The Commonwealth penalty unit amount will increase to $275 from 1 January 2023 for infringements on or after that date. Failure to meet a tax obligation, like not lodging on time, may result in a penalty being applied. We understand there may be occasions when businesses experience financial difficulties and can’t pay on time. Even if you can’t…
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Read our questions and answers about director ID to find out, what to do if you’ve missed the deadline, more about who needs one, and how you can get it. I’ve missed the 30 November deadline, what now? If you missed the deadline, you can still apply for your director ID. We’re taking a reasonable approach…
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Latest figures suggest almost one-third of company directors will fail to apply by the November 30 cutoff. Almost 800,000 directors will miss the November 30 deadline to apply for an ID number with just 1.5 million out of the 2.5 million eligible in the system, according to figures supplied by the ATO this week. The…
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If you hire staff on a short-term or occasional basis, you need to be aware of recent changes to super guarantee (SG). The changes mean more of your employees may be eligible for super. The changes started on 1 July 2022. You need to pay super for employees at a rate of 10.5%, regardless of how…
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Find out about managing your tax when you buy, sell or invest in crypto assets. Tax responsibilities Crypto assets (crypto) are a digital representation of value that you can transfer, store or trade electronically. This also includes non-fungible tokens (NFTs). When you buy, sell, or dispose of crypto assets in any other way, you have tax…
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If you claim fuel tax credits, multiple rates may apply to your business activity statement (BAS) that is due in October, depending on when you acquired the fuel. Changes to fuel tax credits occurred on 30 March, 1 July (biodiesel only),1 August, and 29 September 2022. Fuel tax credit rates change regularly. The easiest way to ensure you are using…
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Pay as you go (PAYG) instalments are regular prepayments of tax on your business and investment income. When you pay regular instalments throughout the year, you should not have a large tax bill when you lodge your tax return. If you think the amount you pay now will be more or less than your expected tax…
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Throughout October the Australian Cyber Security Centre (ACSC) is sharing guides and resources that will help you protect all your information from cyber criminals. Update your devices and applications Cyber criminals hack devices by using known weaknesses in systems or apps. Check your devices for updates, and turn on automatic updates so that future updates are made…
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Directors need to apply for their director identification number (director ID) by 30 November 2022. If you have a corporate trustee for your self-managed super fund (SMSF), then you’re a company director, and need a director ID. Not sure if you need to apply? You can check if you need a director ID at who needs to apply.…
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The quarterly transfer balance account report (TBAR) for self-managed super funds (SMSFs) is due on 28 October 2022. You’re required to lodge your TBAR by this date if: a transfer balance account (TBA) event occurred in your SMSF between 1 July and 30 September 2022, and any member of your SMSF has a total super balance greater than…
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If you’re a sole trader or in a partnership, you may be able to claim the business-use portion of running expenses (the costs incurred using your home’s facilities) and occupancy expenses (what you pay to own or rent your home). For example, Georgia is a sole trader and runs a hairdressing business from her granny…
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Here are 4 things to keep in mind when claiming motor vehicle expenses – such as fuel, oil, servicing and registration – for your business. If you operate your business as a sole trader or partnership (where at least one partner is an individual), the method you must use to calculate your deduction depends on…
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Do you keep track of any business income in your private accounts so that you can report it correctly in your business tax return? We have no concerns with business owners banking their business takings or other sales in private accounts. However, it becomes an issue when this income isn’t reported. A good way to…
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Off-the-books transactions and side hustles have a habit of showing up the ATO’s tracing technology, says Assistant Commissioner. Make sure your business includes all income and avoid the temptation of undeclared cash transactions, the ATO is warning SMEs. Speaking on this week’s Accountants Daily podcast, Assistant Commissioner Andrew Watson said cash was making a comeback…
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With all the changes due to COVID-19, you may have contracted out more services in the past year. This could mean you need to lodge a Taxable payments annual report (TPAR) for the first time. TPARs are due on 28 August each year. You may need to lodge a TPAR if your business pays contractors or subcontractors…
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What is a payment plan? A payment plan is an agreement with the Australian Taxation Office (ATO) to pay your tax liability in instalments over a period of time. Not only is it a practical way to meet your payment obligations, but it allows you to break down your payment into smaller amounts that are…
