Government has passed legislation renewing the temporary relief that allows companies to use technology to meet regulatory requirements under the Corporations Act 2001. These temporary relief measures will allow companies to hold virtual meetings and use electronic communications to send meeting materials and execute documents until […]
Export Market Development Grant
From 1 July 2021, the Export Market Development Grant underwent some major changes This grant is available to any Australian exporter operating in any type of business entity – Sole Traders, Partnerships, Trusts or Companies. Over 4,000 Australian businesses participate in this grant program each year and may be particularly relevant for business exporters or […]
Company tax changes
Changes to company tax rates There are changes to the company tax rates. The full company tax rate is 30% and the lower company tax rate is 27.5%. The ATO has outlined when to apply the lower rate and how to work out franking credits. Company tax rates apply to: companies corporate unit trusts public […]
