Qantax in Mascot, New South Wales | Accountant

Qantax

Locality: Mascot, New South Wales

Phone: +61 2 9501 3067

Address: JOY BUILDING 2020 Mascot, NSW, Australia

Website: https://cjleech.tax

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25.01.2022 ITS THAT TIME OF YEAR AGAIN!

25.01.2022 SUPER CONTRIBUTIONS - 2020 YOU COULD CLAIM MORE THAN THE ALLOWED $25K AS A TAX DEDUCTION As many know you are allowed to contribute up to $25,000.00 pa (includi...ng your employers contributions for you) into your super fund. So, if your employer contributes $11,000.00 (super guarantee) you are allowed to contribute an additional $14,000.00 either via salary sacrifice or a lump sum contribution directly to your superannuation fund hence saving tax. Depending upon your circumstances you could contribute more than the allowable $25K and still get a tax benefit and not be penalised. From 1 July 2019 you can carry forward any unused portion of the concessional (tax deductible) contributions cap for up to five previous financial years, if your total superannuation balance is less than $500,000 on 30 June of the previous financial year (2019). Unused concessional contribution cap amounts starting from the 2018/19 financial year may be carried forward in this manner. For example, if your concessional contributions in the 2018/19 financial year totalled $15,000, you could carry the additional $10,000 over to the 2019/20 financial year which means you can contribute up to $35,000 under the concessional cap. Given that super funds have been hit hard it may be worth considering making additional contributions where possible to ride the wave back up as your super fund recovers.

24.01.2022 CENTRELINK PAYMENTS & TAX In these unprecedented times many are applying to Centrelink for assistance and that is something they thought they would never do or have never done. It is important to understand that while the majority of payments are needed for support at the same time they could lead to a tax bill at the end of the year.... While some Centrelink payments are tax free with the main ones being Disability payments and Family Tax Benefits most payments from Centrelink are subject to tax. These include Newstart, Youth allowance and Austudy to name a few. When applying for Centrelink you have the option of choosing if you want your Centrelink taxed or not. If centrelink is your only source of income for the year then there is no need to have your Centrelink taxed. If you have already earned money this year from employment then when you lodge your tax return you will be taxed on the Centrelink payments. If you look at your last payslip you will see your year to date income (YTD). This is how much you have earned since the beginning of the financial year. This figure can also help determine how much tax you will have to pay on your Centrelink payments when lodging your 2020 tax return. This is how much tax including medicare levy you could expect to pay on Centrelink payments per fortnight based on the Covid - 19 payments of $1100.00 per fortnight. Tax YTD less than $ 37,000 - 21% - $231 $ 90,000 - 34% - $374 $180,000 - 47% - $517 There may be some minor offsets available to those who receive Centrelink. These offsets are claimed in your tax return. So your options are get your benefits untaxed and receive a reduced refund or tax bill at the end of the year or ask Centrelink to tax your benefits. Bear in mind that if you choose to have your benefits taxed depending upon the rate Centrelink taxes you and your current tax rate there will still be an adjustment at the end of the year when you lodge your tax return. Below is a link to the Centrelink page that gives options regarding the taxing of your payments. https://www.servicesaustralia.gov.au//paying-tax-ce/29651

23.01.2022 BE CAREFUL CLAIMING MEAL & TRAVEL ALLOWANCES NOT SHOWN ON YOUR PAYG. Probably at the direction of the ATO a few years ago Qantas along with a number of other companies stopped showing tax free allowances for meals and travel on the PAYG. As a result many are of the view that they could no longer make a claim in their tax return for the money spent over and above the allowances they have received. Many also thought if applicable they were excluded from applying the ATO reasona...ble allowances rates. This put a dint in the tax refund for many taxpayers. This is incorrect. If you have spent over and above the allowance paid and you meet the relevant criteria (most do) despite the allowances not being shown on the PAYG you are entitled to claim up to the ATO reasonable allowance or at least claim the additional amount you spent. But be careful! It is not as simple as just adding up your tax free allowances and taking away what you spent or the ATO allowable amount and claiming the difference in your tax return. If you claim the difference as described above in an audit the claim will be disallowed without doubt. For the claim to be successful and allowed in the event of an audit the claim must be made using the correct methodology as described in the relevant rulings. Your accountant should be able to make your claim in the correct manner however it is in your interest to ensure that they do not just claim the difference in your tax return as many do. TAXING TIMES!

