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Don’t let these Tax Time myths slow down your return At a time when many people want the tax refund that they are expecting to arrive quickly, the Australian Taxation Office (ATO) is warning people not to get tripped up by tax time myths that slow down returns. Usually, tax returns lodged electronically are processed in less than 2 weeks.   Top tax time myths for 2020   Bank details don’t update themselves   While ATO receive information from banks, this doesn’t extend to updating details for the bank account you nominate to have your refund deposited into. Last year many people in their rush to lodge early forgot to update bank details and delayed their refund.   It’s not okay to double dip   ATO is concerned that some taxpayers may either accidentally or deliberately double dip by claiming their working from home expenses using the all-inclusive shortcut method while also claiming for specific items such as laptops or desks.   It’s important...

A business may be eligible to receive the JobKeeper Payment if their turnover has been reduced because of the coronavirus. Following registration by the eligible business, the Government will provide $1,500 per fortnight per eligible employee until 27 September 2020.   The JobKeeper Payment is available to eligible employers, businesses including companies, partnerships, trusts and sole traders, not-for-profits and charities.   The intent of the JobKeeper Payment is to enable any eligible self-employed person to get a wage subsidy regardless of what business structure they use, where:   the business operates through a sole trader structure – one owner can be nominated to receive the JobKeeper Payment the business operates through a partnership – one partner can be nominated to receive the JobKeeper Payment the business operates through a company – one director can be nominated to receive the JobKeeper Payment the business has shareholders who provide labour to ...

What is a PAYG Instalment?   A PAYG instalment is an estimate only made by the Australian Taxation Office based on your previous years’ assessment and is essentially a prepayment of the tax liability.   The ATO will also determine how frequently you are required to pay these instalment amounts.   How do PAYG instalments affect my Annual Tax Return?   Upon lodgement of your Tax Return , the instalment paid will be credited against your actual tax liability to determine if additional tax is payable or a refund due.   Your PAYG instalment is greater than the actual tax liability After finalising the Annual Tax Return, if it is noted that the actual tax liability is less than the PAYG instalment amount already paid to the ATO for the Financial Year then upon lodgement of the Tax Return, you will be entitled to a refund from the ATO.   PAYG instalment is less than the actual tax liability If the actual tax liability is greater than the PAYG instalment amount...

JobSeeker: how to treat in tax return   JobSeeker payments are taxed.   The ATO will automatically load this information into the ‘government payments and allowances’ section in your tax return, but it will not necessarily be there from July 1.   This means if the information is missing when you do your tax return, you will have to provide this information to your tax agent or wait until the data is available on ATO portal.   “Leaving out income can slow down your return or result in a bill later so it’s definitely best avoided.   JobKeeper: how to treat in tax return   JobKeeper payments are taxed as regular income.   If you have received JobKeeper payments from your employer do not need to do anything different to other “normal” years.   The payments will be included as salary and wages and/or allowances, in your regular income statement, which your employer provides directly to the ATO.   The income statement sent to the ...

Work from home – Shortcut method ATO has introduced a shortcut method to simplify how you calculate your deduction for working from home. This method is temporary and only available for the period 1 March to 30 June 2020. All employees working from home in this period can use this method. Using this method, you can claim 80 cents per hour for each hour you work from home during the period 1 March to 30 June 2020. You can choose to use this rate if you: are working from home to fulfill your employment duties, not just carrying out minimal tasks such as occasionally checking emails or taking calls have incurred additional running expenses because of working from home. The shortcut method covers all your work from home expenses, such as: phone expenses internet expenses the decline in value of equipment and furniture electricity and gas for heating, cooling and lighting. If you use this method, you cannot claim any other expenses for working from ...

JobKeeper – Business monthly declaration If you have enrolled for the JobKeeper Payment and identified your eligible employees, you need to make a business monthly declaration to the ATO. You will be able to do this from the 1st to the 14th day of each month, to receive reimbursements for the payments you have made to your employees in the previous month. For example, the business monthly declaration for reimbursement of JobKeeper payments for the month of May needs to be completed by 14 June. Each month every business enrolled for Job Keeper payment must reconfirm their reported eligible employees. Every business must also provide information regarding their current and projected turnover. This is not a re-test of your eligibility, but rather an indication of how your business is progressing under the JobKeeper Payment scheme. If your eligible employees change or leave their employment, you will need to notify ATO through your monthly declaration. Conta...

