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The small business tax concessions

The small business tax concessions

  In May 2018, the Board of Taxation (the Board) commenced a review of the small business tax concessions (the Review). Dr Mark Pizzacalla, the Chair of the Review and a member of the Board, recently confirmed in a TaxBanter Tax Yak Podcast (episode...

Expats with student loans — ATO data matching

Expats with student loans — ATO data matching

  On 5 July 2019, the ATO published a Gazette Notice titled Notice of a Data Matching Program advising that the ATO will acquire overseas movement data from the Department of Home Affairs (DHA) for individuals with an existing Higher Education Loan...

‘Carry forward’ concessional contributions cap

‘Carry forward’ concessional contributions cap

Background The measure to allow individuals to carry forward their unused concessional contributions (‘CC’) cap from previous financial years to a later year (‘the carry forward rule’) was announced on 3 May 2016 as part of the Government’s Superannuation Reform...

Uber v Taxis

Uber v Taxis

On Friday 5 July 2019, the Government’s key component of its election platform, the Personal Income Tax Plan, became law providing further personal tax cuts from 2019.
This article examines the hip pocket impact of the tax cuts on individual taxpayers at different income levels.

The new personal tax cuts

The new personal tax cuts

On Friday 5 July 2019, the Government’s key component of its election platform, the Personal Income Tax Plan, became law providing further personal tax cuts from 2019.
This article examines the hip pocket impact of the tax cuts on individual taxpayers at different income levels.

STP myth-busting

STP myth-busting

  Starting to report through STP We are now at the pointy end of implementing STP reporting which has applied to substantial employers (20 or more employees as at 1 April 2018) since 1 July 2018 but has been expanded to include small employers (19 or...

New instant asset write-off

New instant asset write-off

Background Small business entities (SBEs) may choose to apply the simplified depreciation provisions and calculate deductions for the decline in value of their depreciating assets under Subdiv 328-D of the ITAA 1997 instead of Div 40. This requires them to:...

Progress of bills pre-Budget

Progress of bills pre-Budget

Accompanying podcast Note that our accompanying Tax Yak podcast episode 14 titled Parliamentary status of bills pre-Budget discusses all of these measures. Background As we move closer to a Federal Election (expected on either 11 or 18 May 2019), there are...

Labor’s tax and superannuation policies

Labor’s tax and superannuation policies

Note: This blog article was edited on 17/04/19 to include recent developments. Timing of election This year, Australian voters will elect members of the 46th Parliament. According to s. 28 of the Commonwealth of Australia Constitution Act, an election for...

MYEFO 2018–2019

MYEFO 2018–2019

On 17 December 2018, the Government released the Mid-Year Economic and Fiscal Outlook 2018–19 (MYEFO). The MYEFO provides updated information on the Government’s fiscal position and includes policy decisions taken since the 2018–19 Federal Budget was handed...

2018 Year-end Parliamentary wrap-up

2018 Year-end Parliamentary wrap-up

That's a wrap! Now that the Federal Parliament has risen for the summer break, this is an opportune time to take stock of the key outstanding tax and superannuation measures. According to the draft Parliamentary sittings for 2019, Parliament is scheduled to...

Ten-year plan for corporate tax cuts has now been fast tracked

Ten-year plan for corporate tax cuts has now been fast tracked

On 25 October 2018, the Treasury Laws Amendment (Lower Taxes for Small and Medium Businesses) Act 2018 (the Act) received Royal Assent as Act No. 134 of 2018. The Act amends various taxation Acts to accelerate: the reduction of the corporate tax rate for corporate tax...

Some movement on Div 7A … at last!

Some movement on Div 7A … at last!

Some movement on Div 7A … at last! On 22 October 2018, the Treasury released a consultation paper titled Targeted amendments to the Division 7A integrity rules. The paper sets out the Government’s proposed implementation of the amendments to improve the...

Certainty at last for base rate entities … or not?

Certainty at last for base rate entities … or not?

After a long period of uncertainty, and in the midst of the recent Liberal Party leadership spill, the Senate on 23 August 2018 unexpectedly passed without amendment the Treasury Laws Amendment (Enterprise Tax Plan Base Rate Entities) Bill 2018 (‘the BRE...

The SG Amnesty: What should employers do?

The SG Amnesty: What should employers do?

There is much confusion among tax practitioners and their clients regarding the proposed Superannuation Guarantee (SG) Amnesty, which is intended to run for 12 months from 24 May 2018 to 23 May 2019. However, the SG Amnesty measures are not legislated yet...

The Superannuation Legislative Landscape

The Superannuation Legislative Landscape

The Government’s Fair and Sustainable Superannuation Reforms have now been in place for over a year and the measures announced in this year's Federal Budget continue to make changes to the superannuation environment. It is with some challenge that we...

Tax Fundamentals: CGT Events

Tax Fundamentals: CGT Events

  Pop quiz! … How many CGT events are there? Our Tax Fundamentals trainer, Lee-Ann Hayes asks this question often of her groups and enjoys the varying replies she gets back. She has heard everything from five to 200 CGT events. Occasionally, someone is...

The work-related expenses tax gap

The work-related expenses tax gap

On 12 July 2018, the ATO published the income tax gap for ‘individuals not in business’, comprising around 9.6 million individuals who are not in business and earn income from salary and wages and investments. The estimated net tax gap for these individuals...

Tax Fundamentals: What advice can I rely on?

