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

ATO treatment of foreign resident CGT exemption changes

The ATO has released details of its administrative treatment of proposed changes to deny foreign residents access to the CGT main residence exemption. Under amendments in Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures) Bill 2019, the exemption for the disposal of a main residence will be denied except where certain life events (terminal medical…

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ATO urges taxpayers to report foreign income this tax time

The ATO has warned taxpayers that it holds data on more than $100 billion held in offshore accounts and uses sophisticated analyses to identify the taxpayers with unreported foreign income. It is urging taxpayers to report any foreign income whether from investments, family members or overseas employment, no matter how small, and even if tax has been…

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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…

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ATO 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…

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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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