ITax Accounting & Business Services: Greg Allan in Hallett Cove, South Australia | Business consultant

ITax Accounting & Business Services: Greg Allan

Locality: Hallett Cove, South Australia

Phone: +61 8 8322 1900

Address: 9 Yilki Court 5158 Hallett Cove, SA, Australia

Website: http://www.itaxaccounting.com.au

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25.01.2022 The Federal Government recently announced the JobKeeper Payment scheme, which is designed to assist employers (and self-employed individuals) affected by the Coronavirus pandemic to continue to pay their workers. Many employers have already contacted employees affected (including those who have been stood down without pay) to inform them that the employer will register for the JobKeeper scheme. In some cases, employers have also contacted employees who had recently lost their...Continue reading

25.01.2022 Tax saving tips 11 to 15 as we head toward the end of the financial year - Look into income protection: Investing in income protection not only provides peace of mind that your family is taken care of should anything happen to you, but you can also claim it as a tax deduction.... Take advantage of depreciation: Review your depreciation schedule for obsolete items and write them off completely. Delay deriving assessable income: Where appropriate, and if it wont adversely affect your cashflow, consider deferring some of your assessable income until after 30 June. Generally, income under a cash basis is considered to be earned when the payment has been received Complete a stocktake: Review your stock valuation and write off any stock that is damaged or obsolete. Complete a stocktake and remember that stock can be valued at the lower of cost or net realisable value. Are you taking advantage of tax rebates?: Make sure you take advantage of all applicable tax rebates available to you. There are different rebates that may apply, including medical expenses, spouse super contributions, and educational rebates.

24.01.2022 The tax office will visit 10,000 businesses over the next 12 months as it looks to educate and send a strong message to businesses operating in the black economy. As part of the $318.5 million federal budget funding boost to the ATO to implement new strategies to combat the black economy, the Tax Office will be authorising mobile strike visits to 10,000 businesses in 30 locations across the country. The locations will include 10 metro, 10 regional and 10 remote areas.... Already this year, weve contacted over 3,000 businesses in six locations from Cairns to Canberra, also Darlinghurst, Surry Hills, Bunbury and Busselton, said ATO deputy commissioner, Deborah Jenkins at the IPAs National Congress. Currently, were visiting businesses in Box Hill, Adelaide CBD, and Broadbeach, and soon we will visit Alice Spring, Darwin, Katherine, Launceston, Geelong and Wollongong. Our mobile strike team visits provide real visibility of the ATO within the community and it positively impacts on small business and community perceptions, she added. It supports our commitment to protecting honest businesses that are being undermined by their competitors who get an unfair advantage when they dont report all of their income and it sends a strong message to those who are deliberately doing the wrong thing that there is a high risk of being detected.

24.01.2022 Previously, the Taxable Payments Reporting System was confined to the building industry. Its now being expanded to cleaners and couriers... https://www.youtube.com/watch?v=8N3Ue3quj9Y

24.01.2022 Top tax time myths for 2020: Bank details dont update themselves: While the ATO receives information from banks, this doesnt extend to updating details for the bank account you nominate to have your refund deposited into. Many people forget to update bank details and delay their refund.... Its not okay to double dip: Some taxpayers may double dip by claiming their working from home expenses using the all-inclusive shortcut method while also claiming for specific items such as laptops or desks. Its important to remember that if youre claiming under the shortcut method, you cannot claim a separate additional deduction for any expenses you incur as a result of working from home Home to work travel is not claimable: Generally, most people cannot claim the cost of travelling from home to work unless you are required by your employer to transport bulky tools or equipment and there is not a safe place to store these at your workplace. If you are working from home due to COVID-19, but need to travel to your regular office sometimes, you still cannot claim the cost of travel from home to work as these are still private expenses. You cant just claim $300 or $299 if you had no expenses: Often people claim a deduction despite not purchasing anything because they thought everyone is entitled to claim $300. While you dont need receipts for claims of expenses up to $300 but you must have actually spent the money and be able to show the ATO how you worked out your claim. Work-related expenses need to be work related: You can only claim for expenses that are directly related to earning your income. If you are in a job that require physical contact or close proximity to customers and had to buy your own hand sanitiser, gloves or masks for use at work, that they can claim these items. For example, people who are working from home cant claim these items and a high work from home claim together with a large claim for protective items may trigger a red flag and slow down your return. People also cannot claim for the costs of setting their children up for home schooling. These costs are private expenses. Lodging earlier doesnt always mean getting your refund earlier: Each year the ATO automatically includes information from employers, banks, private health insurers (and this year JobKeeper for employees and JobSeeker amounts) in peoples returns. For most people this information is ready by the end of July. Since leaving out income can slow your return down, if you are lodging before we have automatically included this information for you, its really important that you ensure you include all of the information.