Individuals affected by the coronavirus can access up to $10,000 of their superannuation in 2019-20 and a further $10,000 in 2020-21. You will be able to apply for early release of your superannuation from mid-April 2020. While superannuation helps people save for retirement, the Government recognizes that for those significantly financially affected by the coronavirus, accessing some of their superannuation today may outweigh the benefits of maintaining those savings until retirement. Eligible individuals will be able to apply online through myGov to access up to $10,000 of their superannuation before 1 July 2020. They will also be able to access up to a further $10,000 from 1 July 2020 for approximately three months (exact timing will depend on the passage of the relevant legislation). Eligibility To apply for early release, you must satisfy any one or more of the following requirements: ·  you’re unemployed ·  you’re eligible to receive a job seeke...

Very often we are asked if meal expenses incurred while driving Uber, Ola, DIDI or using any other ride sourcing platform are deductible. We’ve noticed a spike in inquiries relating to deduction for meal expenses. In most cases, clients tell us that other accountants are claiming meal expenses on GST returns for ride sourcing and have been told by other accountants that these expenses are deductible. There are some expenses that can’t be claimed because they’re personal expenses or not allowed under the law. This includes personal or private expenses, such as meals you purchase while on a break. Next time, if an accountant tells you that meal expenses incurred while ride sourcing are claimable, ask them to show an ATO weblink confirming the same. Contact Expert Tax  on 0449 952 855 or 1300 869 829 for assistance on tax related matters.

Commissioner of Taxation – Notice of ATO Data Matching Program – Attention Uber Drivers The Australian Taxation Office (ATO) will acquire data to identify individuals that may be engaged in providing ride sourcing services during the 2016–17 and 2017–18 financial years. Details of all payments made to ride sourcing providers from accounts held by a ride sourcing facilitator will be requested from a financial institution for the 2016–17 and 2017–18 financial years. Ride sourcing facilitators provide an electronic platform enabling members of the public to engage the services of a ride sourcing provider (a driver). The data ATO acquire will be electronically matched with certain sections of ATO data holdings to identify taxpayers. ATO can provide them with tailored information to help them meet their tax obligations or to ensure compliance with taxation law. ATO will obtain the following data items from the source entity: Payee account name Payee BSB Payee ac...

Updating your name with the ATO If you need to lodge tax returns under a new name that is not current on Australian Tax Office (ATO) records, the details will need to be updated before your tax return is lodged. The ATO has issued instructions regarding the steps necessary to change your name for Individuals and Sole Traders. You cannot change your name via the front page of the tax return, as you have in the past. If you do not follow the procedure mentioned below, processing of your tax return will be delayed by ATO.   You can do this by telephone or online: The quickest way to update your name is by using the online services for individuals. All you need is a myGov account linked to the ATO. Alternatively, you can call ATO to get this done quickly over the phone. Phone 13 28 61 between 8:00 am and 6:00 pm, Monday to Friday, and ask to be transferred to ‘Personal Tax Enquiries’. Whether you make the change online or by phone, make...

Made a mistake on your tax return? If you have made a mistake or need to amend your tax return, it is important you lodge an amendment as soon as you’ve realized the error made on your original return. It is important to note that time limits apply for lodgment of amendments. The law sets time limits for amending your tax assessment. For individuals and small businesses the time limit is generally two years, and for other taxpayers four years, from the day after ATO has issued you the notice of assessment for the year in question (generally taken to be the date on the notice or, if ATO doesn’t issue a notice, the date the relevant return was lodged). For example, you’re a sole trader and receive a notice of assessment dated 8 th  December 2015. Your two-year amendment period starts on 9 th  December 2015 (the day after the date on the notice) and ends two years later, on 8 th  December 2017, so you have until that day to lodge a request for an amend...