ATO warning on work-related car expense claims

The ATO has announced that it will be closely examining claims for work-related car expenses this tax time as part of a broader focus on work-related expenses. The ATO is particularly concerned about taxpayers claiming for things they are not entitled to, such as private trips, trips they didn’t make, and car expenses that their employer paid for or reimbursed. Assistant Commissioner Kath Anderson said more than 3.75 million people made a work-related car expense claim in 2016-17, totalling about $8.8 billion. Each year approximately 870,000 people claimed the maximum amount under the cents-...

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END OF FINANCIAL YEAR TAX DIARY - IMPORTANT DATES

IMPORTANT DATES Tax Diary Date Obligation 6th June 2016: Tax returns due for individuals and trusts with a lodgment end date of 15 May 2016 provided they also pay any liability due by this date. Note: This is not a lodgment end date but a concessional arrangement where you will not have to pay failure to lodge on time (FTL) penalties if you lodge and pay by this date. 21st June 2016: May 2016 monthly activity statement – due date for lodging and paying. 25th June 2016: 2016 fringe benefits tax annual return – lodgment due date for tax agents (if lodging electronically). Payment (if required)...

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DID YOU KNOW ABOUT THE EMPLOYERS SUPERANNUATION CAP?

DID YOU KNOW THAT THERE IS AN EARNINGS BASE CAP WHERE EMPLOYERS DON’T HAVE TO PROVIDE SUPER GUARANTEE BEYOND THIS CAP? For the 2016-17 financial year if an employee earns over $51,620 for a quarter, the employer doesn’t have to provide super on earnings beyond that amount. So to put figures to this, 9.5% of $51,620 is $4,903.90 per quarter or $19,615.60 for the year being the amount that an employer must contribute to an employee’s super fund but is not compelled to contribute more than this.

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PROTECT YOURSELF AGAINST ATO SCAMS

SCAM EMAILS, FAXES, SMS AND PHONE CALLS CAN LOOK OR SOUND VERY CONVINCING ESPECIALLY WHEN COMING FROM THE AUSTRALIAN TAXATION OFFICE. You can generally tell they're not genuine because they offer you an unexpected refund or grant and ask you to provide personal information, credit card information or money. Remeber the ATO will never email you asking for personal or credit card details, and you should never provide this information. A top ATO scam circulating around Australia is outbound calls being made advising taxpayers there is a warrant out for their arrest. more information can be found...

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FEDERAL BUDGET 2016 SUPERANNUATION

FEDERAL BUDGET 2016 SUPERANNUATION THE CHANGES ANNOUNCED IN THE 2016 BUDGET IN RELATION TO SUPERANNUATION ARE SIGNIFICANT AND WILL MAKE IT DIFFICULT TO ACCUMULATE LARGE SUPER BALANCES. THE PROPOSED CHANGES LARGELY APPLY FROM JULY 2017. MORE DETAIL FOLLOWS: - $1.6 Mil. cap on 0% tax rate on Pension Funds It’s proposed from 1July 2017 to limit the profits/earnings that can qualify for the current 0% fund tax rate for when a pension is paid out of a fund. Super balances or the portion in excess of $1.6 mil, will attract the standard 15% tax on profit/earnings. - $500k lifetime non-concessional...

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GREAT NEWS: VICTORIAN PAYROLL TAX THRESHOLD TO INCREASE

The Victorian Government announced that the payroll tax threshold will increase from 1st July 2016 by $25,000 per annum over the next four years, which equates to a total increase of $100,000 from 1st July 2020. At the current rate, payroll tax rate of 4.85% it will save business groups in Victoria $4,850 where payroll tax is applicable. Interestingly, despite the threshold increase, Victoria will still have the lowest threshold which is behind the current national average of $1,050,000. It should however be noted that Victoria has the second lowest payroll tax rate.

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CHANGES TO CLAIMING MOTOR VEHICLE TRAVEL IN YOUR 2016 INDIVIDUAL TAX RETURN

Prior to July 1, 2015, there were four methods for claiming car expenses which included: cents per kilometre - capped at 5000 business kilometres; logbook - unlimited kms; 12% of original value; and one-third of actual expenses. From 1st July 2015, the last two methods have been abolished leaving the cents per kilometre method and the logbook method as the only two available. The cents per kilometre method The cents per kilometre method has been simplified to use a standard rate of 66 cents per kilometre for the 2016 income year no matter what the vehicle’s engine capacity is. The number of...

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INVESTMENT PROPERTY OWNERS NOTE: ATO DATA MATCHING REAL PROPERTY TRANSACTIONS FROM 1985

According to a Government Gazzette, the ATO are going to match over 30 million records with its 11.3 million individuals to ensure taxpayers are correctly meeting their tax obligation in regards to property. The ATO will be attaining property transactions from September 1985 to June 2017 from sources including the state revenue offices, rental bond authorities and land title offices. Data items that will be obtained include names of landlords, lease periods, amounts of rental bond, rents payable, dates of property transfers, names of transferors and transferees and valuation details.

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EMPLOYERS NOTE: SUPERSTREAM, SAVE UP TO 70% OF THE TIME YOU SPEND ON SUPER!

For Employers SuperStream becomes compulsory on 30 June – that’s only two quarters away! Don’t leave it till the last minute to make the change. As a standard way of processing superannuation payments electronically for employers, SuperStream takes only a short time to set up, but employers who have crossed over report an average of 70 % reduction in time spent on super. Your options to get ready include: using your current payroll software or upgrading it if required using your super fund’s online system using a messaging portal using a clearing house An important part of SuperStream...

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ELIGIBILITY FOR NET MEDICAL EXPENSES TAX OFFSET

The net medical expenses tax offset (NMETO) is being phased out. To be eligible for the NMETO for 2014–15, you must have received an amount of the tax offset in both the 2012–13 and 2013–14 income tax years. The eligibility rule for the NMETO does not apply to those with out-of-pocket medical expenses relating to disability aids, attendant care and aged care. These expenses can continue to be claimed until 30 June 2019.

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