23.01.2022 12 password mistakes that hackers hope youll make Passwords are supposed to keep us safe, but they can be an open door for hackers to attack our finances and identity. Heres how you can protect yourself Choosing an easy-to-guess password too easily hackable!... Not including enough numbers and special characters makes the password fairly unique! Using the same password for multiple sites - hackers can log into other sites using the same email and password! Never changing your passwords at least change passwords to affected services! Creating a password thats too short - makes passwords easy to both online brute-forcing as well as offline hash cracking Ignoring data-breach news - Data from breaches gets distributed to the bad guys. Change passwords when you hear a site you use is breached! Opting for impossible-to-memorise passwords having to write it down somewhere!! Storing passwords in places that arent secure use a password manager, not your notebook! Slightly modifying your password - research shows that modifying passwords slightly is extremely common and also very predictable Using malicious password generators - Hackers with malicious intentions can set up such websites to lure users to select good, quality passwords while they are caching the generated password Choosing passwords you cant remember - There are many different passwords a user could create simply from a nursery rhyme that has nothing to do with your family, pets, dates, or locations and can be easy to remember. J&JwUth3H1ll or J4ckAJ1llwUptH1!! Not using a reputable password manager Dont use a you save to your computer called passwords!

22.01.2022 The Governments recently passed tax package paves the way for an individual tax cut ranging between $255 and $1,080, depending on how much a taxpayer earns. The Governments low and middle income tax offset, which was lifted from $530 to $1,080, covers about 70% of taxpayers earning up to $126,000 a year. The offset is calculated on individual income not household income. Individual taxpayers earning below $37,000 will get up to $255 in tax relief. Those earning between $37,...001 and $47,999 will get back $255 plus 7.5% above $37,000 (so thats relief between $255 and $1,080). Taxpayers earning between $48,000 and $90,000 will receive the maximum tax relief of $1,080. Taxpayers earning between $90,001 and $126,000 will get relief of $1,080, but minus 3% above $90,001 (so between $1,080 and zero). People earning more than $126,000 will not receive any tax relief Because its a tax offset, this means you have to lodge a tax return for 2018/19 in order to receive the money. If you have already lodged a tax return, the Australian Taxation Office will automatically process the refund for you

21.01.2022 Smartest ways to use your tax refund New data from the Australian Taxation Office shows more than 4.1 million refunds have been issued so far, averaging $2484 each. The average refund delivered in 2019 was $2464. Using a tax refund wisely is more important than ever because of economic uncertainty.... Planning advisers say your top refund priority should be creating a cash buffer for emergency funding should the Coronavirus hit even harder. Any sort of cash buffer will be a massive help if things turn bad, such as you lose your job or there’s cashflow issues if JobKeeper gets switched off. Work out what would be the minimum level of cash that would make you feel comfortable and allow you to sleep well at night. Paying down high-interest debts such as credit cards can deliver a big bang for your buck. With average interest rates near 20 per cent for credit cards, the reduced debt delivers an effective 20 per cent financial return. Superannuation contributions are another way to multiply the benefits of a tax refund. Consider making a tax-deductible contribution to super. A $1,000 deductible contribution could increase your refund next year by $340 although you do lose $150 tax in the fund. Or consider a co-contribution to super if you put in $1000 you could get up to $500 additional tax refund depending on your income level. Even a contribution of $1,000 to your spouse’s super if she earns less than $37,000. That could give you an extra refund next year of $540 and the contribution isn’t taxed in her fund.

