In December 2022, the ATO is releasing a solution that enables employer software and payroll products to request stapled super funds. That is, stapled super enabled software will allow the employer to request stapled super details from within their business software, so they will no longer have to request them separately via ATO online services.
The AAT has held that a taxpayer, an Australian chef with over 20 years’ experience both in Australia and overseas, was an Australian resident for taxation purposes in the 2016 income year.
The Administrative Appeal Tribunal (‘AAT’) has held that a taxpayer could not claim $91,239 of input tax credits (‘ITCs’) at least partly because it lodged the relevant BASs more than 4 years too late.
The ATO has reminded taxpayers that they should understand the record-keeping requirements for their business and keep accurate and complete records as they occur, as this should help them avoid penalties that may apply and reduce the possibility of the ATO denying their expense claims. The following are some of the ATO’s top tips to…
The ATO has issued a warning that there are various courses of action available to them when trustees of self-managed super funds (‘SMSFs’) have not complied with the super laws, including applying administrative penalties. To learn about administrative penalties that could be imposed. A number of factors determine the amount of the administrative penalty, including:
Individuals affected by the recent Optus and Medibank data breaches are likely on heightened alert with regard to safeguarding your data. The ATO has assured taxpayers that ATO systems have not been affected by the breach. Information for those caught up in a data breach is available from the Australian Cyber and Security Centre at…
With the holiday season fast approaching, employers are reminded that many holiday casuals may now be eligible for super. From 1 July 2022, employers need to pay super for employees at a rate of 10.5%, regardless of how much they are paid, because the $450-per-month threshold for super guarantee eligibility has been removed. This change…
A recent rise in unlicensed advisers offering to assist SMSF trustees to invest in cryptocurrency assets has prompted the ATO to advise caution among trustees and recommend seeking advice only from licensed financial advisers. Acting on advice from unlicensed advisers means the usual consumer protections and access to the Australian Financial Complaints Authority will not…
The ATO has reached out to small businesses who may have recently received a letter advising that they have a debt on hold, and any credits or refunds would be offset against this debt. As a result, some may find that their refund or credit is less than expected. The ATO paused offsetting refunds or…
With the deadline looming for company directors to obtain their ‘director ID’ number, the Government has launched an awareness campaign aimed at those who may not realise they need to take action. The campaign is targeting those that run small businesses, self‑managed superannuation funds, charities, not‑for‑profits, and even some sporting clubs. A director ID is…
This week, Federal Treasurer Dr Jim Chalmers handed down his first Labor Government Federal Budget. As expected, it delivered on key election commitments relating to aged care, childcare, education and acknowledged cost of living challenges with some practical solutions including lowering prescription costs. Following is a quick overview for business owners and individuals.
The ATO is reminding taxpayers that have a residential rental property, to take care when making claims for ‘second-hand depreciating assets’ used in their properties.
Small business tax incentives for training and upskilling employees and improving digital and tech capacity are back on the table.
The Superannuation comparison tool, YourSuper, has been updated. The tool helps individuals compare MySuper products and choose a super fund that meets their needs.
The Federal Government has expanded the list of State and Territory COVID-19 grant programs that may be tax-free to eligible businesses.
Business fundamentals include reliable cashflow, tax planning and effective systems. These are instrumental for getting through the tough times, but even more importantly, for being ready to capitalise on opportunities when they come. Here we overview the business fundamentals you need to have in place …
$2,000 specialist advice grants are now available to access accounting or legal professional advice to help support businesses improve and adapt following COVID-19 disruptions and current economic conditions. The program closes on Friday 30 September, and applications are assessed on a first in, first served basis, so you need to act now.
New release domain names were recently released in Australia, and you need to take action to avoid threats to your business internet identity. New domain name extensions of .au (in addition to .com.au) are now available and if you want to secure your existing domain name in the new format, you must register by 20…
Practical strategies for business owners The hits just keep on coming… ongoing effects from COVID, the great resignation, inflation, wage rises and general business uncertainty. But it’s not all bad news, in fact there’s lots you can do to help your business adapt. In this article we outline positive and proactive approaches for running your…
The Federal Government has reinstated the Pandemic Leave Disaster Payment until 30 September 2022.
