The ATO has signalled that it is willing to pursue professional services firms who divert profits to avoid tax. Two new cases before the Administrative Appeals Tribunal demonstrate how serious the Australian Taxation Office (ATO) is about making sure professional services firms – lawyers, accountants, architects, medical practices, engineers, architects etc., – are appropriately taxed. ...Read More

The 2024-25 Federal Budget is the third for the Albanese Government and consistent with previous years, the primary themes are expected to be the cost of living and the economic shift to net zero.  According to election guru Antony Green, the window for the next election starts on Saturday, 3 August 2024, “the first possible date...Read More

The ATO has issued a warning to trustees of SMSFs about sloppy valuation practices. ATO data analysis has revealed that over 16,500 self managed superannuation funds (SMSFs) have reported assets as having the same value for three consecutive years. With many of these assets residential or commercial Australian property, you can forgive the ATO for...Read More

From 1 July 2024, the amount you can contribute will increase from $27,500 to $30,000 for concessional super contributions; $110,000 to $120,000 for non-concessional contributions. Growing Your Super Contribution caps are indexed to wages growth based on the December quarter average weekly ordinary times earnings (AWOTE) of the previous year. Indexation Impacts The Following Areas:...Read More

The Fringe Benefits Tax year (FBT) ends on 31 March 2024. In late 2022, as an incentive to promote electric vehicles (EV), the Australian Government allowed employers to provide EV to employees without incurring 47% FBT for private use. The condition of the exemption applies to: Electric cars Hydrogen fuel cell electric cars Plug-in hybrid...Read More

Late 2023, thousands of Australians were notified about an outstanding historical tax debt that they never knew about. In circumstances when a taxpayer is in serious hardship and unable to pay the ATO, the ATO can temporarily decide to not pursue a debt and place it “on hold”. However, it is not extinguished and can...Read More

The problem when the evidence doesn’t match what the taxpayer tells the ATO – A recent case before the Administrative Appeals Tribunal (AAT) highlights the importance of ensuring that the evidence supports the tax position you are taking. In this case, a piece of heritage farmland was initially bought for $1.6 million and later sold...Read More

The personal income tax cuts legislated to commence on 1 July 2024 will be realigned and redistributed under a proposal released by the Federal Government. Following considerable discussion, the Australian Government has announced changes to the planned Stage 3 tax cuts starting from 1 July 2024. As a result of these amendments, a larger number...Read More