21.01.2022 Top tax time myths for 2020: Bank details don’t update themselves: While the ATO receives information from banks, this doesn’t extend to updating details for the bank account you nominate to have your refund deposited into. Many people forget to update bank details and delay their refund.... It’s not okay to double dip: Some taxpayers may double dip by claiming their working from home expenses using the all-inclusive shortcut method while also claiming for specific items such as laptops or desks. It’s important to remember that if you’re claiming under the shortcut method, you cannot claim a separate additional deduction for any expenses you incur as a result of working from home Home to work travel is not claimable: Generally, most people cannot claim the cost of travelling from home to work unless you are required by your employer to transport bulky tools or equipment and there is not a safe place to store these at your workplace. If you are working from home due to COVID-19, but need to travel to your regular office sometimes, you still cannot claim the cost of travel from home to work as these are still private expenses. You can’t just claim $300 or $299 if you had no expenses: Often people claim a deduction despite not purchasing anything because they thought everyone is entitled to claim $300. While you don’t need receipts for claims of expenses up to $300 but you must have actually spent the money and be able to show the ATO how you worked out your claim. Work-related expenses need to be work related: You can only claim for expenses that are directly related to earning your income. If you are in a job that require physical contact or close proximity to customers and had to buy your own hand sanitiser, gloves or masks for use at work, that they can claim these items. For example, people who are working from home can’t claim these items and a high work from home claim together with a large claim for protective items may trigger a red flag and slow down your return. People also cannot claim for the costs of setting their children up for home schooling. These costs are private expenses. Lodging earlier doesn’t always mean getting your refund earlier: Each year the ATO automatically includes information from employers, banks, private health insurers (and this year JobKeeper for employees and JobSeeker amounts) in people’s returns. For most people this information is ready by the end of July. Since leaving out income can slow your return down, if you are lodging before we have automatically included this information for you, it’s really important that you ensure you include all of the information.

20.01.2022 The ATO is urging taxpayers who receive any foreign income from investments, family members or working overseas to make sure they report it this tax time. New international data sharing agreements allow the ATO to track money across borders and identify individuals not meeting their obligations. This year, the ATO has received records relating to more than 1.6 million off-shore accounts holding over $100 billion and is now using data-matching and sophisticated analytics to id...entify foreign income that has not been reported. Under the new Common Reporting Standard (CRS), the ATO has shared data including information on account holders, balances, interest and dividend payments, proceeds from the sale of assets, and other income. Australians that deliberately move cash overseas in an attempt to hide it should be concerned. Tax havens are becoming a less effective as international agreements improve transparency. You can no longer hide money behind borders. If youre an Australian resident for tax purposes, you are taxed on your worldwide income, so you must declare all of your foreign income no matter how small the amount may be. This may include income from offshore investments, employment, pensions, business and consulting, or capital gains on overseas assets

20.01.2022 MYOB have increased their AccountRight monthly subscription again by 10%. This is 3 years in a row. How do they justify this?? Time to move elsewhere me thinks!

19.01.2022 The Labor Party, if elected, plans to introduce a $3,000 cap on the tax deductibility of fees from accountants. On Friday last week, Opposition Leader Bill Shorten labelled the deduction a rort which favours the wealthy. However, associations like the Institute of Public Accountants, who advocates for the SME community, believe the policy will in fact have an impact on small business and taxpayers in distress.... Simply put, genuine taxpayers are not rorters. They should be seeking the right tax advice from their trusted adviser, the accountant, to make sure they continue to claim their rights and pay the correct amount of tax, said chief executive Andrew Conway. Labors proposed measure is genuinely and obviously a revenue grab. If you cap it at $3,000, the likelihood of a person engaging appropriate tax advice is reduced. This could have disastrous impacts on the community. If you look at the people who are generally deserving of a tax deduction, based on this proposal, they would be unable to access it. This is not affecting the top end of town, its really affecting individuals including small business owners. Footnote: If an accountant completes BAS, tax returns, accounts, administers accounting software, generates documents, acts an an ASIC agent, etc...is that considered tax advice under a $3,000 cap?

