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Stay up to date with Connole Carlisle’s blog series about everything accounting & finance related

YourSuper comparison tool

Are you ready to take control and compare your superannuation fund’s performance against other funds? You might be in luck if you have a MySuper fund as the ATO’s YourSuper comparison tool can help you compare different MySuper products and choose a superannuation fund that meets your needs.

What is a MySuper fund?

A MySuper fund is a low-cost superannuation product and is usually the default account for people who don’t choose their own superannuation fund when they start a new job.

Many large Australian Prudential Regulation Authority (APRA) regulated superannuation funds (ie, retail, industry and corporate funds) can all offer MySuper accounts to members in accumulation (ie, non-retirement) phase.

MySuper funds are simple accounts that generally have the following basic features:

  • Simple investment strategy options – depending on the fund, you will be put into either a single diversified investment option or a lifecycle investment option based on your age
  • Lower fees – you don’t pay for unnecessary features that you don’t need
  • Default insurance options – you can easily opt out of the insurance arrangements if you wish
  • Easy to compare – you can easily compare MySuper funds based on investment performance, cost and insurance.

YourSuper comparison tool

You can find out about and compare MySuper products by using:

  • Your superannuation fund’s product disclosure statement (PDS) for the MySuper product, or
  • The ATO’s YourSuper comparison tool.

If you can’t find your current account type within the MySuper products list, your account may not be a MySuper product. The best way to confirm whether your account is a MySuper product is by contacting your superannuation fund directly.

What the YourSuper comparison tool does

The YourSuper comparison tool can compare MySuper products based on only a few key differences.

In particular, the YourSuper comparison tool:

  • Displays a table of MySuper products ranked by fees and net returns (updated quarterly)
  • Allows you to select and compare in more detail up to four MySuper products at a time
  • Links you to a superannuation fund’s website when you select a MySuper product from the table
  • Can show your current superannuation accounts alongside other MySuper products (if you access the personalised version through myGov)
  • Provides links to help you consolidate your superannuation accounts.

APRA assesses the annual performance of each MySuper product. As such, the investment performance column will provide one of the following results for each fund:

  • Performing – the product has met or exceeded the performance test benchmark
  • Underperforming – the product has not met the performance test benchmark, or
  • Not assessed – the product had less than 5 years of performance history and has not been rated by APRA.

Using the YourSuper comparison tool

To access a personalised version of the tool which allows you to view and compare your existing MySuper products:

  • Log in to ATO online services through myGov, and
  • Go to the Super drop-down menu and select Information, then select YourSuper comparison.

You can also access a non-personalised version of the YourSuper comparison tool without logging into myGov by:

  • Visiting ato.gov.au and search for “YourSuper comparison tool” (or search for QC 66143 on the ATO website), and
  • Start searching for your own MySuper product name.

Need more information?

If you need help comparing your superannuation fund or need assistance understanding how the comparison information relates to your circumstances, we are here to help, so please contact us for further information.

2022-08-03T16:04:37+10:00August 3rd, 2022|

Switching home loans

With interest rates increasing quite rapidly, homeowners are being encouraged to look around for a better deal on their home loan. ASIC has recently released some tips if you are doing so.

Ask your current lender for a better deal

Tell your current lender you are planning to switch to a cheaper loan offered by a different lender. To keep your business, your lender may reduce the interest rate on your current loan.

If you have at least 20% equity in your home, you’ll have more to bargain with. Having a good credit score will also help with negotiations.

Compare any loan they offer you with the other loans you’re considering switching to.

Negotiate the length of the new loan

Some lenders will only refinance with a new 25- or 30-year loan term. You could end up with a longer loan term than the years left to pay off your current mortgage.

The longer you have a loan, the more you’ll pay in interest. If you do decide to switch, negotiate a loan with a similar length to your current one.

Weigh up the cost of lender’s mortgage insurance

If you have less than 20% equity in your home, you might have to pay lender’s mortgage insurance (LMI).

This can increase the cost of switching and outweigh the savings you’ll get from a lower interest rate.

If you decide to switch, ask for a refund of some of the LMI from your current loan.

Multiple comparisons

Get at least two different quotes on home loans for your situation.

Compare the fees and charges

A mortgage broker or a comparison website can help you find out what’s available.

Comparison websites can be useful, but they are businesses and may make money through promoted links. And they may not cover all your options. See what to keep in mind when using comparison websites.

