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 […]
Lost or stolen TFN
If you can’t find your TFN and do not suspect misuse, phone the Australian Tax Office (ATO) on 13 28 61 between 8:00am and 8:00pm Monday to Friday and 10:00am to 4:00pm Saturday. You can also phone the ATO on Sunday between 10.00am to 4.00pm from 1 July to 31 October. If you have a […]
Fraudulent ‘Phoenix’ Activities
Fraudulent ‘phoenix’ activity occurs where a company deliberately liquidates to avoid paying creditors, taxes and employee entitlements. The perpetrators transfer the assets to a new entity, and continue operating the same or a similar business with the same ownership. Phoenix activity has impacts on the business community, employees and contractors, the government and the environment, […]
How Much Tax Do I Need To Pay?
We often receive phone calls from our Clients asking us whether they are being taxed correctly in their wages. If you are unsure whether you are being taxed correctly, the ATO has an online calculator where you can answer a series of questions relating to your wages which will determine what tax should be withheld […]
What is the Medicare Levy
Quite often we are asked about the Medicare Levy. Common questions are “What is it?”, “Why do I have to pay it” and “Is there a way I can avoid paying it”. So we’ve broken it down for you below. What is Medicare Levy? Australian Residents are entitled to Medicare benefits which is access to […]
Builder Unable To Obtain Refund Of Incorrectly Charged GST
The Administrative Appeals Tribunal has held that a builder was unable to receive a refund of incorrectly charged GST incorrectly charged on the sale of a residential premises that had been rented for just over five years since construction was complete. The taxpayer claimed the GST charged on a unit was charged in error, on […]
FBT Exemption for Electric Vehicles Legislation Is Now Law
FBT exemption for electric vehicles legislation exempt from Fringe Benefits Tax (‘FBT’) has now been enacted into law. Certain zero or low emissions vehicles provided as a car benefit on or after 1 July 2022, can be exempt from FBT. For this exemption to apply various criteria need to be satisfied. The car needs to […]