19.01.2022 The ATO has updated its guidance on the temporary cash-flow boost offered to small and medium businesses and due to be delivered in the activity statement system from 28 April. Eligible businesses and not-for-profits will receive between $20,000 and $100,000 in cash-flow boost amounts by lodging their activity statements. With the cash-flow boosts due to be delivered as credits in the activity statement system from 28 April 2020, the ATO has outlined the difference in lodging... before or on 28 April. Stressing the importance of timing, the ATO said that businesses that opt to lodge before the due date of their March 2020 quarterly or monthly activity statement will likely see any excess credits they are entitled to applied against outstanding debts with other government agencies. Those that lodge FROM 28 April will see any excess credit from the activity statement that received the cash-flow boost amount refunded, rather than offset against other tax debts. An example describes business owner Ed who has a debt of $2,000 on his activity statement account from a previous period. Ed lodges his March 2020 quarterly activity statement before the due date of 28 April 2020, because he is expecting an excess of $5,000 in GST credits for that period. However, when the lodgement is processed, $2,000 of the $5,000 excess credit is used to pay the outstanding amount on his account, meaning that once the cash-flow boost of $10,000 is applied on 28 April 2020, Ed will receive a total refund of $13,000 the $3,000 excess credit plus $10,000 cash-flow boost. But if Ed lodges his March 2020 activity statement on the due date of 28 April 2020, when his lodgement is processed, the excess credit of $5,000 will not be used to pay the outstanding debt. Some people will be under the mistaken belief that the sooner they lodge their BAS, the sooner they get paid their cash-flow boost. Therefore, they will try to lodge their BAS earlier. For those with ATO debts, this could cause their cash-flow boost to be less.

18.01.2022 Single Touch Payroll (STP) is the new way for employers to report tax and super information to the ATO. It starts from 1 July 2019 for employers with 19 or less employees. Youll report the following information through an STP ready solution - such as payroll software: payments to employees such as salaries and wages pay as you go (PAYG) withholding... super information. The way you pay your employees wont change, however you will be sending the ATO this information each time you pay them. Start reporting any time from 1 July to 30 September 2019. If you cant start reporting by this time, youll need to apply for a later start date. How to get started If you already use payroll software - check to see if it offers STP reporting by talking to your software provider or viewing their website. If you dont use payroll software - you can choose an STP ready solution or talk to your tax professional for advice on the best solution for your business. If you use a registered tax or BAS agent - you can ask them to report through an STP ready payroll solution on your behalf. If you have 1-4 employees - you can choose a low-cost STP solution. Find out more at ato.gov.au/STPsolutions

17.01.2022 Many taxpayers conduct some of their work from home. And it is deductions on these home-based activities over which the ATO is cracking down on hard. The ATO says that record numbers of Australians are now claiming deductions for costs incurred while working from home, but that a high level of mistakes whether intentional or not are causing it to increase attention on such claims this tax season. 6.7 million taxpayers claimed a record $7.9 billion in other work-relat...ed expenses last financial year. This category includes home-based expenses. While extra costs related to working from home are usually deductible there is a lot of over-claiming or claiming private costs, A common one is putting through the entire mobile phone or internet bill, which is a big no-no. Only the work-related components of such expenses are eligible to be claimed. If working from home means sitting in front of the TV or at the kitchen bench doing some emails, its unlikely that you are incurring any additional expenses. However, if you have a separate work area, then you can claim the work-related portion of running expenses for that space To claim working from home expenses, taxpayers must keep supporting records such as receipts, diary entries and itemised phone bills or other records. Even though detailed receipts are not required for phone and internet claims up to $50 per year, its not an automatic entitlement you still need to be able to show how you calculated your claim.

16.01.2022 The Australian Taxation Office (ATO) has revealed it received a record-breaking 15,000 tip-offs to its Tax Integrity Centre in the first quarter of this financial year as the agency continues its focus on the black economy. The top categories of tip-offs the ATO has received so far this year have been about: > Not declaring income... > Demanding cash from customers and/or paying workers cash in hand > Someones lifestyle does not appear to match their income level > Not reporting sales. Assistant Commissioner Peter Holt said the results are not surprising. Were hearing loud and clear that people are sick and tired of this kind of dodgy behaviour. Running a small business can be a really tough gig, and when dishonest competitors are cheating the tax system by operating off the books, its really unfair and makes it even harder to succeed. Its also effectively stealing from the community. So its hardly surprising that so many people have tipped us off about this kind of behaviour so we can investigate and keep things fair for everyone, Mr Holt said. ATO figures show that cafs and restaurants top the list in terms of the total number of tip-offs received in the first quarter this year. Trading in cash and paying your workers in cash is perfectly legal but failing to report the income to the ATO and not paying your workers their entitlements like superannuation is not only illegal but also incredibly unfair.

