Record-keeping education in lieu of financial penalties
The ATO could soon have the power to issue a direction to complete an approved-record keeping course in instances where it believes an entity has failed to comply with tax-related record-keeping obligations in lieu of financial penalties. Legislation has been introduced into Parliament, but not yet passed. Currently, in instances where a business is required …
Work test scrapped for super contributions: under 75s
The work test will be scrapped for non-concessional and salary sacrificed contributions made by individuals aged between 67 and 75 from 1 July 2022. Currently, those individuals need to either pass the work test or satisfy the work test exemption criteria for each financial year that they make contributions in order for their super funds …
Temporary full expensing of assets extended
The temporary full expensing of depreciating assets has been extended for another year until 30 June 2023. The measure was originally introduced in 2020 as a part of the Federal government’s COVID-19 business rescue package aimed at encouraging business investment by providing a cash flow benefit. As originally introduced, the measure was due to end …
Contributions into SMSFs: minimum standards
Trustees of self-managed super funds (SMSF) should be aware that there are minimum standards for accepting contributions from members. Broadly, whether a contribution can be accepted depends on the type of contribution, the members’ age, certain caps, and whether or not the fund has the TFN of the member. When a member joins an SMSF, …
Natural love and affection: commercial debt forgiveness
The ATO has recently finalised its stance on the issue of commercial debt forgiveness, in particular the natural love and affection exclusion. A commercial debt is any debt where interest payable is deductible, or would be deductible if interest were payable, but for certain statutory restrictions. Under this definition, investments that are securities and equity …
COVID-19 tests may be deductible?
After the recent furore over the non-existent supply of rapid antigen tests (RATs) and the reduced availability of Polymerase Chain Reaction (PCR) tests at many testing sites, the government is hoping for some good press with the announcement that they will legislate to make both PCR tests and RATs tax deductible where they are purchased …
Last chance to claim the loss carry back
Eligible businesses will have one last chance in their 2021-22 tax return to claim the loss carry back, which provides a refundable tax offset to reduce tax liabilities. Those businesses that have an early balancer substituted account period (SAP) for the 2021-22 income year are eligible to claim the loss carry back offset before 1 …
SMSFs investing in crypto-assets
Current record low deposit rates and volatility in stock markets around the world has motivated many retirees to seek alternative asset classes to either protect their investments or get a higher return. In conjunction with these sentiments, there has been a noticeable increase in spruikers encouraging individuals to invest in crypto-assets through SMSFs, with many …
More COVID support for businesses: NSW, SA, Victoria
With most of the Commonwealth COVID-19 support for businesses and individuals winding down despite the omicron wave decimating both summer plans and potential earnings, the State governments has had to go it alone. The governments of NSW, SA, and Victoria have introduced new measures and/or extended existing measures to help businesses in their respective States …