Posts by Luke Star
ATO benchmarks for small businesses
The ATO has released benchmarks for small business. They are a guide to help taxpayers compare their business’s performance against similar businesses in the same industry. Based on the data from 2014 income tax returns and business activity statements, the latest benchmarks: • are calculated from income tax returns and activity statements from over 1.3…
Read MoreATO focus on work-related deductions
The ATO has announced that it will focus on work-related deduction claims that are higher than expected, in particular, car expense claims for transporting bulky tools, and deductions for travel, internet and mobile phone, and self-education. The ATO said that this year, for the first time ever, it will check taxpayers’ deductions in real-time as…
Read MoreATO focus on rental property deductions
The ATO has announced that it will focus on excessive interest expense claims and incorrect apportionment of rental income and expenses between rental property owners. It will also look at holiday homes that are not genuinely available for rent and incorrect claims for newly purchased rental properties. The ATO has reminded taxpayers when claiming deductions…
Read MoreDeadline for review of non-arm’s length LRBAs extended
The ATO is allowing trustees of self managed superanuation funds (SMSFs) an extension from Thursday 30 June until 31 January 2017 to ensure that any limited recourse borrowing arrangements (LRBAs) of their funds are on terms consistent with an arm’s length dealing or are brought to an end. The ATO says it will provide further…
Read MoreCGT foreign resident withholding on taxable Australian property
From 1 July 2016, Australian residents who are selling taxable Australian property with a market value of $2 million or more need to obtain a clearance certificate from the ATO, to ensure that CGT foreign resident withholding of 10 per cent does not need to be withheld from the transaction. The form is available to…
Read MoreNon-resident CGT withholding clearance certificates and variation notices
The ATO has issued the application form for use by Australian resident property vendors to obtain a capital gains withholding clearance certificate. Under new rules that apply from Friday 1 July, purchasers of taxable Australian real property from foreign resident vendors will be required to pay 10 per cent of the purchase price to the…
Read MoreNew foreign resident CGT withholding regime
The ATO has released the details of how it will administer the new foreign resident CGT withholding payment regime. The new withholding regime introduces a 10 per cent non-final withholding on payments made to foreign residents under contracts entered into on or after Friday 1 July 2016 to dispose of certain taxable Australian property consisting…
Read MoreForeign resident CGT withholding regime
The Tax and Superannuation Laws Amendment (2015 Measures No 6) Act 2016 introduces a new regime imposing withholding obligations on payments made to foreign residents that dispose of certain taxable Australian property. The purpose of the regime is to assist in the collection of the CGT liabilities of foreign residents. Broadly, where a foreign resident…
Read MoreDeadline looms for agricultural land registration
The government has reminded foreign owners of agricultural land in Australia to register their holdings with the ATO by the deadline of Monday 29 February 2016. All existing foreign-owned agricultural land holdings regardless of their value must be registered while new interests must be registered within 30 days of purchase.
Read MoreATO data matching – Department of Human Services and insurance details
The ATO has given notice that it will acquire details of individuals in receipt of Family Tax Benefit Part B, paid parental leave, carer allowance and Medicare entitlement statements from the Department of Human Services (Centrelink and Medicare) for the 2014-15, 2015-16 and 2016-17 financial years. The ATO has also given notice that it will…
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