15.01.2022 The Tax Office says it will be scrutinising every tax return lodged this year as it continues its crackdown on illegitimate claims. The Tax Office contacts around 2 million taxpayers each year to clarify information on their tax return, but said there was nothing to fear if taxpayers had claimed what they were entitled to. If the ATO decide to look a little closer through an audit, you can expect that they will contact you or your tax agent to make further enquiries... The sort of information needed will vary depending on the circumstances. Often the ATO is just looking for an explanation and documentation on a deduction. Other times, they may need to have a more detailed review, usually for more information or evidence to support your claims. With an estimated tax gap of $8.7 billion, the ATO cannot not afford to turn a blind eye to those who were even overclaiming even by a little. The ATOs latest warning comes after taxpayers rushed to lodge early this year to claim the increased low and middle-income tax offset, following suggestions that early lodgers could be susceptible to making errors because of the lack of pre-fill data. If the ATO has been in contact to review your claims and you know youve overclaimed, it is important to be honest and get the matter resolved quickly. Taxpayers are more likely to face penalties if they arent honest with us once the ATO comes knocking. The best way to ensure a smooth audit process is engage with the ATO early and to keep accurate records. Ultimately, do not claim deductions where the money was never spent.

15.01.2022 Typographical, spelling and grammar errors can have unintended consequences as these examples demonstrate, making it important to double-check all business communications prior to publishing:

13.01.2022 The ATO has revealed some of the most outrageous tax deductions that taxpayers have tried to claim: A couple of taxpayers claimed dental expenses, believing a nice smile was essential to finding a job, and was therefore deductible. It isnt and their claims were disallowed Another taxpayer claimed the Lego sets they bought as gifts for their children. Unsurprisingly, this claim was disallowed as personal gifts... One taxpayer tried to claim the cost of raising twins and another the cost of raising three children, while a third simply stated newborn baby [is] expensive One particularly charitable taxpayer tried to claim for a car purchased as a gift for their mother One Australian tried to claim the entire cost of their wedding reception as a tax deduction The ATO highlights the fact that as well as having claims denied, penalties also apply for making deductions that are not reasonably arguable"

12.01.2022 Tax saving tips 16 to 20 of 20 as we head toward the end of the financial year Update your vehicle logbook/s: To ensure youre claiming the most accurate amounts for your motor vehicle expenses.... Know whats on the ATOs watchlist: Each year when it comes to tax time the ATO likes to let Australians know the things its keeping an eye on for that year. So, it pays to be aware of whats on their hit list. Common items are home office expenses, motor vehicle costs, or education expenses. Keep thorough records: The better tax records you keep, the more deductions you can substantiate, and the less tax youll pay. Keeping good records also ensures you can accurately deal with the ATO should they enquire about your tax returns. Start your business exit planning now: If youre thinking about selling your business, its important to start planning now how you might exit your business in the future. Properly planning how to access capital gains tax concessions for small businesses can see you save hundreds of thousands of dollars in tax when it comes time to sell. So, theres no better time to start planning than today. Undertake strategic tax planning with your accountant: Great accountants look at two types of tax planning: short-term and long-term tax planning. Short-term planning looks at what you can do before 30 June to minimise your tax this financial year. Long-term tax planning looks at how you can utilise your business structure to minimise tax, and the type of investments you can make to minimise tax over the long term.

12.01.2022 ATO reminder if lodging tax returns before 31 July 2020: The ATO has reminded individual taxpayers to ensure that their income information is complete if lodging their tax return before 31 July. The ATO says individuals can avoid a tax time "speedbump" by ensuring their income details are complete and finalised before lodging their tax return. One of the main delays at tax time is people lodging before they have all of the information about their income. The ATO often see pe...ople too eager to get a tax refund making obvious mistakes, which can either delay processing the tax return or result in a bill later on the ATO said. While details from income statements are reported electronically by employers directly to the ATO and automatically included by the ATO in an individuals return via myTax, employers do have until 31 July to finalise income statements. Also, information like Centrelink payments, bank interest received, dividends and health insurance can be a number of weeks after the 30th June before becoming available.

