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Ride sourcing – Claiming car expenses

Posted on September 20, 2017 by admin


Those who participate in ride-sourcing (i.e., Uber, GoCatch) as a driver can access a number of tax deductions come tax time. You may be able to claim expenses such as: – Parking fees – Road tolls – Mobile phone costs – Fees or commissions charged the facilitator – Other expenses – to the extent that they relate to work-related travel. Under the logbook method (the business-use percentage of car expenses) include: – Petrol – Depreciation of your car – General vehicle running costs such as insurance, car rego and repairs – Maintenance. Expenses you cannot claim include: – Fines, such as parking and speeding fines – Fuel tax credits – The cost of getting and maintaining a standard driving licence – Costs of a capital nature, such as car purchase price – Personal or private expenses, such as the private use of a car used for ride-sourcing activities. If you use your car for both personal and work-related use, you will need to apportion your car expenses appropriately. If the owner of the car is a spouse or de-facto partner, you can still claim deductions for the car as it is considered a joint asset. You may be eligible for […]


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Sharing economy and tax

Posted on September 14, 2017 by admin


The ATO is reminding those who work in the sharing economy to be aware of their tax obligations. The sharing economy connects buyers (users) and sellers (providers) through a facilitator who usually operates an app or a website. Some popular examples include Airbnb, Stayz, Uber, Deliveroo, Airtasker and so on. Different rules apply, depending on what type of sharing economy activities are undertaken by an individual. Those who rent out part or all of their home are reminded to: – declare what they earn in their tax return; – apportion related expenses as appropriate before claiming deductions and – understand it may affect their capital gains tax if they sell their home in the future. Individuals who participate in ride-sourcing activities need an ABN, to register for GST from the day they start, to pay GST on the full amount of every fare and to keep records of income and expenses for both GST and income tax purposes. GST credits associated with your ride-sourcing enterprise are deductible. Those providing other goods and services through the sharing economy need to remember to declare what they earn and apportion related expenses.


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Single Touch Payroll for streamlined reporting

Posted on September 7, 2017 by admin


From 1 July 2018, employers with 20 or more employees will report payments to the Australian Taxation Office at the same time as they pay their employees, using the Single Touch Payroll reporting system. This reporting system will keep track of payments such as: Salary and wages Super contributions Deductions, e.g. workplace giving Pay as you go (PAYG) Allowances The introduction of this new reporting measure does not incite changes to an employer’s payroll cycle; you can still make payments as you were, i.e., weekly, fortnightly, monthly, etc. When you do make these payments, the super and tax details of employees will be passed on, creating a more streamlined approach to make reporting and compliance more manageable. For businesses with less than 20 employees, the single touch payroll reporting system will be in place by 1 July 2019.


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Claiming the small business income tax offset

Posted on August 30, 2017 by admin


The small business income tax offset can help reduce the tax small businesses pay on business income by up to $1,000. This offset is available from the 2015-16 income year onwards. Small businesses with an aggregated turnover less than $5 million can access the concession from the 2016-17 income year. Business income derived by another partnership or trust, in which the small business owner is not a partner or beneficiary, is not eligible for the offset. Small business owners can claim the offset if they receive a share of net small business income from a small business: partnership, in which they are a partner trust, in which they are a beneficiary. The offset is 8 per cent for the 2016-17 income year onwards, 5 per cent for the 2015-16 income year. The offset will increase to 10 per cent in 2024-25, 13 per cent in 2025-26 and 16 per cent in 2026-27.


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Have you received personal services income?

Posted on August 23, 2017 by admin


Personal services income (PSI) is income mainly produced from your personal skills or efforts. There are special tax rules that apply if your income is classified as PSI. Almost any trade, industry or profession can receive PSI. The most common are financial professionals, IT consultants, engineers, construction workers and medical practitioners. PSI does not affect employees receiving only salaries and wages. When more than 50 per cent of the amount you received for a contract was for your labour, skills or expertise, then the income is classified as PSI. If you have received PSI (including if you have received it as a company, partnership or trust), you will need to work out if the PSI rules apply to that income. You can use the ATO’s Personal services income decision tool to do this. Where the rules do apply, they affect how you report your PSI to the ATO and the deductions you can claim. In the circumstances where the PSI rules do not apply, you are still required to declare any PSI amounts at the relevant labels on your tax return. Where you receive PSI but the rules do not apply, there are no changes to the deductions you can […]


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Tax penalty remissions

Posted on August 16, 2017 by admin


The Australian Taxation Office distributes penalties to ensure individuals are not making misleading or false statements regarding income, business and wealth matters. Studies indicate there is over $5.5 billion lost every year through tax avoidance in Australia, a massive amount of money. One of the reasons these penalties exist is to ensure taxpayers take more care and responsibility in adhering to their tax responsibilities. While the ATO has the power to distribute penalties, they also have the discretion to reduce or modify the penalties individuals owe. If you find yourself in a position where you are owing money due to penalties such as failing to lodge in due time, PAYG withholding, etc., there are a number of actions you can take. You can make a request to remit or cancel your penalty either online, by phone or by mail. In your request to remit or cancel a taxation penalty, you will need to provide the following: Full name Name, address and contact number to contact you (or an individual on behalf of you) regarding your request Tax file number/Australian business number Reference number (you will be advised of when you receive your penalty notice) Reason/s as to why penalty should […]


