| Date | Title | Description |
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| Jul 27, 2016 | Inappropriately diverting income to SMSFs: ATO offers penalty remission to those who act early | The Australian Tax Office is offering a penalty remission to self-managed super fund (SMSF) members who come forward before January 31, 2017, with details about arrangements they may have entered into to divert their personal services incom... |
| Apr 13, 2016 | The four industries the ATO is targeting for potential audits | The Australian Tax Office is targeting certain businesses for potential tax audits if they fail to meet their obligations concerning paying the right amount of superannuation for their employees, collecting tax from payments to employees, f... |
| Mar 23, 2016 | Why the government is reviewing the “backpacker tax” proposal | In the 2015-16 federal budget, handed down on May 12, 2015, the federal government announced plans to change the tax law, specifically the tax residency rules, to treat most people who are temporarily in Australia for a working holiday as n... |
| Mar 10, 2016 | Employees vs contractors: Beware the “myths” | The difference between an employee and an independent contractor has been an issue of confusion among SMEs for some time. Of course, the different tax and related consequences that flow from whether someone is an employee or contractor are ... |
| Mar 2, 2016 | SMEs can now restructure their businesses without a tax penalty | Legislation has been passed in Federal Parliament that will allow small businesses to change the legal structure of their business and have the capital gains tax (CGT) liability disregarded and deferred until eventual disposal. The changes ... |
| Jan 27, 2016 | Beware of the new tax rules when paying car allowances | From July 1, 2015 and for tax returns for the current tax year, changes to the tax law have made claiming car expense tax deductions for individuals simpler. Although, of course when talking tax, “simpler” is a relative term!
The upshot of ... |
| Jan 20, 2016 | Capital gains small business tests catch out another taxpayer – but the reason why is unusual | The capital gains tax (CGT) small business concessions have been around for some time. As I have said many times in the past, they are valuable concessions but are often complicated to work through.
Read more: CGT small business concessions... |
| Jan 13, 2016 | Streamlined tax and super reporting for SMEs is on its way | SMEs are going to hear a lot about something called STP – Single Touch Payroll – in the coming year. It’s a system the federal government hopes will streamline business tax and superannuation reporting and save costs for SMEs. Fingers cross... |
| Dec 2, 2015 | How to get your GST reporting right | GST is a major tax compliance issue for SMEs. It is part and parcel of their daily operations. And they need to get it right.
According to the Australian Tax Office, some taxpayers are incorrectly including so-called “out-of-scope” supplies... |
| Nov 25, 2015 | Tax deductions for website costs: Do you know the rules? | Many, if not most, businesses these days have websites. It’s simply part of the process of doing business and it is becoming more important by the day. People’s shopping habits are turning online at an increasing rate and failure to meet th... |
| Sep 30, 2015 | All done: ATO pilots “OK” tax return letters | The Australian Tax Office is piloting a scheme to give taxpayers some peace of mind and certainty about their tax returns.
This year, the ATO is sending letters to a small group of taxpayers as part of a trial to confirm that their 2014-15 ... |
| Sep 10, 2015 | ‘Excessive’ rental property deductions in ATO sights | Rental income from property is a source of income for a large number of Australians. In fact, the most recent statistics show that, in 2012-13, almost 2 million Australians returned rental income (or losses) in their tax returns.
Read more:... |
| Sep 3, 2015 | CGT small business concessions continue to catch SMEs out | A lot has been written about the capital gains tax (CGT) small business concessions, not all of it complimentary. As I have said a number of times before, the concessions are valuable but are complex to understand and comply with.
Read more... |
| Aug 26, 2015 | Small business tax changes come into effect: What it means for you | Several beneficial SME tax changes announced in the federal budget in May are now law, after royal assent was given to the amending legislation yesterday.
