Industry News
FBT issues on ATO’s radar
The ATO has updated its list of what attracts its attention to include six items specifically related to FBT. These include: failing to report car fringe benefits, incorrectly applying exemptions for vehicles or incorrectly claiming reductions for these benefits mismatches between the amount reported as an employee contribution on an FBT return compared to the…
Read MoreATO data matching — motor vehicles
The ATO will acquire information for the 2016-17, 2017-18 and 2018-19 financial years on vehicles that have been transferred or newly registered where the purchase price or market value is equal to or greater than $10,000. Data will be acquired from the eight state and territory motor vehicle registry authorities. It is estimated that records…
Read MoreATO on work-related clothing and laundry expenses
The ATO has recently expressed concerns about the increase in claims by taxpayers for certain work related expenses, including clothing and laundry expenses, and has advised that it is an area where it will be “increasing attention, scrutiny and education”. It has also reminded taxpayers that to be eligible for a deduction, clothing needs to…
Read MoreATO puts privately owned groups on notice
The ATO has released a list of behaviours and characteristics that may attract its attention in relation to privately owned and wealthy groups. It says the information has been provided as part of its commitment to transparency in working with privately owned and wealthy groups. Broadly, the following behaviours and characteristics may attract its attention:…
Read MoreATO Focus on Holiday Homes
The ATO will focus on deductions claimed for rental properties in popular Australian holiday destinations this tax time, having identified many incorrect claims for holiday homes by investors last year. Assistant Commissioner Kath Anderson has reminded holiday home owners that they can only claim tax deductions for expenses made during a period when the home…
Read MoreChange to spouse tax offset from 1 July 2017
The ATO has reminded taxpayers that, from 1 July 2017, the current 18 per cent tax offset of up to $540 will be available for any individual, whether married or de facto, contributing to a recipient spouse whose income is up to $40,000. Currently, an individual can claim a tax offset up to a maximum…
Read MoreATO alert: R&D tax claims for software development & farming activities
The ATO has alerted taxpayers against claiming the R&D tax incentive for ineligible software development activities. According to Taxpayer Alert TA 2017/5, the ATO and AusIndustry are reviewing arrangements of companies that are claiming the R&D tax incentive on software development projects where some or all of the expenditure incurred is on activities which are…
Read MoreUber drivers must register for GST
In Uber B.V. v FC of T, the Federal Court has held that services provided by an Uber driver constituted a supply of “taxi travel” for GST purposes. Accordingly, the driver was required to be registered for GST. The ATO have advised that ride-sourcing enterprises should: • keep records • have an ABN register for…
Read MoreATO warning on making R&D claims
The ATO and the Department of Industry, Innovation and Science (DIIS) have jointly released two new taxpayer alerts as a warning to taxpayers who incorrectly claim or deliberately exploit the research and development (R&D) tax incentive program. The alerts (TA 2017/2 and TA 2017/3) relate to particular issues identified in the building and construction industry…
Read MoreHigh 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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