News

Budget changes to foreign resident CGT: draft legislation

September 13th, 2017

Draft legislation has been released to implement 2017–2018 Federal Budget measures relating to the CGT liability of foreign residents. The measures, which applied from 9 May 2017: • remove the entitlement to the CGT main residence exemption (MRE) for foreign residents that have dwellings that qualify as their main residence; and • ensure that, for [...]

Bill to increase Medicare levy

September 13th, 2017

The Medicare Levy Amendment (National Disability Insurance Scheme Funding) Bill 2017 has been introduced to implement the Government’s 2017–2018 Budget announcement to increase the Medicare levy by 0.5% to 2.5% from 1 July 2019 in order to help finance the National Disability Insurance Scheme (NDIS). Nine other Bills have been introduced to increase the following [...]

Companies should consider reporting tax liabilities: AASB

August 21st, 2017

Sometimes it’s unclear how tax law applies to a company transaction or circumstance and how the ATO will treat it. New guidance from the International Financial Reporting Standards Interpretations Committee (IFRIC) explains how companies should reflect this uncertainty in their accounting for income taxes. Although the new guidance isn’t in effect until January 2019, the [...]

ASIC takes action on super fund disclosures

August 21st, 2017

Under Australia’s superannuation law, super funds must disclose transparency information on a website and keep it up to date at all times. The Australian Securities and Investments Commission (ASIC) recently investigated and contacted 21 superannuation trustees about their failures to meet the disclosure requirements. In response, seven trustees acted to disclose the required information, five [...]

Tax assessments confirmed for undisclosed business income

August 21st, 2017

The Administrative Appeals Tribunal has ruled that the ATO was correct to issue tax assessments of $3.7 million and penalties of $3.3 million to a business taxpayer that had underreported its income and failed to lodge several years worth of tax returns. The taxpayer, PSI Pty Ltd, argued that it owned and rented out several [...]

Federal Court rules on PAYG avoidance

August 21st, 2017

The Federal Court and Administrative Appeals Tribunal have agreed with the ATO that a business, Sunraysia Harvesting Contractors Pty Ltd, was making use of a “sham” arrangement with three other companies to avoid pay as you go (PAYG) and payroll accounting responsibilities. Sunraysia’s operators argued, unsuccessfully, that the three other companies employed Sunraysia’s workers, and [...]

Tax debts: setting up a payment plan

August 21st, 2017

Does your small business have a tax debt? The ATO encourages you to get in touch to set up a payment plan. If the debt is $100,000 or less, you can use the ATO’s self-help service to easily arrange paying by instalments. If a business pays its tax debt late or by instalments, interest accrues [...]

Small businesses

August 21st, 2017

Asset write-offs Small businesses with a turnover of less than $10 million can get an immediate deduction for assets that cost up to $20,000 each in their 2016–2017 return. The $20,000 threshold now applies until 30 June 2018. Assets that cost $20,000 or more can’t be immediately deducted. They need to be deducted over time [...]

Working holidaymakers and tax returns for 2017

August 21st, 2017

If your business employs working holidaymakers – or you’ve been one yourself this year! – you need to know about the “backpacker tax” changes that came into effect from 1 January 2017. Employers needs to issue two payment summaries to each working holidaymaker for the 2016–2017 financial year: • one for income earned up until [...]

Employee travel expense deductions

August 21st, 2017

The ATO has also released new guidance on work-related travel deductions. To claim for transport or other employee travel expenses (like accommodation and meals) in your tax return, you must have incurred the expenses as part of gaining or producing your taxable income. Private and domestic travel expenses, including the costs of your ordinary home-to-work [...]