News
Costs of a caravan/motor home for work-related travel
In these challenging and changing times, many have jumped on the modern version of the proverbial band wagon and purchased a caravan or motor home to use for work or business-related travel.
Appointing an SMSF auditor
Early last month, the ATO issued a reminder around auditors. If you have an SMSF, you need to appoint an approved SMSF auditor for each income year, no later than 45 days before you need to lodge your SMSF annual return (SAR).
Discounting your capital gain
The capital gains tax (CGT) discount can reduce by 50% a capital gain that you make when you dispose of (sell) a CGT asset that you have owned for 12 months or more.
Avoid schemes targeting SMSFs
Sometimes promoters of schemes target self-managed super funds (SMSFs). Schemes can include tax avoidance arrangements that inappropriately channel money or assets into your SMSF so you pay less tax. They may also include arrangements promoting the illegal early release of benefits from your fund for personal use.
Self-education: when is it deductible?
If the subject of self-education leads to, or is likely to lead to, an increase in the taxpayer’s income from current (but not new) income-earning activities, a deduction for self-education expenses incurred will be allowable.
Thought of registering a trademark for your new business?
The ATO has issued a reminder around trademarks! For background, a trademark legally protects your brand and helps customers distinguish your products or services in the market from others. Trademarks can be used to protect a logo, phrase, word, letter, colour, sound, smell, picture, movement, aspect of packaging or any combination of these. In short, they protect your brand, products and services.
R&D reminder
The ATO has issued a reminder for companies wishing to claim a tax offset for their R&D (research and development) activities. The reminder was issued in the context of the ATO’s success in the Federal Court decision T.D.S. Biz Pty Ltd v FCT.
SMSFs & higher interest rates
SMSF trustees with limited recourse borrowing arrangements (LRBAs) are now feeling the impact of ten interest rate rises since May 2022 in one hit, from July 2023.
Gifting to employees
Some employers, especially at Christmas time or for birthdays, give small gifts to their employees or the employee’s associates (i.e. spouses). These gifts typically take the form of bottles of wine, movie tickets, gift vouchers etc.
Trusts – are they still worth it?
The recent ATO crackdown on trusts will no doubt have some business owners (and even some advisors) asking themselves the question: Is this structure for business purposes still worth it?
Tax Time: Unexpected first-time debts
For the first time, many Australians are finding themselves in a position where they are being told they owe the ATO money after completing their tax return this year.
Forsyths Foundation Contributes $15,000 to Local Charities
The Forsyths Foundation, established in 2015 by Forsyths, the leading accounting and financial services firm in regional NSW, is proud to announce its continued commitment to supporting local communities through its annual donation program.
Work-Related Car Expenses Updated
The ATO has just announced that the cents per kilometre rate has increased to 85 cents per kilometre for 2023/24.
Small Business Lodgement Amnesty
Since Budget night, the ATO has released more information around the small business lodgment amnesty…which can now be taken advantage of from 1 June 2023!
Fair Work Changes
Although not related to tax, there are a number of changes on the Fair Work front that employers should be aware of.
Time for a Restructure?
The new financial year can be a time where business owners look at their operating structure and consider whether it still meets their needs.
Superannuation and the Right to Delegate
Another key Federal Court case may have a bearing on whether you owe certain workers you engage superannuation guarantee or not.
Super Guarantee Increases 11%
The increase to the superannuation guarantee (SG) rate from 1 July 2023 will see more employees (and certain contractors) entitled to additional SG contributions on their pay.
Maximising cashflow
The predicted slowing of the economy in 2023-24 along with the pay day super guarantee (SG) proposal are sure to make cashflow more important than ever for business over the coming months and years, noting that it is one of the biggest difficulties faced by business.
What are the types of super funds you can contribute to?
With the total superannuation sector worth more than $3.5 trillion at the end of March 2023, superannuation is serious business. There are many types of superannuation funds available but sometimes having too many to choose from can be confusing. However, picking the right fund is important as it could impact how much you may have to retire on in the future.