12.01.2022 The ATO has identified some common errors when it comes to claiming business expenses in your tax return. You should know that: If you use your motor vehicle entirely for your business, you can claim a deduction for the whole amount. If you use it for a mix of business and private use, you need to apportion the expense and only claim the business portion. The same for claiming GST.... You must keep business expenses separate from private expenses such as private rent, fines, travel, food and renovations of a private residence. Your business expenses must be claimed at the GST exclusive rate if you are registered for GST, not the GST inclusive rate. If you operate as a company or trust, paying private expenses from these accounts may have other tax implications such as fringe benefits tax and shareholder loans. So get it right by satisfying the following three golden rules: The expense must have been for your business, not for private use If the expense is for a mix of business and private use, you can only claim the portion that is used for your business You must have records to prove it.

11.01.2022 6 tips to cut down on business expenses: A new Business Australia poll of businesses with 200 staff or fewer has revealed that 60 per cent of businesses have suffered a drop in revenue during the pandemic, while only 18 per cent experienced a consistent revenue and a slim 9 per cent enjoyed a growth in sales. Business Australia said businesses can trim their costs by following a few simple rules.... Go paperless By going paperless, businesses can reduce how much it costs to send and store mail, as well as their environmental imprint. Compare the best utility prices Much like private consumers, businesses are encouraged to compare prices and switch providers if they offer a better deal on electricity or gas. The average saving is just over $800 per year for businesses. Negotiate hard According to Business Australia, businesses must negotiate towards a better deal. Many suppliers, even landlords, may be able to support businesses through this crisis with extended payment terms, rate reductions or even debt forgiveness. Operate online Business Australia advised businesses to shift business operations to the cloud to save on physical storage space. Look to sell online if you can. Clever marketing Look to earned media, especially through social channels to deliver cost-effective marketing campaigns. Streamline subscriptions Lastly, businesses are encouraged to review and cancel subscriptions they may not need anymore, freeing themselves up of unnecessary costs.

11.01.2022 May 2020 phone scam - requesting bank account details for the JobKeeper payment The ATO is receiving reports of scammers pretending to be from the ATO calling members of the public and asking them to provide their bank account details. They are telling them that their employer has registered them for the JobKeeper Payment, but that the ATO needs their bank account details to deposit the funds into their account. Do not provide the information requested. Employees that are eli...gible for JobKeeper payments will be paid by their employer and the ATO will reimburse their employer for these payments. The ATO does not need the bank account details of individual employees. If you are not sure whether an ATO call is legitimate, hang up and phone the ATO on 1800 008 540 to check. Scammers are constantly developing new ways to steal from the community, and will often try to take advantage of people when they are most vulnerable. You can help stop scammers in their tracks by warning your friends and family to stay alert.

10.01.2022 With the end of the financial year fast approaching, some taxpayers look to lodge their 2019 tax returns in July. The Institute of Public Accountants (IPA) understands that there is a strong incentive to lodge early, but warns that there are two added complexities at play this year. Firstly, Parliament needs to pass the announced increase in the low and middle income offset, which applies for the 2019 income year. Eligible taxpayers can receive up to an extra $530 for sing...les or $1,080 for a couple. The ATO has stated that it cannot process the higher amount until the law is passed, but will be able to automatically amend a return if the law changes after a taxpayer receives their assessment. Secondly, single touch payroll has come into operation. Some employers no longer need to provide a payment summary to employees as this information can now be accessed via myGov, The information available in early July may not be accurate until the employer completes a finalisation process. Until this happens employment income will show a notation tax not ready. Also, third-party data (dividends, interest and share disposals) is progressively uploaded onto the ATO systems during the month, meaning that it normally takes some time for the pre-fill information to be finalised. The ATO also has the right to auto-amend a return for discrepancies. The advice is that unless you have certainty and completeness around the information used to finalise your return, all taxpayers are encouraged to rethink lodging returns early this year, especially in light of the above changes. It also worth noting in regard to work related deductions (WRE), which have come under additional scrutiny prompting the ATO to use tools such as data analytics to highlight possible over-claiming. The tax gap for individuals of $8.7 billion has been largely caused by overstatement of WRE. Random audits have revealed high error rates from both agent and non-tax agent returns. Taxpayers need to be constantly reminded that our tax system relies on self-assessment, so the buck stops with the taxpayer. The IPA advised taxpayers who are unsure of their obligations to seek professional help.