23.01.2022 WORKING FROM HOME - NEW COVID 19 METHOD CLAIMING 80c PER WORK HOUR Due to Covid - 19 many are now working from home and are wondering what they can claim....Continue reading

21.01.2022 TEMPORARY EARLY ACCESS TO SUPERANNUATION This post gives basic information on: Eligibility... Timing Method of claiming Amounts available Potential tax strategy The government is allowing those who are eligible and have been effected financially to withdraw $10,000.00 from their superannuation fund before June 30 and an additional $10,000.00 post June 30. These amounts which normally attract at least 30% tax will be tax free. Before applying for the early release you must understand that by withdrawing these funds you will be crystallising the losses made on the amounts withdrawn and these losses cannot be recovered. Of course you also have to address the issues of how much you really need the money as well as what you are going to do with the funds. A few key points to note: Check your eligibility first You will be able to apply online through myGov to access up to $10,000 of your superannuation before 1 July 2020 if you are eligible.. You will also be able to access up to a further $10,000 from 1 July 2020 for approximately three months.. If you only apply for say $5,000.00 and not the full $10,000.00 you cannot go back and claim the extra $5,000.00 later. As you all know there are limits as to how much you can contribute during the year ($25,000.00) and claim a tax deduction for it. When first announced it crossed my mind that some people who are in a healthier situation could withdraw the $10,000.00 tax free then re contribute it before 30 June and get a tax deduction for it saving $3,000.00 plus in tax.. My first thoughts were this strategy would not be possible due to anti avoidance provisions of the legislation however upon reading the documentation put out by the government and it seems it is possible and despite wide public discussions the government have not closed the loop hole.. Below is a link to the governments fact sheet. The fact sheet outlines the eligibility to be able to apply for early release. Those interested in the re contribution strategy I refer you to the last paragraph in the example of "Ed The bar tender" If you are a client please feel free to call me to discuss any financial issues you have including early release of superannuation. https://www.ato.gov.au//withd/early-access-to-your-super/

21.01.2022 REDUNDANCY As the economy slows, company profits fall and concerns over the worlds financial stability grow more and more companies have been offering Voluntary Redundancy (VR) packages. Our national airline Qantas is not immune to the current economic climate and with that it is speculated that around 1200 jobs will be cut from head office. 5,000 were cut by Qantas company wide in 2014 when profits hit an all time low of a $252m loss. ...Continue reading

21.01.2022 QANTAS - INCORRECT PAYG It has become apparent that Qantas has mucked up the PAYG/group certificates. They have incorrectly reported Job Keeper payments as allowances instead of adding the Job Keeper to the total gross payments. This error appeared to mainly extend to cabin crew but over the last few days it has become evident that its has affected engineers and pilots. ... As a general rule this does not change the bottom line however it does give an incorrect starting point for calculating the amount of allowances to be claimed as a deduction. QF are sorting it our with the ATO. If you are affected you have three options: 1) Wait for an amended PAYG from Qantas or 2) Calculate the amount of Job Keeper paid up to June 30 and deduct that figure from the allowance. This will tell you your correct allowances if any or 3) If you do not normally get allowances then do your return as normal. Another year, another QF botch up!

19.01.2022 There is no one in Australia that is not going to be impacted financially one way or the other. Our first big hit was the announcement by Qantas to stand down up to 20,000 employees then our second big hit was tens of thousands of hospitality workers losing their full time and part time jobs. With Qantas and the airline industry (as many of you know) your unions including the ALAEA, FAAA, AIPA and AMWU are working very hard with the airlines to ensure their members get the b...est possible result and are all treated equally and fairly. Its still early days but some engineers are looking at a roster of one month on and one month off, others in regional airports say they only have a skeleton crew, just about all international pilots have been stood down for two months while 90% of domestic pilots have also been stood down. Flight attendants, being aligned with pilots and flights are really feeling the pinch as many do not work full time. The Government is without doubt putting its hand in its pocket to assist individuals who have been affected. This assistance, despite coming nowhere near replacing lost jobs and income, is better than nothing which is the case for many in other countries around the world. The assistance includes: Removing much of the criteria for Newstart allowance. Withdrawing up to $20K from your super tax free. This will be covered in more detail in my next post. A freeze on interest and penalties in respect to any ATO debt Two separate $750 payments to social security, veteran and other income support recipients and eligible concession card holders. The first payment will be made from 31 March 2020 and the second payment will be made from 13 July 2020. The second payment will not be made to those eligible for the Corona-virus supplement. Relaxing some of the rules imposed on banks as a result of the Royal Commission allowing banks to be more flexible in approving loans or increasing the amount of a loan already in place. Also banks will assist by allowing borrowers to freeze their loan repayments as well as tailoring assistance to each individual. Talk to your bank if assistance is required. I encourage my clients to contact me should they have any concerns or questions regarding the current financial situation. Below is a link to the Treasury support document for individuals. https://treasury.gov.au//Fact_sheet-Income_Support_for_Ind

