Archives for April 2015
Extract from an article in SmartCompany - read the full article here. The Australian Tax Office is stepping up its efforts to recover tax liabilities from companies and individuals that attempts to skip out on their tax bills, releasing an online guide that spells out its approach to ensuring tax compliance among the nation’s wealthiest individuals and private companies. The ATO has also given insight into what it will be looking for from “high-wealth individuals” in an online publication … [Read more...] about ATO releases hit list for targeting high net worth individuals who dodge tax
We’ve all been there. Standing around the barbie, listening to someone bang on about how little tax they pay. But when you scratch the surface, you often find out the reason they’re not paying tax isn’t due to clever fiscal management… it’s because they’re not making any money. Paying tax is not necessarily a bad thing. For one, you get that warm inner glow from contributing to society. But more importantly, it means you’re making money. Now let me be clear – as the late great Kerry … [Read more...] about EOFY Planning – Why spending money to save on tax doesn’t make sense
Most pundits expect the RBA to cut the cash rate again this year. Some even predict the cash rate will fall to 1.5%. This gets mortgage holders and property investors excited. The question is… why? Obviously new investors can get a great deal, but I challenge people to look at the rate decision differently. What’s the actual impact for existing mortgage holders? Do you automatically get this new rate cut (and the previous cuts) passed on to you in the form of a reduced mortgage … [Read more...] about RBA to drop cash rate again… SO WHAT? How does it actually impact YOU?
The government announced on 28 December 2014 that they intend to simplify tax and superannuation reporting obligations through 'Single Touch Payroll'. Under Single Touch Payroll, employers’ accounting software will automatically report payroll information to the ATO when employees are paid. This will eliminate the need for employers to report employee-related Pay As You Go Withholding (PAYGW) in their activity statements throughout the year, and employee payment summaries at the end of the … [Read more...] about ‘Single Touch Payroll’ on the horizon
Some of the areas that the ATO has stated it will be focusing on are: Work-related expenses: motor vehicle expenses for travelling between home and work; overnight travel; and the work-related proportion of use for computers, phones and other electronic devices. Rental property expenses: excessive deductions being claimed for holiday homes (deductions should be limited to the amount of income earned, or to the number of days actually rented out at a commercial … [Read more...] about Are you an ATO audit target?
The ATO is writing to businesses in the building and construction industry that have not lodged their 'Taxable Payments Annual Report', which was due to be lodged by 21 July 2014. Each year, businesses in the building and construction industry must complete the Taxable payments annual report to advise the ATO the amount they paid for building and construction services. What are 'building and construction services'? The definition of building and construction services is broad and covers a … [Read more...] about Construction industry annual payments report
The ATO has identified employers in the following industries as having a higher risk of not meeting their super obligations: child care services; building and industrial cleaning; and pubs, bars and taverns. The ATO is currently running an education campaign for business owners in these industries to help them better understand their super obligations. It will be undertaking audits from July 2015 of employers who continue to not meet super obligations for their employees. The … [Read more...] about ATO super crackdown – child care, building, cleaning, pubs
There have been some well-documented, high profile cases of the financial planning arms of Big 4 Banks (eg NAB and CBA) undertaking highly inappropriate behaviour, resulting in sackings and compensation being paid to hundreds of clients who received poor advice. While I believe the industry definitely needs a shake-up, we can’t tar all advisers with the same brush. Here are a couple of financial planning myths that I’d like to address. MYTH: All financial planners are crooks trying to … [Read more...] about Busting myths about financial planners
Are you an ATO audit target? The ATO has announced it's audit 'hit list' for this financial year: Work-related expenses: motor vehicle expenses for travelling between home and work; overnight travel; and the work-related proportion of use for computers, phones and other electronic devices Rental property expenses: excessive deductions being claimed for holiday homes (deductions should be limited to the amount of income earned, or to the number of days actually rented … [Read more...] about ATO on the warpath
There’s been growing consternation among many retailers and hospitality business owners over the decision to designate Easter Sunday and Grand Final eve Friday as Public Holidays. Many shops, restaurants and bars hit customers with a surcharge of up to 15% on Easter weekend to cover the additional wage costs. Worse still, some closed their doors completely as they felt the additional penalty rates wouldn’t make it financially viable. So, not only did some customers cop higher prices to pay … [Read more...] about Penalty rates – who really gets penalised?