10.01.2022 The government has announced plans to raise the threshold for the instant asset write-off to $25,000 (up from $20,000) and extend it for another year to 2020. It had been due to expire at the end of the current financial year. The write-off will be available for business with an annual turnover of less than $10 million. This is good news for small businesses looking to purchase a new or second-hand asset, such as a vehicle, or major piece of equipment.... The scheme allows small businesses to immediately deduct assets costing less than $25,000 instead of claiming deductions over a number of years and there is no limit on how many assets can be claimed. The move should assist to further stimulate small business investment.

08.01.2022 The ATO is reminding the community about how they can recognise and protect themselves from identity theft and tax related scams and how to report them. Remember that these scams can be by phone or email. It is important to note that the ATO will never: > Threaten taxpayers with immediate arrest, jail or deportation... > Call demanding immediate payment of a tax debt > Ask for payment via vouchers such as iTunes and Google play or Bitcoin > Request a fee be paid to release a refund. If in doubt, contact your accountant or tax agent directly (do not give details to the caller - they are known to fake a call to the accountant) To report a scam or review the alert list of the different types used by scammers, go to: https://www.ato.gov.au//Onl/Identity-security/Scam-alerts/

08.01.2022 The ATO has warned taxpayers that it has identified 5 of the most common errors made when reporting GST. These errors make up more than half of overall corrections made to GST reporting and in most cases, the mistakes are due to taxpayer error. When reporting GST, the ATO says taxpayers should: 1. Make sure the timing is correct, and report for the correct tax period; 2. Check the figures to avoid accidental miscalculations and simple transcription errors;... 3. Ensure they can substantiate their claims for GST credits; 4. Check there is a creditable purpose, as no claims are available re GST for goods purchased for personal use; 5. Make sure taxpayers charge GST when they need to, including businesses that may not realise they will pass the $75,000 GST threshold.

08.01.2022 Two men impersonating federal officers turned up on the doorstep of a victim at Salisbury Downs after a scam call The victim received an automated phone message telling him he had a tax debt and a warrant had been issued for his arrest at 3pm on Monday. The man suspected it was a scam and rang the number back but hung up without giving any details.... About 30 minutes later, two men turned up at the victims Salisbury Downs home and told him he had a tax debt. The pair carried an EFTPOS machine and wore blue jackets emblazoned with Federal Police before identifying themselves as police officers. The victim asked both men to produce identification but the pair ran away. The victim rang ATO and confirmed there was no outstanding debt. No money was stolen in this incident. A warning once again, the ATO does not call threatening arrest not collect money in person from taxpayers. Any such attempt is a SCAM. Dont provide personal details, including financial details, to anyone without first verifying their identity.

08.01.2022 There has been a lot of media hype the potential additional tax refund of $1,080. For those that have done their tax returns and received their refund in the first week, part of the additional refund is already in your tax refund. It explains why most refunds have been higher than usual. Let me explain this as simply as possible: In the May budget, the Government introduced a $530 low middle offset (or rebate). This was passed and you already have that (or part thereof) in t...he 2019 tax return you have just done. If your income was less that $37,000, you would have about $200 extra. From $37,000 to $90,000, you would have between $200 and $530 extra. As part of the election promise afterward, this offset was increased from $530 to $1,080 (or part thereof depending on your income above). So any adjustment to come is the additional amount between $530 and $1,080. So if youre offset was $200, youll get an additional $55. If your income was between $37,000 and $48,000 youll get an additional refund of between $55 and $530 and if your income was $48,000 to $90,000, youll get an additional $530. If you got all your tax back or have a NIL assessment, there will be no additional amount. Please note, if you did your tax refund in the last week or so, the refund on your tax return will probably be higher than your printout to include the additional offset above rather than a separate follow up refund. If you are yet to do your tax, youll get the additional refund of between $255 and $1,080 depending on your income.

07.01.2022 AUSkey closes in nine weeks: From 25 January, myGovID will become the default login option on the Online services although you will still be able to login with an AUSkey until late March. Following the closure of AUSkey in late March, if you have not set up your myGovID, you wont be able to access Online services.... myGovID is a digital identity credential that helps you prove who you are when accessing government services online. It is now available as an app through the Apple and Google Play stores. You can use it with most Apple devices using iOS 10 or above and most Android devices using Nougat 7.0 or above. For most people, setting up myGovID on your compatible smart device should take only a few minutes, but youll need to do it before your practice can move over to the new process. If you havent already, the best time to get your myGovID is now. To prove your identity on myGovID youll need to enter your full name, date of birth, and email address. The email address should belong to you dont use a shared email address. Youll also need any two of these four Australian identity documents: passport, drivers licence, birth certificate or Medicare card. There are a wide range of online resources available to help you make the switch. Familiarising yourself now with the process and making sure you have your own myGovID set up will put you in the best position to make the change before AUSkey retires.