However, it is important to note that some of the changes apply from 1 July 2015 so t... |
| Jul 16, 2015 | The doctor, the Lamborghini and the Tax Commissioner | What constitutes the carrying on of a business for tax purposes is an age-old issue that has important consequences. If a business is carried on, tax deductions and credits can be claimed, input tax credits for GST can be claimed, and other... |
| Jul 9, 2015 | Don’t make a meal of changes to fringe benefit tax concessions for salary packaged meal and entertainment benefits | In May this year, the federal budget confirmed the government would introduce a grossed-up cap of $5000 per year on the FBT concessions for salary-sacrificed meal entertainment and entertainment facility leasing expenses (meal entertainment... |
| Jul 2, 2015 | More good news tax changes coming for SMEs | Legislation was introduced in Federal Parliament last week – the Tax Laws Amendment (Small Business Measures No 3) Bill 2015 – that proposes to make changes to the tax law to implement 2015 budget measures that will be welcomed by SMEs. The... |
| Jun 25, 2015 | Family assistance payments – don’t forget the tax link | These days, the tax and social security systems are inextricably linked. Such is the modern world. No surprise then (or is there!) when getting a social security payment is linked to tax compliance. In government, the left hand often (but n... |
| Jun 18, 2015 | Employee “fly-in fly-out” costs – no FBT for employer | Businesses will usually pay relevant employee expenses when those employees undertake work for the business. Paying expenses can then give rise to fringe benefits tax (FBT) liabilities for the employer—but not always.
As a general principle... |
| Jun 11, 2015 | ATO raids businesses over potential fraudulent phoenix activity: How to spot a phoenix | Phoenix activity has been the subject of scrutiny by the ATO for some time but the taxman has recently raided businesses without prior notice.
Phoenix activity essentially involves business operators who deliberately liquidate companies to ... |
| May 21, 2015 | SME $20,000 “instant” asset tax write-off explained – and it applies to second-hand assets too | The 2015-16 federal budget announcement that small businesses (i.e. businesses with aggregate annual turnover less than $2 million) would be able to immediately write off assets they start to use or install ready for use, provided the asset... |
| Apr 29, 2015 | Tax statistics: Why it’s all in the eye of the beholder | How does the saying go (often attributed to British Prime Minister Benjamin Disraeli): “There are three kinds of lies: lies, damned lies, and statistics!”
Tax is about numbers, big numbers. And those numbers lend themselves to all sorts of ... |
| Apr 23, 2015 | Trading stock taken for private use – the latest amounts from the ATO revealed | The trading stock of a business is the lifeblood of that business. But in certain industries – for example, bakers, butchers, greengrocers, milk bars, general stores, convenience stores, restaurants, cafes and delicatessens – trading stock ... |
| Apr 9, 2015 | Tax time to be made easier, but ATO to chase tax debts sooner | Technology is having an increasing impact on the way taxpayers interact with the Tax Office. For example, it is making it easier and simpler to lodge annual tax returns.
Launched at Tax Time 2014, the ATO’s myTax product significantly strea... |
| Mar 19, 2015 | Contractor payments: ATO stays on the case | Contractor payments is an area that has concerned the Tax Office for quite some time now. Contractors come and go and they tend to be what might be termed a fluid workforce. They do, of course, have tax obligations to meet, as do those that... |
| Mar 5, 2015 | Intention to carry on a business not enough for GST claim | A company claiming to carry on a land development business in Victoria has been unsuccessful before the Administrative Appeals Tribunal (AAT) in claiming GST input tax credits (ITCs) for acquisitions it had made.
The case illustrates the ne... |
| Feb 26, 2015 | Burden of proof on taxpayers is a heavy one | When a taxpayer disputes an assessment made by the Tax Office, it is the taxpayer that bears the burden of proving that the assessment is excessive. That is a heavy and important responsibility, as a recent Australian Administrative Tribuna... |
| Feb 19, 2015 | Single Touch Payroll aims to cut red tape for SMEs, but are you ready? | Less than two months ago the government announced it would cut red tape for employers by simplifying tax and superannuation reporting obligations through a system called Single Touch Payroll.
Under Single Touch Payroll, employers will be re... |
| Feb 11, 2015 | The importance of tax records: Taxpayer faces $2 million penalty after “inconsistencies” and “contradictions” in case | A recent case in the Administrative Appeals Tribunal has again shown the importance of having proper records and evidence when the Australian Tax Office comes calling.
The taxpayer in question was audited and adjustments were made by the AT... |
| Feb 5, 2015 | Making loans from SMSFs – court imposes $40,000 in penalties | Self-managed super funds are, and have been, flavour of the month for some time now.
