n The FederalnGovernment has introduced a Bill which proposes to implement its 2016 Budgetnproposal to increase the third personal income tax threshold that applies tonpersonal income taxpayers. The rate of tax payable on individuals’ taxablenincomes from $80,001 to $87,000 would fall from 37{256a07afe6cf75b7e23500f37551d0affdf8bab65b8226b57f0b6b9aa6c8fc70} to 32.5{256a07afe6cf75b7e23500f37551d0affdf8bab65b8226b57f0b6b9aa6c8fc70}. n Thennon-resident tax schedule would also be amended as a […]
Single touch payroll reporting legislative changes
n A Billnto establish a new reporting framework, Single Touch Payroll (STP), has beennintroduced in Parliament. Under the proposed changes in the Bill, “substantialnemployers” would be required to automatically provide payroll andnsuperannuation information to the Commissioner of Taxation at the time theninformation is created. A number of related amendments aim to streamlinenemployers’ payroll and superannuation […]
Take care with work-related deduction claims, says ATO
n The ATOnhas reminded individuals to make sure they get their deductions right this taxntime. Assistant Commissioner Graham Whyte said the ATO has seen “claims for carnexpenses where logbooks have been made up and claims for self-educationnexpenses where invoices were supplied for conferences that the taxpayer nevernattended”. n MrnWhyte said that in 2014–2015 the ATO […]
ATO eye on SMSFs and income arrangements
n The ATO is reviewing arrangements where individuals (at ornapproaching retirement age) purport to divert personal services income (PSI) tona self managed superannuation fund (SMSF) to minimise or avoid their income taxnobligations. n The ATO notes the arrangement it has described in TaxpayernAlert TA 2016/6 and is encouraging taxpayers who have entered into suchnand arrangement to […]
Social welfare recipients data-matching program
n The Department of Human Services (DHS) has released details ofna data-matching program which will enable it to match income data it collectsnfrom social welfare recipients with tax return-related data reported to the ATO.nThe data matching will assist DHS to identify social welfare recipients who maynnot have correctly disclosed their income and assets. In addition, […]
Share economy participants reminded of tax obligations
n The ATO has reminded people who earn income in the shareneconomy that they have tax obligations. The type of goods or services you provide,nand how much you provide, will determine what you need to do for tax. Popular sharing economy servicesninclude: n • nproviding “ride-sourcing” services for a fare; n • nrenting out a room or […]
ATO flags retirement planning schemes of concern
n The ATO has launched the Super Scheme Smart initiative toninform people about retirement planning schemes that are of increasing concern.nAccording to the ATO, people approaching retirement are most at risk ofnbecoming involved in schemes that are “too good to be true”. While retirement planning schemes cannvary, you should be aware of some common features […]
Itinerant worker claim denied, so travel deductions refused
An individual has been unsuccessful before the Administrative Appeals Tribunal (AAT), where he argued that he was an itinerant worker and was therefore entitled to claim tax deductions for travel expenses of some $38,000 for the 2011–2012 income year. n The taxpayer worked a number of short-term jobs in various country towns across New South […]
Deductibility for gifts to clients and airport lounge membership fees
n The ATO has recently released the following TaxationnDeterminations: n • nTD 2016/14 states that business taxpayers are entitlednto a tax deduction for the outgoing incurred for a gift made to a former orncurrent client, if the gift is made for the purpose of producing futurenassessable income. The gift is not deductible if the outgoing is […]
Changes to $500,000 lifetime super cap confirmed
n The Federal Treasurer has confirmed that there will be somenchanges to the Government’s proposal for a lifetime cap of $500,000 onnnon-concessional superannuation contributions. A number of exemptions will be available. n Scott Morrison said in a radio interview that he hadnpreviously spoken about the changes and that draft legislation on the measures,nto be released […]
