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JulInflation fell to 5.6 per cent in the 12 months to May according to the latest ABS data, down from 6.8 per cent in April and below market expectations of a 6.1 per cent increase. The rise comes ahead of an RBA decision on interest rates next week and fuels hopes of a pause in its run of increases, which in June pushed the cash rate to 4.1 per cent. The ABS said the most significant price rises involved furnishings, household equipment and services (+6.0 per cent), food and non-alcoholic bevera ABS head of prices statistics Michelle Marquardt said the 5.6 per cent annual rise was the smallest since April last year. “While prices have kept rising for most goods […]
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JunSuper proportional indexation of transfer balance caps The general transfer balance cap is being reminded by the ATO that it will be adjusted on July 1, 2023. Based on the greatest ever balance of their transfer balance account between July 1, 2017 and June 30, 2023, individuals will have a personal transfer balance cap between $1.6 and $1.9 million. When will we display the indexed amounts? Despite the fact that indexation will take place on July 1, 2023, the ATO won’t start showing members’ updated personal transfer balance caps until July 11, 2023. All SMSFs are urged by the ATO to record any activities that took place before July 1, 2023, by June 30, 2023. This is done to guarantee[…]
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JunWhen preparing clients’ 2023 tax returns, the ATO has issued significant revisions and new methods. The elimination of the self-education expense level, working from home, and the low and middle income tax offset are significant developments for individuals this year. The Small Business Technology Investment Boost, Franked Distributions Supported by Capital Raising, Small Business Skills and Training Boost, and Other Significant Enhancements for Businesses Shares purchased off-market, tax credit for digital games, 2024: Offshore Banking Unit Regime Interest on Early Payments, an increased Commonwealth penalty unit, new items in the Company tax return for 2023, and removed items from the Company tax return for 2023 are all examples of such items. Small company technology investment and small business skills and[…]
10
MayIf your business is insolvent or struggling to pay its debts, it’s important to seek specialist advice from a qualified and registered insolvency practitioner as soon as you can. Be wary of inappropriate insolvency advice that could lead to illegal phoenix activity. Insolvency advice to watch out for Registered liquidators and trustees will provide you with sound insolvency advice that you can rely on. But some insolvency or pre-insolvency advisers suggest actions designed to help directors avoid paying their creditors and create new companies to continue on without debts. This is illegal phoenix activity and can result in serious penalties. Following this advice could put you at risk of a fine, criminal conviction or even a jail term. Be wary if an[…]
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MayThe ATO has recently provided information to assist taxpayers in working out how to claim deductions under temporary full expensing when they lodge their tax return If the taxpayer’s income years end on 30 June, deductions under temporary full expensing are only available in the 2021, 2022 and 2023 income years. They can claim the temporary full expensing deduction in their tax return for the relevant income year by completing the extra labels included in the tax return. Taxpayers can choose to opt out of temporary full expensing for an income year for some or all of their assets and claim a deduction using other depreciation rules. However, they must notify the ATO in their tax return that they have[…]
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MayYou are taking big risks if you use an unregistered preparer to: Tax practitioners include tax agents and BAS agents. They must be registered with us to provide tax agent services, BAS services or in some cases, tax (financial) advice services for a fee or other reward. What are the risks? Listed below are some risks that you face if you use an unregistered preparer to provide you with a tax agent service (which includes a BAS or tax (financial) advice service): Sharing your myGov account details puts your personal and financial affairs at risk! The TPB is investigating several cases involving unregistered preparers posing as legitimate registered tax practitioners, who lodge tax returns on behalf of their clients. These unregistered[…]
10
MayASIC has acted against a further 11 self-managed superannuation fund (SMSF) auditors for breaches of their obligations. This included breaches of auditing and assurance standards, independence requirements, registration conditions, or because ASIC was satisfied the individual was not a fit and proper person to remain registered. Over the period 1 October 2022 to 31 March 2023, ASIC: Ten of these SMSF auditors were referred to ASIC by the Australian Taxation Office (ATO). One SMSF auditor did not comply with conditions imposed by ASIC on their SMSF auditor registration. This follows the cancellation of 374 SMSF auditors in January 2023 (23-012MR). ASIC Commissioner Danielle Press said, ‘SMSF auditors play an essential role in supporting confidence in the SMSF sector. To protect[…]
06
AprBefore 1 July 2022, an individual taxpayer that incurred additional deductible expenses as a result of working from home, had a choice of three methods to claim these expenses. These choices were: From 1 July 2022, as a result of the release of PCG 2023/1 by the ATO, the shortcut method and the fixed-rate method have been abolished. A replacement method that can be used instead of the actual expenses method (which has not been abolished) is the revised fixed-rate method. Under the revised fixed-rate method, a deduction can be claimed of 67 cents per hour for energy expenses (electricity and gas), internet expenses, mobile and home phone expenses, and stationery and computer consumables. Other expenses associated with working from home,[…]
03
AprA reminder to employers that their December 2022 superannuation guarantee (‘SG’) contributions were due by 28 January 2023. Do not forget the two changes to SG that commenced on 1 July 2022: lthe rate increased from 10% to 10.5%; employees no longer need to earn $450 per month to be eligible. Employers now need to make super contributions for all eligible employees, regardless of how much they were paid – their earnings amount is not relevant. However, employees who are under 18 still need to work more than 30 hours in a week to be eligible. The ATO has the SG eligibility tool to work out if an employer has to pay super for its employees. If an employer does[…]
