10
DecPS LA 2005/20 provides guidance on signature requirements for making declarations in approved virtual forms lodged electronically or by phone and the approval process for electronic or telephone signatures. This Practice Statement recently had its content checked for currency and technical accuracy, and was updated to apply current ATO style and accessibility requirements. An approved form that is lodged with or given to the ATO is required to contain a signed declaration from the entity lodging or giving the form. Where the form is lodged electronically, any required signature must be an electronic signature, defined as ‘a unique identification of the entity in electronic form that is approved by the Commissioner’. This gives the ATO a broad discretion to determine […]
10
DecThe ATO reminds employers that they must pay their super guarantee (‘SG’) contributions in full, on time, and to their eligible employees’ correct super fund. If they fail to do so, they will need to pay the super guarantee charge (‘SGC’), which will cost them more than the super they would have paid, and which is not tax deductible. The ATO is “committed to taking a firm approach on the non-payment of SG”, and it has published its ‘snapshot’ of 2023/24 SG compliance actions and results. Taxpayers can read the full results at ‘Super guarantee annual employer compliance results’ on the ATO’s website. Key results include: The ATO says employers need to “keep good records, report accurately and pay on[…]
10
DecTreasury recently released draft guidelines setting out the proposed rules which community charities must follow to receive and maintain deductible gift recipient (‘DGR’) endorsement. The draft guidelines state that a community charity must be established, maintained and wound up in accordance with each of the following principles: Community charities are also required to follow various other requirements in the draft guidelines. Among other things, a community charity’s governing rules must include objects that clearly set out the purposes of the charity, and require that, on the charity winding up or ceasing to be a community charity, all of its net assets must be provided to a DGR in accordance with the purposes of the charity. The guidelines are to take[…]
10
DecWhile the ATO knows most small businesses try to report correctly, it understands that mistakes can happen. ATO Deputy Commissioner, Will Day, advises: “Establishing good habits, and knowing what support and resources are available, will give your small business its best chance of success.” The ATO advises taxpayers that it is important to get the following ‘basics’ right: Taxpayers can refer to ‘Good business habits’ and ‘Supporting your small business’ on the ATO’s website for further assistance. Deputy Commissioner Day wrapped up his business tips by stating: “It’s important to get it right, so that you can focus on your business and don’t end up with any unwelcome surprises, like being required to pay off a debt or to prove[…]
10
DecIn a recent decision, the AAT rejected in full a taxpayer’s claims for “several classes or categories of deductions.” Facts For the relevant period of 1 July 2021 to 30 June 2022, the taxpayer was (according to his employer) a ‘technical architect’. However, the taxpayer also claimed that he worked from home 6am to 11pm seven days a week, 365 days of the year, as he was ‘always on call’. The taxpayer’s income tax return for the financial year ended 30 June 2022 claimed a range of deductions totaling approximately $40,000. There were several classes or categories of deductions claimed, comprising occupancy expenses, running expenses, plant and equipment expenses, consumable expenses, mobile phone expenses and spouse expenses. In September 2022,[…]
10
DecDraft legislation has been released to amend the Corporations Act 2001 to enhance the substantial holding and tracing notice regimes, which, amongst other things, govern the disclosure of beneficial ownership for listed entities. This is pursuant to the Government’s announcement as part of its 2022 election platform that it would implement a public registry of beneficial ownership to show who ultimately owns or controls companies and legal vehicles in Australia. Increasing the availability of companies’ beneficial ownership information is intended to discourage the use of complex structures to obscure tax liabilities and facilitate financial crimes. The draft legislation proposes to amend the Corporations Act 2001 to: Interested parties are invited to submit responses until 13 December 2024. Ref: Treasury website,[…]
10
DecThe Government recently announced changes to repayments for the Higher Education Loan Program (‘HELP’) and other student loan schemes. It states that it is making the HELP and student loan repayment system ‘even fairer’ by changing the repayment system and increasing the amount people can earn before they are required to start repaying their loan. The minimum repayment threshold will change from $54,435 in the 2024/25 to $67,000 in 2025/26. The Government will also introduce a system where HELP repayments are calculated only on the income above the new $67,000 threshold rather than repayments being based on total annual income. “This new repayment system means that people will only have to make student loan repayments when they can afford to[…]
09
DecWe received several questions from attends about whether an SMSF that is 100% in person phase is still required to lodge a Trust Income Schedule with its 2024 SMSF Annual Return. We sought clarification on this issue from the ATO. Specifically, if an SMSF only has exempt current pension income (‘ECPI’) for the 2024 income year (i.e. the fund is 100% in pension phase), does it need to lodge a Trust Income Schedule with respect to trust distributions that it received during the year from a managed investment trust? Based on the Trust Income Schedule instructions (QC 101716) and the SMSF Return instructions 2024 (QC 101714), as the fund only has ECPI, it is not required to complete Section B[…]
03
DecATO’s notice of government payments data-matching program The ATO will acquire government payments data from government entities which administer government programs for the 2024 to 2026 income years, matching data on government payments made to service providers against ATO records, including service provider identification details and payment transaction details. The ATO estimates that records relating to approximately 60,000 service providers will be obtained each financial year, including approximately 9,000 individuals, with the remainder consisting of companies, partnerships, trusts and government entities. ________________________________________________________________________________________________________________ FBT on plug-in hybrid electric vehicles From 1 April 2025, a plug-in hybrid electric vehicle (‘PHEV’) will not be considered a zero or low emissions vehicle under fringe benefits tax (‘FBT’) law and will not be eligible for[…]
01
OctAvoid a Tax Time Shock Individual taxpayers can take the following steps to ensure the correct amount of tax is being set aside throughout the year: Editor: If you would like to discuss or implement any of these steps and strategies in more detail, please feel free to contact our office. Reminder of September Quarter Superannuation Guarantee (‘SG’) Employers are reminded that employee super contributions for the 1 July 2024 to 30 September 2024 quarter must be received by the relevant super funds by 28 October 2024 to avoid being liable for the SG charge. myGovID Changing its Name to myID The digital identity app ‘myGovID’ will soon be changing its name to ‘myID’. While the name is changing, the[…]
