No overtime meal allowance, no overtime meal deduction

Chris Thorne - Monday, March 20, 2017

An employee construction project manager/supervisor was denied deductions for overtime meal expenses, as he was not paid an overtime meal allowance under an industrial agreement (award). The taxpayer often worked at nights and on weekends during the relevant income years, and so additiona ..

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Diverting personal services income to SMSFs

Scott Robertson - Wednesday, March 15, 2017

The ATO is currently reviewing arrangements where individuals (at, or approaching, retirement age) purport to divert their personal services income to an SMSF, so that the income is taxed concessionally (or exempt from tax) in the fund, rather than being subject to tax at the individual’s margin ..

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Making 'intangible' capital improvements to pre-CGT assets

Chris Thorne - Tuesday, March 07, 2017

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,  ..

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Ride-Sourcing is 'Taxi Travel'

Scott Robertson - Friday, March 03, 2017

In a recent case, the Federal Court has agreed with the ATO that 'ride-sourcing' (such as that provided using Uber) is 'taxi travel' within the meaning of the GST law. The ATO has advised people who are taking up ride-sourcing to earn income should: - Keep records - Have an Australian bu ..

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Deductibility of expenditure on a commercial website

Chris Thorne - Thursday, February 09, 2017

The ATO has released a public taxation ruling covering the ATO’s views on the deductibility of expenditure incurred in acquiring, developing, maintaining or modifying a website for use in the carrying on of a business. Importantly, if the expenditure is incurred in maintaining a website,  ..

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ATO Data Matching Programs Activated

Scott Robertson - Friday, February 03, 2017

The ATO has announced that it will be undertaking the following two data matching programs. Ride Sourcing data matching program The Ride Sourcing (E.g. Uber) data matching program has been developed to address the compliance risk of the registration, lodgement and reporting of busines ..

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Changes to the ‘Backpacker Tax’

Chris Thorne - Wednesday, February 01, 2017

From 1 January 2017, tax rates changed for working holiday makers who are in Australia on a 417 or 462 visa (these rates are known as ‘working holiday maker tax rates'). If a business employs a working holiday maker in Australia on a 417 or 462 visa, from 1 January 2017, they should withh ..

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ATO Data Matching Programs

Scott Robertson - Monday, December 05, 2016

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 sim ..

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Superannuation changes passed by Parliament

Chris Thorne - Thursday, December 01, 2016

The government's extensive changes to the 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 sustainab ..

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Personal income tax cuts are law

Scott Robertson - Wednesday, November 30, 2016

The government has finally legislated the tax cuts originally announced in the May 2016 Budget, t he following are the rates for adult residents for the 2016/17 income year (i.e., from 1 July 2016). Taxable income Tax on this income 0 – $18,200  ..

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