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Category - Articles

March 2019 - Practice Update

Changes to the small business instant asset write-off On 29 January 2019, the Prime Minister announced that legislation will be introduced to: extend the small business instant asset write-off by 12 months to 30 June 2020; and increase the write-off threshold from less than $20,000 to less than $25,000 (effective immediately). The current threshold of...

Single Touch Payroll Update

Understanding STP obligations Single Touch Payroll (‘STP’) is a Government initiative aimed at cutting red tape for employers and improving visibility of compliance with business obligations such as: salary and wages and similar payments; Pay As You Go (‘PAYG’) withholding; and certain superannuation related information; by requiring ‘real time’ reporting of payroll information directly to...

February 2019 - Practice Update

Division 293 assessments The ATO has been issuing ‘Additional tax on concessional contributions (Division 293) assessments’ with respect to liabilities relating to the 2018 income year. Division 293 imposes an additional 15% tax on certain concessional (i.e., taxable) superannuation contributions. It applies to individuals with income and concessional superannuation contributions exceeding the relevant annual threshold....

November 2018 - Practice Update

Fast-tracking tax cuts for small and medium businesses The Government has fast-tracked the already legislated tax cuts to small and medium businesses by bringing them forward five years. Companies with an aggregated turnover of less than $50 million will have a tax rate of 25% in the 2022 income year (instead of the 2027 income...

October 2018 - Practice Update

Increased scrutiny of home office expense claims Last year, 6.7 million taxpayers claimed a record $7.9 billion in deductions for ‘other work-related expenses’, which includes home office expenses. Reportedly, due to a high number of mistakes, errors and questionable claims for home office expenses, the ATO has recently advised that it will be increasing attention,...

September 2018 - Practice Update

SG Amnesty still pending The proposed superannuation guarantee (‘SG’) amnesty is a one-off, 12-month opportunity to self-correct past non-compliance (i.e., from 24 May 2018 to 23 May 2019). It will apply to previously undeclared SG shortfalls for any period from 1 July 1992 up to 31 March 2018. The ‘carrot’ currently on the table is...

August 2018 - Practice Update

Further company tax cuts deferred (for now . . .) Government has decided not to put the Treasury Laws Amendment (Enterprise Tax Plan No. 2) Bill 2017 to a vote in the Senate … for the present point in time (it had already passed the House of Representatives without amendment). The Bill aims to progressively...

July 2018 - Practice Update

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: Step 1:...

June 2018 - Practice Update

2018 Budget Update The Government handed down the 2018/19 Federal Budget on Tuesday 8th May 2018. Some of the important proposals include: The introduction of the ‘Low and Middle Income Tax Offset’, a temporary non-refundable tax offset of up to $530 p.a. to Australian resident low and middle income taxpayers for the 2019 to...

Get organised for EOFY

Tax time is fast approaching, but the good news is you still have time to get organised, reduce your tax burden, and make sure you’ve met your compliance obligations. Instead of just a time-consuming mountain of scary paperwork, EOFY is a great chance to set you up for next year’s success. While it might be...

May 2018 - Practice Update

GST withholding measures now law Legislation has been passed to “clamp down” on GST evasion in the property development sector. From 1 July 2018, purchasers of new residential premises and new residential subdivisions will generally be required to withhold the GST on the purchase price at settlement and pay it directly to the ATO. Property...

April 2018 - Practice Update

New superannuation rates and thresholds released The ATO has published the key superannuation rates and thresholds for the 2018/19 income year. The Non-Concessional Contributions cap will remain at $100,000 (although transitional arrangements may apply), and the Concessional Contributions cap will remain at $25,000. The CGT cap amount will be $1,480,000. The Division 293 tax threshold...

The top work-related claims the ATO is eyeing this tax time

Work-related tax deductions relating to cars, travel, clothing, internet, mobile phones, and self-education are among the top claims the ATO will be watching at tax time. The move for closer scrutiny follows an announcement which revealed 6.7 million taxpayers claimed a higher-than-expected $7.9 billion in work-related claims last year, with the ATO noting this included...

March 2018 - Practice Update

Big changes proposed to eligibility for the CGT SBCs The Treasurer has released draft legislation containing new “integrity improvements” to the CGT small business concessions (‘SBCs’) (i.e. including the 15-year exemption, the retirement exemption, the 50% active asset reduction and the small business roll-over). Due to the government’s “continued support for genuine small business taxpayers”, it...

SINGLE TOUCH PAYROLL (STP) CHANGES FROM 1st JULY 2018

ARE YOU EMPLOYING 20 OR MORE EMPLOYEES? MAJOR CHANGES TO YOUR REPORTING STARTING FROM 1 JULY 2018 Single Touch Payroll (STP) is a reporting regime whereby your payroll software reports directly to the Australian Taxation Office. Each pay period, the details of each employees gross payments, tax and superannuation will be provided electronically to the...

Affordable housing measures passed while market continues to cool

The sustained cooling of house price growth has seen first-home buyers flocking back to the market. Prices are no longer rising thanks to a number of factors including improved supply, and clampdowns on investor lending. A significant outcome of overheated property prices has been that a crucial toe-hold in the property market has been elusive...

Jan / Feb 2018 - Practice Update

Further ‘affordable housing’ measures passed Parliament has passed the legislation allowing first home buyers to save for a deposit inside superannuation through the First Home Super Saver Scheme (FHSSS), and also allowing older Australians to ‘downsize’ and then contribute the proceeds of the sale of their family home into superannuation. From 1 July 2018, a...

December 2017 - Practice Update

December 2017 – Practice Update Tax legislation passed The Government has passed changes to the tax legislation that will limit, or deny, deductions for travel expenses and depreciation claims for certain residential premises. Legislation to impose vacancy fees on foreign acquisitions of residential land has also been passed. ATO relief for SMSFs reporting ‘transfer balance...

Thinking of investing in property? Consider the pros and cons.

Property investment is often seen as less risky than other types of investment, but there’s still plenty to consider. A diversified investment portfolio is a good way to maximise returns and balance risk exposure. Once you have a property in mind, consider what income you expect to receive from it, as well as what your...

Self-Managed Super Funds: The DIY Super

SMSFs give you more control over how you manage your super, by allowing you to choose where you invest your super benefit. They can be a great vehicle to take back control of your Super, but may not be right for everyone: SMSFs are best-suited to people with extensive knowledge of financial as well as legal matters....