Newsletter

PAYG and deductions for payments to workers The ATO has reminded business taxpayers they can no longer claim deductions for certain payments to workers if they have not met their PAYG withholding obligations from 1 July 2019. If the PAYG withholding rules require an amount to be withheld, to claim a deduction for most payments…

  Super guarantee opt-out for high income earners now law From 1 January 2020, eligible individuals with multiple employers can apply to opt out of receiving super guarantee (‘SG’) from some of their employers, to help them avoid unintentionally going over the concessional contributions cap. If appropriate for them, they should submit the relevant ATO…

  $30,000 instant asset write-off The ATO is reminding businesses that are looking to expand or improve their business and thinking of buying new or second hand assets, that medium sized businesses with a turnover up to $50 million (but at least $10 million) are eligible for the instant asset write-off. This now applies to…

  “Outrageous” deductions rejected The ATO has published some of the most unusual claims that they disallowed last financial year. Nearly 700,000 taxpayers claimed almost $2 billion of ‘other’ expenses, but the ATO’s systematic review of claims had found, and disallowed, some very unusual expenses, including: *   claims for Lego sets bought as gifts for…

Tax cuts become law The Government has announced that more than 10 million Australians will receive immediate tax relief following the passage of legislation through the Parliament, which increases the top threshold for the 19% tax rate from $41,000 to $45,000 and increases the low income tax offset from $645 to $700 in 2022/23. In…

Unsubstantiated or higher-than-expected tax deductions relating to cars, travel, clothing, mobile phone and internet use, and rental properties are among the top claims the Australian Taxation Office (ATO) will be eyeing this tax time. For more information about what you can and can’t claim, be sure to check out this interesting article from ABC News….

Your checklist for 2018/2019 *Claims for deductions *Receipts for deductions *Car claims and log books Tax saving strategies prior to 1 July 2019 A good strategy to reduce tax payable is normally to accelerate any income tax deductions into the current income year, which will reduce overall taxable income in the current year. The tax…

  Changes to the small business instant asset write-off On 29 January 2019, the Prime Minister announced that legislation will be introduced to: *    extend the small business instant asset write-off by 12 months to 30 June 2020; and *    increase the write-off threshold from less than $20,000 to less than $25,000 (effective…

If you are eligible and want to claim a tax deduction for your personal super contributions, you must first notify your super fund of your intention to claim a tax-deduction. Your Super Fund would have recently written to you, advising you that you have personal super contributions that may be claimed. They would also have…

  2018 Budget Update The Government handed down the 2018/19 Federal Budget on Tuesday 8th May 2018.  Some of the important proposals include: *    The introduction of the ‘Low and Middle Income Tax Offset’, a temporary non-refundable tax offset of up to $530 p.a. to Australian resident low and middle income taxpayers for the…