The opportunities SMSFs provide for people to control their retirement incomes can be attractive. Of course, running such a fund has its own costs and the ... |
| Jan 29, 2015 | Board of Taxation report on tax and small business: what’s in it for your business? | The federal government recently released the Board of Taxation’s report on taxation impediments to the success and growth of small business, together with the government’s response to that report.
The government says it wants to simplify th... |
| Dec 4, 2014 | Tax deductions for work-related expenses – know the rules | Some “bread and butter” tax this week – work-related expenses for food and drink while travelling while at work. Hardly a “rocket science” tax issue but one that can trip up the unwary.
Late last year, the AAT allowed a truck driver’s claim... |
| Nov 27, 2014 | Have you sold shares in the last 30 years? The ATO is coming for you | With the public float of institutions such as the Commonwealth Bank, Telstra, and now Medibank Private, more Australians today hold shares than ever before. But with that comes the ever-present worry about tax. Owning shares has tax consequ... |
| Nov 20, 2014 | Crowdfunding can have tax consequences | Entrepreneurs with an idea they want to put into practice can have difficulties in obtaining funding, particularly from traditional sources, to progress their ideas. Crowdfunding can help.
So-called “crowdfunding” is a relatively recent add... |
| Nov 13, 2014 | Getting a release from tax debts not as easy as ABC | Taxpayers can get a release from their tax debt but there are conditions. Under the tax law, the Tax Commissioner has a discretion to release an individual taxpayer from payment of their tax debts if paying the debt would cause the taxpayer... |
| Oct 2, 2014 | Don’t get caught by income thresholds for health insurance rebate | The income thresholds for the private health insurance rebate (offset) and the Medicare levy surcharge will be frozen with effect for three years from July 1, 2015 if a bill introduced in Federal Parliament is passed.
The Private Health Ins... |
| Sep 18, 2014 | How the mining tax repeal will hit SMEs | The mining tax repeal only affects mining companies – right? Not right. A number of measures that were to be paid for from the proceeds of the mining tax directly affect SMEs. These include the instant asset write-off and depreciation on mo... |
| Sep 11, 2014 | Over-claimed GST credits: Good intentions just don’t cut it | While it’s often said that lawyers and accountants are their own worst clients, or doctors are their own worst patients, taxpayers too can be their own worst clients when they represent themselves in disputes with the Tax Office.
This happe... |
| Sep 4, 2014 | Proving the ATO wrong is no mean feat | A taxpayer has largely failed before the Administrative Appeals Tribunal in proving that the Tax Commissioner got his tax assessment wrong. This resulted in his taxable income being increased from $7000 to $290,000.
The tribunal upheld an a... |
| Jul 17, 2014 | Husband and wife, sharing and caring, until tax law do us part | Husband and wives often regard themselves as jointly owning the assets each possesses. “What’s mine is yours” and vice versa. In a happy relationship, that’s all well and good, but unfortunately, the tax law can intervene to take some of th... |
| Jul 10, 2014 | “Sleeping director”: When a company director is personally liable for a company’s unpaid tax liabilities | Company directors must meet a wide range of obligations under the Corporations Law and also under taxation law. There are plenty of traps to trip over and directors must be fully aware of their obligations under the law.
Some directors may ... |
| Jul 3, 2014 | Tax Commissioner denied access to Family Court documents – this time | With the ATO’s information-gathering powers seemingly ever-expanding, the “long arm of the law” is taking on a whole new meaning. But that long arm doesn’t always reach as far as the Commissioner might like.
For example, the Federal Court r... |
| Jun 26, 2014 | PAYG reporting to be reduced for small business as ATO embraces digital change | Small Business Minister Bruce Billson has announced measures he said will remove red tape barriers for small businesses and their owners.
Billson said the government is “working up a measure for reducing compliance costs for taxpayers by $5... |
| Jun 19, 2014 | Getting a release from your tax debts – possible, but not so simple | In general terms, the tax law contains provisions that allow taxpayers to, in effect, get out of paying their tax bill if they can prove that paying their tax would result in “serious hardship”.