A recently issued Tax Determination affecting Discretionary Trusts and corporate beneficiaries may have implications for how family groups distribute income.
A recent court ruling shines the spotlight on superannuation entitlements for contractors and the need for employment relationships to be considered carefully for superannuation guarantee purposes.
The ATO focus is on four major concerns relating to rental properties this tax season.
Recent changes to superannuation include superannuation guarantee changes and downsizer contribution age changes.
The ATO is warning taxpayers to not engage in ‘asset wash sales’ or other forms of tax avoidance to artificially increase their losses to reduce gains (or expected gains).
The ‘cents per kilometre’ rate change has been implemented by the ATO for individual car expenses for the 2023 income year, from 72 cents to 78 cents per business kilometre.
The ATO will target SMSFs that fail to lodge annual returns or ignore ATO reminders with a targeted compliance campaign.
The ATO has announced areas of focus for small business tax returns will include deductions that are not related to business operations, omission of business income and insufficient record keeping practices.
Single Touch Payroll (‘STP’) reporting has been expanded with extra reporting obligations for employers.
Employers need to be aware of two important superannuation changes from 1 July 2022.
Taxpayers are warned not to ’double dip’ on tax deductions. Here are three common items that are often claimed twice.
The ATO has announced four key priorities that it will focus on this 2022 tax time.
The ATO has changed its approach and compliance response, with family trust distributions on the hit list. Earlier this year the ATO released guidelines using ‘risk’ categories for trust distribution arrangements, indicating that the ATO is taking a more aggressive approach to investigating trust income distribution. It is expected that many family groups will pay…
The High Court has rejected a taxpayer’s attempt to disclaim an interest in trust income that arose as a result of a default beneficiary clause being triggered.
The ATO is writing to taxpayers whose credit rating may be affected if their tax debts are disclosed to credit reporting bureaus.
In a little bit of good news, Australians with private health insurance will NOT see decreases to the Private Health Insurance rebate from 1 April.
The Taxable payments annual report (TPAR) must be lodged by 28 August each year. Taxpayers who operate in certain industries and that make payments to contractors may need to report these payments in a TPAR.
Individuals can now re-contribute amounts they withdrew under the COVID-19 early release of super program without the re-contribution counting towards their non-concessional contributions cap.
If you have been claiming the JobMaker Hiring Credit, please be aware that the ATO will now calculate an adjusted baseline headcount for the claim.
The ATO has proposed for individual taxpayers that use the cents per kilometre method when calculating tax deductions for their work-related car expenses, that the rate per kilometre for the income year starting 1 July 2022 (the 2023 income year) will be increased to 75 cents per kilometre.
Employers are reminded that their Superannuation Guarantee obligation for the 1 January 2022 to 31 March 2022 quarter is due by 28 April 2022.
Small employers are on notice as the ATO gets serious about Single Touch Payroll (STP) reporting.
Eligible companies have a 12-month extension to claim a loss carry-back tax offset in the 2023 income year.
The proposed new law aims to help small businesses involved in disputes or debt recovery actions with the ATO.
Multiple changes to superannuation legislation are now in place and the ATO has put Trustees of SMSFs on notice in relation to record keeping. If you are unsure of your obligations, it’s important to seek advice.
Business owners commonly pay more tax than necessary by leaving their tax planning until the last minute. What you do now, in advance of June 30, can make a significant difference at tax time. In this article we share key considerations that will help you get on the front foot before tax time and only…
The JobKeeper rules have been amended to ensure the ATO can make payments to certain taxpayers after 31 March 2022.