Do you have a side-hustle?
With the cost-of-living skyrocketing, have you taken up a side-hustle? With new and emerging ways to make money, the ATO is reminding taxpayers to consider if they are ‘in business’ and to declare to their tax agent if they are engaged in a side-hustle.
Generous depreciation in its final days
This month’s federal budget confirmed that temporary full expensing (TFE) is now in its final days. To recap, TFE will cease and be replaced by a $20,000 instant asset write-off (IAWO) from 1 July 2023.
Super pensions and the Commonwealth Seniors Health Card
Are you a self-funded retiree who does not qualify for the Age Pension? If you’ve answered yes, then help may be available for certain living expenses by way of the Commonwealth Seniors Health Card (CSHC).
ATO Tax Time focus areas
With the end of the financial year on our doorstep, the ATO has announced its three key focus areas for 2022-23 Tax Time – rental property deductions, workrelated expenses, and capital gains tax (CGT). To maximise your claims in this area and protect yourself from ATO audits and adjustments, be sure to keep the appropriate records.
2023-24 Budget Wrap
The 2023-24 Federal Budget was handed down on 9 May. It contains changes to business and personal taxation, superannuation, social security entitlements, as well as cost of living relief. Following are some of the headline measures, many of which are subject to enabling legislation.
Temporary Full Expensing: get in quick!
This could be the final opportunity for your business to take advantage of Temporary Full Expensing (TFE)…but get in before 1 July!
Upcoming trust distribution strategies –latest developments
If you run your business through a family trust, there’s some good news on the distribution front.
Financing motor vehicles in 2023
One of the most common decisions facing business is how to finance and account for the acquisition of a motor vehicle. There are numerous ways of doing so, with each resulting in differing accounting, taxation and GST treatment.
How to claim an early tax deduction on SG contributions
Are you an employer who needs to make superannuation guarantee (SG) contributions for your employees? If so, it may be worthwhile bringing forward these SG contributions to before 1 July to benefit from a tax deduction this financial year.
New reporting arrangements for SMSFs from 1 July 2023
From 1 July 2023, trustees and directors of SMSFs must report certain events that affect their members transfer balance account quarterly.
The journey to success is a marathon, not a sprint
While deciding what to write this month for the Coonabarabran Times, I couldn’t believe that it has been nearly 12 months since starting out on this journey. Throughout the course of the year I have come to realise how much I’ve learnt about the process of story-telling, which is not an accountant’s natural skillset.
Does it all add up?
As the end of another financial year approaches, conversations around taxes are back on again. Cost of living is up across the board and so on top of all of this it’s no fun to add to it with taxes.
Lost super
Did you know there is around $16 billion in lost and unclaimed superannuation across Australia? The ATO recently indicated this is an increase of $2.1 billion since last financial year and is urging Australians to check their account to see if some of the money is theirs.
Fending off GST audits
The Government has welcomed the actions of an ATO-led taskforce in relation to what is termed “the biggest GST fraud in Australia’s history”.
Reducing the risk of crypto scams
ASIC has released fresh and timely information around crypto scams.
FBT exemption for electric vehicles
With car fringe benefits one of the most common benefits provided by employers to employees, a new ATO fact sheet shines more light on the FBT exemption for electric vehicles.
Proposed tax on $3m super balances
Individuals with large superannuation balances may soon be subject to an extra 15% tax on earnings if their balance exceeds $3m at the end of a financial year.
Trust distribution landscape now more settled
If you carry on your business affairs through a trust structure, there is now more clarity around the law on distributions following much uncertainty throughout the year.
Legislating the purpose of superannuation
On 20 February 2023, Treasury released a consultation paper on legislating the purpose of superannuation. This is an idea that has been around since 2016 when the former Coalition government contemplated doing the same thing.
FBT and car logbooks
With the end of the FBT year approaching, are your car logbooks in order? The operating cost method is used by many employers to calculate their car FBT liability. This method is particularly effective where the business use of the vehicle is high. Keeping a logbook is essential to use the operating cost method.