19.01.2022 TAX RETURNS DUE END OF OCTOBER You need to lodge your tax return by the 31 October or risk getting fined. If you use the services of an accountant then most accountants have special lodgment schedules and can lodge returns for clients later than the 31 October deadline.... BAS returns and Instalment Activity Statements were due yesterday.

16.01.2022 AUSSIE EXPATS BEWARE CGT main residence changes for expats passed by Senate means that expats living overseas only have a short time until 30 June 2020 to sell... their former family home and still claim the exemption, especially if they have been overseas for less than 6 years and can therefore generally make the sale completely tax-free ... The law basically eliminates the CGT exemption for Australian expatriates that has been in place since September 20, 1985. It means that potentially thousands of Australians will be hit with capital gains tax if they sold their property while a resident overseas, and the tax bill will date back from the time the owner purchased their home, not the point at which they moved overseas. For someone who purchased in the late 1980s, that could mean a very large tax bill. But under the law, foreign residents who already held property on May 9, 2017 will be able to claim the CGT main residence exemption, if they sell their property on or before June 30, 2020. If you are an expat selling pre 30 June could save you hundreds of thousands in tax. This only leaves four weeks but remember for CGT purposes it is based on the date of EXCHANGE and not settlement. So there is time! If you are an expat living overseas I suggest you contact your accountant for clarity on the matter.

15.01.2022 CAN LEAVE EFFECT YOUR JOBKEEPER PAYMENT Below is a PM i received as well as my commentary. The author is a delegate with one of the unions that support you all. I also believe the comments are based on comments made to the union or delegates by Qantas... " I was just letting everyone know that they can get future leave already approved back if they no longer wish to utilize this given the job keeper announcement. They need to email allocations and their crew performance manager to get it actioned. As its my understanding you wont be eligible for both payments concurrently as you are not considered stood down " I acknowledge this PM is in relation to cabin crew but I would assume QF policy applies to all .... or am i wrong :) We must acknowledge that if you have a letter standing you down then you are "stood down" . If you are concerned or unsure if possible you may consider not taking your leave entitlements in the next week or two until this matter is cleared up.

14.01.2022 JOBKEEPER PAYMENTS $750 pw How quickly things change. As many would have heard the government this afternoon has announced a job keeper payment for employees.... In essence the government will give $1500.00 per fortnight to your employer to assist them in continuing to pay you your normal wage. If your normal wage is less than $1500.00 per fortnight then you will get $1500.00. See attached link to get the fact sheet and criteria for eligibility. .https://treasury.gov.au//Fact_sheet_Info_for_Employees_0.p

12.01.2022 BUILDING/RENOVATING - $25K GOV GRANT -COVD 19 HomeBuilder is a time-limited, tax-free grant program to help the residential construction market to get through the Coronavirus pandemic. HomeBuilder will provide eligible owner-occupiers (including first home buyers) with a grant of $25,000 to build a new home or substantially renovate an existing home.... Please see link to Fact Sheets below https://treasury.gov.au/coronavirus/homebuilder

12.01.2022 DIVISION 293 TAX Now that many have lodged their tax returns or thinking about it if your "djusted" taxable income exceeds $250K division 293 will kick. Please remember that when the ATO sends you a Div 293 notice you can pay the bill yourself or elect to have your Superfund pay the bill for you. Swings and roundabouts but ultimately it comes down to your availability of cash.

