When it comes to business, cash (flow) is king. As part of your yearly tax planning activities with your accountant or business adviser, you should be kept abreast of opportunities to capitalise on government measures designed to support the small business sector. The federal government’s $20,000 instant asset write-off scheme, introduced in the 2015 Federal Budget, allows businesses to immediately deduct the full value of every asset purchased (subject to conditions) to the value of $20,000, … [Read more...] about Are you eligible for the $20,000 instant asset tax write-off?
Archives for July 2016
The ATO has advised that it is continuing its Contractor payments data-matching program. It will acquire data from businesses that it visits as part of its employer obligations compliance program during the 2016/17, 2017/18 and 2018/19 financial years. The data collected from businesses is used to identify contractors that may not be meeting their taxation obligations through: not registering correctly with the ATO; non-lodgment of returns; failing to report payments received; … [Read more...] about Contractor payments data matching program
The ATO has been working on ways to deliver a simpler business activity statement (BAS) to simplify account set-up, record keeping, BAS preparation and lodgment for agents and their clients, and make it less costly. To achieve this, several GST labels will be removed from the BAS, with small businesses only required to report: GST on sales (1A); GST on purchases (1B); and Total sales (G1). They will begin user testing from 1 July 2016 and a simpler BAS should be the standard … [Read more...] about New Simpler BAS on the way
The ATO is reminding taxpayers who earn income through the sharing economy that they have tax obligations they should consider. Examples of sharing economy services include: ride-sourcing – providing taxi travel services to transport passengers for a fare; renting out a room or a whole house or unit on a short term basis; renting out parking spaces; or providing personal services, such as web or trade services, or completing odd jobs, errands, deliveries, etc. As is usual … [Read more...] about Tax implications for the sharing economy
The ATO has stated it will be paying close attention to excessive interest expense claims, and incorrect apportionment of rental income and expenses between owners. The ATO is also looking at holiday homes that are not genuinely available for rent, and incorrect claims for newly purchased rental properties. An ATO spokesperson said that their ability to identify incorrect rental property claims is becoming more sophisticated due to enhancements in technology and the extensive use of … [Read more...] about ATO focuses on rental property owners