The ATO has reminded employers to consider their tax and super obligations when employees are provided with incentives or rewards for getting their COVID-19 vaccination. When employees are provided a cash payment, including paid leave for employees to get their COVID-19 vaccination (or additional paid leave to recover from any vaccination side effects), employers should…
The Government has recently extended the SME Recovery Loan Scheme by a further six months (to 30 June 2022) to support SMEs adversely economically affected by the Coronavirus Pandemic.
The ATO has reminded taxpayers that it has a range of support available for small businesses experiencing difficult situations, such as natural disasters, mental health challenges or financial hardship.
A Bill recently introduced into Parliament permanently allows companies to use technology to meet their regulatory requirements, and ensure that companies can continue to meet their obligations amid the uncertainty of the COVID‑19 pandemic.
To assist taxpayers who continue to be affected by COVID-19, the ATO has stated that it will not apply penalties or interest on varied instalments for the 2021/22 income year for excessive variations when the fund has taken reasonable care to estimate its end of year tax.
A recent ruling by the Federal Court has seen the ATO able to make a claim on a property owned by a spouse for unpaid taxes. This ruling could have implications for clients considered ‘at risk’ who are utilising this as an asset protection strategy.
Newly enacted legislation requires all directors to apply for a new director identification number. This includes directors of corporate trustees or self-managed super funds (SMSFs) and of family trusts.
Changing business conditions, interruptions and adapting to new ways of working has likely impacted your business. If you feel like you are finally coming up for air, it’s time to be positive and proactive and get your business back on track.
The ATO is providing additional support to taxpayers having difficulty meeting their tax and Superannuation Guarantee charge obligations for employees because of COVID-19.
Under the Superannuation Guarantee (SG) scheme, employers are required to make quarterly contributions on behalf of their employees, and the due date for the September 2021 quarter is 28 October 2021.
As part of the expansion of Single Touch Payroll (known as STP Phase 2), from 1 January 2022, employers will need to report additional payroll information in their STP reports. The ATO will support employers with the move to STP Phase 2 reporting.
Employers may soon need to do something extra when a new employee starts to work for them.
While COVID has placed greater emphasis on business continuity and contingency planning, many business owners fail to consider a personal contingency plan for their most valuable asset. Your ability to earn an income is your most important asset, and for business owners, safeguarding your income is particularly important.
2021 Taxable Payments Annual Reports (TPARs) are due to be lodged for businesses who have paid contractors to provide the following services: building and construction cleaning courier, delivery or road freight information technology (‘IT’) security, surveillance or investigation
Treasury has released draft legislation introducing the long-awaited third party reporting regime (proposed to apply from 1 July 2022). The new regime will initially require ride-sharing and short term accommodation online platform operators to report transactions they facilitate directly to the ATO.
Employers should have already been reporting through Single Touch Payroll (‘STP’) unless they only have closely held payees, or they are covered by a deferral or exemption. From 1 July 2021, there have been changes to STP reporting for small employers with closely held payees and quarterly reporting for micro employers.
From 1 July 2021, the superannuation contributions caps have been indexed for the 2022 income year.
While adapting business operations and transitioning to new ways of working is paramount for business owners, unprecedented pressure on finances and cashflow can highlight the risks business liabilities can impose on a business owner’s personal affairs. ‘What if’ your personal assets were at risk from potential creditors or litigation? Here we shine the spotlight personal…
While it’s common for business owners to spend considerable time and effort focusing on business strategies for ongoing viability, it’s also important to make a dedicated effort towards building and protecting your own personal wealth.
The ATO is alerting taxpayers that its sights are set on work-related expenses like car and travel claims that are predicted to decrease in this year’s tax returns.
The ATO has advised that it will engage in two new data matching programs dealing with property transactions.
The super guarantee rate will rise from 9.5% to 10% on 1 July 2021, so businesses with employees will need to ensure their payroll and accounting systems are updated to incorporate the increase to the super rate.
The ATO is concerned that many taxpayers believe their cryptocurrency gains are tax-free, or only taxable when the holdings are cashed back into Australian dollars.