11.01.2022 2020 TAX PLANNING SUPERANNUATION The most important thing to remember is that there is no point in spending money to get a tax deduction, unless its going to... result in something useful for you. While you might not be flush with cash now and able to put large amounts into superannuation, its important that you are aware of what is possible to maximise your super balance and possibly reduce your tax at the same time. Nows the time to review what strategies you can use to minimise your tax before 30 June 2020. The most common super strategies are listed below with a little more detail on each strategy further down. - DEDUCTIBLE SUPER CAP OF $25,000 FOR EVERYONE - CARRIED FORWARD CONTRIBUTIONS - SPOUSE SUPER CONTRIBUTIONS - SUPER SPLITTING WITH YOUR SPOUSE - GOVERNMENT CO-CONTRIBUTION TO YOUR SUPER - SACRIFICE YOUR SALARY TO SUPER - ADDITIONAL TAX ON SUPER CONTRIBUTIONS BY HIGH INCOME EARNERS Div 293 A little more detail: DEDUCTIBLE SUPER CAP OF $25,000 FOR EVERYONE The tax deductible super contribution limit (or cap) is $25,000 for all individuals under age 75. Individuals need to pass a work test if over age 65. To save tax, consider making the maximum tax deductible super contribution this year before 30 June 2020. The advantage of this strategy is that superannuation contributions are taxed at between 15% to 30% compared to typical personal income tax rates of between 34.5% and 47%. CARRIED FORWARD CONTRIBUTIONS Carry-forward contributions are not a new type of contribution, they are simply new rules that allow super fund members to use any of their unused concessional contributions limit (or cap) on a rolling basis for five years. This means if you dont use the full amount of your concessional contribution cap ($25,000 in both 2019 and 2020), you can carry-forward the unused amount and take advantage of it up to five years later. Carry-forward contributions are calculated on a rolling basis over five years, but any amount not used after five years expires. These carry-forward rules only relate to concessional contributions into super, not non-concessional contributions, as they have different caps. SPOUSE SUPER CONTRIBUTIONS You may be eligible for a tax offset of up to $540 on super contributions of up to $3,000 that you make on behalf of your spouse if your spouses income is $37,000 p.a. or less. The offset gradually reduces for income above $37,000 p.a. and completely phases out at $40,000 p.a. and above. SUPER SPLITTING WITH YOUR SPOUSE You can transfer your after tax employer/concessional contributions to your spouses fund if your fund allows it and your spouse meets eligibility. Your spouse must be under 65 and not reached their preservation age. GOVERNMENT CO-CONTRIBUTION TO YOUR SUPER If you are on a lower income and earn at least 10% of your income from employment or carrying on a business and make a non-concessional contribution to super, you may be eligible for a Government co-contribution of up to $500. In 2020, the maximum co-contribution is available if you contribute $1,000 and earn $38,564 or less. A lower amount may be received if you contribute less than $1,000 and/or earn between $38,564 and $53,564. SACRIFICE YOUR SALARY TO SUPER If your annual income is $37,000 or more, salary sacrifice can be a great way to boost your superannuation and pay less tax. By putting pre-tax salary into super rather than having it taxed as normal income at your marginal rate you may save tax. This can be especially beneficial for employees nearing their retirement age. ADDITIONAL TAX ON SUPER CONTRIBUTIONS BY HIGH INCOME EARNERS Div 293 The income threshold at which the additional 15% (Division 293) tax is payable on super $250,000 p.a. Where you are required to pay this additional tax, making super contributions within the cap is still a tax effective strategy. With super contributions taxed at a maximum of 30% and investment earnings in super taxed at a maximum of 15%, both these tax points are more favourable when compared to the highest marginal tax rate of 47% (including the Medicare levy).

10.01.2022 EARLY SUPER WITHDRAWAL EXTENDED The Treasury has announced that individuals who are still financially impacted by the COVID-19 pandemic will have more time to ...apply for the early release of up to $10,000 of superannuation, with the application period extended from 24 September 2020 to 31 December 2020. Treasury said as of last week over 800,000 Australians have dipped into their super for the second time claiming the second amount of $10,000.00.

