Resources

END OF FINANCIAL YEAR OBLIGATIONS FOR EMPLOYERS

The ATO reminds employers to maintain robust payroll governance, ensuring correct recording of payments, withholding of PAYG tax, and accurate calculation of Superannuation Guarantee (SG). For the new financial year starting 1 July 2024, employers must update payroll software for new tax thresholds, apply the increased SG rate of 11.5%, and adjust for minimum wage changes. Employers also need to finalise STP reports by 14 July 2024 and review payroll practices for compliance.

EMPLOYEE VS INDEPENDENT CONTRACTOR

Recent ATO Decision Impact Statements shed light on determining ‘employee’ status under the Superannuation Guarantee Act. The Full Court in JMC Pty Ltd v FCT and the High Court in Jamsek v ZG Operations Australia ruled contractors as non-employees, affecting superannuation obligations. We’ve broken down the key takeaways you should know.

SEEKING MERCY FROM THE ATO ON PRIVATE COMPANY LOANS

The Australian Taxation Office (ATO) is tightening its application of the Commissioner's Discretion under section 109RB of Division 7A, which addresses loans from private companies. This discretion, historically used to forgive breaches due to "honest mistakes" or "inadvertent omissions," is now being applied more narrowly.

New Year’s Resolution – Updating My Estate Plan

Believe me, it is not an easy discussion and can take some time to gain traction.  But I believe it is a discussion we all need to have at some point, even if it is in bite size pieces.

Tax & The Christmas Party – What You Need to Know

The tax treatment of Christmas parties and associated costs depends on various factors, including where the party is held, who attends, and the cost of individual benefits. Employers need to carefully consider these factors to determine their tax obligations and deductions related to Christmas festivities.

TECHNOLOGY INVESTMENT BOOST (“TIB”)

Small businesses (with an aggregated annual turnover of less than $50 million) can deduct an additional 20% of the expenditure incurred for the purposes of business digital operations.  This also extends to small businesses that are digitising its operations on business expenses and depreciating assets such as portable payment devices, cyber security systems or subscriptions to cloud based services. An annual $100,000 cap on expenditure will apply to each qualifying financial year. Businesses can continue to deduct expenditure over $100,000 under existing law.

Managing Risks in the Allocation of Professional Services Firm Profits – Part 2

In our first article we discussed how the ATO are again taking aim at how Professional Services Firms allocate their profits to the owners (Principals) with the announcement late last year that they will start contacting Professional Service Firms to “assist” them in managing those risks.

TR 2023/1: Residency Tests For Individuals Released

Determining tax residency of an individual is complex and based on a largely subjective interpretation by the Commissioner and the courts’ application of the statutory tests for residency of individuals as set out in subsection 6(1) of the Income Tax Assessment Act 1936.

Division 7A, Distributable Surplus and the meaning of ‘Net Assets’

Working out a company’s distributable surplus is a vital element of Division 7A as the extent to which a deemed dividend is assessable is limited to the distributable surplus amount.

2023 SMSF Source Document Checklist