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No overtime meal allowance, no overtime meal deduction
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 ..
Diverting personal services income to SMSFs
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 ..
Ride-Sourcing is 'Taxi Travel'
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 ..
Deductibility of expenditure on a commercial website
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, ..
Changes to the ‘Backpacker Tax’
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 ..
ATO Data Matching Programs
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 ..
ATO Warning for the Building and Construction Industry
The ATO has reported that the building and construction industry represents a disproportionate amount of its debt book, and has identified worrying trends that affect the industry. Clients in the industry are encouraged to contact their tax agents regarding outstanding debts, as the ATO ma ..
Fallout from 'Panama Papers' Spreads
Earlier in the year, we reported that an unknown source had leaked 11.5 million documents from the Panamanian law firm of Mossack Fonseca – these are now referred to as the 'Panama Papers'. Basically, the documents illustrated how many wealthy individuals are hiding their money and income from ..
Phoenix Taskforce swoops on dodgy businesses
The ATO’s stance against phoenix activity has continued with multiple search warrants issued, and many business and residential sites accessed without notice across Victoria and Queensland, as part of a criminal investigation into unpaid superannuation, employee withholding, GST, and income tax. ..
Deductibility of Gifts provided to Clients
The ATO has confirmed that a taxpayer carrying on business is generally entitled to a deduction for expenses incurred on a gift made to a former or current client, if the gift is characterised as being made for the purpose of producing future assessable income. However, the expense may not ..
Recent Posts
- ATO watching for foreign income this Tax Time
- "Outrageous" deductions rejected
- ATO guidance regarding incorrect ENCC determinations
- The ATO hits the road
- Motor vehicle registries data matching program protocol
- ATO guidance regarding 'downsizer contributions'
- ATO Updates
- Company loans to shareholders under review
- Scammers impersonating tax agents
- Expansion of the TPRS