03
MayNFPs need to get ready for new return From 1 July 2024, non-charitable not-for-profits (‘NFPs’) with an active Australian Business Number (‘ABN’) (sporting, community and cultural clubs, among other organizations) will be required to lodge a new annual NFP self-review return with the ATO to confirm their income tax exemption status. Non-charitable NFPs that have an active ABN can get ready now by: NFPs can use Online services for business lodgment: When it comes time to lodge, NFPs can use Online services for business which lets organizations manage their reporting at a time that is convenient for them. If an NFP has engaged a registered tax agent, their agent can also lodge on their behalf through Online services for agents. […]
03
MayGovernment warns of ‘malicious’ MyGov scammers The Government says the ATO or MyGov will never send an email or text message with a link to sign in to MyGov. The ATO has received a large number of reports of scammers using fake MyGov sites to steal MyGov sign-in details, which can be used to commit tax and refund fraud in other people’s names. These criminals will often use text message or email to lure people into clicking a link using phrases such as ‘You are due to receive an ATO Direct refund’ or ‘You have a new message in your MyGov inbox – click here to view’. The Government has urged Australians to be vigilant regarding scammers who target ATO[…]
18
MarFind out how your small business compares to others in your industry. We’ve updated our small business benchmarks for 2021–22. The benchmarks help you compare your business turnover and expenses to other small businesses in the same industry. For example, Deb runs a pizza shop as a sole trader. She’d like to track her business against other pizza shop businesses, and see how she can improve. Deb downloads the ATO app and opens the Business performance check tool. She uses this tool to work out the cost of sales to turnover benchmark for her pizza shop. It’s within the higher end of the range and above the average for pizza shop businesses. Deb works out her main supply costs. She then negotiates a better[…]
12
MarLoans to members continue to be the highest reported contravention of the superannuation laws that the ATO sees in auditor contravention reports. SMSF trustees should remember that they cannot loan money or provide other forms of financial assistance to a member or relative, and if they do, they can incur a penalty of up to $18,780. They may also be disqualified as a trustee. SMSF trustees also cannot loan money to a related party, such as a business, where the value of the loan exceeds 5% of the value of the fund’s total assets, as this is a prohibited ‘in-house asset’ investment.
14
FebTaxpayers should remember that they can only claim deductions for holiday home expenses to the extent they are incurred for the purpose of gaining or producing rental income. They need to consider the following in determining whether the deductions they wish to claim are valid rental deductions: How many days during the income year did they use or block out the property for their own use? Taxpayers cannot claim deductions for the periods the property was used or blocked out by them. How and where did they advertise the property for rent, and is the rent in line with market values? If they only used obscure means of advertising, or put unreasonable restrictions or conditions in the advertisement, they may[…]
31
JanChanges to Individual income tax rates and thresholds from 1 July 2024. On 25 January 2024, the government announced proposed changes to Individual income tax rates and thresholds from 1 July 2024. These changes are not yet law. From 1 July 2024, the proposed tax cuts will:
11
Jan[4042] Ordinary meaning of the term ’employee’ [updated] We are reviewing several products that currently provide guidance on the meaning of the term ‘employee’ to reflect the direction provided in the High Court decision in Construction, Forestry, Maritime, Mining and Energy Union v Personnel Contracting Pty Ltd [2022] HCA 1:
20
DecWhen a gift or donation is deductible You can only claim a tax deduction for a gift or donation to an organisation that has the status of a deductible gift recipient (DGR). To claim a deduction, you must be the person that gives the gift or donation and it must meet the following 4 conditions: DGRs sometimes authorise a business to collect donations on their behalf. For example, a supermarket may be authorised to accept a donation at the register that they then send onto the DGR. You can claim a deduction for a gift or donation you make in this way, if: If you receive a material benefit in return for your gift or donation to a DGR – for example, you[…]
01
Decaccountant melbourne A joint investigation between the Australian Border Force (‘ABF’) and the ATO spanning almost two and a half years has led to the disruption of serious criminal behaviour by four Chinese nationals within the NSW and ACT construction industries.A 55-year-old Chinese national this week received a criminal conviction and fine for her involvement in money laundering, tax evasion and foreign worker exploitation within the construction industry – one of four people to be successfully prosecuted under ‘Operation Underpitch’. Operation Underpitch is an ABF-led investigation by the Serious Financial Crime Taskforce (‘SFCT’), which comprises of multiple agencies including (among others) the ABF, the ATO and ASIC.The ABF has successfully disrupted organisers of the money laundering cohort through the execution[…]
23
AugNow is the time for taxpayers to check if their business needs to lodge a Taxable payments annual report (“TPAR”) for payments made to contractors, the ATO reminds. This applies to contractors providing the following services: (a) building and construction; (b) cleaning; (c) courier and road freight; (d) information technology; and (e) security, investigation or surveillance. TPARs are due on 28 August each year and penalties may apply if they are not lodged on time. Taxpayers can help prepare for their TPAR by keeping records of all contractor payments. Taxpayers that do not need to lodge a TPAR this year can submit a TPAR non-lodgment advice form to let the ATO know and avoid unnecessary follow-up. Taxpayers can refer to[…]