08.01.2022 YOUR SUPER AND CORONAVIRUS (COVID-19) A number of clients have contacted me asking what they should do with their superannuation. It is important to understand ...that for those whose superfund is still in accumulation and not retirement phase that in most cases their superannuation is invested in what is commonly known as a balanced fund. This simply means that the fund manager spreads your super across different classes of investments. A typical example of a balanced fund is as follows: Australian Equities 28% International Equities 30% Cash 8% Property 8% Fixed Interest 20% Alternative (infrastructure etc) 6% 100% The above mix of investments can and will vary a little between fund managers with some fund managers being a little more aggressive while others a little more conservative. The world equity markets have been heavily spooked by the uncertainty of the Coronavirus resulting in a drop of over 30%. As the virus takes a bigger hold many believe a world recession is likely and as a result the financial markets will continue their downward trend which will take a further toll on everyones superannuation. Bearing in mind if you are in a balanced fund if the market has dropped 30% that does not mean your super has followed. Due to the diversification of your super into various types of investments your fund will only drop in a relative proportion to the market. I would think that some fund managers have lightened their exposure to equities as markets started to drop and in doing so would have reduced losses. As an example I have a balanced fund and despite the market drop of 30% plus my own fund is only down by 12%. So what can you do or what should you do? For most Australians who do not understand the financial markets the advice given by experts is sit tight and ride it out. 100yrs of history shows the markets will recover along with your super and when it does it will jump up almost as quick as it fell. It may take two or three years or so to get back to the levels, pre-Coronavirus outbreak, but the market along with your super will recover. If you withdraw your super now (you must meet relevant criteria to do so) you are crystallising your losses which cannot be regained. This also presents a number of issues in relation to getting money back into super once everything settles down should you wish. With all fund managers you have the right to change the mix of your super to more aggressive or more conservative depending upon your strategy. Some have considered switching the mix of their super to conservative which in essence takes their super out of the equity markets. Their view is the market will drop further and with that they will conserve more of their super and have little or no exposure to the losses in the equity markets. When they think the market has bottomed out, they will then switch to aggressive which means the majority of their super will be in the equity markets and with that they hope to capitalise on the recovery of the market. In theory this strategy can work, however, no one knows really where the bottom is and when the market turns it can rebound very quickly leaving behind those who have conservative investments. Some would say this strategy is for punters! There are a couple of options that some people may consider. In most cases individuals can contribute a non-concessional (non-deductible) amount into their super. They can contribute up to $100K pa or activate the bring forward rule and contribute a one off $300K. Some are now contemplating this strategy of making a large contribution to their super fund once they think the market has bottomed out and in doing so expect to make good returns as their super recovers. As previously indicated, you have to be lucky to pick the bottom of the market but even if it drops a further 10% or you dont make your investment before it rises 10% many believe you will still make a very good return on your investment when the market rebounds. Some are of the view that once the market has dropped to what they believe is the bottom or low enough they will be buying a quality portfolio directly on the market to put away for a few years. Others are taking an educated punt with some good quality shares while others are choosing small and mid-cap stocks which can be riskier but when they will recover, they hope to get a much higher return as many of the mid cap and small cap stocks have been hit harder. A couple of examples are Qantas, Virgin and the Casinos. All hit hard and revenues are predicted to be rock bottom. As a result the share price of these stocks along with many more have crumbled. Once the virus is contained and our borders reopen as normality starts to return shares will increase as revenue and profits start to flow. On Jan 1, 2020 (10 weeks ago) Qantas was trading at $7.11 yesterday it closed at $2.14, Virgin Airlines was $0.15c and closed at $0.06c, Star City was $4.76 and closed at $1.65 while Crown was $13.74 closed yesterday at $5.99. All of the above as well as many more have lost close to 66% of their value since January. For those who dont want additional headaches and stress of investing directly into shares, watching the day to day movements of the markets, changing investment mixes or monitoring a portfolio they should listen to the experts who are saying and I repeat do nothing and sit tight and your super will recover. Certainly one of the few times where for many doing nothing is best! Those on the verge of retirement may have a few more concerns as their super may not recover quickly enough for them. For those people there are a few other strategies that could be considered. These should be discussed with your accountant or financial advisor. In summary for most people sitting tight and riding the wave is the best option. For those who are a little more game there are opportunities to make good money and take advantage of the panic that has hit the financial markets but like any investment its all about timing and choice. This information is intended to be of a general nature and in no way constitutes advice.

