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Category Archive for: ‘Practice Update’

May 2017 Practice Update

Company tax cuts pass the Senate with amendments Editor: After a marathon few days of extended sittings (the last before the Federal Budget in May), the Government finally managed to get its company tax cuts through the Senate, but it was not without compromise. The following outlines the final changes to the law, as passed by the Senate, including a …

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April 2017 Practice Update

Reduction in FBT rate from 1 April 2017 In conjunction with the introduction of the temporary budget repair levy (of 2%, payable by high income earners), the FBT rate was also increased from 47% to 49% for the 2016 and 2017 FBT years. However, the FBT rate will revert back to 47% from 1 April 2017. Editor: This means there …

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March 2017 Practice Update

ATO data regarding Super Guarantee non-compliance Editor: The ATO has provided some information about Superannuation Guarantee (SG) non-compliance in its recent submission to a Senate inquiry into the impact of the non-payment of the Superannuation Guarantee. In addition to marketing and education activities to re-enforce the need for employers to meet their SG obligations, the ATO conducts audits and reviews …

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February 2017 Practice Update

Changes to the ‘backpacker tax’ From 1 January 2017, tax rates changed for working holiday makers who are in Australia on a 417 or 462 visa (these rates are known as ‘working holiday maker tax rates’). If a business employs a working holiday maker in Australia on a 417 or 462 visa, from 1 January 2017, they should withhold 15% …

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December 2016 Practice Update

Personal income tax cuts are law! Editor: The government has finally legislated the tax cuts originally announced in the May 2016 Budget, so that the marginal tax rate of 37% now starts at $87,000. The following are the rates for adult residents for the 2016/17 income year (i.e., from 1 July 2016).

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November 2016 Practice Update

Survey for SMSFs using LRBAs The ATO has announced that it will be contacting some SMSF trustees in November 2016 to participate in a survey about the use of ‘limited recourse borrowing arrangements’ (‘LRBAs’) to acquire assets for their SMSF. The ATO will email a sample of SMSFs that reported LRBA assets on their 2015 SMSF annual return to invite …

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October 2016 Practice Update

Government ‘backflip’ on superannuation changes Following further consultation, the government has announced the following ‘improvements’ to the superannuation changes announced in the 2016/17 Budget: the $500,000 lifetime non-concessional cap will be replaced by a new measure to reduce the existing annual non-concessional contributions cap from $180,000 per year to $100,000 per year; individuals with a superannuation balance of more than …

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September 2016 Practice Update

Pre-retirees: Avoid ‘too good to be true’ tax schemes The ATO has launched a new project called ‘Super Scheme Smart’, an initiative aimed at educating individuals about the potential pitfalls of ‘retirement planning schemes’, to keep them safe from risking their retirement nest egg. According to the ATO, individuals most at risk are those approaching retirement, including anyone aged 50 …

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August 2016 Practice Update

Update on the government’s superannuation program Editor: Now that the government has been re-elected, it seems they are committed to proceeding with their superannuation policy, including the controversial measure to impose a ‘lifetime cap’ of $500,000 on the amount of non-concessional (i.e., undeducted) contributions that can be made into superannuation (calculated from all contributions made since 1 July 2007).

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July 2016 Practice Update

ATO focuses on rental property owners With Tax Time 2016 just around the corner, the ATO has stated it will be paying close attention to excessive interest expense claims, and incorrect apportionment of rental income and expenses between owners. The ATO is also looking at holiday homes that are not genuinely available for rent, and incorrect claims for newly purchased …

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