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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...

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.

Rental and other rental-related income is the full amount of rent and associated payments that you receive, or become entitled to, when you rent out your property, whether it is paid to you or your agent. You must include your share of the full amount of rent you earn in your tax return. What happens if Rental Bond is retained in case of tenant default or damage caused to property by the tenant? You must include rental bond money as income if you become entitled to retain it, for instance, because a tenant defaulted on the rent, or because of damage to your rental property requiring repairs or maintenance. In case of commercial rent, if the landlord becomes entitled to rental bond then the amount will be inclusive of GST (if landlord is registered for GST) and GST liability will arise as a result. What if you received an insurance payout? If you received an insurance payout, there may be situations where the payout needs to be included as income, for example,...

Superannuation guarantee amnesty bill passed Parliament on 24 February 2020 and has now received Royal Assent and is law. This law change provides a number of incentives for employers to pay any unpaid historical superannuation guarantee (SG) amounts relating to the period 1 July 1992 to 31 March 2018. Superannuation guarantee amnesty benefits   Provided superannuation guarantee charge (SGC) relating to the period above is paid during the amnesty period of 24 May 2018 until 6 months after the date of Royal Assent (6 September 2020), eligible employers will receive the following benefits:   The SGC will be deductible The SGC, which is usually non-deductible, is comprised of the following amounts: Ø   The total SG shortfall – that is, the total of the SG shortfalls for each affected employee. Ø   Interest on SG shortfalls – currently 10% per annum on each individual SG shortfall; and Ø   An administration fee – usually $20 pe...

Personal Insurance Need insurance cover to cover yourself and your family members in case of unforeseen circumstances? We have partnered with experienced and qualified insurance brokers to offer you tailor-made insurance policies to provide peace of mind for you and your loved ones. Our insurance offering includes the following insurance types – Life Insurance ·          Financial support for your loved loves in the event of your death. ·          You can choose the level of protection you require. ·          Tailor your plan to suit your personal needs. Total and Permanent Disability Cover ·          Benefit from a lump sum payment if you were to become totally and permanently disabled. ·          Choose the level of protection you want based on your personal ne...

Feeling charitable in the lead up to the festive season?  Whether you’re digging deep to support your favorite charity or dropping five bucks into a donation bucket, hang onto those receipts! You might be able to claim a deduction next tax time. For your donation to be deductible, it must be for $2 or more and made to what’s called a ‘deductible gift recipient’ (DGR). Organizations entitled to receive tax-deductible gifts are called 'deductible gift recipients' (DGRs). You can only claim a tax deduction for gifts or donations to organizations that have DGR status. The person that makes the gift (the donor) is the person that can claim a deduction. What is a DGR? A deductible gift recipient (DGR) is an organization or fund that can receive tax-deductible gifts. Not all charities are DGRs. For example, in recent times crowdfunding campaigns have become a popular way to raise money for charitable causes. However, many of these crowdfunding websites ...

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...

TAX TIME MYTHS VS FACTS Here are some of the most common MYTHS relating to tax deductions – Myth:  I can claim home to work travel because I need to get to work to earn my income. Fact:  For most of us, home to work travel is a private expense. Myth:  Everyone can automatically claim $150 for clothing and laundry, 5,000km under the cents per  kilometer  method for car expenses, or $300 for work-related expenses, even if they didn’t spend the money. Fact:  There is no such thing as an “automatic” or “standard deduction”. Substantiation exceptions provide relief from the need to keep receipts in certain circumstances. While you don’t need receipts for claims under $300 for work-related expenses, $150 for laundry expenses (note: this is for laundry expenses only and does not include clothing expenses) or if you are claiming 5,000km or less for car expenses under the cents per kilometer method, you still must have spent the money, i...