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 […]
Your Tax Return Due Date and Overdue Implications
It is important to understand your obligations as an Australian Taxpayer to know your tax return due date. It’s extremely important. We have broken it down for you in simple terms to better understand your tax return due date. If you are lodging your taxes using an online platform yourself, you are required to lodge […]
Single Touch Payroll For Employees
With the introduction of Single Touch Payroll for employees, the way workplaces report your tax and super information the ATO has changed. The ATO have changed the way workplaces will be reporting your tax and super information which will provide the ATO with your tax and super information on more of a frequent basis. The […]
Airbnb in the Firing Line This Tax Season
With the increased popularity in “sharing economy” accommodation Airbnb and similar properties are predicted to be in the firing line this year with the ATO. It comes as no surprise the ATO have recently commenced the ‘sharing economy (accommodation) data matching program’. Through this program the ATO will be collecting information from rental platforms such […]
Employees and Payment Summaries
The ATO has also reminded employees about employees and payment summaries. How they get their end of financial year information from their employer, showing their earnings for the year, depends on how their employer reports their income, tax and super information to the ATO. Specifically: Employers that are not yet reporting through STP will continue […]
Cryptocurrency Data Matching Program
The ATO is collecting bulk records from Australian cryptocurrency designated service providers (‘DSPs’) as part of a Cryptocurrency Data Matching Program to ensure people trading in cryptocurrency are paying the right amount of tax, and correctly meeting their tax (and superannuation) obligations. The ATO will collect data from cryptocurrency DSPs to identify individuals or businesses […]
Tax Office to Double Audits of ‘Dodgy’ Rental Deductions
Rental property owners are being warned to ensure their claims are correct this tax time, as the ATO has announced it will double the number of audits scrutinising rental deductions, with a specific focus on: over-claimed interest; capital works claimed as repairs; incorrect apportionment of expenses for holiday homes let out to others; and omitted […]