Fixed rate loan You may be charged a break fee if you are on a fixed loan
Discharge (or termination) fee A fee when you close your current loan
Application fee Upfront fee when you apply for a new loan. You can perhaps ask your new lender to waive this in order to get your business
Switching fee A fee for refinancing internally (staying with your current lender but switching to a different loan)
Stamp duty You may be liable for stamp duty when refinancing. Check with your lender

Check if you’ll save by switching

Once you have a short list of potential loans and the fees involved, use the mortgage switching calculator to work out if you’ll save money by changing home loans. It also shows how long it will take to recover the cost of switching by accessing the mortgage switching calculator at www.moneysmart.gov.au

2022-08-03T15:49:45+10:00August 3rd, 2022|

GST Health Check

Now that the financial year has come to a close, it’s a good time to check all things GST.

Registration

If you are not already registered, you may over the coming period need to register for GST if:

  • your business or enterprise begins to have a GST turnover of $75,000 or more per year (gross income from all businesses minus GST)
  • your non-profit organisation begins to have a GST turnover of $150,000 or more.

Even if you are under these thresholds, it may be advantageous to register for GST if you typically end up in a GST refund position each tax period. By registering, this will enable you to claim the GST tax credits on certain purchases rather than missing out on those credits because you are not registered. Talk with us further if you are uncertain around this.

Conversely, if your turnover drops below these thresholds or you are contemplating ceasing business, you may deregister from GST. There are certain consequences that flow from deregistering which we can run through with you.

If you are not registered for GST and therefore cannot claim GST credits on business-related purchases, you can claim the GST as a tax deduction – though this is not as profitable as claiming the credit in full if you were GST-registered.

Unclaimed GST credits

The end of financial year is a good time to check if you have missed claiming any GST credits. For example, you may have come into possession of, or found, tax invoices from prior periods which you haven’t provided to us. Your entitlement to a GST credit ends four years after the due date of the earliest Activity Statement in which you could have claimed the credit.

Reporting period

If your business invariably ends up with GST refunds each tax quarter, consideration may need to be given for you to lodge monthly. This will assist cashflow by bringing forward your refunds – having them paid monthly rather than waiting three months to receive them from the ATO. We can review this with you.

Accounting method

It’s an opportune time to re-evaluate whether your current method is right for your business needs. You can change your accounting method at the start of a new tax period.

Unless you are eligible to operate on a cash basis, you must use the accruals method of accounting. Under the accruals method, you account for the GST collected at the earlier of when the tax invoice is issued by you or when you receive payment for a sale. For GST payments, you attribute your credits to the earlier of the tax period that you made payment, or were issued a tax invoice. Note that regardless of the tax period to which you attribute a credit, you cannot actually claim the credit unless you have a tax invoice at the time of lodging your Activity Statement.

If an entity qualifies to account on a cash basis it will:

  • Claim GST credits on its business purchases in the tax period in which it pays for those purchases. If it pays only part of the cost of a business purchase in a tax period and has a valid tax invoice, it will only claim GST credits for that part of the cost in that tax period
  • Account for the GST payable on its sales in the tax period in which it receives payment. If it only receives part payment for a sale in the tax period, it will account only for the part of the GST payment that relates to that part of the sale in that tax period.

The cash basis is generally more appropriate where an entity does not rely on its circulating capital or consumables to produce supplies. Such entities normally have a less complex structure than those entities more dependent on their circulating capital or consumables. On the other hand, where an entity relies predominantly on circulating capital or consumables to produce supplies, it is appropriate that the entity adopts the accruals basis.

We can advise on whether a change would be beneficial and your business’s eligibility to change.

2022-08-03T15:56:03+10:00August 3rd, 2022|

COVID-19 relief for SMSF trustees now at an end

The ATO has reminded SMSF trustees that the COVID-19 relief and support offered to SMSFs ended on 30 June 2022.

At the peak of the COVID-19 pandemic, SMSF trustees that were financially or otherwise impacted by the recurring and prolonged lockdown periods were granted relief by the ATO.

The relief was offered to SMSFs for the 2019/20, 2020/21 and 2021/22 financial years where certain situations beyond their control may have caused SMSF trustees to contravene superannuation law.

For example, an SMSF trustee may have given tenant/s (including a related party tenant) a reduction in rent if they were financially impacted due to COVID-19. As charging a price that is less than market value will usually give rise to contraventions under the superannuation laws, the relief measures avoided this outcome if the arrangement met certain criteria (ie. the relief was offered on commercial terms and the arrangement was documented, etc).

