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JOBKEEPER AND JOBSEEKER
Taxpayers who have received JobKeeper payments from their employer, do not need to do anything different.
The JobKeeper payments will be included as salary wages and/or allowances.
Sole traders who have received JobKeeper payments on behalf of their business will need to include the payments as assessable income for the business.
The ATO will load the JobSeeker payment information into the individuals tax return at the Government Payments and Allowances section, once it is ready.
WORKING FROM HOME EXPENSES
The ATO has announced a temporary ‘short-cut method’ of 80 cents per hour that applies from 1 March 2020 to 30 June 2020.
This covers all deductible expenses and can be used by multiple people working from home in the same house.
People claiming the shortcut method should include the amount at the ‘other work-related expense’ section of the tax return and include ‘COVID-hourly rate’ as the description.
Taxpayers can still choose to use on of the other existing methods to calculate their expenses for working from home if they prefer.
Taxpayers working in jobs that require physical contact or close proximity with customers or clients during COVID-19 may be able to claim a deduction for:
- Face Masks
- Anti-Bacterial Spray
INSTANT ASSET WRITE-OFF FOR ELIGIBLE BUSINESSES
On 9 June 2020, the government announced it will extend the $150,000 instant asset write-off until 31 December 2020.
Eligible businesses can claim an immediate deduction for the business portion of the cost of an asset in the year the asset is first used or installed ready for use.
Instant asset write-off can be used for:
- Multiple assets if the cost of each individual asset is less than the relevant threshold
- New and second-hand assets
A RETURN TO THE CHILD CARE SUBSIDY
On 8 June 2020, the Federal Government announced it will resume the Child Care Subsidy (CCS) to support families to access affordable childcare.
From 13 July, the CS will return, along with new transition measures to support the sector and parents as they move back to the subsidy.
JobKeeper will cease from 20 July for employees of a CCS approved service and for sole traders operating a childcare services.
The Government will pay approximately $2 billion in CCS this quarter to eligible families.
The CCS is means-tested to ensure that those who earn the lease receive the highest level of subsidy.Read Newsletter
EOFY – Year End Tax Planning Tips 2019-2020
Below are some tax planning tips that are covered in more detail in our newsletter:
- Check eligibility for small business tax regime
- Maximise depreciation deductions
- Review salary sacrifice arrangements
- Make trust resolutions by 30 June
- Seeking professional advice when starting a business
- Write-off bad debts
Ongoing Tax Planning Issues
Our newsletter covers other tax strategies that should be considered such as:
- Salary Sacrifice Bonus into Superannuation
- Superannuation – government co-contribution
- Eligibility for super concessional contributions
- Transition to retirement income streams
- Medicare Levy Surcharge and Private Health Insurance Rebate
ATO Recovery Data Matching
In terms of focus areas for compliance activities, the ATO continues to closely monitor:
- Claims for work-related expenses that are unusually high close to others across comparable industries and occupations
- Excessive rental properties expenses
- Non-commercial rental income received for holiday homes
- Interest deductions claimed for the private proportions of loans
- People who have registered for GST but are not actively carrying on a business
COVID-19 ATO Questions & Answers
The ATO has published some Q & A regarding COVID-19 and the below topics:
- Work-Related Car Expenses
- Residential Rental Properties
- Short-Term Rental Properties
SUPERANUATION GUARANTEE AMNESTY
On 6 March 2020 the government introduced a superannuation guarantee (SG) amnesty (the amnesty).
The amnesty allows employers to disclose and pay previously unpaid super guarantee charge (SGC), including nominal interest, that they owe their employees, for quarter(s) starting from 1 July 1992 to 31 March 2018, without incurring the administration component ($20 per employee per quarter) or Part 7 penalty.
In addition, payments of SGC made to the ATO after 24 May 2018 and before 11:59 PM 7 September 2020 will be tax deductible.
Employers who have already disclosed unpaid SGC to the ATO between 24 May 2018 and 6 March 2020 don’t need to apply or lodge again.
