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 […]
What You Need to Bring to Your Tax Return Appointment.
If you’re coming in soon to discuss your tax return for yourself or your business, try not to turn up completely empty handed, or at least to turn up prepared with some records or electronic access to them. To “be prepared” is not just a great scouting motto, but a wise approach for everyone, […]
You May Already Have What it Takes to be a Good Property Investor
It’s not necessarily a six figure salary! Did you know that your skill and experience in managing a tight budget could make you a better property investor than some big spending high income earners? we often meet people who are hooked on the good life: living in expensive suburbs, fancy cars, frequent dining out and […]
Deduction Tip: Can you claim the cost of travelling to this office?
Tax time has arrived, but before you have us lodge your return here is another deduction tip – should your circumstances allow (or file this away for next income year). The ATO recently issued what it calls a “tax determination” which more clearly spells out the circumstances of what may be an allowable claim […]
Streaming Trust Capital Gains and Franked Distributions
The ATO has stated that a trust’s capital gains and franked distributions can, if not prevented by the trust deed, be streamed to beneficiaries for tax purposes by making these beneficiaries “specifically entitled” (more below) to the amounts. This allows beneficiaries to offset capital gains with their capital losses, apply applicable discounts and, subject […]
Running Your Business From Home
If your home is also your place of business, you can claim income tax deductions for a portion of the costs of owning, maintaining and using your home for this purpose. When you sell your home you may be liable for capital gains tax. Your home is your place of business if you run your […]
Employers End of Financial Year Checklist
If you run your own business the below checklist is key. To do Checklist: Payment Summaries Have you paid employees this financial year? Don’t forget to provide them with their payment summary by 14 July- even if you didn’t withhold any tax. You can order a copy of the ATO ‘PAYG payment summary – individual […]