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 […]
In the ATO’s sights this Tax Time
The ATO has announced its three key focus areas for this Tax Time Make sure you are up to date as necessary The areas of focus are: rental property deductions; work-related expenses; and capital gains tax. ATO Assistant Commissioner Tim Loh said the ATO is continuing to prioritise areas where they often see mistakes being […]
Super health check
Use this checklist to review the health of your super in 5 easy steps Getting started The best way to perform these checks is either on ATO online services through myGov or by contacting your super advisor directly You need a myGov account linked to the ATO Once you link your myGov account, you can also use […]
Last chance to claim deductions under temporary full expensing
Temporary Full Expensing: A Time-Limited Deduction for Businesses Eligibility Criteria, Opt-Out Provisions, and Impending Deadline for the Tax Benefit Deductions under ‘temporary full expensing’ are only available in the 2021, 2022 and 2023 income years, and are expected to come to an end on 30 June 2023. Under temporary full expensing, businesses with an aggregated […]
Feds crack down on tax fraud
ATO and AFP crackdown on GST-fraud promoters A raft of enforcement activity has been undertaken across the country by the ATO-led Serious Financial Crime Taskforce, including the execution of search warrants and issuing of warning letters. At 31 December 2022, the ATO took compliance action on more than 53,000 clients and stopped approximately $2.5 billion […]
ATO’s recordkeeping tips
Avoid penalties and reduce the possibility of expense claims being denied The ATO has reminded taxpayers that they should understand the record-keeping requirements for their business and keep accurate and complete records as they occur. This should help them avoid penalties that may apply and reduce the possibility of the ATO denying their expense claims. […]
Input tax credits denied due to lodging BASs late
Be aware of the expiry date when lodging BAS in order to claim any input tax credits The Administrative Appeal Tribunal (‘AAT’) has held that a taxpayer could not claim $91,239 of input tax credits (‘ITCs’) at least partly because it lodged the relevant BASs more than 4 years too late. Specifically, the GST Act […]
Banking business income to a private account
Recordkeeping and monitoring business cash flow The ATO has stated that it has “no concerns” with business owners banking their business takings or other sales in private accounts, but that this may become an issue when this income isn’t reported. Therefore, the ATO notes that a good way to avoid this problem is to establish […]
Rental properties and second-hand depreciating assets
Be aware of the tax rules surrounding ‘second-hand depreciating assets’ The ATO is reminding taxpayers that have a residential rental property, to take care when making claims for second-hand depreciating assets used in their properties. In most cases, these are items that existed in the taxpayer’s property when they purchased it, or were in their […]
Pandemic Leave Disaster Payment reinstated
Pandemic Leave Disaster payment In recognition of the risks associated with more infectious new Covid-19 variants through the winter period, the Federal Government has agreed to reinstate the ‘Pandemic Leave Disaster Payment’ to 30 September 2022, which was otherwise set to end as of 30 June 2022. Eligibility for the payment will be backdated to […]