Employers who come forward from 6 March 2020 need to apply for the amnesty.
The ATO will continue to conduct reviews and audits to identify employers not paying their employees SG. If the ATO identifies these employers before they come forward, they will not be eligible for the benefits of the amnesty. They will also be required to pay:
- SG shortfall
- nominal interest(10%)
- administration component ($20per employee per quarter)
- Part7 penalty (up to 200% of the SGC).
In addition, payments of the SGC won’t be tax deductible.
Paying super is an important part of being an employer. If you’re not eligible for the amnesty, or you have unpaid super for quarters that are not eligible, you must still lodge an SGC statement.
The law does not allow the ATO to vary the due date for lodgement of an amnesty application.
SMALL BUSINESS SUPERANNUATION CLEARING HOUSE
The Small Business Superannuation Clearing House (SBSCH) is a free service you can use to make super guarantee (SG) contributions. Eligible businesses are those with 19 or fewer employees or an annual aggregated turnover of less than $10 million.
Your business can pay your SG contributions as a single electronic payment to the SBSCH. If you make super payments by EFT or BPAY using your credit card account, you may be charged a fee by your financial institution.
The SBSCH will then distribute the payments to each employee’s super fund. Your SG obligations are met as soon as your payment and instructions are accepted by the SBSCH. The SBSCH is SuperStream compliant.
In this event you are not already using this service refer to www.ato.gov.au/Business/Super-for-employers/Paying-super-contributions/Small-Business-Superannuation-Clearing-House/.
If you still require assistance contact this office.
WORKING FROM HOME TAX DEDUCTIONS
The ATO has announced a special compliance guideline for employees and business owners claiming deductions for additional costs incurred while working from home due to COVID-19. The new arrangement will allow people to claim a rate of 80 cents per hour for all their running expenses, rather than needing to calculate costs for specific running expenses.
Multiple people living in the same house can claim this new rate. For example, a couple living together could each individually claim the 80 cents per hour rate. The requirement to have a dedicated work from home area has also been removed.
The running costs that are typically incurred when working from home include:
- lighting, heating, cooling and cleaning costs, electricity for electronic items used for work (to the extent the cost exceeds the amount normally spent if not working from home),
- the decline in value and repair of home office items such as furniture and furnishings in the area used for work,
- phone and internet expenses,
- computer consumables, stationery, printer cartridges and
- the decline in value of a computer, laptop or similar device, and printers
So, for example, if 25 hours of a working week is conducted at home for the 12 weeks up to 30 June 2020, $240 can be claimed as a deduction (25 x 12 x 0.80).
There is no change to the rules regarding deductions for occupancy costs such as rent, mortgage payments and rates. These are generally only deductible if a taxpayer has a place of business at home (e.g. a doctor’s surgery) or for certain itinerant employees not provided with an employer workplace.
As always the taxpayer must have incurred the expense, not have been reimbursed, have incurred the expense in gaining or producing assessable income and have evidence of the expense.
WORKING FROM HOME BEFORE 1 MARCH 2020
Claims for working from home expenses prior to 1 March 2020 cannot be calculated using the shortcut method and must use the pre-existing working from home approach and requirements.
For 2019/2020, taxpayers can calculate a deduction for working from home running costs by using a fixed rate of 52c per working hour, but only to cover those expenses listed at 1 and 2 above.
For other types of working from home costs (3-5 listed above) the taxpayer has to keep records of the actual costs incurred and work out the work-related portion. This method is also available for 1 and 2 costs as well, instead of 52c per hour if a taxpayer prefers and has the supporting records.
