Industry News
COVID-19: no penalties in absence of valuation evidence for SMSF assets
The ATO will not impose penalties if it is satisfied that SMSF trustees find it difficult to obtain the required valuation evidence for fund assets due to the impacts of COVID-19. Auditors should however consider the need to modify Part B of their audit report and lodge an Auditor/actuary contravention report (ACR), if necessary, during…
Read MoreATO focus on capital gains from shares, property and cryptocurrency
The ATO will use data-matching as it looks closely at gains from disposals of shares, property and cryptocurrency. Records relating to any capital gains tax (CGT) event should be kept for at least five years after the year in which the event occurred. Records should also be kept of any net capital losses, which could …
Read MoreImpact of COVID-19 on loss utilisation
The ATO has clarified on how the business continuity test applies for companies affected by COVID 19. To utilise carried-forward losses in a particular year, a company must satisfy the continuity of ownership test or business continuity test. The business continuity test will not be met where a company has ceased its business with no…
Read MoreLegislation to facilitate JobMaker Hiring Credit payments introduced
The Economic Recovery Package (JobMaker Hiring Credit) Amendment Bill 2020 proposes to amend the Coronavirus Economic Response Package (Payments and Benefits) Act 2020 to allow the Treasurer to make rules for a kind of COVID-19 economic response payment that is primarily intended to improve the prospects of individuals getting employment or increase workforce participation. The…
Read MoreCOVID-19 (NSW): Payroll tax Stimulus Payment Arrangements
Businesses in NSW will be able to pay their deferred payroll tax liabilities over 24 months via a payment arrangement with Revenue NSW. The first year of the arrangement will be interest-free. These Stimulus Payment Arrangements are available to all NSW businesses as part of the NSW Government’s economic package to help businesses impacted by…
Read MoreCOVID-19 and car fringe benefits
Employer fringe benefits tax (FBT) obligations may be affected where employees have been garaging work cars at their homes due to COVID-19. The ATO has clarified that an employer will not be taken to hold a car for the purposes of providing fringe benefits to an employee where a car has not been driven at…
Read MoreExtended stay in Australia during COVID-19 could impact tax residency and income source
The ATO has released guidance on the implications of changes to tax residency and source of income for individuals impacted by COVID-19. Individuals may need to review their residency status for tax purposes if they end up staying in Australia for a lengthy period and do not plan to return to their country of residency…
Read MoreCOVID-19: change in tax outcomes for residential rental properties
The ATO has released guidance on tax issues for residential rental properties arising from COVID 19. The guidance covers: • claiming deductions if less rental income has been received while normal expenses continue to be incurred • the proportion of expenses that can be claimed as a deduction if the property was used differently in…
Read MoreWorking from home? How to claim your home office tax deductions
With more office employees working from home as a result of the coronavirus crisis, the number of claims made to the Australian Taxation Office for home office expenses this year will soar. There are three ways of calculating home office expenses depending on your circumstances. The methods are the: Shortcut method (80 cents) – only available 1 March…
Read MoreBoosting cash flow for employers
Small and medium-sized businesses and not-for-profit entities, with an aggregated annual turnover of less than $50 million (usually based on their prior year’s turnover) that employ people, may be eligible to receive a total payment of up to $100,000 (with a minimum total payment of $20,000), based on their PAYG withholding obligations, in the following…
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