05.01.2022 The ATO has confirmed that it wont turn back JobKeeper applicants with a drop in turnover slightly below 30 per cent if they have made a good-faith estimate that theyre eligible. The ATO second commissioner Jeremy Hirschhorn said that businesses who are overly pessimistic with their estimate, but made it in good faith, wont be punished. According to JobKeeper eligibility criteria, businesses are required to self-assess and determine if they meet the 30 per cent year-on-y...ear turnover decline. But, as the ATO has put it, the best businesses can do is make a reasonable estimate". A reasonable estimate is what is sufficient. If it ultimately turns out that the estimate was overly pessimistic and that a business only went down 29 per cent instead of an estimated 35 per cent, that is OK. He underlined that while there are a range of consequences for people who apply despite not being eligible, when people make a good-faith estimate to comply and a good-faith decision that theyre eligible, the commissioner will be very understanding. This is particularly true where businesses have passed the benefit of the JobKeeper payment to their employees. Speaking also the approach the ATO will take against businesses that do the wrong thing deliberately, ATO COVID-19 taskforce chair Jeremy Geale said that at the end of the day, the program is about helping Aussies suffering financial difficulty. The focus is on people who would be deliberately rorting the system or operators out there in terms of the system. The ATO tip-off line has received information about deliberate wrongdoing. People may wish to, we have a tip-off line, which is 1 800 060 062,or theres some information on our website as well. And if you do feel that people arent doing the right thing, and you would like to report that to us, then please do so, she said.

04.01.2022 ATO identifies incorrect rental property travel expense claims The ATO has identified 26,000 taxpayers who have claimed deductions for travel to rental properties during tax time 2018, despite recent changes to tax laws. From 1 July 2017, investors cannot claim travel expenses relating to inspecting, maintaining or collecting rent for a residential rental property as deductions, unless they are carrying on a rental property business or are an excluded entity. ... The ATO also announced that it will be using sophisticated data analytics to assess a range of other deductions and work-related expenses.

03.01.2022 A number of small businesses could be contacted by the Australian Business Register (ABR) this month as it looks to confirm their entitlement to an Australian Business Number ahead of some key proposed changes. The ABR is set to contact a random sample of close to 8 million active ABN holders across all entity types this month. If contacted, small businesses and their accountants can expect the ABR to confirm their business information, discuss their usage of the ABN, survey ...their registration experience and confirm their entitlement to the ABN. According to the Tax Office, the ABR will not cancel ABNs unless a request is made by the accountant or client. As announced in the federal budget this year, from 1 July 2021, ABN holders will be required to lodge an income tax return. Additionally, from 1 July 2022, ABN holders will need to confirm the accuracy of their details on the ABR annually. Currently, ABN holders are able to retain their ABN regardless whether they are meeting their income tax return lodgement obligation or the obligation to update their ABN details. The new conditions have been touted to make ABN holders more accountable for meeting their obligations.

01.01.2022 The ATO has announced new working-from-home shortcuts, enabling business owners and employees working from home due to the coronavirus crisis a simplified process for claiming deductions. 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 each specific expense. The Australian Taxation Office (ATO) clarified that multiple people living in the same house can claim this new rate, w...Continue reading

01.01.2022 The ATO has advised that it is collecting bulk records from Australian cryptocurrency designated service providers (DSPs) as part of a data matching program to ...ensure people trading in cryptocurrency are paying the right amount of tax. The data obtained will be used to identify the buyers and sellers of crypto-assets and quantify the related transactions and will be matched against ATO records to identify individuals who may not be meeting their reporting obligations. The Commissioner has also lodged a gazette notice setting out the record keeping requirements for cryptocurrency owners and traders. Following the data matching exercise people may be contacted by the ATO and given the opportunity to verify the information collected, before any compliance action is undertaken. People will be given at least 28 days to clarify any information that has been obtained from the data provider.