WORKING FROM HOME CLAIMS FOR 1 MARCH TO 30 JUNE
There are three ways that you can choose to calculate your additional running expenses for the 1 March – 30 June period:
- Claim a rate of 80 cents per work hour for all additional running expenses
- Claim a rate of 52 cents per work hour for heating, cooling, lighting, cleaning and the decline in value of office furniture, plus calculate the work-related portion of your phone and internet expenses, computer consumables, stationery and the decline in value of a computer, laptop or similar device
- Claim the actual work-related portion of all your running expenses, which you need to calculate on a reasonable basis
The ATO is also reminding people that the three golden rules for deductions still apply. Taxpayers must have spent the money themselves and not have been reimbursed, the claim must be directly related to earning income, and there must be a record to substantiate the claim.
Which method should you use?
The 52c and 80c per hour methods are simplified methods for calculating your tax deduction. However, the actual methods may give you a higher tax deduction, if you’re prepared to keep the necessary records.
The necessary records would include receipts and bills for the relevant expenses and a four-week representative diary of your asset and service usage. It would make sense to keep a four-week representative diary for the period before 1 March 2020 and then another for the period up to 30 June 2020.
For expenses like electricity, you will need a basis of apportionment such as floor space used for work purposes relative to total work space in the house.
Come tax time, your tax agent can help you navigate the different methods and calculate the best tax deduction for your circumstances.
‘ROBODEBT’ CLASS ACTION
A Class Action has begun against the Commonwealth of Australian regarding overpayment notices issued to hundreds of thousands of Australians affected by the government’s robodebt scheme. Those that are considered to be part of the class action will receive notices from Centrelink about the class action under orders from the federal court.
You maybe a member of the class action if you:
- At any time after 1 July 2010 received from Centrelink on one or more payments of:
- Newstart Allowance
- Youth Allowance
- Disability Support Pension
- Austudy Allowance
- Age Pension
- Carer Payment
- Partner Allowance
- Sickness Allowance
- Special Benefit
- Widow A Allowance
- Widow B Allowance
- In respect of correspondence from the Commonwealth Government at any time after 1 July 2015:
- Received notification from them that after reviewing information obtained from Centrelink and from the Australian Taxation Office (ATO) requested you to check, confirm or update your employment information during the time you received the payment, and
- Then was issued with notification that you had received an overpayment of one or more centrelink payments, and
- Received a request or demand for repayment of any overpayment debt
- Have paid and had paid on their behalf the debt and/or
- Have not been informed by the Commonwealth Government that no recovery action will be pursued.
Robodebt is a part-automated process in which recipients of government benefits are sent letters asserting that they owe the government money because they have been overpaid.
If you have received one of these letters you are automatically part of the class action as a class member and do not have to do anything.
The only action that is required is whether you want to opt out from the class action. You would consider this if you do believe that your overpayment was correct or if you have had it waived already by the Commonwealth.
Any questions regarding this class action should be direct to:
1300 001 356
JOBKEEPER ALTERNATIVE TESTS & KEY DATES
Generally businesses will use the basic test, which is based on GST turnover. An alternative test has been made available for some cases where the normal comparison period is not appropriate. The following are the eligible circumstances:
- Commenced business after the relevant comparison period but not on or after 1 March 2020 (the business did not exist in March 2019)
- Acquired or disposed or part of the business after the relevant comparison period (the business is not the same business as it was in March 2019)
- Undertook a restructure after the relevant comparison period
- Business had a substantial increase in turnover
- Affected by drought or natural disaster
- Has irregular turnover (excluding cyclical or regular seasonal variance in their turnover)
- Is a sole trader or small partnership where sickness, injury or leave have impacted an individual’s ability to work which has affected turnover
You only need to satisfy the fall in turnover test once – you don’t need to test your turnover in the following months or quarters.
However, there are ongoing monthly turnover reporting requirements.
In order to receive the Jobkeeper payment for the period 30 March 2020 to 26 April 2020 you MUST finalise your application before 31 May 2020.
