Tag

ATO
The Instant Asset Write-Off brought in 2023-24 has been extended until June 30 2025. This write-off threshold was increased from $1000 to $20,000 back in 2023-24. What does that mean for you? The increase in the instant asset write-off threshold offers a significant cash flow benefit to small businesses. This allows them to claim an...
Read More
Financial Year
As the end of the financial year approaches, here are some areas at risk of increased ATO scrutiny and opportunities to maximise tax deductions. For Individuals Opportunities Bring forward your deductible expenses into 2023-24. Prepay your deductible expense where possible, make any deductible superannuation contributions and plan any philanthropic gifts to utilise the higher tax...
Read More
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 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
It is common for business owners to devote their money into a business to get it up and running until it can sustain and survive on its own. A recent case highlights the dangers of taking money out of a company without considering tax implications. Case Study – Private and Company Expense A taxpayer who...
Read More
Electric Vehicle
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
In the latest advisory from the ATO, Solomons Accountants & Advisers reminds you that simply labelling a worker as an independent contractor in an agreement doesn’t automatically classify them as such for tax and superannuation purposes. It’s important to understand the true nature of the working relationship to determine the correct classification. When a written...
Read More
1 2