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Star & Associates
Level 1, 58 Pitt Street
Sydney NSW 2000

Working holiday makers – employer registration extended

The ATO has announced that employer registration for working holiday makers has been extended to Tuesday 31 January. Working holiday makers are those with visa sub-classes 417 and 462. Employers of working holiday makers must register with the ATO. Once registered, a withholding rate of 15 per cent applies to the first $37,000 of a…

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High deductions on ATO’s radar

The ATO has issued a warning that it’s paying extra attention to taxpayers claiming higher than expected deductions for the 2015-16 income year. the ATO warns that taxpayers should ensure: • their claims are justified • they have not already been reimbursed for the expenses by their employer • they are getting good advice •…

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Renting out a room is rental income

With the rise of AirBNB and other sharing economy platforms, the ATO is reminding taxpayers that money they earn from renting out a room in their house is rental income for tax purposes. This applies to rooms rented by traditional means or through a sharing economy website or app. The ATO also states that if…

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Government backs down on “backpacker tax”

The government has announced that it has dropped its plan to introduce a 32.5 per cent tax (commonly referred to as the “backpacker tax”) on temporary working holiday makers. Instead, from 1 July 2017, working holiday makers will be taxed at 19 per cent from their first dollar earned, up to $37,000, with ordinary marginal…

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ATO reminder – ensuring SMSF has active electronic service address

The ATO has reminded self managed super funds (SMSFs) that they now need to be able to receive SuperStream-compliant contributions. To do this, the following details need to be sent to employers: • SMSF Australian business number (ABN) • SMSF bank account details to receive the contributions • an active electronic service address to receive…

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Government proposes changes to super budget announcements

The government is proposing a number of changes to its super policy announcement from the May budget. The changes include: • replacing the proposed $500,000 lifetime non-concessional contributions cap with an annual non-concessional contributions cap of $100,000 (down from the current $180,000 cap). Individuals aged under 65 will be able to “bring forward” three years’…

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ACCC warning against tax scams

The Australian Competition and Consumer Commission (the ACCC) is warning Australians to steer clear of tax scams, after more than $1 million has been reported lost to their “Scamwatch” already in 2016, with over 300 people reporting they lost money to tax scams in the first half of 2016. According to the ACCC, these scams…

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PAYG and non-resident capital gains withholding

The Commissioner has issued a legislative instrument, F2016L01123 , to ensure that the correct amount of foreign resident CGT withholding tax is withheld where there is a sale of Australian property by multiple sellers and one of them is an Australian resident and at least one is a foreign resident. The PAYG amount must be…

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ATO benchmarks for small businesses

The ATO has released benchmarks for small business. They are a guide to help taxpayers compare their business’s performance against similar businesses in the same industry. Based on the data from 2014 income tax returns and business activity statements, the latest benchmarks: • are calculated from income tax returns and activity statements from over 1.3…

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ATO focus on work-related deductions

The ATO has announced that it will focus on work-related deduction claims that are higher than expected, in particular, car expense claims for transporting bulky tools, and deductions for travel, internet and mobile phone, and self-education. The ATO said that this year, for the first time ever, it will check taxpayers’ deductions in real-time as…

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