Latest News
ATO’s focus on small business
The ATO is ‘detecting and addressing’ recurring errors in specific industries when businesses have a turnover between $1 million and $10 million. These industries include property and construction (including builders, contractors and tradies), and professional, scientific and technical services (including engineering, design, IT and consulting professionals). In these industries, the ATO continues to see recurring […]
ATO reminder: Business expenses that can (and cannot) be claimed
Taxpayers can claim a tax deduction for most business expenses, provided they meet the ATO’s three ‘golden rules’: The expense must be for business use, not for private use. If the expense is for a mix of business and private use, they can only claim the portion that is used for business. They must have […]
Dual cab utes and FBT
The ATO wishes to dispel the ‘common myth’ that dual cab utes are automatically exempt from fringe benefits tax (‘FBT’). If an employer provides dual cab utes to staff to complete their duties and the vehicle is available for personal use, then the benefit may be subject to FBT. By understanding how their employees use […]
ART dismisses argument that medical expenses were deductible
In a recent decision, the Administrative Review Tribunal (‘ART’) held that a taxpayer could not claim a tax deduction for medical expenses incurred by him in relation to his total and permanent disability pension. The taxpayer had been terminated from his employment due to total and permanent disablement (‘TPD’). For the 2024 income year, his […]
ATO warning regarding private use of work vehicles and FBT
Employers that supply work vehicles to their employees need to check how the work vehicles are used and whether any exemptions apply to determine if they attract fringe benefits tax (‘FBT’). FBT generally applies when a work vehicle is made available for private use, even if it is not actually used. Private use includes any […]
Tips to help sole trader clients
The ATO is seeing sole traders make mistakes in the following areas: not reporting all income — this includes income earned outside their business (like a ‘side hustle’), cash jobs, or payments in-kind/barter deals; overclaiming expenses — this includes claiming the portion of an expense related to personal use, or overstating the cost of goods […]
Borrowed money to pay a business tax debt? Is the interest deductible?
It’s a question that the ATO has been asked very infrequently, but after the third such request, it decided to issue a ruling – which still stands. It was about 1990 when the ATO was asked about the tax-deductibility of interest on a loan business may have taken out to repay a tax debt. It […]
Fringe Benefits Tax (FBT)
Fringe benefits tax (FBT) is tax employers pay on certain benefits they provide to their employees, including their employees’ family or other associates. The benefit may be in addition to, or part of, their salary or wages package. If you are a director of a company or trust, the benefits you receive may be subject […]
Hiring Employees and What You Need to Know
You may have tax and superannuation obligations if you employ or contract workers into your business, either full-time or part-time. This includes your family members and you if you are a director. Your obligations may include: Pay as you go (PAYG) withholding Superannuation guarantee Fringe benefits tax (FBT) You have responsibilities from the day your […]
Division 293 Tax
What is Division 293 tax? Division 293 tax is being introduced from the 2012-13 year to reduce the tax concession on superannuation contributions for individuals with income greater than $300,000 a year. Division 293 tax will be charged at 15% of an individual’s taxable concessional contributions above the $300,000 threshold (which is capped at $30,000). […]
Medicare levy surcharge, thresholds and rates
Different Medicare levy surcharge thresholds and rates apply to individuals and families. We use a special definition of income (called income for MLS purposes) to determine whether you are liable to pay the Medicare levy surcharge and the rate you will have to pay. What is included in income for MLS purposes? If you have […]
Flexible Workplaces
Q: Some of my staff are happy to be paid overtime, but others prefer time off in lieu. What are the rules around this? A: Firstly, check the conditions of employment in the relevant award or enterprise agreement. If there is nothing in there in relation to how overtime is to be handled, you should go […]