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

Updated guidance on deductions available for an investment property

The ATO has updated its guidance on depreciating assets for investment properties. If an individual purchased their rental property at or after 7.30pm on 9 May 2017, they may be impacted by the changes to legislation for depreciating assets. These changes apply from 1 July 2017. Individuals can no longer claim deductions for second-hand or…

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ATO 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…

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ATO 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:…

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Tax Tip for Small Business Entity

There are a variety of tax concessions available to a taxpayer that is carrying on a business which satisfies the eligibility criteria to be a ‘Small Business Entity’ (‘SBE’) Broadly speaking, for the year ending 30 June 2017 a business taxpayer will be an SBE if its ‘aggregated turnover’ is less than $10,000,000.  ‘Aggregated turnover’…

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ATO 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…

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Change 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…

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ATO 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…

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Uber 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…

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ATO 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…

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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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