Non-commercial losses safe habour: natural disasters
Where an individual, either alone or in a partnership, carries on a business activity, the non-commercial loss rules generally apply to prevent losses from non-commercial activities (ie where the outgoings or deductions exceeds the income) from being offset against income from other sources (ie salary and wages of the individual or other income). This is …
Election 2022: winning the senior vote
Ahead of a tightly-contested election and in a bid to win the senior vote, both major parties have promised to expand the eligibility of the Commonwealth Seniors Health Card (CSHC) and freeze the social security deeming rates for 2 years if elected. The CSHC is a concession card that enables eligible seniors who have reached …
More ATO action on super guarantee non-compliance
The Australian National Audit Office (ANAO) has recently issued a report on the results of an audit conducted on the effectiveness of ATO activities in addressing super guarantee (SG) non-compliance. While ANAO notes that the SG system operates largely without regulatory intervention as employers make contributions directly to super funds or through clearing houses, the …
COVID-related support for SMSFs
Due to COVID-19, trustees of an SMSF, or a related party of the fund, may provide or accept certain types of relief, which may give rise to contraventions of the super laws. You may also have been stranded overseas because of travel bans, which can affect your fund’s residency status. In recognition of these issues, …
Foreign investors and residential property
With the government encouraging the return of foreign investors to Australia and the gradual reopening of international borders, many foreign workers and investors may soon be making their way onto Australian shores. One of the main things they may be considering is participating in the great Australian dream of home ownership. However, for a foreign …
Changes coming for cryptocurrency and digital assets
It is estimated that more than 800,000 Australians participated in the crypto/digital assets market in the last 3 years. According to the ATO, 2021 saw a jump in participants of 63% compared with the 2020 year. However, this surge in participation and the associated losses from financial scams have amplified calls for regulation. To placate …
Election 2022: Bills not passed
Now that the Federal Election has been called for 21 May 2022, and with the Governor-General proroguing the Senate and dissolving the House of Representatives, the government is now in caretaker mode, meaning that major decisions cannot be implemented during this period until the results of the election are clear. This is bad news for …
Check your PAYG instalments
The PAYG instalment system allows a business to spread its income tax liability across the tax year. This helps with cash flow, but also means the business is not faced with a large tax bill after the end of the tax year. Most businesses lodge and pay instalments quarterly. Primary producers and special professionals (eg …
Employees vs contractors: more clarity coming
The High Court recently handed down a significant decision dealing with the distinction between employees and independent contractors. The case concerned an “independent contractor” and a labour hire company. Although the ATO was not a party to either case, it has since released a decision impact statement as the High Court’s decisions impact on the …