Going forward the key dates for Jobkeeper are as follows:
|JobKeeper Fortnight||Period relating to each JobKeeper Fortnight||Employees are paid on or before ^|
|1||30 March – 12 April||8 May*|
|2||13 April – 26 April||8 May*|
|3||27 April – 10 May||10 May*|
|4||11 May – 24 May||24 May*|
|5||25 May – 7 June||7 June|
|6||8 June – 21 June||21 June|
|7||22 June – 5 July||5 July|
|8||6 July – 19 July||19 July|
|9||20 July – 2 August||2 August|
|10||3 August – 16 August||16 August|
|11||17 August – 30 August||30 August|
|12||31 August – 13 September||13 September|
|13||14 September – 27 September||27 September|
* You have until 31 May to enrol for JobKeeper if you intend to claim for wages paid for JobKeeper fortnights in April and May.
^ When paying eligible employees, you do not need to adjust your pay cycle through your existing payroll solution.
If you usually pay your employees less frequently than fortnightly, the payment can be allocated between fortnights in a reasonable manner. For example, if you pay your employees on a monthly pay cycle, your employees must have received the monthly equivalent of $1,500 per fortnight.
SA STATE GOVERNMENT $10,000 GRANT – LAST CHANCE
Small businesses and not-for-profit entities that employ South Australians who have been highly impacted by the COVID-19 pandemic may be eligible to receive a $10,000 grant to support the operation of their business.
You must meet the edibility criteria which was published in our previous newsletter which you can find here:
The applications for the Grant will closing on 31ST MAY 2020
If you are currently receiving a Centrelink benefit that is being assess under the income test method, you will see an increase in your payments.
That is because as of 1 May 2020 the deeming rates have been reduced from:
- 1% to 0.25% and
- 3% to 2.25%
Deeming is a set of rules used to work out the income created from your financial assets. These include investment properties, bank balances and superannuation assets.
ILLEGAL EARLY RELEASE OF SUPER
Illegal schemes will cost you a lot more than the super you withdraw. There are server fees and penalties. Promoters of schemes encouraging the illegal early release of super may face prosecution and civil or criminal penalties
Withdrawing your super early unless you meet a condition of release is illegal
Generally, can only withdraw your super when you reach retirement
You can legally withdraw your super early when you meet specific medical conditions or are experiencing severe financial hardships
FRINGE BENEFITS TAX EXEMPTION WILL NOW INCLUDE RIDE SHARING SERVICES
Legislative amendments have been introduced into Federal Parliament to the existing fringe benefits tax (FBT) exemption for certain taxi travel to include a broader range of transport services including ride sharing services
Changes will apply to the 2019 – 2020 FBT year onward
If you don’t have the documentary proof (or access to) then you can’t make a claim
Can only claim a tax deduction for a donation of cash of $2 or more made to an organisation that is endorsed by the ATO as a Deductible Gift Recipient (DGR)
Australian Business Number Register allows potential donors to check whether an organisation has the DGR status
If you receive a benefit or consideration for the expenditure, then you cannot claim a tax deduction. An example of this could be raffle tickets or outlay for a social function such as a charity ball
IMPORTANT CHECKS FOR EMPLOYERS WHEN HIRING A CONTRACTOR
Before hiring a contractor review the following case scenarios:
- Ability to subcontract or delegate
- Basis of payment
- Equipment, tools and other assets
- Commercial risks
- Control over the work
NO TAX ON BUSHFIRE DISASTER PAYMENTS
$2 billion recovery fund
8th January, the Morrison government announced that Australians will not pay tax on federal disaster assistance they receive (Effective as of 4th February 2020)
SIMPLIFIED DEPRECIATION RULES – INSTANT ASSET WRITE-OFF
Instant Asset write off in its 4th year of operation
From 2 April 2019, the instant asset write-off has been expanded to include business with a turnover from $10 million to less than $50 million
As of 1st July 2020, the threshold for instant asset write-off will revert to $1,000
INCREASED SMALL BUSINESS INCOME TAX OFFSET
To increase to 13% in 2020-21
To increase to 16% from the 2021-22 income year
Capped at $1,000
LOWER COMPANY TAX RATE CHANGES
