News

ATO set to issue excess super contribution determinations

November 12th, 2018

The ATO has started issuing excess concessional contributions (ECC) determinations for the 2017–2018 financial year. Superannuation fund members will receive these ECC determinations if they have made super contributions above the concessional cap amount for 2017–2018. TIP: “Concessional” contributions are taxed at the reduced rate of 15% in your super fund, but there’s a limit [...]

Tax on compensation received for inappropriate advice

November 12th, 2018

On the heels of the banking and financial services Royal Commission, the ATO has published information about how tax applies for people who receive compensation from a financial institution that provided inappropriate advice and/or did not provide advice it should have. This can include compensation for the loss of an investment, or a refund of [...]

Residential rental property travel expenses: ATO guidance

November 12th, 2018

Since 1 July 2017, people, self managed super funds (SMSFs), “private” trusts and partnerships have not been permitted to claim non-business travel costs connected to residential rental properties as tax deductible. These costs also cannot form part of the cost base or reduced cost base of a capital gains tax (CGT) asset. The ATO has [...]

Bringing forward small business tax cuts by five years

November 12th, 2018

The Prime Minister has announced that the Government will bring forward its planned tax cuts for small business by five years. The Labor Party has also indicated it supports bringing forward the tax cuts. This means businesses with a turnover below $50 million will pay a tax rate of 25% in 2021–2022, rather than from [...]

Black economy: electronic sales suppression tools now banned

November 12th, 2018

Activities involving electronic sales suppression tools (ESSTs) and that relate to people or businesses with Australian tax obligations are now legally banned under recent changes to the law. ESSTs come in many forms, such as: • an external device connected to a point of sale (POS) system; • additional software installed into otherwise-compliant software; or [...]

ATO expects 200,000 to miss out on refunds by failing to lodge

November 12th, 2018

The ATO expects that 200,000 people could miss out on a tax refund this year because they haven’t lodged a tax return. Assistant Commissioner Kath Anderson has said that many salary and wage earners end up with a tax refund, but some are missing out because they fail to lodge on time. Taxpayers had until [...]

Australian Small Business White Paper: tax reform a key

November 12th, 2018

After more than 18 months of extensive research and consultation, the Institute of Public Accountants (IPA) and the IPA Deakin SME Research Centre have released the second edition of the Australian Small Business White Paper. “Numerous policy recommendations have been adopted from the first edition which was launched in 2015. However, we recognise that the [...]

Transfer balance cap: ATO highlights admin issues

November 12th, 2018

On 30 August 2018, ATO Assistant Commissioner Superannuation Tara McLachlan gave a speech on “Administration issues under the transfer balance cap” at the Tax Institute Sixth National Superannuation Conference. TIP: The superannuation transfer balance cap is a limit on the total amount of super that you can transfer into retirement phase. The current cap is [...]

The ATO as SMSF regulator: observations

October 2nd, 2018

In the opening address to the Chartered Accountants Australia and New Zealand National SMSF Conference in Melbourne on 18 September 2018, James O’Halloran, ATO Deputy Commissioner, Superannuation, shared some observations and advice from the ATO’s perspective as regulator for the SMSF sector. He spoke about matters including the crucial role of fund trustees, the ATO’s [...]

Cyptocurrency and tax: updated guidelines

October 2nd, 2018

The ATO says that for taxpayers carrying on businesses that involve transacting with cryptocurrency, the trading stock rules apply, rather than the capital gains tax (CGT) rules. The ATO’s guidelines on the tax treatment of cryptocurrencies have recently been updated, following feedback from community consultation earlier this year. The ATO received about 800 pieces of [...]


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