ATO warning on “standard” MV expenses

ATO warning sounded  The ATO’s Assistant Commissioner Kath Anderson has sounded a warning for taxpayers who are making what they may believe are “standard” deductions in regard to vehicle expenses, especially when it comes to the cents per kilometre method. While it is true that written evidence for deductions based on up to 5,000 kilometres is generally not […]

Couriers and Cleaners to Report Contractor Payments

Couriers and cleaners to report contractor payments The government will extend the taxable payments reporting system to contractors in the courier and cleaning industries, with effect from 1 July 2018. These changes were recommended in the Black Economy Taskforce that was released on Budget night. The expansion of this reporting system follows its successful implementation […]

Travel deductions for rental properties removed

Travel deductions for rental properties removed After 1 July 2017, the deductions for travel to residential rental property will be disallowed. In particular, the travel cost of attending inspections, maintain the property or collecting rent will be excluded. It is important to note here that the expenses will relate to travel only. A landlord can […]

Super guarantee not payable for salesperson

Super guarantee not payable for salesperson Section 12 of the Superannuation Guarantee Assessment Act 1992 (SGAA) deals with the question surrounding whether a worker is an employee or a contractor. Broadly speaking, the superannuation guarantee scheme will apply to an employee of an organisation, whereas an independent contractor will not. In relation to this section […]

Changes to intangibles depreciation

Changes to intangibles depreciation Recently, the federal government introduced new legislation where a taxpayer such as yourself can adjust the depreciation for your intangible or software assets. Currently, the intangibles must be written off of a certain number of years. With all intangibles or software developed or purchased from 1 July 2016, you have the […]

Tax debts to appear on credit rating

Tax debts to appear on credit rating: In the Mid-year Economic Financial Outlook for 2016, the government announced intentions to increase the disclosure capabilities for the Australian Taxation Office. The increase in information exchange will be from the ATO to credit reporting bureaus of the tax debts of businesses who are not effectively engaged in […]

Large rental repairs determined not deductible

Large rental repairs determined not deductible When an investor commences earning assessable income for a rental property, there will inevitably be repair costs associated with the investment. The term “repairs” is not defined in ITAA 1997 (nor in ITAA 1936) and therefore has its ordinary meaning. This approach is also taken by the Commissioner of […]

Non-commercial losses

 Non-commercial losses at the Commissioner’s discretion Division 35 of ITAA 1997 deals with the non-commercial loss provisions for an individual or partnership in a tax year. Under the Act, an individual can offset their business or partnership loss if it is deemed to be a commercial loss.    For a loss to be a commercial […]

Increased scrutiny for cash businesses

Increased scrutiny for cash businesses The ATO has recently stated that they will be undertaking increased scrutiny for businesses that are “cash only”. This scrutiny may include unannounced visits from field officers. The best course of action to stay clear of the ATO is to stay within the acceptable small business benchmarks. If a business […]

Changes to the PPSR Rules

Changes to the PPSR for your business Recently the federal government introduced legislation which will change the criteria for registering leases on the Personal Property Securities Register. The change will mean that no registration is required unless the lease is for over two years. Also, for leases that are on an indefinite basis, two years […]