News

ATO scam alert: fake demands for tax payments

December 4th, 2018

Although tax time 2018 is over, the ATO has warned taxpayers and their agents to remain on high alert for tax scams. Scammers are growing increasingly sophisticated and hope to exploit vulnerable people, often using aggressive tactics to swindle people out of their money or personal information. Be wary if anyone contacts you demanding payment [...]

First Home Super Saver scheme and downsizer super contributions: ATO guidance

December 4th, 2018

In November 2018, the ATO issued a Super Guidance Note to provide people with general information about how the First Home Super Saver (FHSS) scheme works. The guidance note explains who is eligible to use the scheme, the kind of contributions that can be made and then released from super for buying a first home, [...]

CGT on grant of easement or licence

December 4th, 2018

Taxation Determination TD 2018/15, issued on 31 October 2018, considers the capital gains tax (CGT) consequences of granting an easement, profit à prendre or licence over an asset. In the ATO’s view, CGT event D1 (creating contractual or other rights) rather than CGT event A1 (disposing of an asset) happens when any of the following [...]

Government announces super refinements

December 4th, 2018

The Government has announced it will amend the super tax laws to address some minor but important issues, as part of the ongoing super reforms. The changes include: • deferring the start date for the comprehensive income product for retirement (CIPR) framework; • adjusting the definition of “life expectancy period” to account for leap years [...]

GST reporting: common errors and how to correct them

December 4th, 2018

Some businesses are making simple mistakes reporting their GST. The ATO reminds taxpayers that avoid the following common GST reporting errors: • transposition and calculation errors – these mistakes often happen when manually entering amounts, so it’s important to double-check all figures and calculations before submitting your BAS; • no tax invoice – you must [...]

Small business corporate tax rates Bill is now law

December 4th, 2018

The company tax rate for base rate entities will now reduce from 27.5% to 26% in 2020–2021, and then to 25% for 2021–2022 and later income years. This means eligible corporate taxpayers will pay 25% in 2021–2022, rather than from 2026–2027. The new law also increases the small business income tax offset rate to 13% [...]

ATO identifies 26,000 incorrect rental property travel expense claims

December 4th, 2018

The ATO has identified 26,000 taxpayers who have claimed deductions during tax time 2018 for travel to their investment residential rental properties, despite recent changes to tax laws. From 1 July 2017, investors cannot claim travel expenses relating to inspecting, maintaining or collecting rent for a residential rental property as deductions, subject to certain exceptions. [...]

Work-related tax deductions down for 2018

December 4th, 2018

The ATO has reported a decline in the overall value of work-related deductions for tax time 2018. In his opening statement to Senate Estimates on 24 October 2018, Commissioner Chris Jordan said taxpayers appear to be taking extra care when claiming work-related expenses in their 2017–2018 income tax returns. This follows recent ATO awareness and [...]

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 [...]


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