Category Archive for: ‘Practice Update’

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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June 2016 Practice Update

2016/17 Federal Budget The government handed down the 2016/17 Federal Budget on Tuesday 3rd May. It included (among many changes) proposed personal income and company tax cuts from 1 July 2016, the extension of GST to all imports (irrespective of value) from 1 July 2017, an increase in the small business entity (‘SBE’) turnover threshold from 1 July 2016, and …

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May 2016 Practice Update

Impending blowout from the leaked ‘Panama Papers’ Editor: Clients may have recently heard something about an unknown source who has leaked 11.5 million documents from the Panamanian law firm of Mossack Fonseca. Basically, the documents illustrate how many wealthy individuals hide their money from tax authorities. Under a plan devised by the Commissioner of Taxation, Chris Jordan, 35 countries have …

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April 2016 Practice Update

ATO reminder – What’s new for small business? Editor: The ATO has issued a timely reminder before the end of the financial year on the changes announced in last year’s Budget. Instant asset write-off – simpler depreciation rules Small businesses can immediately deduct the business portion of most (new or secondhand) assets if they cost less than $20,000 and were …

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March 2016 Practice Update

DHS specified benefits and entitlements data matching The ATO has advised that it will collect information from the Department of Human Services (DHS) for the following benefits and entitlements: family tax benefits – part B; paid parental leave scheme; carers’ allowance; and Medicare entitlement statements. This data will be compared with claims made in income tax returns for the invalid …

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February 2016 Practice Update

ATO announces two important data matching protocols The ATO has just announced that it is starting a new “asset” data matching protocol, and extending another CGT and rental protocol that has been running successfully for the last ten years. Data matching on insurance taken out on certain assets owned by “wealthier” taxpayers The ATO has advised that it is working …

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