2022-23 Federal Budget Update – A quiet night for SMSFs

Xperion

This year’s Federal Budget cost-of-living relief, job growth and women’s security. The key measures that you should be aware of as an SMSF trustee are outlined below. Should you wish to discuss how these may impact your personal circumstances or retirement plans please contact me to arrange a time to chat.   Extension of the temporary reduction in superannuation minimum draw down rates The Government has extended the 50 per…  Read more

Federal Budget 2020: What it means for you

Xperion

The Federal Budget was released on Tuesday 6th October. This article has a good summary of the “Winners and Losers” of the Budget. You’ll also find a recap of the key points below. Key Points: This budget is based on economic assumptions including that there will be a COVID-19 vaccine rolled out by the end of 2021. Tax cuts for workers – more money in pockets for more Australians. JobMaker…  Read more

Do you have more questions this tax time?

Xperion

What a year! We don’t need to tell you that this year has been “unprecedented”. With so many stimulus packages, support programs, tax changes and business shutdowns this financial year is set to be like we’ve never seen before. First and foremost we appreciate your support and patience as we continue to wade through those programs and what they mean for business owners and individuals. Have a question? We also…  Read more

Payment Summaries have changed

Xperion

Last year’s introduction of Single Touch Payroll (STP) means that tax time this year will be a little different. Employers are now required to report pays, taxes and superannuation information directly to the ATO each payday through STP. Employers that do report this way will not have to give you a payment summary as they usually would at this time of year. Instead, employees will get an end-of-year income statement…  Read more

Employer’s requirements and the deductibility of work related expenses (WREs)

Xperion

Some employees may wonder whether a work related expense (or ‘WRE’) becomes deductible merely because their employer specifically requires the employee to incur the expense. Importantly, the ATO’s recent draft ruling on the deductibility of work-related expenses reiterates that an employer’s requirements do not determine the question of deductibility. Specifically, a number of examples contained in the draft ruling confirm that a work related expense may be deductible without an…  Read more

Corona virus stimulus package

Xperion

The Government has announced its economic response to the Coronavirus in the form of a $17.6 billion economic stimulus package. The package has been marketed as a measure to protect the economy by maintaining confidence, supporting investment and keeping people in their jobs. Whether it will be enough, only time will tell. We have already seen the impact the panic has had on the businesses, especially in travel and hospitality…  Read more

SMS scam targeting natural disaster victims

Xperion

The ATO is warning the community about a new SMS scam which promises an 8% bonus on 2020 tax returns to victims of recent natural disasters. The scam text message says: “Due to natural disasters, Australians are entitled to an 8% bonus on their tax return. Please begin the process by filling out the form below. Link: https://my.gov.verification-digital.com.” ATO Assistant Commissioner Karen Foat said this is a classic case of…  Read more

Valuing car parking fringe benefits

Xperion

Are you looking after your employees and provide them with a car parking benefits? Don’t get caught out by the fringe benefits rules. Where businesses provide car parking fringe benefits to their employees, the taxable value of these benefits must be calculated correctly to ensure they are meeting their fringe benefits tax (‘FBT’) obligations, regardless of the method used. The ATO has advised they may directly contact businesses who have…  Read more

Court confirms ATO’s position on foreign income tax offsets

Xperion

The ATO has welcomed the decision of the High Court to basically uphold the decision of the Full Federal Court in a case which the ATO won, in relation to foreign income tax offsets (‘FITO’). An Australian tax resident had sold some US investments and paid US tax on the gains. The taxpayer was then basically taxed on half of those gains in his assessable Australian income (i.e., the gains…  Read more

Lifestyle assets continue to be an ATO audit target

Xperion

The ATO has revealed it will request a further five years’ worth of policy information from over 30 insurance companies about taxpayers who own marine vessels, thoroughbred horses, fine art, high-value motor vehicles and aircraft. The ATO expects to receive information about assets owned by around 350,000 taxpayers from 2016 to 2020 as part of its data-matching program. This information (provided by insurers) is intended to be used by the…  Read more

ATO debt – disclosed to external agencies, such as banks

Xperion

Following the enactment of legislation in late 2019, the ATO can disclose certain business tax debt (ATO debt) information to external credit reporting bureaus. This information will primarily be used when issuing external creditworthiness reports in relation to relevant businesses, effectively treating tax debts in a similar manner to other business debts. The purpose of allowing the ATO to report ATO debt is to: encourage businesses to engage with the…  Read more

Economic & Fiscal Outlook – MYEFO – 2019/20

Xperion

 Treasury has released its Mid-Year Economic and Fiscal Outlook (‘MYEFO’) for 2019/20 forecasting a surplus of approximately $5 billion.   Proposed new record-keeping course One new tax-related measure of note in the MYEFO was the announcement the ATO would be provided with a new discretion to direct taxpayers (found to be lacking in their substantiation efforts under audit) to undertake an approved record-keeping course, instead of applying financial penalties. This…  Read more

VIC Bushfires – Tax relief measures (state based)

Xperion

Victorian government has announced tax relief for people and local businesses that have been affected by the recent bushfires. The tax relief measures include the following:   Land tax relief on properties that have been affected by bushfires or are used to provide free accommodation for people displaced by bushfires. Land transfer duty (stamp duty) relief for people who need to replace homes destroyed by bushfires. Reduced land transfer duty (stamp duty) on purchases of…  Read more

Making a Division 293 election

Xperion

That’s right! Another tax year is upon us! While we may lodge your return and you may get a nice refund early on, keep in mind that your superfund does not send data to the ATO until later. That means, that if your income is over $250,000 and your employer contributed to your super, your assessment will be amended to include Division 293 and you may be asked to return…  Read more

Continued focus on the cash economy

Xperion

ATO Assistant Commissioner Peter Holt has announced that, in the 2019/20 financial year, the ATO will be visiting a further 10,000 small businesses across the country, including up to 500 small businesses in Tasmania. He further said that businesses that advertise as ‘cash only’ and businesses that are operating outside of the ATO’s performance benchmarks for their industry will be especially targeted for a visit from the ATO. “Businesses that…  Read more

Division 293 assessments

Xperion

Just when you thought you got through the tax hurdle, it hits you… Div293 notices… They are never pretty, they are never easy to explain to clients, the Government keeps changing the thresholds and the tax office keeps changing the means of payments… Let’s just say, they are painful no matter how you look at them… and at the end of the day, you just feel like they are trying…  Read more

Division 293 tax – high income earners

Xperion

What is Division 293 tax? Division 293 tax is the tax paid by high income individuals. It reduces the super tax concession they receive. Since 1 July 2012, high income earners are generally liable to pay Division 293 tax if their income for surcharge purposes (disregarding their reportable super contributions) and their low-tax contributions are greater than $300,000. This is to reduce the tax concession received on concessional contributions from 30%…  Read more