By 30 June 2019, five major financial institutions paid $119.7 million in compensation for poor financial advice to 6,318 customers. The question is, how are these payments treated for tax purposes? The tax treatment varies according to why the compensation was paid and who the payment was made to. Compensation payments are made for a…
Recent case highlights some of the trust tax problems that can occur It’s not uncommon for people to put assets such as their family home into a trust, particularly professionals working in litigious fields or family groups wanting to protect assets. The taxpayer, in this case, had become the owner of their main residence as…
What are you really entitled to? The recent income tax cuts that passed through Parliament do not mean everyone automatically gets $1,080 back from the Government as soon as they lodge their income tax return. The Australian Taxation Office (ATO) has been inundated with calls from taxpayers wanting to know where their money is and…
Around 3.8M small businesses, including 1.6M sole traders, in Australia We employ around 5.5 million people and contribute $380bn to the economy. Small business is also in debt to the ATO to the tune of $15bn. This tax time, the ATO has stated they are looking closely at taxpayers: setting up or changing to a…
Work-related deductions for you Last financial year, over 8.8 million taxpayers claimed $21.98 billion in deductions for work-related expenses. It’s an area under intense review by the ATO. If you claim work-related deductions, it’s important to ensure that you are able to substantiate any claim you make. To claim a deduction, you need to have…
Victorian State Government Budget – 27 May 2019 The Victorian state government recently handed down its annual state budget and there are a number of changes that will impact both business and investors. A summary of the key items is as follows. Payroll Tax The government’s three key changes are: Increase in the tax-free threshold…
Scammers impersonate ATO phone numbers The Australian Taxation Office (ATO) is warning about the continuation of unprecedented numbers of pre-recorded phone calls experienced last year which impersonate legitimate tax office phone numbers. Assistant Commissioner Gavin Siebert said that scammers have adopted ‘Robocall’ technology to target taxpayers across the country. “Scammers are sending pre-recorded messages in…
Individuals Personal income tax cuts As anticipated, the Budget celebrated the surplus with a $19.5bn package of personal income tax cuts for Australian residents. This package revises the legislated seven year income tax plan. The personal tax changes mean a tax saving of $855 for someone on an annual taxable income of $45,000 per annum…
Quick update Tampon tax (GST on sanitary products) scrapped Voluntary crackdown begins on credit card providers to protect consumers who cannot pay off their credit card debt or who cannot afford an increased limit Higher Education Loan Program: New lifetime caps prevent students repeating courses or continually enrolling in new courses. New loan limits: Increase…
No tax deductions if you don’t meet your tax obligations New laws passed by parliament last year directly target the behaviour of taxpayers that don’t meet their obligations. Tax deductions denied If taxpayers do not meet their PAYG withholding tax obligations, from 1 July 2019 they will not be able to claim a tax deduction…