Taxpayers can start lodging their tax returns With millions of pieces of information now pre-filled (including information from most banks, employers, government agencies and private health insurers), the ATO is giving taxpayers with simple affairs the ‘green light’ to lodge their tax returns. Taxpayers who plan to claim deductions this year should make sure they have the correct records, and, in most cases, “a bank or credit card statement (on…  Read more

ATO’s tips for correctly claiming deductions for rental properties Taxpayers who have work done on their rental property should consider the following factors in determining claims for expenses. Repairs and general maintenance are expenses for work done to remedy or prevent defects, damage or deterioration from using the property to earn income.  These expenses can be claimed in the year the expense occurred. Initial repairs include any work done to…  Read more

  ATO’s ‘main residence exemption tips’ The main residence exemption needs to be considered in a variety of situations when a taxpayer sells a property they have lived in.  The ATO hopes that the following tips will help in this regard: Taxpayers should consider if they have started earning income from their home (in which case they may need to get a market valuation for CGT purposes). When renting out…  Read more

ATO’s three focus areas this tax time The ATO will be taking a close look this ‘tax time’ at the following common errors made by taxpayers: Work related expenses: Taxpayers using the ‘revised fixed rate method’ of calculating a working from home deduction must have comprehensive records to substantiate their claims, including records that show the actual number of hours they worked from home, and the additional running costs they…  Read more

How to claim working from home expenses Taxpayers who have been working from home this financial year, and who consequently incurred work-related expenses, have two ways to calculate their work from home deduction: the actual cost method; or the fixed rate method. Using the fixed rate method, taxpayers can claim a rate of 67 cents per hour worked at home. This amount covers additional running expenses, including electricity and gas,…  Read more

Super contribution caps to rise The big news story for those contributing to super is that the contribution caps are set to increase from the 2025 income year. The concessional contribution cap will increase from $27,500 to $30,000. This ‘CC’ cap is broadly applicable to employer super guarantee contributions, personal deductible contributions and salary sacrificed contributions. The non-concessional contribution cap will increase from $110,000 to $120,000. This ‘NCC’ cap is…  Read more

Government announces changes to proposed ‘Stage 3’ tax cuts Despite previous assurances, and after much speculation, the Government has announced tweaks to the ‘Stage 3’ tax cuts that will apply from 1 July 2024. More particularly, the Government proposes to: reduce the 19% tax rate to 16%; reduce the 32.5% tax rate to 30% for incomes between $45,000 and a new $135,000 threshold; increase the threshold at which the 37%…  Read more

ATO warning to SMSFs: “Paying the price for non-compliance” There are various courses of action available to the ATO when trustees of self-managed super funds (‘SMSFs’) have not complied with the super laws, including applying administrative penalties. A number of factors determine the amount of the administrative penalty, including: the type of contravention; when it occurred; and the number of penalty units that apply. For example, if an SMSF contravenes…  Read more

Director ID deadline is approaching The Government has launched an awareness campaign to help company directors get their director identification number (‘director ID’) as the 30 November deadline approaches. A director ID is a unique 15‑digit identifier that a company director will apply for once and keep forever.  Director IDs are administered by the Australian Business Registry Services (‘ABRS’), which is managed by the ATO. All directors of companies registered…  Read more

Are you aware that, if your business employs workers in Queensland, it is a legal requirement to insure them against workplace accidents by taking out an accident insurance policy with WorkCover Queensland? If one of your workers is injured at work, they can apply for workers’ compensation no matter who or what caused their injury. An accident insurance policy is peace of mind because it covers employers in the event that a worker…  Read more

As expected, this year’s second Federal Budget had a strong focus on families, education, health and aged care, energy and affordable housing. From a superannuation perspective it has been a relatively quiet Budget but there were some welcome announcements that will benefit SMSF members funding their retirement. Please remember the following budget announcement are not yet law. Reducing the eligibility age for downsizer contributions The eligibility age to make downsizer…  Read more

On 25 October 2022, Treasurer Jim Chalmers handed down an updated 2022/23 Federal Budget, the first for the Albanese Labor Government. 1.  Providing certainty for unlegislated taxation and superannuation measures The Government has announced it will not proceed with certain legacy tax and super measures that were announced but not legislated by the previous Government, including the following: The 2018/19 Budget measure that proposed changing the annual audit requirement for…  Read more

Photo By Headway More COVID-19 business grants are now tax-free The Federal Government has expanded the list of State and Territory COVID-19 grant programs that may be tax-free to eligible businesses. A State or Territory Government COVID-19 grant payment will generally be tax-free if: the payment is received under a grant program that is formally declared to be an eligible program; the recipient carried on a business and had an…  Read more

Foreign resident capital gains withholding (FRCGW) applies to real property disposals where the contract price is $750,000 or more.   The foreign resident capital gains withholding (FRCGW) rate is 12.5%. Once withheld from the sale price, you can only get it back once you lodge your tax return. Depending on the timing of the sale, you may be waiting for this money for months. If you sell property for let’s…  Read more

You’ll have an extra step to take if you have new employees who start from 1 November 2021 and they don’t choose a super fund.   You may now need to request their ‘stapled super fund’ details from the ATO.   A stapled super fund is an existing super account of an employee that follows them as they change jobs. This change aims to stop your new employees paying extra…  Read more

You have until 16th November to apply for the QLD COVID-19 Business Support Grants!   Who can apply for QLD COVID-19 Business Support Grants? To be eligible, your business or not for profit organisation must: employ staff (employees must be on your payroll and does not include any business owners) have an Australian Business Number (ABN) continuously held from 30 June 2021 be registered for GST have Queensland headquarters (i.e. your principal…  Read more

Who can apply for VIC Small Business COVID Hardship Fund grant? To be eligible, businesses must: be located within Victoria as a direct consequence of COVID-19 restrictions since 27 May 2021 have experienced a reduction in turnover of at least 70% for a minimum consecutive two-week period comparable to a benchmark period in 2019 have an annual Victorian payroll of up to $10 million in 2019-20 on an ungrouped basis…  Read more

Only couple of weeks until the applications for NSW Covid-19 Business Grant close! Who can apply for NSW Covid-19 Business Grant? Funding is available to support businesses, sole traders and not-for-profits that have experienced reduced demand or have had to close due to the public health orders. It will support businesses with cash flow for the first 3 weeks of the Greater Sydney lockdown, which started on 26 June 2021.…  Read more

With the end of the financial year fast approaching, now is the perfect time to make some final checks and ensure everything is in order for your SMSF before 30 June. The following are some matters that you might want to know more about, particularly if you have taken advantage of some of the COVID-19 relief measures. If there is anything in this paper that you are unsure about, we…  Read more

Boutique Firm 2021 Finalist Superannuation Specialist Accountant 2021 Finalist The Australian Accounting Awards recognises and acknowledges the achievements of individuals and firms whether they are in the profession’s most senior ranks or if they’re a rising star within the industry and rewards them with a prestigious and highly sought-after accolade and national exposure for their contributions. The 2021 awards will be like no other, shining a light on the professionals…  Read more

Ella And Jett Hold Record Xero Certified Courier Mail Two Brisbane children aged 10 and 9, have broken the world record to become the youngest humans ever to become Xero accounting certified. While other kids their age were turning to games, movies and play over the summer, maths whiz Ella King, 10. and her brother Jett, 9. decided they’d follow in their accounting parents’ footsteps to qualify as Xero advisors.…  Read more