Announcements from the 2021-22 Federal Government Budget, handed down on May 11, focus on recovery and investment to support jobs creation to drive economic growth. Our Budget Summary highlights the top announcements which, if implemented, may affect your business decision making and planning for your personal financial goals.
The Government has committed to modernising certain laws so that they are ‘technology neutral’, to enable easier communication between businesses, individuals and regulators.
The ATO will access data from the Department of Home Affairs on passenger movements during the 2016/17 to 2022/23 financial years, and match it with certain sections of ATO data holdings to identify taxpayers that can be provided with tailored information to help them meet their tax and superannuation obligations, or to ensure compliance with…
The ATO is using its compliance resources to maintain the integrity of the JobKeeper measure.
The ATO has confirmed that, from 1 July 2021, the superannuation concessional and non-concessional contribution caps will be indexed.
The ATO has updated its webpage containing the fringe benefits tax (‘FBT’) rates and thresholds for the 2017/18 to 2021/22 FBT years. Two amounts that were not previously announced for the 2021/22 FBT year are: The FBT record keeping exemption is $8,923 (up from $8,853 for the 2020/21 FBT year); and The statutory or benchmark…
The Australian Small Business and Family Enterprise Ombudsman, in conjunction with Family Business Australia, has released a new online guide to succession planning — the “Introductory Guide to Family Business Succession Planning” — which provides a step-by-step guide to passing the family business on to the next generation.
The ATO has confirmed that more than 60,000 businesses have not yet complied with lodgment requirements under the taxable payments reporting system (‘TPRS’) for 2019/20.
The ATO has advised that the final JobKeeper payment will be processed in April 2021.
Your accountant should be planning strategies to improve your business, tax and personal outcomes months in advance, not just doing your tax return. Even if ‘you’re not their biggest client’ your accountant should be working proactively for you. Tax savings are made through planning, not hoping. If you don’t have a handle on your tax…
Well before the end of financial year is the time to discuss the actions you can take to reduce your tax.
You can’t build a strong business on weak foundations. Strengthening your business foundations can make a big difference to your business success, and of course, your personal prosperity… If you are looking to move your business forward, it’s important to take the time to get your business fundamentals right, and often it’s just a few…
Even if you’re not ready to sell your business just yet, or your retirement is years away, planning and preparing your business for sale should start today. Having a sale-ready business puts you in a position of strength and ready to capitalise on opportunities as they arise.
The ATO has extended (again) the ability to utilise the “shortcut rate” for claiming home office running expenses to 30 June 2021 (it previously only applied until 31 December 2020). The ATO’s guideline allows certain taxpayers to claim a fixed rate per hour (80 cents per hour) for most additional running expenses incurred when working…
The JobMaker Hiring Credit is being administered by the ATO and provides a wage subsidy payment directly to employers as an incentive to employ additional job seekers aged 16 to 35 years. Registrations for the JobMaker Hiring Credit scheme opened on 7 December 2020, and claims for the first JobMaker period can be made from…
The ATO has announced it will engage in the following data-matching programs: It will acquire motor vehicle registry data from state and territory motor vehicle registry authorities for 2019/20 through to 2021/22, with records relating to approximately 1.5 million individuals to be obtained each financial year; and It will acquire data on Australian sales made…
The Government has provided an update of a number of new measures which came into effect from 1 January 2021, including (among others): The most significant changes to Australia’s insolvency framework in 30 years, which are intended to reduce costs, cut red tape and help more small businesses recover from the pandemic. The reforms introduce…
If you want your business to remain relevant and continue to grow, it’s time to be proactive … and in our experience it’s often small and easy-to-implement actions that can significantly improve your business success (and personal prosperity). Here are THREE key considerations for business owners that can help your business remain relevant now and…
If you are struggling to manage your personal financial affairs, your savings have stalled or you’re feeling you’re not getting ahead financially, it’s time to take back control. Here we explore the important matters of personal cashflow and debt management.