For the 2018-2019 income year, company base rate to be 27.5% if they are a base rate entity
The below conditions must be met for a company to be considered a base rate entity
- Turnover less than the threshold – $50 million for the 2018-2019 income year
- 80% or less of their assessable income is base rate entity passive income
INCREASED USE OF CONTRACTORS OVER THE HOLIDAYS MAY LEAD TO TPAR REPORTING
You may be required to lodge a Taxable Payments Annual Report (TPAR) in August 2020 if you have used more courier or cleaning contractors over the Christmas period
You will be required to report a TPAR if you:
- Have an Australian Business Number (ABN)
- Pay Contractors to provide courier or cleaning services
- Are providing cleaning or courier services
CHECKLIST: 2019/20 TAX PLANNING OPPORTUNITIES FOR INDIVIDUALS
Use this checklist as a guide to the 2019/20 year-end tax planning opportunities with a particular focus on superannuation
- Personal superannuation contributions
- Catch-up superannuation contributions
- Superannuation government co-contribution
- Nearing retirement
CHECKLIST: CHANGING RESIDENCY
If you become an Australian Resident, or stop being one, the range of assets on which you pay Capital Gains Tax (CGT) in Australia Changes
- Becoming an Australian resident
- Ceasing to be an Australian resident
- Choosing to disregard capital gains and losses
DEDUCTIONS FOR PAYMENTS TO WORKERS
Employers cannot claim deductions for payments to workers if they have not met their pay as you go (PAYG) withholding obligations
Applies to income tax returns lodged for the 2020 income year onwards
To claim a deduction for a payment to a worker, you must:
- Withhold the amount from the payment before the worker is paid
- Report that amount to the ATO
WORK CHRISTMAS PARTIES DUTY OF CARE AND HOW TO AVOID DISASTERS
The festive season can be a happy and joyful time, but it can also be a period when unruly staff behaviour can ruin careers and damage working and business relationships.
The festive season and end-of-year celebrations should be enjoyed, but the work Christmas party can be a source of anxiety for employers who are unsure of their obligations to their workers.
The Christmas and New Year period are notorious for employee related incidents that can have a major detrimental impact on an organisation no matter what size or configuration.
Particularly if the event is organised and paid for by the employer, the duty of care to workers remains the same as it would if they were at work.
We suggest that if you are holding a staff Christmas Party that prior to the event all staff are notified either by a general communication to staff, email prior to the event or at the event by a Senior Manager that:
“While the organisation welcomes you to the annual Christmas party you are reminded that all attendees are required to abide by normal acceptable social and legal conventions and laws including applicable Company Policies.
This includes your treatment of other staff and your behaviour in general, and while the organisation is supplying some alcoholic beverages, it is your responsibility to ensure that you drink and drive responsibly and that you remain within legal limits.
We hope that you are able to enjoy the end of year celebrations and thank you for your contributions over the last year.”
SALARY SACRIFICE SUPER DISCONNECTED FROM THE SUPERANNUATION GUARANTEE FROM 1 JAN. 2020
Effective from 1.1.2020, salary sacrificed super contributions to an employee’s superannuation fund will no longer count as an employer contribution for the purposes of the employer’s minimum SG obligations; and can no longer be used to reduce ordinary time earnings (OTE) on which the SG obligation is calculated.
These changes have rectified deficiencies in the previous law.
REMOVING TAX DEDUCTIBILITY OF NON-COMPLIANT PAYMENTS
You can only claim deductions for payments you make to your workers (employees or contractors) from 1.7. 2019 where you have complied with the pay as you go (PAYG) withholding and reporting obligations for that payment.
Any payments you make to a worker where you haven’t withheld or reported the PAYG amounts are called non-compliant payments. you won’t be able to claim a deduction if you are required to withhold an amount and you don’t withhold or report any amount to the ATO, unless you voluntarily tell the ATO before they advise that they have commenced an audit or other compliance activity.