The relief measures that were available

The table below shows the types of relief SMSF trustees were offered by the ATO.

Actions required for SMSF trustees

As the ATO’s COVID-19 support has ended, the ATO expects:

  • SMSF trustees to now comply with their obligations under the income tax and superannuation laws previously covered by the relief
  • Approved SMSF auditors to report contraventions to the ATO via the Auditor/actuary contravention report (ACR) where the reporting criteria is met.

The ATO has also reminded SMSF trustees to ensure they document any relief they accessed and to provide their approved SMSF auditor with evidence to support their case for the purposes of their annual SMSF audit.

SMSF trustees have also been encouraged to take advantage of the ATO voluntary disclosure service and formulate a plan of rectification should any contraventions occur.

COVID-19 relief available Examples of how superannuation laws could have been breached
SMSF residency relief If SMSF trustees were stranded overseas due to COVID-19 and this caused them to be out of Australia for more than two years, this may have affected the fund’s residency status for tax purposes.
Rental relief Rental relief provided by a SMSF to a tenant in the form of a reduction, waiver or deferral may have breached the superannuation laws.
Loan repayment relief The superannuation laws could have been breached where:
■ The SMSF was the lender and provided loan relief to a related or unrelated party, or
■ Where the SMSF was the borrower and received relief due to the financial impacts of COVID-19.
In-house asset relief Where an SMSF exceeded the 5% in-house asset threshold at 30 June of a financial year due to the financial impacts of COVID-19 and could not execute a plan by 30 June of the following financial year to reduce the market value of the fund’s in-house assets to below 5% because:
■ The market has not recovered in some areas, or
■ It may be unnecessary to implement the plan as the market has recovered.
2022-08-03T15:39:55+10:00August 3rd, 2022|

Wash sale arrangements under scrutiny

The ATO is warning taxpayers not to engage in ‘asset wash sales’ to artificially increase their losses in order to reduce capital gains or expected gains. It cautions that they are a form of tax avoidance.

These arrangements typically involve the disposal of assets such as cryptocurrency and shares just before the end of the financial year where, after a short period of time, the taxpayer reacquires the same or substantially similar assets. This may be a wash sale and is done to create a loss to offset against a gain already derived, or expected to be derived, in certain circumstances, in a tax return.

Wash sales differ from the normal buying and selling of assets because wash sales are undertaken for the artificial purpose of generating a tax benefit for the current financial year. The taxpayer disposes of and quickly reacquires the asset for the deliberate purpose of realising a capital loss and obtaining an unfair tax benefit by offsetting it against a capital gain.

In terms of detection, the ATO states that its sophisticated data analytics can identify wash sales through access to data from share registries and crypto asset exchanges. When the ATO identifies this behaviour, the capital loss is rejected.

Of course, the selling and repurchase of the same CGT asset within a short period of time – resulting in a loss – can in some cases just be as a result of rational investing and not driven by tax. The disposal and acquisition may be explicable by reference to market changes, for instance the improvement in share price, and demand for the stock may also be regarded as consistent with the way in which taxpayers usually hold and realise investments. The disposal and reacquisition within a short period of time may be referable to a change in investor sentiment and market activity. This tends against the dominant purpose of obtaining a tax benefit – see example 6 of ATO tax ruling TR 2008/1.

This ATO ruling states that there is no set period of time between sale and reacquisition in order for a sale to be classed as a wash sale. It will depend on the overall circumstances, as it should. By contrast, in the United States by way of example, there is a 61-day rule. A loss from selling stock or mutual fund shares is disallowed for federal income tax purposes if, within the 61-day period beginning 30 days before the date of the loss sale and ending 30 days after that date, you buy substantially identical securities.

The take-home message is it’s still ok to sell and quickly reacquire shares and cryptocurrency within a short period of time – provided it’s not done to create an artificial loss. This can be a difficult topic to understand, therefore touch base with us if you are selling shares or crypto and are uncertain about how the law may apply. n

2022-08-03T15:41:24+10:00August 3rd, 2022|

ATO focus on rental property income and deductions

Income and tax deductions from rental properties is one of the four key areas that the ATO is focusing on this Tax Time.

The ATO is urging rental property owners to ensure they carefully review their records before declaring income or claiming deductions this Tax Time, and for registered tax agents such as us to ask a few extra questions of our clients who own rental properties. As your registered tax agent, we can only work with the information we gather from our clients, and we know some clients won’t know everything they need to tell us (which is understandable).