With the “new normal” continuing to evolve in Victoria, most business owners are feeling frustrated or concerned by the lack of certainty the future holds. We’re living it too and understand the significant challenges and stress you may be experiencing. Our focus for the next few months is to help and support our clients through…
Many businesses have experienced significant challenges during COVID-19 and many business owners have been personally and financially impacted as a result. There’s no doubt about it, the past few months have been tough. We want you to know we’re here to help with proactive strategies for both you and your business. Read responses to the…
There is a big difference between tax planning and tax return preparation. Tax planning is proactive, and highly recommended as advance planning can make it possible for business owners to effectively minimise their tax obligation, and importantly, pay no more tax than they need to.
JobKeeper is a Federal Government subsidy paid to eligible businesses effected by COVID-19 to cover the costs of their employee’s wages. Affected employers will be able to claim a fortnightly subsidy payment of $1,500 per eligible employee from 30 March 2020, for a maximum period of 6 months. This full amount of $1,500 must then…
The Prime Minister has announced a $17.6 billion stimulus package to support business, households and the Australian economy against the impact of coronavirus. Key immediate measures to stimulate the economy include:
While the sale of your business may contribute to a large portion of your retirement savings, incomes in retirement can come from a number of different sources which may vary over time depending on market conditions and your personal circumstances and investment strategy. So, before you hang out the ‘For Sale’ sign, there are some…
Like many business owners, you have spent years fully invested in your business, personally and financially, and as you nudge closer towards retirement, you may be starting to worry about your super and life after business. If you are selling your business, CGT concessions could help you boost your super.
Changes introduced by the ATO and Xero may affect how you conduct your bookkeeping practices. The ATO Business Portal is being updated and from the end of March, AUSkey will no longer be available. Xero is also introducing a new software program included as part of the Starter, Standard and Premium Plan subscriptions.
The ATO can disclose certain business tax debt information to external credit reporting bureaus, following the enactment of legislation in late 2019.
The ATO will automatically defer lodgments and payments for taxpayers living in identified bushfire impacted postcodes, meaning income tax, activity statement, SMSF and FBT lodgments are deferred until 28 May 2020.
Treasury has released its Mid-Year Economic and Fiscal Outlook for 2019/20, forecasting a surplus of approximately $5 billion.Other tax-related measures incude a discretion for taxpayers to undertake a record-keeping course and a new third party reporting regime for businesses operating in the sharing economy, such as Uber and Airbnb.
The ATO data-matching program is seeking policy information from insurance companies about taxpayers who own marine vessels, thoroughbred horses, fine art, high value motor vehicles and aircraft.
If concerns about cashflow, funding new ventures, selling your business or general worries about your business performance are keeping you awake at night, you may feel like your business is managing you, rather than you managing it. A properly prepared business plan is among the most effective ways to reduce stress and take control of…
If you’re dissatisfied with your industry or retail fund or it’s just time to re-evaluate your superannuation strategy, you might be considering a self-managed super fund (SMSF). While a SMSF may offer greater control of your retirement savings and more flexibility when it comes to investment options – including property – they also come with…
“My business has made a profit and yet I’m not seeing it… Where does all the money go?” This is one of the most common questions that business owners ask and it’s often a symptom of deeper cashflow or operational concerns. If you’re not sure where the money in your business is going, you are…
As a business owner, it’s likely you have spent many years building a solid business, but perhaps you have shown less discipline when it comes to paying yourself a regular salary, contributing to super and investing for your future. If you are considering building personal wealth for your life beyond business ownership, we can help.…
If you want to make the most of tax efficiencies or avoid an unexpected tax bill you might need to change the way you think about tax – Tax planning should start in July. Business owners commonly pay more tax than they need to by leaving their tax planning until the last minute. You can…
As of 1 July 2019, Taxable Payments Annual Reports (TPAR) will affect the following industries: Road freight IT Security TPARs were first introduced into the building and construction industry from 1 July 2012. Entities with ABNs need to report to the ATO information about the payments that they make to contractors for services. The policy…
