Category: General

A recently announced ATO initiative will target individuals who are falsely claiming an exemption on the Medicare levy. Using metadata matching technology, the ATO will aim to ensure that individuals are meeting their tax obligations. The program is also predicted to identify a number of individuals who do qualify for the exemption, but have not…

The ATO has made its final ruling on the application of Division 7A to relationship breakdowns. If a private company is ordered by the family court to make a payment or transfer an asset to a separating partner, then the settlement will be treated as a distribution of profits for tax purposes. The ruling has…

As personal technology devices such as laptops, smartphones and tablets, are becoming increasingly prevalent, the ATO will be focusing its attention on individuals claiming tech items as work-related tax deductions. Currently, Australians claim almost $19.5 billion each year in work-related expenses, and an increasing number of tech items are being included each year. It is…

It is common for businesses to make GST errors in their BAS. The majority of these mistakes are unintentional. The ATO recently reviewed all of the BAS adjustments made as a result of auditing and revealed that over 80% were the result of inadvertent GST mistakes. Examples of common mistakes include: clerical errors such as…

1. What is a self-managed super fund? A self-managed super fund (SMSF) is a superannuation fund with a maximum of four members who act as the fund’s trustees and direct its investment strategy, giving Australians the chance to take a more active role in planning their retirement. SMSFs represent the fastest growing sector of the…

There are now greater penalties in place for breaches of most Australian tax laws. The ATO has increased the value of a penalty unit from $110 to $170, the first such increase since 1997.