Personal Services Income rules
Federal Court provides clarification on the PSI rules The Federal Court recently handed down two decisions relating to the personal services income (‘PSI’) rules. Income is classified as PSI when more than 50% of the income received under a contract is for a taxpayer’s labour, skills or expertise. The PSI rules are integrity provisions which […]
The ATO hits the road
Could you be a black economy target? The ATO plans to visit almost 10,000 businesses this financial year in all States and Territories, across a variety of industries, as part of their strategy to deal with the black economy (they visited nearly 9,000 businesses in the 2018/19 financial year). According to Assistant Commissioner Peter Holt, […]
“Outrageous” tax deductions rejected
Unusual tax claims disallowed The ATO has published some of the most unusual claims that they disallowed last financial year. Nearly 700,000 taxpayers claimed almost $2 billion of ‘other’ expenses, but the ATO’s systematic review of claims had found, and disallowed, some very unusual expenses, including: claims for Lego sets bought as gifts for children, […]
Latest ATO benchmarks released
ATO has released updated benchmark data from 1.5M small businesses around Australia To “help small businesses across the country . . . gauge the strength of their business and keep an eye on their competition”. Updated benchmarks for more than 100 industries are now available for the following categories: Accommodation and food Building and construction […]
2019/20 Federal Budget changes to personal tax
Personal income tax Changes to personal income tax rates The Government has proposed the following changes to the personal income tax rates: From 1 July 2022, the Government will increase the upper threshold of the 19% personal income tax bracket to $45,000. The rates below do not include the Medicare Levy. The upper threshold of […]
Tax Time mistakes
ATO guide to the 5 most common Tax Time mistakes As Tax Time 2018 has ‘kicked off’, the ATO has profiled the five most common mistakes they see, including taxpayers who are: Leaving out some of their income (e.g. forgetting a temp or cash job, capital gains on cryptocurrency, or money earned from the sharing […]
Personal Income Tax Cuts
Personal Income Tax Cuts passed! Parliament has passed the Government’s Personal Income Tax plan, meaning that the first stage of the proposed income tax cuts will start to take effect from 1 July 2018. According to the Prime Minister, taxes “will now be lower, fairer and simpler”. The Government’s plan has three steps: The Government […]