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The ATO’s ramp-up of debt collection activity on small businesses shows up in the figures for July. Business insolvencies are back to pre-pandemic levels with the ATO firing out 120 director penalty notices a day as it ramps up debt collection to full speed. July recorded 674 businesses being wound up or entering administration, line-ball…
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Small businesses told under-reporting will be exposed by powerful data matching. The ATO is warning businesses that they have until 28 August to complete a taxable payment annual report (TPAR) for last year as it cracks down on the shadow economy. Around $350 billion in payments made to 950,000 contractors were reported last year and…
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As of 1 July 2022, the $450-per-month super guarantee (SG) eligibility threshold was removed. This means that if an employee meets the other SG eligibility requirements, you must pay them SG, regardless of how much they earn. However, employees under 18 must still work more than 30 hours in a week to be eligible. It’s important…
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We recognise there can be times when super is not front of mind for employers. Super guarantee (SG) obligations were due on 28 July for the last quarter. If you missed or didn’t pay the full amount of your employees’ SG, you’ll need to: lodge a super guarantee charge statement to us by 29 August to disclose any missed or…
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How small businesses can get started with eInvoicing to exchange invoices with trading partners through software. How to start eInvoicing eInvoicing will help your small business save time and simplify invoice management. It’s a standardised and easy way to send and receive invoices between the buyer’s and supplier’s software through a secure network. You and…
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We’re concerned about a high volume of SMS scams pretending to be from the ATO. These scams tell you that you’re owed an income tax repayment and ask you to click a hyperlink and complete a form. Clicking the link takes you to a fake ATO webpage that asks for your personal identifying information, including…
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You may receive your business income in the form of: cash and digital payments, such as EFTPOS, online, credit or debit card transactions, and through platforms such as PayPal, WeChat or Alipay vouchers or coupons, such as state government stimulus vouchers. When calculating your business’s assessable income, it’s important that you include all income from…
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A comprehensive toolkit gives a run-down on expenses and deductions. The comprehensive guide also highlights three areas of concern: deductions, omissions of business income and record-keeping. On deductions, the ATO reminded small-business owners to only claim what they are entitled to and outlined three rules for valid business deductions: The expense must have been for…
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But common mistakes will lead to longer processing times, it says. The ATO has pledged to process most electronically lodged tax returns within 12 business days, but said delays are being caused by common mistakes. Tax agents and their clients needed to ensure information is correct, it said, because every year the ATO received inaccurate…
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The ATO is writing to thousands of businesses with outstanding tax debts to warn them that they will be reporting the debts to credit reporting bureaus unless action is taken. This move could obviously have a very detrimental effect on the businesses concerned, not only in terms of tainting their credit history and/or credit score,…
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The ATO is warning taxpayers to be vigilant on a range of claims that will come in for greater attention during tax time this year, from work-related expenses to cryptocurrency gains. Assistant commissioner Tim Loh said the ATO was targeting problem areas where it saw people making mistakes. “It’s important you rethink your claims and…
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Office steps up debt collection with scores of director penalty notices and hundreds of credit referrals. The ATO is sending out 30-40 director penalty notices every day and has begun referring taxpayers to credit agencies as it steps up debt collection post-COVID. The DPNs follow 52,319 warning letters dispatched last month to directors of companies with…
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Businesses that have trouble paying employee super will need to lodge before 30 May. Employers that will struggle to pay an employee’s minimum superannuation guarantee (SG) amount on time and to the right fund, must remember to pay the superannuation guarantee charge (SGC) this tax time, says the ATO. “We understand that paying your employees’…
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Widely used trust practices had been known about for years, says IPA. Advisers have relied for years on common practices “considered legitimate” for trust taxation and the ATO should have acted earlier if they were unacceptable, the IPA says in its 100A submission. As a result, IPA members were “blindsided” by the 100A draft ruling…
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Expect a stronger compliance regime after the office returns to business as usual. The ATO is focusing on a range of claims that have come into greater attention this tax year, from changing work-related expenses to the sharing economy and digital currencies, said H&R Block. Speaking to Accountants Daily, H&R Block director of tax communications…
