The ATO has confirmed that, if intangible capital improvements are made to a pre-CGT asset, they can be a ‘separate CGT asset’ from that pre-CGT asset if the relevant requirements are satisfied. The result of this is that, while the disposal of the pre-CGT asset itself will be exempt from CGT, the improvements which are […]
The ATO has provided some information about Superannuation Guarantee (SG) non-compliance in its recent submission to a Senate inquiry into the impact of the non-payment of the Superannuation Guarantee. In addition to marketing and education activities to re-enforce the need for employers to meet their SG obligations, the ATO conducts audits and reviews to ascertain […]
The ATO has notified taxpayers that as from 19 January 2017, newly registered small businesses have the option to report less GST information on their business activity statement (BAS). Therefore, if you plan to register for GST after receiving this Update, we can help you access the reporting benefits of the simpler BAS early. From […]
The ATO has released a public taxation ruling covering the ATO’s view on the deductibility of expenditure incurred in acquiring, developing, maintaining or modifying a website for use in the carrying on of a business. If the expenditure is incurred in maintaining a website, it would be considered ‘revenue’ in nature, and therefore generally deductible […]
The AAT has held that GST applied to the disposal of four properties that had been built, leased and then sold. GST does not ordinarily apply to sale of residential premises unless they are ‘new residential premises’. However, there is a special rule in the GST law that states that a newly constructed property will […]
The ATO has released a taxation determination regarding how it will apply the non-arm’s length income (‘NALI’) rules to income generated from assets purchased by an SMSF using a related party ‘limited recourse borrowing arrangement’ (or ‘LRBA’). Although the ATO states that: “in some very limited circumstances the NALI provisions may not apply to an […]
The ATO has announced it is embarking on the following three (major) data matching programs: • Share Transactions Data Matching Program. The share transactions data matching program has been conducted since 2006 to ensure compliance with taxation obligations on the disposal of shares and similar securities. The collection of transaction history data dating back to […]
The government’s extensive changes to taxation laws regarding superannuation were passed by Parliament on 23 November 2016. According to the Treasurer, Mr Scott Morrison: “The superannuation reform package better targets tax concessions to make our superannuation system fair and sustainable, as the population ages and fiscal pressures increase.” “The reforms include the introduction of a […]
Deductions can be maximised for SBE business taxpayers by accelerating expenditure and prepaying deductible business expenses. Former STS taxpayers who have continued to use the STS cash method since before 1 July 2005 cannot accrue expenses, but other SBE taxpayers on an accruals basis can accrue expenses (see above regarding accruing expenditure). Accelerating expenditure – […]
The ATO has sent a reminder to all Australians to be aware of tax-related scams and remain alert during tax time. There are differences to be noted between a legitimate ATO call and a scam: “We would never cold call you about a debt; we would never threaten jail or arrest, and our staff certainly […]