IMPORTANT CHECKS FOR EMPLOYERS WHEN HIRING A CONTRACTOR
There’s not just one deciding factor that makes a worker you hire an employee or contractor for tax and superannuation purposes. As an employer, it’s a decision you can only make once you’ve reviewed the entire working arrangement.
To get to the right answer, you need to consider a number of factors. Before hiring a contractor review the following case scenarios:
- Ability to subcontract or delegate– if they pay someone else to do the work.
- Basis of payment– if they will be paid based on an agreed quote, they provided.
- Equipment, tools and other assets– if they are providing their own tools and equipment needed to get the job done.
- Commercial risks– if they are legally responsible for their work and liable for fixing mistakes or defects.
- Control over the work– if they decide how the work gets done subject to specific terms in any contract or agreement.
- Independence– if they operate their own business independently of your business.
If the answer is no to some or all of these scenarios, you need to seek further information and advice before treating your worker as a contractor.
THE FIRST HOME LOAN DEPOSIT SCHEME BILL PASSES THE SENATE
The First Home Loan Deposit Scheme will assist an eligible first home buyer to purchase a house with a 5% deposit. The government will provide a loan guarantee of up to 15% of the property’s value to individuals earning up to $125,000, or couples earning up to $200,000, per year. The scheme could also save you up to $10,000 in lender’s mortgage insurance.
Eligibility for the scheme depends on where you live, value of the home (determined on regional basis).
The scheme is expected to be open on 1.1.2020 with further details on eligibility, participating financial institutions; and the application and assessment process.
AIRBNB HANDS OVER DATA ON HOSTS TO ATO
In October Airbnb has defended its decision to hand over the data of 190,000 property owners and hosts to the ATO about the income they have received from the platform.
If you have rented out your property even for part of the year or few weeks, please advise us at the time of tax return preparation. As the sourced data from AIRBNB may trigger mismatch against your profile if you do not declare your income properly.
IF YOU CHANGE YOUR BUSINESS STRUCTURES, YOU MAY NEED TO APPLY FOR A NEW ABN
Some of the situations may be as follows when you are moving from one business structure to another. In such situations, you may need to cancel your existing ABN and apply for new ABN.
- individual/sole trader to partnership or trust;
- individual/sole trader to company or trust;
- partnership to company or trust.
Also, ensure your details are updated on tax invoices, this is important as ABN is used to identify your business identity to others when ordering and invoicing and claim GST credits.
CHANGES FOR PROPERTY INVESTORS
Holding costs on vacant land being held with the intention to derive future income (including an investment property) will no longer be tax deductible under a current bill before Federal Parliament.
The new rules will remove the subjective intention to derive future income from holding vacant land – as mentioned this will affect the deductibility of holding costs such as interest, land tax and rates.
Vacant land is defined as having no substantial and permanent building or other structure that is in use or available for use on the land. land would be considered vacant until the premises are lawfully able to be available for rent or hire.
These measures apply from 1.7.2019. Individuals, SMSF and family trusts are to be affected from such changes whilst these changes will not apply to corporate tax entities, non SMSF Superannuation plans, managed and public unit trusts.
The new legislation does not apply where the land is used to carry out a business.
WORKING OUT IF YOU HAVE TO PAY SUPER
Generally, if you pay an employee $450 or more (before tax) in a calendar month, you have to pay them super guarantee (SG) on top of their wages.
CONTACTING EMPLOYERS ABOUT LATE OR UNDER-PAID SG
Single Touch Payroll (STP) reporting, combined with improvements in super funds’ reporting through the Member Account Transaction Service (MATS) means the ATO now has near real-time data to show employers’ compliance with their super guarantee (SG) obligations.Read Newsletter
FBT EXEMPTION ‘TAXI TRAVEL’ BETWEEN WORK & HOME
On 2.9.2019 the ATO indicated they would not consider whether this exemption could be extended to ride sourcing vehicles simply stating their position was outlined in chapter 20 of their guide to fringe benefits tax.
