News
Getting trust distributions right
June 14, 2024
As trustees prepare for year-end distributions, they should do the following: review the relevant trust deed to ensure they are making decisions consistent with the terms of the deed; consider who the intended beneficiaries are and their entitlement to income and capital under the trust deed; notify beneficiaries of their entitlements, so […]
End of financial year obligations for employers
June 14, 2024
The ATO reminds employers they need to keep on top of their payroll governance. This includes: using their tax and super software to record the amounts they pay; withholding the right amount of tax; and calculating superannuation guarantee ('SG') correctly. As 30 June gets closer, employers should check their reporting obligations, along with any upcoming […]
ATO’s three focus areas this tax time
June 14, 2024
The ATO will be taking a close look this 'tax time' at the following common errors made by taxpayers: Work related expenses: Taxpayers using the 'revised fixed rate method' of calculating a working from home deduction must have comprehensive records to substantiate their claims, including records that show the actual number of hours they worked […]
NFPs need to get ready for new return
June 14, 2024
From 1 July 2024, non-charitable not-for-profits ('NFPs') with an active Australian Business Number ('ABN') will be required to lodge a new annual NFP self-review return with the ATO to confirm their income tax exemption status. This will include sporting, community and cultural clubs, among other organisations. ATO Assistant Commissioner Jennifer Moltisanti said the ATO is […]
ATO issues warning about false invoicing arrangements
June 14, 2024
The Serious Financial Crime Taskforce ('SFCT') is warning businesses about using illegal financial arrangements such as false invoicing to cheat the tax and super systems. False invoicing arrangements may consist of the following: u an entity (the promoter) issues invoices to a legitimate business but no goods or services are provided; the business pays the […]
Illegal early access to super
June 14, 2024
Faced with tough times, some people may be thinking about accessing their super early. Taxpayers may have been approached by a promoter claiming they can withdraw their super or use an SMSF to pay off debts, buy a car, or pay for a holiday. The ATO warns taxpayers that this is illegal, and it has […]
What to know about disaster relief payments
June 14, 2024
Taxpayers should be aware that some natural disaster relief payments are not taxable. Businesses that have received a government support payment because of a natural disaster (such as a major weather event) should check if they need to include this as assessable income in their tax return before they lodge, although they may not need […]
Government warns of ‘malicious’ myGov scammers
June 14, 2024
The Government has urged Australians to be vigilant regarding scammers who target ATO log-in details to commit tax fraud. The ATO has received a large number of reports of scammers using fake myGov sites to steal myGov sign-in details that can be used to commit tax and refund fraud in other people's names. These criminals […]
Earning income for personal effort
April 17, 2024
Taxpayers should remember that, if over half their income is from a contract for their personal effort or skills, then their income is classified as personal services income ('PSI'). Taxpayers can receive PSI in almost any industry, trade or profession, e.g., as a financial professional, IT consultant, construction worker or medical practitioner. Taxpayers who earn […]