Personal services income rules: unrelated clients test

September 16th, 2019

The Federal Court has set aside an Administrative Appeal Tribunal decision that income a business analyst derived through a company was subject to the personal services income (PSI) rules. According to the Court, simply because an individual or personal services entity is able to provide services through an intermediary, such as a recruitment or similar [...]

Compassionate release of super only available in limited cases

September 13th, 2019

The ATO has recently seen a significant increase in queries about compassionate release of super (CRS). In most cases, the people concerned were ineligible because they were looking to use their super to pay for general expenses. CRS is an option only for very specific unpaid expenses such as medical treatment and transport costs, palliative [...]

ATO superannuation focus areas

September 12th, 2019

Lost super As at July 2019, the ATO held 5.39 million super accounts worth $3.98 billion. It will aim to reunite $473 million with 485,000 fund members using the new Protecting Your Super measures. TIP: You can find out about your lost or unclaimed super through ATO Online via myGov. Pension cap indexation The pension [...]

Cross-border recovery of tax debts

September 11th, 2019

The ATO has also reissued Practice Statement Law Administration PS LA 2011/13 Cross border recovery of taxation debts. This statement outlines options available for the ATO to recover a tax debt where the debtor is outside Australia, and sets out how the ATO deals with requests from other countries for assistance in recovering tax debts [...]

Disclosing business tax debt information: ATO consultation

September 10th, 2019

In its Mid-Year Economic and Fiscal Outlook in 2016–2017, the government announced it would change the law to let the ATO report business tax debt information to credit reporting bureaus (CRBs) where a business consistently avoids engaging with the ATO to manage a tax debt. TIP: The ATO can’t currently pass on this sort of [...]

ATO contacting small employers about Single Touch Payroll

September 9th, 2019

From 1 July 2018, employers with more than 20 employees have been required to provide real-time reports to the ATO of salary and wage payments, super guarantee contributions, ordinary time earnings of employees and PAYG withholding amounts. From 1 July 2019, this Single Touch Payroll (STP) reporting system has extended to all employers. The ATO [...]

Unusual claims disallowed

September 6th, 2019

The ATO has published information about some of the most unusual claims it has disallowed. Around 700,000 Australians have claimed almost $2 billion of “other” expenses, including non-allowable items such as child care and even Lego sets. Assistant Commissioner Karen Foat says a systematic review of claims found and disallowed some very unusual expenses. “A [...]

ATO watching for undisclosed foreign income

September 5th, 2019

The ATO has reminded Australians who receive any foreign income from investments, family members or working overseas to make sure they have reported it this tax time. New international data-sharing agreements allow the ATO to track money across borders and identify people who aren’t meeting their obligations. Under the new Common Reporting Standard (CRS), the [...]

ATO has refunded $10 billion so far

September 4th, 2019

The ATO says that $10 billion has been refunded to Australian taxpayers so far this tax time, an increase of over $2 billion from the same time last year, with most returns processed in under two weeks. The ATO aims to process returns as soon as possible, and has announced that over four million refunds [...]

Warning to watch out for myGov and ATO tax scams

September 3rd, 2019

The government’s Stay Smart Online website warns there has been a surge in scammers impersonating myGov and the ATO to trick people into giving them money or personal details. These scams can take the form of emails, text messages and fake myGov login pages. In June 2019, the ATO received 6,444 reports of tax-time scams [...]

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