Obtaining a release from tax liabilities invo... |
| Jun 12, 2014 | The tricky business of property development and GST credits | In general terms, in order to claim input tax credits (ITCs) under the GST system, an enterprise must be carried on. This can be a tricky issue when property developments are concerned, as two taxpayers recently found out to their detriment... |
| Apr 17, 2014 | Got a tax gripe? The Tax Inspector General wants to help you | The Tax Office is a powerful agency. It has to administer Australia’s very complex tax laws and carry out compliance checks to ensure taxpayers (including SMEs) are meeting their tax obligations.
That’s fine, but what happens when there are... |
| Apr 10, 2014 | Small business warning: ATO data-matching targets online selling | I’ve discussed the various Australian Tax Office data-matching programs on several occasions. SMEs should be aware of the latest programs where the ATO will match data from various sources.
The programs help the ATO identify non-compliance ... |
| Mar 5, 2014 | The tax refund delays that try taxpayers’ patience: Why the hold-ups happen | Tax refunds are often thought of as a sacrosanct part of our tax system. They’re not. There is no guarantee that anyone will get a tax refund. It depends entirely on one’s particular circumstances, and how the numbers fall when a person’s t... |
| Jan 30, 2014 | GST laws can put you to sleep – unless you’ve got sleep apnoea | The GST laws can apply to a weird and wonderful range of things, and some fine distinctions are often sought to be made by the Tax Office in applying those laws.
Feeling sleepy already (at the mention of distinctions in tax law)? I can’t bl... |
| Dec 18, 2013 | Help with medical expenses through the tax system to end | In this, my last column for this year, I thought I would look at an issue that goes to the hip-pocket nerve of us all – medical expenses.
For many years, the government has used the tax system to help people with the cost of their medical e... |
| Oct 31, 2013 | Mining tax repeal will see some SME tax concessions wound back | Last week, the Federal Government released for comment draft legislation to repeal the Minerals Resource Rent Tax (MRRT), the “mining tax”, and related tax measures, with effect from 1 July 2014. The very short one-week time period for comm... |
| Oct 24, 2013 | A taxing issue: Beware of time limits in seeking GST refunds | The tax law contains time limits for doing all sorts of things, including applying for GST refunds.
Broadly speaking, under the GST law, an entity is not entitled to a GST refund unless the Tax Commissioner is notified (e.g. via the lodgmen... |
| Oct 9, 2013 | Capital gains tax: Get your house in order | The tax law contains exemptions from capital gains tax (CGT) for a person’s principal or main residence. But, as always, it’s not as simple as it sounds. The rules can be tricky to understand.
The Administrative Appeals Tribunal (AAT) recen... |
| Oct 3, 2013 | Self-managed super funds – beware of risk areas | Self-managed super funds (SMSFs), also known as DIY super funds, have been in the news lately regarding their alleged propensity for borrowing to invest in property.
Proponents of both sides of the argument have put forward their case and, ... |
| Sep 26, 2013 | Helping kids can land parents with a tax bill | Parents often like to lend a helping hand to their children, even when they are adults.
This can range from a few dollars to buy some furniture, to a lot more dollars to buy a car, and even heaps more dollars to help buy a property. The kid... |
| Sep 19, 2013 | GST on property transactions can trap the unwary | The sale of a property has GST implications and, potentially, income tax consequences. The GST implications can catch out those who are not fully conversant with how the GST laws apply.
A recent AAT decision held that, for the purposes of t... |
| Sep 5, 2013 | Share investor or share trader: The difference affects your tax | I’ve been overseas for the last few weeks on holiday (well deserved, of course!) and have blissfully missed all the electioneering since the federal election was called – if only I could have stayed away another week!
The tax promises made ... |
| Jul 18, 2013 | A big truckin’ problem: Getting your work-related tax deductions right | Claiming tax deductions for work-related expenses is one of the ATO’s target areas this year.
It’s a very basic tax issue, but not always well understood. This has been highlighted by a recent Administrative Appeals Tribunal (AAT) decision.... |
| Jul 10, 2013 | Compliance stopping SMEs from capitalising on R&D Tax Incentive: Thomson Reuters study | The R&D Tax Incentive is a targeted entitlement program designed to help businesses offset some of the costs of doing research and development (R&D). The program aims to help more businesses do R&D and innovate.