07.01.2022 TAX RATES - Centrelink, Jobkeeper Payment or Second Job As you know the government introduced a jobkeeper payment to all qualifying employees of $1500.00 per fortnight including those stood down. Like any Centrelink payments this will have to be taxed by your employer.... If your employer taxes you as a normal employee at the normal job rate then the general exemption will be applied and you will only be taxed $192.00 per fortnight giving you $1308 in the hand. This is all well and good but in most cases when added into your year to date income the tax will not be enough leaving you short and a possible tax bill at the end of the year. If you NEED as much money now to survive then worry about your tax at the end of the year. if you are in a better position you may choose to ask for these payments to be taxed at the second job rate which is just on 30% or $434.00 giving you $1066.00 in the hand. Even this may not be enough if you are on a high income and in this case you could opt to be taxed at the "no tax file number rate"" which is 47% Below is the percentage of tax you should pay if you want to avoid a possible tax bill at the end of the year. YTD less than $ 37,000 - 21% $ 90,000 - 34% - $180,000 - 47% - Please note that due to a number of factors if you are taxed correctly based on the above percentages your tax refund at the end of the year could be larger or smaller in the case of HECS/SUP LOAN

07.01.2022 OVER 50 AND LOOKING TO RETIRE AROUND 60? If you are over 50 and looking to retire in the next 10 years, where possible it is important to get as much money into... your super before retirement. Many do not understand the workings and benefits of superannuation. The two biggest benefits are tax savings as your money goes in and a tax free income/pension when you retire. In simple terms a tax free pension simply means your money stays inside the fund, continues to earn income (typically around 8% to 9% pa) which is tax free then paid to you tax free. Therefore the more money you have in your fund the higher the tax free pension will be giving you a better lifestyle in retirement. Typically, $1.0m in a pension fund will earn you around $80K pa tax free. You do not have to draw the full amount out, however, there is a minimum amount that must be drawn out. If you are under 65 the minimum amount is 4% ($40K rising to 5% ($50K for those aged between 65 and 74. You can also withdraw lump sum payments as you choose. Some of the most common and quickest ways to get money into your fund are as follows: 1) Your employer contributes 2) You contribute either salary sacrifice or post tax and claim a tax deduction in your personal tax return. Note both your contribution and your employers contribution (called concessional contributions) cannot exceed $25K. 3) You can contribute up to $100K pa (non concessional) or contribute a one of $300K (non concessional) 4) if your partner is somewhat younger they can transfer their employer contributions into your fund each year. 5) if you are 65 yo and you downsize your home you can each contribute up to $300K into your fund. All of the above have certain conditions and or criteria that needs to be met and should be discussed with your Accountant/Financial advisor.

05.01.2022 MYGOV SCAM Scammers have set up a fake MYGOV account in an attempt to extract your information and government payments. Please ensure that if you are using MYGOV that you use the correct one which is my.gov.au ... https://my.gov.au/LoginServices/main/login?execution=e1s1

04.01.2022 EARLY SUPER RELEASE ATO LINK WITH MY GOV Many people are needing to access their super early to help with their financial situation. You will be able to do this from mid April via myGov ... To do this you must have a myGov account. Once you have a myGov account you must link the account with the ATO. Linking your myGov with the ATO requires satisfying certain security questions. One Question is providing the bank details on your last tax return. Many of our clients when having their tax prepared chose to have their fee deducted from their refund. These details are on the front page of your copy of the tax return we provided to you. If you are a client and having difficulty identifying yourself to link myGOV to the ATO please call, email or txt me for assistance.

04.01.2022 EARLY SUPER RELEASE/ RE CONTRIBUTION TAX SCHEME The ATO has indicated they are cracking down on those who have intentionally withdrawn their super under the Covid 19 Stimulus and then contributed into their super fund.... This is despite the example on the ATO web page and the treasury document referring to Ed the Bar Keeper who withdraws his super, uses some and contributes the balance back in. From the outset I was surprised this had not been clarified by the ATO in relation to the deductability of the contributions being put back in. I make the following points: The treasury document does not say you can or cannot claim the contribution as a tax deduction. The Law allows you to claim concessional super contributions as a tax deduction. Is this any different and the law does not question where the money came from for that contribution. The ATO maintain withdrawing and then contributing your super is is against the "spirit" of the relief package. Irrespective as to "the spirit" it is legislation the ATO enforce not our morals. I do strongly point out that the tax office, without too much difficulty, can perceive that the actions of withdrawing your super then contributing it back in to gain a tax advantage falls under Part 1VA of the tax act which deals with anti avoidance measures and schemes. Anyone that has withdrawn then made a contribution has the following choices: a) Submitting the ATO form "notice of intention to claim" to your Superfund advising that you are claiming a deduction for the contribution then claiming a deduction in your tax return or b) Not submitting the form to your fund and the contribution will be treated as non concessional which in simple terms means it goes back in without tax consequence. The ATO obviously would like you to opt for option "b". If you claimed a deduction for your super in your tax return and the ATO reviewed your return I suspect the ATO would struggle to apply any penalties given the lack of clarity around the issue. They cannot penalise on the basis of "Spirit" Attached is a link to the ATO web page that deals with this issue. Towards the bottom is an example for Jess the pilot. If you read the wording carefully it talks about a scheme to gain a tax benefit and INTENTION If your INTENTION was to withdraw your super and supplement your income then circumstances changed and there was no need to use some or all of your super (so you have contributed it to the fund) then this is NOT a scheme. And there appears to be no legislation to stop you. However if it was your INTENTION to withdraw and re contribute to gain a tax benefit then this is clearly a part 1VA and not allowed. https://www.ato.gov.au//COVID-19-Early-release-of-super--/