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The status of benefits paid to a member after death remains problematic, hears SMSF conference. An ATO decision over whether benefits paid after the death of an SMSF member are classified as member benefits or death benefits will come to a head in legal action, warns the SMSF Association. The deputy chief executive of the SMSFA, Peter…
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Expenses incurred from the test before the individual engages in work will most likely be covered, says CPA Australia. CPA Australia’s senior manager tax policy, Elinor Kasapidis, said the ATO is likely to take a “common-sense approach” to tax deductions on COVID-19 workplace tests. This would allow employees to claim tax deductions for COVID-19 tests…
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Businesses seeking to adopt e-invoicing will need to use providers accredited by the ATO. The ATO has released the latest register of e-invoicing service providers accredited by the Australian Peppol Authority. “The service providers included on this register have completed the Australian Peppol Authority accreditation process and are trusted to operate in the network,” the…
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The ATO has got its sums wrong with its increase in vehicle deductions by just 3¢ per kilometre. The rise in the work-related car expense deduction to 75¢ a kilometre from July fails to reflect the reality, said accounting bodies, and will leave millions of taxpayers short-changed. The ATO announced the rise, up from 72¢, last…
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Cryptocurrency is catching on fast in Australia and accountants need to be alert to the tax implications, says the ATO. Trades in cryptocurrency leapt 64 per cent in 2021 and the ATO is using data matching to make sure nothing slips through the net, acting assistant commissioner Sylvia Gallagher said last week. With more than…
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During the pandemic the ATO pressed pause on its usual regime, but it’s slowly returning to business as usual. The ATO will focus on chasing debts and artful tax dodgers now that Australia is returning to normal post-COVID, acting assistant commissioner Sylvia Gallagher said. Speaking at the Accountants Daily Strategy Day in Sydney last week…
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The recent ATO ruling on trust distributions is an “unfair” change to the game and accountants need to be aware that clients will be under increased scrutiny, says ChangeGPS founder Timothy Munro. Speaking at a recent ChangeGPS webinar, Timothy Munro said accountants were “livid” about the rulings that would force them to completely rethink their strategies heading…
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The ATO has urged businesses to consider the use of e-invoicing as it becomes the new and improved way to send and receive invoices for organisations. In a recent update, the ATO said that the adoption of e-invoicing can help businesses simplify and automate the exchange and processing of invoices. “Government agencies, business, and software…
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In February last year, the ATO launched a new compliance campaign targeted at late lodgements in response to concerns that a lapse in lodgement often indicates broader regulatory issues. ATO assistant commissioner, SMSF segment Justin Micale noted at the time that despite the due date for lodgement of the 2019 SMSF annual return being deferred until 30…
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The ATO has issued a reminder to those who have clients currently not up to date with their lodgment and payment obligations. The Tax Office said the new year is a good opportunity to check in with clients, noting that “if you find some are not up to date with their lodgment and payment obligations,…
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The ATO has released new information for individuals who need to access their superannuation early on compassionate grounds during the Christmas shutdown period. The ATO offices will close from midday Friday, 24 December 2021, reopening on Tuesday, 4 January 2022. The ATO said that for those who need a compassionate release of super determination before…
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According to the Australian Taxation Office, more than 600,000 taxpayers have invested in crypto assets in recent years, and many have failed to declare their capital gains. The technology that supports cryptocurrencies is relatively new, but the tax laws that apply are well established under capital gains tax provisions for cryptocurrency investors. Australia is supporting…
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The ATO has reminded tax practitioners to ensure their clients’ Australian business numbers (ABNs) are sound with a new review set to identify those that warrant cancellation. The Tax Office’s review will seek to identify potentially inactive ABNs for cancellation. “Your client’s ABN may be selected if they have not reported business activity in their tax…
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The ATO’s crackdown on work-related expenses appears to have paid off, with Australians claiming nearly $1 billion less in 2018–19. The new figures come from the ATO’s latest taxation statistics, which examine the 14.67 million individual tax returns for the 2018–19 financial year. These statistics are only published some time after the fact, as the…
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ATO officers will now be expected to explain to taxpayers why their tax refunds are being retained, after laws were passed to extend the commissioner’s discretion to retain refunds where tax obligations have not been fulfilled. The passage of Treasury Laws Amendment (Combating Illegal Phoenixing) Bill 2019 early last year now allows the Tax Commissioner to retain a…
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