DEDUCTIONS FOR A COMPANY OR TRUST HOME-BASED BUSINESS
If you run business from home as a company or trust, there should be a market-rate rental contract in place to determine which expenses business can clam as a deduction. Absence of market-rate rental contract may cause tax implications for you and business.
Also, if you earn Personal Service Income (PSI), you may not be able claim some of occupancy expenses.
WHEN YOU ARE BOTH BUSINESS OWNER AND EMPLOYEE
If you are an employee of your own business and receiving reimbursement from business for running business from home, you can’t claim such deductions in your individual tax return.
Certain reimbursements to employees by business may trigger FBT liability though certain exemptions and concessions may be available to reduce your FBT liability.
If you require guidance in this area, please contact us.
HIRING WORKING HOLIDAY MAKERS
If new employee ticks box at question 8 on their tax file number declaration form declaring they’re ‘Working Holiday Maker’, you need to:
- Register : Any one can hire a working holiday maker, but you need to register and declare that you’re aware of your obligations. This includes compliance with the Fair Work Act 2009 (where applicable).
- Check Visa : You as an employer can verify visa status using Visa Entitlement Verification Online (VEVO) service or alternatively your employee can do online or via my VEVO app and send you an email verifying their details.
- 15% working holiday maker tax rate and super : Once you’re registered you can withhold 15% from every dollar your working holiday maker earns up to $37,000. The tax rates change for amounts above this. Super contributions apply as it applies normally.
if you require assistance, please contact us.
LOW INCOME EARNERS MAY NEED TO LODGE
You may be required to lodge tax return even your income is under tax-free threshold of $18,200 (before offsets) if following applies:
- had pay as you go (PAYG) withheld from payments received during the year
- had a reportable fringe benefits amount on their income statement or PAYG payment summary;
- had reportable employer superannuation contributions on your income statement or PAYG payment summary;
- made a loss or can claim a loss made in a previous year;
- were an Australian resident for tax purposes and had exempt foreign employment income and $1 or more of other income;
- were entitled to the private health insurance rebate but did not claim your correct entitlement as a premium reduction;
- were a liable or recipient parent under a child support assessment unless both of the following applied: You received one or more Australian Government allowances, pensions or payments (listed on the Individual tax return instructions 2019. And Your income was less than$25,038.
AUSTRALIANS TURN TO STORING THEIR TAX RETURN INVOICES DIGITALLY
Many Australians are doing away with tucking their receipts into a shoebox and instead now store them digitally.
The myDeductions app can be used to take photos of receipts and note relevant information relating to expenses.
ATO PUTS THE BRAKES ON DODGY CAR CLAIMS
The ATO’s sophisticated analytics compares taxpayer claims with others earning similar amounts in similar jobs.
It is clear that simply driving between work and home is not enough to warrant a deduction. You must have a work-related need to travel while performing your job, like traveling from site to site or be required to transport bulky tools.
CONTACTING SMALL EMPLOYERS ABOUT STP
In August, the ATO started writing to small employers who have yet to start reporting or apply for a deferral, to remind them of their STP obligations.
Small employers have until 30 September 2019 to start reporting or apply for extra time to get ready. We can assist you in this regard.
ATO’S $50 THRESHOLD CUTS PAPERWORK FOR EMPLOYERS
With more employers encouraging flexible working from home, the reimbursement of home office expenses has been reviewed.
The ATO has introduced a $50 threshold which will be used to determine the record keeping requirements for the purpose of applying the otherwise deductible rule to expense payment fringe benefits for the cost of home phone and internet expenses.
SALARY SACRIFICING SUPER
Salary sacrifice is an arrangement with your employer to forego part of your salary or wages in return for your employer providing benefits of a similar value.
Be cautious with your salary sacrifice, as only first $25000 a year including 9.5% compulsory super paid by employer has concessional tax at 15 %, anything in excess will be taxed at higher tax rates.Read Newsletter