It is open to fi... |
| Jul 4, 2013 | Fix your tax affairs before you start-up a business | Starting a business is a challenging prospect. There are many issues to consider and tax is just one of them. But, getting the tax wrong can prove costly.
For income tax and GST purposes, just when an activity constitutes a ‘business’ is cr... |
| Jun 19, 2013 | The four big things government can do to help small business | I know I am speaking to the converted here, and this is not news to SMEs, but in this election year, a campaign being run by the Australian Chamber of Commerce and Industry is trying to get government to seriously and properly focus on the ... |
| Jun 6, 2013 | Superannuation and other barriers to older people working need to go | The issue of how to take advantage of the skills and experience of older workers is becoming more important as baby boomers age and leave the workforce. All that experience “walking out the door” is a loss for any business. And many older p... |
| May 30, 2013 | ATO has trusts in its sights | The use of trusts by taxpayers and businesses is widespread. They are used for all sorts of legitimate business reasons, but there has been a nagging concern in government circles that they are used as tax avoidance vehicles.
In the 2013-14... |
| May 10, 2013 | Super payments for employees made easier | For many SMEs, paying their employees’ compulsory 9% superannuation under the superannuation guarantee scheme can be an administrative nightmare.
And paying the extra 0.25% from July 1 this year, taking the payment to 9.25%, won’t make it a... |
| May 2, 2013 | Proper records are a winning tax proposition | Tax 101 doesn’t get much more basic than the need for keeping proper and adequate records to substantiate tax claims.
Without good records, SMEs (or any taxpayer for that matter) face an uphill battle to convince the Tax Office or the AAT o... |
| Apr 26, 2013 | Travellers and tourism get a GST boost | While speculation continues apace about possible tax and superannuation changes in the upcoming federal budget, some positive news on the GST front has come to hand.
Customs has announced that changes to the requirements for making a claim ... |
| Apr 18, 2013 | Court finds limits to ATO’s powers to garnish | A recent court case has demonstrated the limitations of the Tax Office’s power to collect tax.
The case dealt with one of the Tax Commissioner’s many tax collection powers, the use of what are known as “garnishee” notices.
If a taxpayer has... |
| Apr 11, 2013 | Beware of the ATO’s data-matching machine | The Australian Tax Office must have one monster computer system to store all the data it continues to accumulate! The use of data-matching (and data-mining) is now a well worn and central plank of the ATO’s compliance activities.
Taxpayers ... |
| Mar 27, 2013 | The taxman’s bouquet: ATO benchmarks catch out a small business | The Australian Tax Office has been using small business benchmarks for a number of years. This approach has not been without controversy, with claims that benchmarks unfairly produce a one-size-fits-all approach and don’t take into account ... |
| Mar 21, 2013 | SMEs still in limbo over low value import thresholds | In a recent speech, the Assistant Treasurer, David Bradbury, indicated the federal government was not in a position to lower the current $1,000 “Low Value Import Threshold” for GST and duty.
In 2012, the government commissioned the Low Valu... |
| Feb 20, 2013 | How new rules will affect SMSF property investments | The growth of self-managed super funds (SMSFs) continues its upward path. The investment by the sector in property is also on the rise. But with that comes a need for SMSFs to be acutely aware of the rules that surround investing in propert... |
| Feb 13, 2013 | What tax should you pay on an insurance payout? | The taxation implications of insurance payouts can become quite “messy” and are not always clear. A recent decision by the Administrative Appeals Tribunal (AAT) is worth noting.
The AAT confirmed that lump sum payments made to three former ... |
| Jan 30, 2013 | GST refunds: Beware of time limits | Businesses can be entitled to refunds of GST from time to time. However, under the law, there is a four-year time limit on claiming those refunds.
The four-year limit commences on the day the business was required to lodge a return (or acti... |
| Jan 16, 2013 | A truckload of tax and super reforms in 2013 | Last year saw the usual proverbial “truckload” of tax and superannuation changes were either passed by Federal Parliament, or proposed to commence this year. It’s difficult to keep up with it all, but below I set out some of the changes tha... |
