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 […]
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 […]
Tax cuts pass Parliament
The Government announced various tax measures in the 2020 Budget It was able to secure passage of legislation containing some of the important measures very shortly afterwards, as summarised below. Tax relief for individuals The Government brought forward ‘Stage two’ of their Personal Income Tax Plan by two years, so that, from 1 July 2020: […]
Tax treatment of JobKeeper Payments
Broadly, JobKeeper Payments received by an employer are assessable income to the employer Likewise, the payments an employer subsequently makes to an employee that are funded (in whole or in part by the JobKeeper Payment) are generally allowable deductions to the employer. The ATO has recently issued some guidance for employers in receipt of JobKeeper […]
2020/21 Federal Budget Summary
Omnis Group Federal Budget Summary 2020/21 Key points Changes to personal income tax rates Expanding access to Small Business Tax Concessions JobMaker Hiring Credit Uncapped immediate write-off for depreciable assets Temporary loss carry back for eligible companies Reducing the compliance burden of FBT recordkeeping 1. Personal income tax changes 1.1 Changes to personal income tax […]
80c per hour ‘shortcut’ method for home office expenses extended
Work-related expenses Back in April 2020 the ATO announced that a ‘shortcut’ method was to be made available to use from 1 March 2020 until 30 June 2020 for individuals claiming home office expenses due to COVID-19. The ATO recently announced an extension of this shortcut method to also include 1 July 2020 to 30 […]
Property inspections – are physical inspections necessary?
COVID-19 and tax depreciation reports Where a physical inspection of premises is not performed, this increases the risk of deductions being missed or errors being made. Property investors and businesses will often engage a specialist quantity surveyor to prepare a tax report on capital works and depreciation deductions available to them under the tax law […]
OMNIBUSiness Tax Planning Edition
May’s Federal Budget has been postponed but it’s still tax time. We hope that you’re well and starting to develop strategies for your business to emerge from the COVID-19 coronavirus lockdowns reinvigorated! Many of our clients have availed themselves of the opportunity of asking us to perform a wider range of duties over recent months […]
New vacant land tax measures
Vacant land measure limit deductibility A new ‘vacant land’ measure limits the deductibility of costs incurred on or after 1 July 2019 (i.e. from the 2020 income year) that relate to holding vacant land, even if the land in question was first held before that date. Importantly, however, the new provisions include (amongst other exceptions) […]
Deductibility of work-related expenses
Employer’s requirements and the deductibility of WREs Some employees may wonder whether a work-related expense (WRE) becomes deductible merely because their employer specifically requires the employee to incur the expense. Importantly, the ATO’s recent draft ruling on the deductibility of work-related expenses reiterates that an employer’s requirements do not determine the question of deductibility. Specifically, […]