INCLUDE ALL RENTAL INCOME

The ATO receives rental income data from a range of sources including sharing economy platforms, rental bond authorities, property management software providers, and state and territory revenue and land title authorities. The amount of data the ATO accesses grows each year, making it easier and faster for them to spot any rental income that you have charged your tenants, but haven’t declared (even unintentionally). When preparing tax returns, all rental income must be included, such as from short-term rental arrangements, renting part of a home, and other rental-related income like insurance payouts and rental bond money retained.

Further, income and deductions must be in line with a rental property owner’s ownership interest, which should generally mirror the legal documents.

GETTING YOUR EXPENSES RIGHT

Not all expenses are the same – some can be claimed straight away, such as rental management fees, council rates, repairs, interest on loans and insurance premiums. Other expenses such as borrowing expenses and capital works need to be claimed over a number of years. Capital works can include replacing a roof, or a new kitchen renovation. Depreciating assets such as a new dishwasher or new oven costing over $300 are claimed over their effective life.

Refinancing or redrawing on a rental property loan for private expenses such as holidays or a new car, means that the amount of interest relating to the loan for that private expense can’t be claimed as a deduction.

If income from a rental property in a holiday location is earnt, it needs to be included in tax returns.

KEEP GOOD RECORDS TO PROVE IT ALL

Records of rental income and expenses should be kept for five years from the date of tax return lodgments or five years after the disposal of an asset, whichever is longer.

Adequate records should demonstrate how the expense was incurred for the rental property and the extent to which it relates to producing rental income. Records must include the name of the supplier, amount of the expense, the nature of the goods or services, the date the expense was incurred, and the date of the document.

2022-08-03T15:34:14+10:00August 3rd, 2022|

Accessing your super early

The key purpose of superannuation is to provide individuals with benefits for their retirement, which is when most people will access their superannuation savings. But, in some cases, individuals may be able to access some of their superannuation early upon meeting certain eligibility rules.

Common conditions of release

A condition of release must be met before you can access your superannuation benefits. The most common conditions of release for paying benefits are when you:

  • Have reached your preservation age and retire (see below for preservation age)
  • Have reached your preservation age and begin a transition-to-retirement income stream
  • Cease an employment arrangement on or after the age of 60
  • Turn 65 years of age (even if you haven’t retired)
  • Pass away.

Preservation age

Access to superannuation benefits is generally restricted to individuals who have reached their preservation age. This is because the preservation rules aim to prevent early access to benefits.

The table below summarises when you may reach your preservation age and therefore potentially access your superannuation benefits:

Date of birth Preservation age When preservation age is reached
Before 1 July 1960 55 1 July 2014 or earlier
1 July 1960 – 30 June 1961 56 1 July 2016
1 July 1961 – 30 June 1962 57 1 July 2018
1 July 1962 – 30 June 1963 58 1 July 2020
1 July 1963 – 30 June 1964 59 1 July 2022
1 July 1964 or later 60 1 July 2024 or later

Other conditions of release

Besides the common condition of release events that apply to most cases, there are other special circumstances
where at least part of your superannuation benefits can be released before you have reached preservation age.

These less common condition of release events are summarised in the table on the following page.

Other
conditions of
release
Details
Terminal
medical
condition

Access to your superannuation can be granted where you have a terminal medical condition and the following requirements are met:

  • two registered medical practitioners have certified that you suffer from an illness/injury that is likely to result in death within two years of the practitioner certification being provided, and
  • at least one of these practitioners is a specialist in respect of the illness/injury suffered by you, and
  • the 24-month certification period has not ended.
Permanent
incapacity
Your superannuation fund must be satisfied that you have a permanent physical or mental medical condition that is likely to stop you from ever working again in a job you were qualified to do by education, training or experience (not just any gainful employment). Your occupation and nature of the injury are therefore key.
Temporary
incapacity
Temporary incapacity means physical or mental ill-health that causes you to temporarily cease to be gainfully employed but does not constitute permanent incapacity. It’s not necessary for your employment to fully cease but, generally, you would not be eligible for temporary incapacity benefits if you were on paid sick leave from your employment for instance.
Severe financial
hardship
To qualify, your superannuation fund must be satisfied that either:

  • you have been receiving government income support payments continuously for 26 weeks and you were unable to meet reasonable and immediate family living expenses, or
  • if you have reached preservation age plus 39 weeks – you have received government income support payments continuously for 39 weeks since reaching preservation age and were not gainfully employed fulltime or part-time at the time of making an application to the trustee of your fund.
Compassionate
grounds
You can access some of your superannuation on compassionate grounds if you can prove to your superannuation fund that you lack the financial capacity to pay for:

  • medical treatment (defined as life-threatening illnesses or to alleviate chronic pain or mental disturbance) and medical transport for you or your dependant
  • palliative care for you or your dependant
  • making a payment on a home loan or council rates so you don’t lose your home
  • accommodating a disability for you or your dependant, or
  • expenses associated with the death, funeral or burial of your dependant.
First Home
Super Saver
Scheme
(FHSSS)

To help you save for your first home, you can apply to release voluntary concessional (before-tax) and voluntary non-concessional (after-tax) contributions you have made to your superannuation fund since 1 July 2017.

You can apply to have a maximum of $15,000 of your voluntary contributions from any one financial year included in your eligible contributions to be released under the FHSSS, up to a total of $50,000 contributions across all years. You will also receive an amount of earnings that relate to those contributions.

Need more information?

There are many factors to consider before accessing your superannuation, including how it will impact your
retirement, taxation and what effect it will have on any other benefits you’re receiving.

Please contact us if you would like more information on any of these conditions of release and would like to discuss
your options. We will explain the conditions and requirements that need to be met to demonstrate your eligibility
which may help you access your superannuation benefits.

2022-07-06T14:16:50+10:00July 6th, 2022|

STP year-end finalisations … due soon!

Employers need to make STP finalisation declarations by 14 July each year. As your registered agent, we can assist you in this important, upcoming process.

If you have 20 or more employees, you should be reporting closely-held (related) payees each pay day along with arms-length employees. The finalisation due date for closely-held payees is 30 September each year.

A ”closely-held (related) payee” is an individual directly related to the entity from which they receive payments (for example, family members of a business, directors or shareholders of a company, or beneficiaries of a trust).

For small employers (19 or fewer employees) who only have closely-held payees, the due date for end-of-year STP finalisation will be the payee’s income tax return due date.

For an employer with a mixture of both closely-held payees and arms-length employees, the due date for end-of-year STP finalisation for closely-held payees is 30 September each year. All other employees are due 14 July each year.

Before making your finalisation declaration, make sure your STP information is correct. If you can’t make a finalisation declaration by the due date, you will need to apply for a deferral. We can take this up for you.

You can finalise your data earlier if it’s ready. The sooner you finalise your employees’ information, the sooner they will be able to lodge their tax returns for 2021/22.

This finalisation process is explained in detail in the STP employer reporting guidelines, including amendments for current and previous financial years. As noted, we can assist you in this process.

When you have reported and finalised your employees’ information through STP, you are exempt from:

  • providing payment summaries to your employees
  • lodging a payment summary annual report. For payments to your employees that were not reported through STP, you still need to:
  • give a payment summary to your employees
  • provide the ATO with a payment summary annual report for these payment summaries.

If you identify that you need to make an amendment after you have submitted a finalisation declaration, you’ll need to submit these as soon as possible. You can make the amendments to finalised STP data in your STP solution.

The ATO recommend you tell your employees when you make an adjustment that will be reflected in their income statement. If they have already lodged their tax return they may need to lodge an amendment.

You will need to tell your employees:

  • you are no longer required to provide them with a payment summary for the information you’ve reported and finalised through STP
  • they can access their year-to-date and end-of-year income statement online through myGov or talk to their registered tax agent
  • ‘income statement’ is the new term for their payment summary (if they don’t already know this from last year)
  • to wait until their income statement is ‘Tax ready’ before lodging their tax return
  • to check their personal details and if necessary, update with both you and the ATO (incorrect personal details may prevent them from seeing their STP information).

If an employee does not have a myGov account, they can easily create one online. They can also talk to their tax agent who will have access to their income statement information.

2022-07-06T14:01:49+10:00July 6th, 2022|

Scam myths

In the past 12 months, the ATO has identified and taken action against 595 websites impersonating its online services. These fake sites are designed to steal passwords, personal information and identity documents, such as passports and driver licences.

Currently, the ATO is seeing many SMS and email scams leading to fake myGov sign-in pages –more than 360 of these scams have reported to the ATO since April 2022. However, there many different types of tax and super scams happening year-round, not just in the lead up to Tax Time.

