Employee Overpayments: What to Do
Once the end of financial year workload abates and payroll staff have time to have a closer look at what occurred in the previous income year, it’s not unusual for unintended overpayments to employees to come to light. If this happens for your business, it’s important to follow ATO guidance and consider all parties’ rights …
Small business restructure rollover: tax relief for genuine business restructures
With the latest statistics showing a significant rise in liquidations and with the ATO’s focused efforts on debt collection, small businesses face significant financial pressures. However, the answer isn’t to evade responsibilities or take shortcuts – business restructuring has to be done properly and in compliance with the relevant laws. The small business restructure rollover …
DGR Reforms and Integrity Measures Now in Place
With the ushering in of the new year, deductible gift recipient (DGR) reforms are now in place. The reforms were originally announced by the previous government in 2017 with legislation finally becoming law in June 2023. From 1 January 2024, the administration of 4 unique DGR categories will transfer to the ATO from other government …
Financial Stability Review – September 2024
The Financial Stability Review provides the Bank’s assessment of the current condition of the financial system and potential risks to financial stability. It is issued half-yearly. Source: https://bit.ly/4kphEtJ
Enhancing TPB Sanctions Regime: Consultation
In response to the tax adviser misconduct saga that unfolded during 2023, the government has identified several priority areas for action, including strengthening the regulatory regime and increasing the power of regulators. More details have now been released on its proposal to enhance the Tax Practitioners Board (TPB) sanctions regime, with a consultation paper recently …
Employee vs Contractors: New Rules
Following on from two prominent High Court decisions in Construction, Forestry, Maritime, Mining and Energy Union v Personnel Contracting Pty Ltd [2022] HCA 1 and ZG Operations Australia Pty Ltd v Jamsek [2022] HCA 2, the ATO has issued a Ruling clarifying the issue of whether certain individuals are employees or independent contractors. In brief, …
FBT electric vehicle home charging rate
Since the introduction of EV incentives by various state governments to encourage the uptake of EVs and other zero emissions vehicles, the market share of EVs has significantly increased from around 0.78% in 2022 to 7.2% in 2023. According to the Federal Chamber of Automotive Industries, while EV sales only account for a small proportion …
ATO concerns over Div 7A
Division 7A of the ITAA 1936 was originally introduced as a way to uphold the integrity of the tax system by ensuring the fair taxation of transactions between private companies and their stakeholders. It addresses scenarios where private companies provide benefits or loans to shareholders or their associates and the primary objective is to prevent …
Withholding for foreign residents: an ATO focus area
Does your business or investment structure make payments such as interest, dividends or royalties to any foreign residents? You may be required to withhold tax from these payments. The ATO has recently reported that it’s currently focusing on ensuring that taxpayers are aware of these obligations. If these withholding requirements apply to you, you’ll need …