Tax compliance and developments

June 24th, 2019

Single touch payroll From 1 July 2018, employers with 20 or more employees will have to run their payroll and pay their employees through accounting and payroll software that is Single touch payroll (STP) ready. This is a major reporting change, as employers will report payments such as salaries and wages and allowances, PAYG withholding [...]

Issues for businesses

June 24th, 2019

Lower company tax rate From 1 July 2016, the income tax rate applicable to qualifying companies has reduced to 27.5%. For the year ending 30 June 2019, this lower tax rate now applies for companies with aggregated turnover of up to $50 million, as long as they satisfy the “passive income test”. Small business restructure [...]

Issues for individuals

June 24th, 2019

Deduct work-related expenses People over claiming deductions for work-related expenses like vehicles, travel, internet and mobile phones and self-education are on the ATO’s hit list again this year. There are three main rules when it comes to work-related claims: • You can only claim a deduction for money you have actually spent (and that your [...]

Tax relief for individuals and small businesses

June 21st, 2019

Instant asset write-off The instant asset write-off threshold for small businesses has been increased to $30,000 and extended to 30 June 2020. And from 2 April 2019, the instant asset write-off has also been expanded to include businesses with a turnover from $10 million to less than $50 million. If you purchase an asset (new [...]

Bringing forward tax-deductible expenses

June 21st, 2019

To qualify for deductions in the 2019 income tax year, you may be able to bring forward upcoming expenses so that you incur them before 30 June 2019. Small businesses and individual non-business taxpayers may prepay some expenses (such as insurances and professional subscriptions) up to 12 months ahead. This should only be done subject [...]

Deferring derivation of income

June 21st, 2019

If your business recognises income on an accruals basis (when an invoice is raised) and your cash flow allows, you may consider delaying raising some invoices until after 30 June, meaning the assessable income will be derived after the 2019 income tax year. For business income derived on a cash basis (interest, royalties, rent and [...]

ATO reminds SMEs about paying super for backpackers

June 14th, 2019

The ATO has reminded businesses that employ backpackers that they may need to pay superannuation guarantee (SG) for them. Backpackers on working holidays are considered temporary residents, and are entitled to superannuation guarantee if they are paid $450 or more before tax in a calendar month. Once they leave Australia, they can claim the super [...]

Protecting Your Super – how new law may affect SMSFs

June 13th, 2019

The Treasury Laws Amendment (Protecting Your Superannuation Package) Act 2019 introduces a number of reforms to protect individual’s super savings from undue erosion by fees and unnecessary insurance. The ATO says it will now be able to proactively consolidate eligible unclaimed super money into eligible active super accounts, including SMSFs and small APRA funds, if [...]

Super death benefit for de facto partner upheld

June 11th, 2019

The Federal Court has dismissed an appeal against a decision to pay a superannuation death benefit pension to a fire fighter’s de facto partner instead of a lump sum to his estate in Howard v Batistich [2019] FCA 525. The trustee of the Crown Employees Superannuation Fund determined that the respondent, Ms Batistich, was a [...]

Cryptocurrency: record keeping requirements and data matching program

June 7th, 2019

The Commissioner has published a gazette notice setting out the record keeping requirements for cryptocurrency owners and traders. The ATO advises that it is undertaking a data matching program for 2014-15 to 2019-20 for such entities. The data obtained from cryptocurrency designated service providers (DSPs) is being (and will continue to be) used to identify [...]

  Liability limited by a scheme approved under Professional Standards Legislation.