Scammers are always looking for new ways to convince unsuspecting taxpayers into divulging personal information, such as bank details, usernames and passwords.

This year, the ATO has taken out the guesswork and busted some scam myths to help people stay protected:

Myth 1 – Only older people fall for scams

In the past three years, younger Australians have fallen victim to the most tax scams. In 2021, people aged 25 to 34 reported the most amount of money lost to tax scams, closely followed by those aged 18 to 24. In contrast, those aged 55 and above were among those who reported the least financial losses to the ATO. The ATO’s Assistant Commissioner Tim Loh says:

We want Gen Z and Millennials to know they need to watch out too, as they are just as susceptible to falling for scams, especially those that involve fake tax debts or threats about alleged fraud If you get a phone call saying it’s from the ATO and it doesn’t sound right, hang up. Check in with someone you trust, like your registered tax agent. Even better go to the ATO’s website where we have a listing of all the current ATO scams or call us on our dedicated scam hotline 1800 008 540.

Myth 2 – Scams are easy to spot, you’d be a fool to fall for one!

“Email and SMS scams are not always full of typos, bad grammar, and promises of riches from foreign royalty. We are seeing many more sophisticated scam messages using official language and fraudulent websites that mimic online services” Mr Loh said.

“We’ve seen some very convincing email and SMS scams that would trick even the most cautious people.”

The ATO does send emails and SMS to taxpayers to share general information or reminders, or to ask people to check their myGov inbox or get in touch with them. However, here are some tell-tale signs to look out for if an email or SMS says it’s from the ATO. The ATO will never:

  • send an unsolicited message requesting personal information via a return email or SMS,
  • send an email or SMS with a link to log in to their online services,
  • ask you to pay a fee in order to receive a refund.

Myth 3 – Scams only happen during tax time

While you may only focus on your tax when it’s time to lodge, scammers are constantly looking for ways to steal your personal details and financial information.

The ATO sees different types of tax and super scams happening year-round.

It’s important to always stay vigilant to potential scams, and to keep your personal and financial details safe.

Some common year-round scams involve scammers:

  • phoning people about a fake tax debt, and threatening that they’ll be arrested if they don’t pay it straight away
  • sending texts to people saying that they’re suspected of being involved in cryptocurrency tax evasion. If you receive this text, don’t click on the link.
  • sending emails impersonating the ATO and asking for people to update their financial information so their tax refund can be processed.
2022-07-06T13:57:45+10:00July 6th, 2022|

ATO tax time focus for small business

The ATO has released a tax time tool kit to assist businesses and us as your tax advisor to nail your 2021/22 business tax return.

The ATO has also flagged what it will be focusing on for small business tax returns for 2021–22:

  • ■ deductions that are private in nature and not related to business income, as well as overclaiming of business expenses (especially for taxpayers running a homebased business)
  • ■ omission of business income, for example income from the sharing economy or new business ventures
  • ■ record keeping – including insufficient or non-existent records that are needed to substantiate claims.

ATO Assistant Commissioner Andrew Watson said:

We know it’s been a tough couple of years for many small business owners, and we understand your tax obligations may not be at the top of your list. So, if you need a hand, I encourage you to contact your registered tax professional.

No matter what your situation is, it’s never too late to ask for help. Tax time is also a great time to discuss ATO debts with your registered tax professional and set up a payment plan if you need one.

Income

Mr. Watson reminded small businesses to include all income, including earnings from ‘side hustles’.

Small businesses should include all income in their income tax return, including cash, coupons, EFTPOS, online, credit or debit card transactions, and income from platforms such as PayPal, WeChat or Alipay.

The ATO has also reminded businesses that most government payments or financial support received as a result of COVID-19 needs to be included as taxable income, whereas some others are exempt and should not be included. The ATO has detailed information listing how all support payments should be treated on its website. Speak to us for further guidance.

Deductions

Mr. Watson reminded businesses to only claim what they are entitled to, and that their business structure affects their entitlements and obligations. The way that sole traders, partnerships, trusts, and companies claim deductions is often different.

There are three golden rules for what the ATO accepts as a valid business deduction:

  • 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.

Lodgment deadlines

Although tax returns are generally due by 31 October, because you are lodging with us (a registered agent), you will have more time to prepare and lodge. This will generally be in the first half of 2023.

2022-07-06T13:49:28+10:00July 6th, 2022|
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