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Tax penalty remissions

Posted on by admin


The Australian Taxation Office distributes penalties to ensure individuals are not making misleading or false statements regarding income, business and wealth matters. Studies indicate there is over $5.5 billion lost every year through tax avoidance in Australia, a massive amount of money. One of the reasons these penalties exist is to ensure taxpayers take more care and responsibility in adhering to their tax responsibilities. While the ATO has the power to distribute penalties, they also have the discretion to reduce or modify the penalties individuals owe. If you find yourself in a position where you are owing money due to penalties such as failing to lodge in due time, PAYG withholding, etc., there are a number of actions you can take. You can make a request to remit or cancel your penalty either online, by phone or by mail. In your request to remit or cancel a taxation penalty, you will need to provide the following: Full name Name, address and contact number to contact you (or an individual on behalf of you) regarding your request Tax file number/Australian business number Reference number (you will be advised of when you receive your penalty notice) Reason/s as to why penalty should […]


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Fuel tax credits – rate change

Posted on August 14, 2017 by admin


On 1 August 2017, fuel tax credit rates increased. Some of these rates also changed on 1 July 2017, due to a change in the road user charge and an annual increase to excise duty rates on biofuels. Fuel tax credit rates change regularly – they are indexed twice a year, in February and August, in line with the consumer price index (CPI). Below are the rates for fuel acquired from 1 August 2017 to 31 January 2018. Eligible fuel type Unit Used in heavy vehicles for travelling on public roads All other business uses (including to power auxiliary equipment of a heavy vehicle) Liquid fuels, i.e., diesel or petrol Cents per litre 14.5 40.3 Blended fuels: B5, B20, E10 Cents per litre 14.5 40.3 Liquefied petroleum gas (LPG) (duty paid) Cents per litre 0.0 13.2 Liquefied natural gas (LNG) or compressed natural gas (CNG) (duty paid) Cents per kilogram 0.0 27.6 Blended fuel: E85 Cents per litre 0.0 10.55 B100 Cents per litre 0.0 2.7 Claims for packaging or supplying fuels can use the ‘all other business uses’ rate for the appropriate eligible fuel type. For businesses that claim less than $10,000 in fuel tax credits in a year, […]


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Fuel tax credits – rate change

Posted on by admin


On 1 August 2017, fuel tax credit rates increased. Some of these rates also changed on 1 July 2017, due to a change in the road user charge and an annual increase to excise duty rates on biofuels. Fuel tax credit rates change regularly – they are indexed twice a year, in February and August, in line with the consumer price index (CPI). Below are the rates for fuel acquired from 1 August 2017 to 31 January 2018. Eligible fuel type Unit Used in heavy vehicles for travelling on public roads All other business uses (including to power auxiliary equipment of a heavy vehicle) Liquid fuels, i.e., diesel or petrol Cents per litre 14.5 40.3 Blended fuels: B5, B20, E10 Cents per litre 14.5 40.3 Liquefied petroleum gas (LPG) (duty paid) Cents per litre 0.0 13.2 Liquefied natural gas (LNG) or compressed natural gas (CNG) (duty paid) Cents per kilogram 0.0 27.6 Blended fuel: E85 Cents per litre 0.0 10.55 B100 Cents per litre 0.0 2.7 Claims for packaging or supplying fuels can use the ‘all other business uses’ rate for the appropriate eligible fuel type. For businesses that claim less than $10,000 in fuel tax credits in a year, […]


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Lodge nil BAS in advance

Posted on August 2, 2017 by admin


Activity statements generally issue from the ATO by the end of the month but in some circumstances they can be generated early. Business owners can access activity statements early in the following cases: your business has ceased you will be travelling and will not be able to obtain your activity statement if generated under normal bulk process your entity is under some form of administration if you are going to be absent from your place of business before the end of the reporting period and the business will not be trading during that period you are a short-term visitor, i.e., an entertainer or sportsperson and will be leaving the country before generation of the activity statement Quarterly clients who have elected to report and pay monthly are not eligible to lodge activity statements in advance. All non-elected monthly, quarterly and annual lodgers can access activity statements early if they meet the following requirements: meeting the lodgment and payment due dates under the normal bulk processes and time frames will cause difficulties you have not had an active deferred goods and services tax (DGST) role during the reporting period the request relates to it is not practical or possible for you […]


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How does the super guarantee charge work?

September 20, 2017

Employers who do not pay the minimum amount of super guarantee for their employee(s) by the due date may have to pay the super guarantee charge (SGC).

The charge is made up of super guarantee shortfall amounts including any choice liability calculated on your employee’s salary or wages, interest on those amounts (currently 10 per cent) and an administration fee ($20 per employee, per quarter).

Employers must report and rectify the missing payment by lodging an SGC statement by the due date and paying the SGC to the ATO. Employers may be able to use a late payment to reduce the amount of SGC, however, they must still lodge an SGC statement and pay the balance of the SGC to the ATO.

The ATO prioritises the collection of unpaid SGC debts. If an employee reports an employer for unpaid super, the ATO will investigate on their behalf.

Employers must lodge their SGC statement and pay the charge by the due date.

Quarter Period Due date
1 1 July – 30 September 28 November
2 1 October – 31 December 28 February
3 1 January – 31 March 28 May
4 1 April – 30 June 28 August

If a due date falls on a weekend or public holiday, the payment can be made the next working day.

Once the statement has been lodged and the SGC is paid, the ATO will transfer the super guarantee shortfall amount and any interest to the employee’s chosen super fund.