New work from home record keeping requirements
Are you one of the five million Australians who claim work from home deductions? If so, stricter record-keeping rules may now apply.
Crystalising capital losses
It’s been a particularly difficult 12 months for investors. On the superannuation front, we now have two major reports assessing how super accounts fared in the 2022 calendar year. SuperRatings issued its average balanced return recently and found it was minus 4.8%.
PAYG instalment variations
The ATO is encouraging accountants to educate clients around varying PAYG instalments – this can potentially assist cashflow.
An investment in knowledge pays the best interest
We are well and truly rolling ahead in 2023 now, another year where we might’ve thought we wouldn’t be quite as busy as last year, which hasn’t proved to be the case yet.
ATO finalises Section 100A guidance for Family Trusts
Do you operate your business via a family trust? The ATO released its final guidance material on the application of section 100A on 8 December 2022 – TR2022/4 and PCG 2022/2. In doing so, it has fortunately clarified a number of issues.
Can you use your SMSF property upon retirement?
Many SMSF trustees wonder if they can live in their SMSF property once they retire. This is a common question particularly as property is such a popular SMSF investment.
The importance of cash flow forecasts
As we enter into the new year, with many economists predicting a slowing of theeconomy, planning your business’s cashflow is more important than ever.
Reduction in downsizer eligibility age
The eligibility age for downsizer contributions reduced from 60 to 55 years from 1 January 2023. This means if you are age 55 or older, you could invest the proceeds of the sale of your family home to your superannuation outside of your standard contribution caps.
ATO new-year resolutions
The ATO has released its new year resolutions...and there is not a gym in sight. According to the ATO, the five new year’s resolutions to keep if you want to stay on top of your tax and super in 2023 are 1. Know if you’re in business or not, 2. Keep business details and registrationsup to date, 3. Keep good records, 4. Work out if the PSI rules apply to you and 5. Look after yourself.
Are you ready for paid FDVL?
From 1 February, employers with 15 or more employees must provide 10 days of paid family and domestic violence leave. Is your business ready?
$75,000 Special Disaster Grant Now Open
The NSW and Australian Governments are supporting primary producers impacted by flooding that began on 4 August and/or 14 September 2022, by announcing $75,000 Special Disaster Grants to help pay for immediate clean-up and repairs to infrastructure?
2022-23 Budget 2.0 Summary
With seven months before the 2023-24 Budget is released in May 2023, this recent Budget is a shuffling of the deck not a new set of cards. And to continue the pun, we need to play the hand we have been dealt, buffeted by externalities – war, floods, and global uncertainty.
Cyber Security Awareness
Given October was Cyber Security Awareness month, I thought it was a funny coincidence considering the recent hacking attacks at Optus and myDeal. This is certainly no laughing matter if you were caught up in the data and so it’s a great reminder to think about your security.
Do I have to pay myself super as a business owner?
Do you have your own business or are you thinking of starting one? If so, you may need to pay yourself superannuation depending on your business structure.
Protecting your au domain name
The ATO Commissioner has just issued a warning to businesses on the importance of securing your au domain name!
Rental expenses in excess of income not deductible
With many parts of Australia in the grip of a rental crisis, a significant number of tenants may be residing in the properties of friends and relatives.
Director ID Last Ditch Awareness Campaign
What you need to know
With hundreds of thousands of directors yet to apply for their director identification number (director ID) ahead of the looming November deadline, a last-ditch public information campaign has been launched.
The Albanese Government has just launched a new awareness campaign to help company directors obtain their director ID as the 30 November
deadline quickly approaches.
SMSF member obligations
A recent Administrative Appeals Tribunal decision reminds us all that SMSF trustees (members) can be disqualified where serious breaches, be they advertent or inadvertent, of the super rules are committed.
Claiming business losses
You may be able to offset your business loss against other income (such as salary and wages) if you’re a sole trader or in a partnership.
Optus data breach
Following a recent cyber-attack, Optus customers are advised they could be at risk of identity theft.
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