Super Guarantee a Focus Area for ATO Business Debt Collection
The ATO has revealed its focus areas for this year, with business debt collection identified as a key strategic priority. In its Corporate Plan 2024–25, the ATO says that it will have “an increased focus on business debt including superannuation guarantee, pay as you go withholding and goods and services tax”. This is a timely …
FBT: Alternatives to Employee Declarations
Employers that provide certain fringe benefits to their employees can now use appropriate alternative statutory evidentiary documents to satisfy FBT requirements with registration of legislative instruments specifying acceptable record-keeping obligations for certain FBT benefits. These instruments along with complementary legislation passed in 2023 seek to reduce the FBT compliance costs for employers. Under the FBT …
Deadline extended for NFP self-review returns
As of July, the ATO began sending letters to non-charitable not-for-profits (NFPs) to notify those organisations that the new NFP self-review return is ready to access and lodge. If you belong to one of the estimated 150,000 plus NFP organisations and are concerned that there is not enough time for your organisation to meet the …
ATO’s use of small business benchmarks
Recently, the ATO updated its small business benchmarks to encompass the 2021-22 income year. While the ATO promotes these benchmarks as an aid for small businesses to enable them to compare expenses and turnover with other similar small businesses in the same industry, it is important to note that ATO uses these small business benchmarks …
Tax incentives for small businesses this tax time
As lodgement time once again approaches, business owners should be aware of the key changes in the 2023-24 tax return which may benefit their bottom line in the form of paying less tax. Specifically for small businesses, there are 2 tax incentives available for certain costs incurred in the 2023-24 income year: the small business …
Motor vehicle expenses – which method should my business use?
If your business owns or leases a vehicle that is used for business purposes, it’s essential to keep proper records to ensure you’re entitled to the maximum deduction for your vehicle expenses. Running costs like fuel and oil, repairs, servicing, insurance premiums and registration are all potentially claimable, as well as interest payments on a …
ATO targeting false invoicing
ATO targeting false invoicing:- The ATO-led Serious Financial Crime Taskforce (SFCT) is warning businesses against using illegal financial arrangements such as false invoicing to avoid tax obligations and/or inflate their deductions. As an overview, the SFCT was established in 2015 as a collaborative effort among various law enforcement and regulatory agencies, including the Australian Federal …
Federal Budget 2024: Business Measures
On Tuesday 14 May 2024, Treasurer Jim Chalmers handed down the 2024-25 Federal Budget, his 3rd Budget. The major SME business tax-related measures announced in the Budget include the following. Instant asset write-off for small businesses extended The Government will extend the instant asset write-off concession for another 12 months. This will allow small businesses …
Div 7A loans: minimum repayments
Div 7A of the ITAA 1936 prevents profits or assets from private companies being provided to shareholders or their associates in a tax advantageous (or sometimes tax-free) manner. This Division captures payments or other benefits such as loans, advances, gifts or writing off a debt and treats them as a dividend (known as a “deemed …