04.01.2022 DECEMBER BAS/PAYG RETURNS DUE SOON For those required to lodge a December Business Activity Statement or a quarterly PAYG you have until the 28th February 2020 to get it in. If the ATO has sent you a PAYG instalment notice based on your 2019 tax return and your circumstances have changed you may be able to vary the instalment down to a lower amount or to nil.... This usually applies to taxpayers that had a one of transaction which could include a capital gain from the sale of shares or property or payments from an Employee Share Scheme/plan.

02.01.2022 ATO IS ON THE BALL WITH REFUNDS The ATO are issuing refunds on average 8 days after lodgement however this year they are right on the ball. In previous years you would get your refund then if something was left out (another PAYG, interest, centrelink payments,health fund info, hecs etc) you would get a letter a few months later asking for some money back.... Now their data matching is right on top of things. Tax returns with ommitted income or info that changes the bottom line are being altered before processing by the ATO and released still within the ATO advertised 14 day turn around with the additional info included. You via My Gov or your accountant via the ATO computer should be able to ensure that all relevant info is put into your return to avoid incorrect tax estimates and delays.

02.01.2022 DIVISION 293 TAX Now that many have lodged their tax returns or thinking about it if your "ädjusted" taxable income exceeds $250K division 293 will kick. Please remember that when the ATO sends you a Div 293 notice you can pay the bill yourself or elect to have your Superfund pay the bill for you. Swings and roundabouts but ultimately it comes down to your availability of cash.

02.01.2022 ATO TAX REFUNDS The ATO are taking around 5 to 8 days on average to release refund cheques/bank deposits. Finally they are doing something right :)

02.01.2022 TRAVEL ALLOWANCES & OVERTIME MEAL RATES The overtime ATO allowable meal rate for the 2018/19 year is $31.25. When paid an overtime meal allowance under an industrial award you may be able to claim up to this amount. When employers send you interstate or overseas they usually pay for your accommodation and pay you a daily rate for meals and incidentals. ... If the rate paid to you by your employer is less than the ATO allowable amount you may be entitled to claim a deduction up to the ATO allowable amount. Eligibility for the claim is outlined in ATO tax determination TD/2019/11 and should be read in conjunction with tax ruling TR2004/06. This typically applies to Airline Employees /Engineers who get paid DTA/ODTA and extends to other employees and occupations in a wide range of industries.

02.01.2022 GOT A BIG TAX BILL FOR 2019 ? If your accountant tells you you have a big tax bill then there is a pretty good chance that in the next three or four months you ...will receive a PAYG notice from the ATO asking you to pay an instalment towards your 2020 tax return. This is on top of the tax bill you have just received for your 2019 tax return. More often than not the amount of the instalment is similar to the original amount of your tax bill. This can stretch the finances leaving you short. Depending upon your circumstances you can have this PAYG instalment varied to nil so you do not have to pay it relieving your financial burden. Your accountant or financial adviser can assist you with the variation if required.

01.01.2022 WORKING FROM HOME - TRAVEL - 2ND JOB It is now over three months since Covid -19 forced many to start working from home. Many are aware of the tax claims they can make in relation to working from home but one claim seems to get overlooked. TRAVEL! For many their home has become their base for employment and as such any travel out from your home for work related matters can be claimed. ... This includes travel into your employers office to retrieve files, attend meetings, see customers or clients or for tasks as simple as going out to buy stationary or computer supplies. You are required to record your Klms travelled or retain receipts for Ubers/Taxis, train tickets or buses fares. Many have also been stood down and have picked up second and third jobs. Travel between jobs is deductible and if you are working from home for your first employer then travel to the second job and home again can also be claimed.