Tax Fundamentals: What advice can I rely on?

  In 2015, the Government released its tax White paper titled ‘Re:think Tax discussion paper’. As part of the discussion on complexity, the paper noted: In the 1950s Australia had a tax system made up of around 1,080 pages of tax law. … Now we have...

Residential Rental Properties: The New Depreciation Rules

Residential Rental Properties: The New Depreciation Rules

On 1 July 2017, changes were made to the tax law in relation to the claiming of depreciation on certain assets used in residential rental properties. Since then, investors in residential rental properties have not been able to claim decline in value...

SG Amnesty: Q&A

SG Amnesty: Q&A

Background On 24 May 2018, the Government announced a one-off, 12-month Superannuation Guarantee Amnesty (the Amnesty), and introduced legislation into Parliament, which allows non-complying employers to self-correct any unpaid superannuation guarantee (SG)...

The New Superannuation Guarantee Amnesty

The New Superannuation Guarantee Amnesty

On 24 May 2018, the Government announced a one-off, 12-month amnesty (the Amnesty), and introduced legislation into Parliament, which allows non-complying employers to self-correct any unpaid superannuation guarantee (SG) amounts dating back to 1992. This...

Post Budget Observations

Post Budget Observations

The Treasurer, Scott Morrison, delivered his third Federal Budget on 8 May 2018. The detailed tax measures contained in the 2018–19 Federal Budget are set out in our comprehensive Budget Summary which is available here. The detail of each of the Budget...

Where will this year’s Federal Budget take us?

Where will this year’s Federal Budget take us?

  The 2018–19 Federal Budget (the Budget) will be released at 7.30pm (AEST) on Tuesday, 8 May 2018. In the final week before we make the annual e-pilgrimage to www.budget.gov.au to download the Budget papers and the Treasurer’s accompanying speech, we...

Tax law trailing behind Bitcoin

Tax law trailing behind Bitcoin

  The recent news cycle has extensively followed the astronomical growth — and the odd sharp dip — in the value of Bitcoin, the cryptocurrency phenomenon. With an unprecedented level of public interest in Bitcoin and other forms of cryptocurrency, it...

Dormant companies and the new franking rules

Dormant companies and the new franking rules

There are significant changes to the rate at which a company franks its distributions from 1 July 2016 … do you know the rate at which a dormant company should be franking its distributions? A company may be dormant because it previously carried on a business and...

Single Touch Payroll [Infographic]

Single Touch Payroll [Infographic]

  The Government has proposed to extend mandatory Single Touch Payroll (STP) reporting to small employers (fewer than 20 employees) from 1 July 2019. In early 2017, the ATO conducted a pilot program, which tested how STP impacts small employers. This...

Are clients ready for Single Touch Payroll?

Are clients ready for Single Touch Payroll?

The ATO’s ‘Single Touch Payroll’ (STP) initiative will start on 1 July 2018 for many employers — but businesses and their advisers cannot be complacent until then. The next six months is a crucial time for ‘substantial employers’ (≥ 20 employees) to understand how STP...

Proposed changes to eligibility for company tax cut

Proposed changes to eligibility for company tax cut

  The highly anticipated measures that will prevent passive investment companies from accessing the lower corporate tax rate from 2017–18 were introduced into Parliament on 18 October 2017. The Bill proposes to improve the current law by setting a...

ATO focus on work-related claims [Infographic]

ATO focus on work-related claims [Infographic]

  An ATO crackdown on work-related expense claims has been a regular feature of Tax Time for the past few years. For 2017 tax returns, the ATO will be focusing on clothing-related expenses and car expenses. Our article, The ATO has an eye on every 2017...

ATO focus on work-related claims

ATO focus on work-related claims

  The ATO has an eye on every 2017 work-related expense claim As soon as Tax Time 2017 began, the ATO activated its version of a warning system via the Australian media to caution individual taxpayers and their advisers against over-claiming...

Foreign Resident Capital Gains Withholding Rules

Foreign Resident Capital Gains Withholding Rules

The ‘foreign resident’ capital gains withholding rules apply to Australian residents too The misnamed ‘foreign resident capital gains withholding’ (FRCGW) regime not only affects Australian residents but requires them to comply with legal obligations, and...

Australian House Prices [Infographic]

Australian House Prices [Infographic]

  The misleadingly-named Foreign Resident Capital Gains Withholding rules now apply to transfers of Australian real property valued at $750,000 or more. This reduced threshold took effect on 1 July 2017 (previously it was $2 million). Who do these...

Company tax cuts: clarification made complex

Company tax cuts: clarification made complex

  UPDATE: On 18 October 2017, the Government tabled in Parliament draft legislation to introduce an 80 per cent passive income eligibility test for the lower corporate tax rate from 2017–18. The Treasury Laws Amendment (Enterprise Tax Plan Base Rate...

Company Tax Cuts [Infographic]

Company Tax Cuts [Infographic]

  This infographic shows how the company tax and dividend imputation systems have evolved over the decades. Change is ongoing, and in mid-May 2017 — a mere six weeks before the end of 2016–17 — company tax cuts and changes to the calculation of maximum...

The New Franking Conundrum

The New Franking Conundrum

  Corporate clients are in the midst of finalising their 2016–17 financial statements, calculating tax liabilities and deciding how much of the year’s profits to pay out as dividends. This same process occurs each year … but it will not be business as...

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