There has been a recent spike in the number of scammer cases in relation to the Australian Taxation Office (ATO). Scammers and malicious actors continually adapt their activities and use technological advancements to help them mimic the ATO’s interactions. They have two main objectives, to get you to: pay money divulge personal information or credentials.…
The outcome of this weekend’s Federal election could have serious implications for your business and personal financial future, specifically: The amount of personal income tax and Medicare levy you will pay; The amount of capital gain that will affect your personal tax; Your ability to convert excess franking credits into cash refunds; How trust distributions…
How to “cap” the tax on trust distributions using a “bucket company” – SAVE TAX! In the lead-up to 30 June 2019, we want you to know why using a “bucket company” can be a great strategy for saving tax on trust profits distributed. PROFITS FROM A TRUST? Do you have a Trust that generates…
Avoid Extra Tax by making your Trust Distribution Resolutions before 30 June 2019! Do you have a Discretionary Trust (also known as a Family Trust)? If yes, you MUST keep reading! In the lead-up to 30 June 2019, we want you to be aware that you need to complete your trust distribution resolutions before 30…
Your accountant is most likely your greatest business asset, and yet one which is often underutilised. As a business owner, you trust your accountant to efficiently prepare your tax and annual statements, tax returns (individual, company and/or SMSF) and BAS. However, if you limit your accountant’s input to tax and compliance services, you could be…
If you are looking to transition to retirement or exit your business in the next few years, you need to start planning now. There are many options for business succession, but ultimately a smooth business exit that achieves maximum value for your business and enhances your personal prosperity, requires professional guidance and the benefit of…
What is Single Touch Payroll (STP)? Single Touch Payroll is a Government initiative that will change the way you report on your payroll to the ATO from 1 July 2019. Under Single Touch Payroll (STP), all businesses will report on salary and wages, pay as you go (PAYG) withholding and superannuation directly to the Australian…
Your dream of flexible hours and time with family may be a distant memory now that the realities of being a business owner have taken over. If you haven’t addressed issues affecting your business for a while or you just know it’s time to seek out proactive advice that extends beyond legal obligations, the beginning…
The very nature of being a business owner or director puts you in a position of risk, and without advice, your personal (and business) assets could be at risk. Even if you have a Company business structure or other entities such as trusts in place, as a director you can still be subject to personal…
There is a worrying trend when it comes to Australian business owners planning for their retirement and personal financial future beyond life as a business owner.
Robinson Voss Partners has been shortlisted for the prestigious 2018 Optus My Business Awards to be announced later this year.
If you have a niggling feeling that your business set up may not be in your best financial interests, it’s probably time to review your structure.
Business owners commonly pay more tax than they need to. One small mistake can lead to BIG tax consequences for your business, yet all it takes is a little planning to avoid paying more than you should.
For the best possible outcomes for your business, preparation for tax time should start before the end of the financial year. For the 2017/18 financial year, this means now.
MEASURING your performance and gaining a clear UNDERSTANDING of your business financials and defining the goals you have for your business, provide the tools necessary for creating your STRATEGY for business success. However, a STRATEGY without TAKING action achieves nothing. Here’s how we can help you to TAKE the actions you need to transition from…
When operating on gut instinct rather than real-time financial data, it’s easy to become lost in your day to day business operations and lose sight of the big picture. The unfortunate truth is that the bigger the business, the bigger the stresses for the business owners.
You have your financial statements in place, right? You may even have an easy to read dashboard highlighting everything you need to know on one page. But do you really know how to read these figures and what they are telling you about your business?
The management and accounting systems you implemented when you first started your business may no longer be appropriate for your needs today. Without real time figures and information, running your business is equivalent to flying blind.
You started on drive and passion and over the last decade or so you’ve built a sound business. But now you may be thinking more about the future – growing your business, selling your business or planning your own future beyond being a business owner.