Expansion of tax avoidance taskforce?

(06/12/2019) The Tax Avoidance Taskforce has recently been expanded by the ATO to private groups and high wealth individuals. Originally conceived in 2016 to ensure that multinational enterprises, large public and private business pay the right amount of tax, this has now been extended to cover more taxpayers. The taskforce’s main role is to investigate […]

ATO debts to DO affect your credit…!

(22/11/2019) The ATO now has another “stick” in its arsenal to get businesses to engage with it and manage outstanding tax debts. Laws have recently been passed that allow the Tax Office to disclose tax debt information of businesses to registered credit reporting bureaus (CRBs). The aim of the laws, according to the government, is […]

Less tax for some working holiday makers?

(22/11/2019) In a decision that was hailed by various media outlets as monumental, the Federal Court’s decision that a backpacker would not have to pay extra “backpacker tax”, was touted to have wide ranging application to all holiday makers. However, upon further analysis, the impact of the decision is very much narrower than first thought. […]

$10,000 cash payment limit: the facts

  (29/11/2019) To combat the use of cash in black economy activities, the government has introduced a law which will implement an economy-wide cash payment limit of $10,000. If enacted, the law will make it a criminal offence for certain entities to make or accept cash payments of $10,000 or more. Understandably this limit has […]

Trusts avoiding CGT… Alert!!!

(15/11/2019) The ATO recently issued an alert on its concerns over trusts avoiding CGT by exploiting restructure rollovers. Specifically, it is actively reviewing arrangements that supposedly allow a unit trust to dispose a CGT asset to an arm’s length purchaser with no CGT consequences. As a result, both taxpayers and advisors who enter into these […]

Debt forgiveness due to love…

(08/11/2019) Private companies that pay amounts of money, make loans, or forgives debts of shareholders or associates of shareholders, may be subject to Div 7A rules which are designed to ensure that income is not inappropriately sheltered at the corporate tax rate. Generally, these rules deem certain moneys and/or benefits (eg loans and forgiven debts) […]

Vacant land: major building defects…

(15/11/2019) As a testament to the far-reaching consequences of recent residential building defects crisis, the government has recently decided to change the legislation on vacant land deductions to exclude structures affected by natural disasters or other exceptional circumstances such as substantial building defects. Previously, the government had sought to crack down on “land banking” by […]

Crowdfunding: is it income?

(01/11/2019) You may have heard the ridiculous story of a man who wanted to raise US$10 for a potato salad and ended up with US$55,000 from complete strangers. Or perhaps you’ve heard stories of shameless couples who wanted to people to fund their lavish weddings or honeymoons? Crowdfunding has fast become the go to place […]

Super guarantee opt-out…?

(08/11/2019) Under the superannuation guarantee framework, employers are required to contribute a minimum percentage (currently 9.5%) of their employee’s ordinary time earnings into superannuation. Employers that fail to do so will be liable to a penalty called the superannuation guarantee charge, payable to the ATO. If you’re a high-income earner with multiple employers, this requirement […]

Non-commercial losses: does it apply to you?

(01/11/2019) Do you run a side business in addition to your main employment? This could be in primary production (ie a farm or winery), retail or any other profession, trade, vocation or calling, provided it is not in a role of an employee. If you do, you may be subject to non-commercial loss rules, which […]