News

Ombudsman calls on ATO to cease small business recovery action where tax disputes are before AAT

June 6th, 2019

The Australian Small Business and Family Enterprise Ombudsman (ASBFEO) has issued a report into the ATO’s enforcement of debt recovery. In a press release, the ASBFEO called for the ATO to immediately cease debt recovery action where tax disputes were before the Administrative Appeals Tribunal (AAT). The report contains three key conclusions and seven recommendations. [...]

STP exemptions and deferrals – ATO reminders

June 5th, 2019

With reported unpreparedness for Single Touch Payroll (STP), mainly among small businesses, and with employers having less than 19 employees needing to report their employees’ tax and super information through STP from 1 July 2019, the ATO has reminded businesses about the STP exemptions and deferrals that are available. There are exemptions for reporting through [...]

Requirement registered to lodge 2019 tax and other returns

June 4th, 2019

The Notice of Requirement to Lodge a Return for Income Year Ended 30 June 2019 has been registered. This covers income tax returns and other lodgements for franking account returns, including special rules for late balancing corporate tax entities that elect to use 30 June as a basis for determining their franking deficit tax liability; [...]

How the ATO identifies wealthy individuals and their businesses

May 15th, 2019

The ATO uses sophisticated data matching and analytic models, drawing on tax returns and referrals from other government agencies or the community, to identify wealthy and high wealth individuals and link them to associated businesses. Given the importance of this group to community confidence in the tax and super systems, the ATO says it has [...]

Shortfall penalties reduced under new ATO initiative

May 14th, 2019

The ATO has heard from community and tax professionals that people should have a chance to correct their mistakes when they get their tax wrong, provided there isn’t dishonest intent behind their errors, and is taking a new approach that seems to be having positive effects. Under this new approach, if the ATO finds an [...]

Rental deductions: ATO audits to double

May 13th, 2019

The ATO has warned that it will increase its scrutiny of rental-related deductions this year. It says some people are still claiming travel to residential rental properties, but from 1 July 2017 taxpayers (aside from excluded entities) have no longer been permitted to claim tax deductions for travel expenses related to inspecting, maintaining or collecting [...]

Instant asset write-off with Budget changes now law

May 10th, 2019

Changes to the instant asset write-off rules have now become law, including measures recently announced in the government’s Federal Budget. The write-off has been extended to medium sized businesses (with aggregated annual turnover of $10 million or more, but less than $50 million), where it previously only applied to small business entities (with aggregated annual [...]

Super guarantee amnesty not yet law, but $100 million recovered

May 9th, 2019

The ATO has recovered around $100 million in unpaid superannuation from employers since the 12-month super guarantee amnesty was proposed on 24 May 2018, even though the law hasn’t yet changed to put the amnesty in place. At a Senate Economics Legislation Committee hearing in April, ATO Deputy Commissioner, Superannuation Mr James O’Halloran estimated that [...]

Guidance on when a company carries on a business

May 8th, 2019

With reduced company tax rates available for some businesses in recent years, and changes in eligibility for capital gains tax (CGT) small business concessions, it’s become increasingly important for us to understand how the law and the ATO deal with concepts like “small business entity” and “carrying on a business”. New guidance is now available [...]

Fringe benefits tax: rates, thresholds and ATO focus for 2019–2020

May 7th, 2019

The ATO has issued its annual rulings about rates and thresholds that apply for the new FBT year (1 April 2019 to 31 March 2020), including the benchmark interest rate, the cents-per-kilometre amounts for calculating the value of a fringe benefit from private use of a motor vehicle other than a car, the threshold for [...]


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