Tax Time Toolkits

This tax time will be unlike any other, and it promises to be one of the most challenging yet. The 2019–20 financial year has seen our country, our people, our wildlife and our land affected by unprecedented events. From drought and water shortages, to severe bushfires and more recently the COVID-19 pandemic – every Australian has been affected in some way. To make things as easy as possible, the ATO…  Read more

ATO Flags Work-Related Hotspots

The ATO has now announced a number of deduction hotspots that it will pay close attention to this year, in light of COVID-19. The Tax Office has begun bracing for a substantially different tax time this year, noting that it will likely see a flow-on effect from COVID-19 restrictions on work-related expenses claims. ATO Assistant Commissioner Karen Foat, has urged taxpayers to reduce claims for work-related expenses in the last…  Read more

Paid a Tradie or Other Contractor to Help You?

If you’ve paid a tradie or other contractor for building and construction services in the last year, you might need to lodge a Taxable Payments Annual Report (TPAR) by 28 August, if: you earn 50% or more of your business income or 50% or more of your business activity is from building and construction – including carpentry, engineering, painting, plumbing and architecture; you pay contractors for building and construction services. Over…  Read more

Instant Asset Write-Off Extended

Good news! This week the government announced that the Instant Asset Write-off has been extended for six months, taking the initiative to 31 December 2020. Australian businesses with less than $500 million annual turnover will be able to take advantage of the write-off and invest in assets to support their business. This government initiative is designed to help the economy reopen and boost economic growth. The instant asset write-off applies…  Read more

2019/20 Individual Tax Return Checklist

We have provided an Individual Tax Return Checklist, to ensure that you have all the pertinent documents and receipts required to complete your Individual Tax Return. Please download it here.  Read more

ATO reminder about salary packaged super

The ATO has provided employers with a recent reminder that from 1 January 2020, salary sacrificed super contributions can’t be used to reduce super guarantee obligations, regardless of the amount your employee elects to salary sacrifice.   This means the salary sacrificed amount does not count towards your super guarantee (SG) obligations. A further change is that the super guarantee will be 9.5% of the employee’s ordinary time earnings (OTE)…  Read more

Valuing car parking fringe benefits

Where businesses provide car parking fringe benefits to their employees, the taxable value of these benefits must be calculated correctly to ensure they are meeting their fringe benefits tax (‘FBT’) obligations, regardless of the method used. The ATO has advised they may directly contact businesses who have engaged an arm’s length valuer, as required under the ‘market value method’. According to the ATO, in some instances, valuers have prepared reports using a daily rate that doesn’t reflect the…  Read more

Court confirms ATO position on foreign income tax offsets

The ATO has welcomed the decision of the High Court to basically uphold the decision of the Full Federal Court in a case which the ATO won, in relation to foreign income tax offsets (‘FITO’). An Australian tax resident had sold some US investments and paid US tax on the gains. The taxpayer was then basically taxed on half of those gains in his assessable Australian income (i.e., the gains were eligible for the CGT discount in…  Read more

Separating personal and business expenses

There are some things in life that go together well and others that definitely do not. Business and personal finances are in the category of items that should not be mixed. Although it may seem like a headache to keep them separate—who wants to manage all those bank accounts?—your life will be greatly simplified once you separate your personal and your business finances, especially your expenses. Paperwork and taxes will…  Read more

Will paying off your mortgage early hurt you financially?

There isn’t a right or wrong answer in this instance, but we discuss a couple of scenarios in this article – ones that may apply to you. Scenario 1: You have a mortgage and other loans If you currently have a mortgage, you will generally be paying a lower interest rate than any other loans or credit lines you may have. Usually smaller loans such car loans, personal loans and…  Read more

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