According to Ben Johnston from leading Sydney accounting firm Willett Johnston Partners, taxpayers need to arm themselves with as much information as possible to avoid being stung by the Australian Taxation Office (ATO) and to increase their chances of scoring a tax refund.
News and Media
90% of rental deductions "erroneous"
|25 June 2019
Credit: Your Investment Property
The Australian Taxation Office (ATO) found that 90% of rental deductions are inaccurate, signalling a crackdown on investment property claims.
The government agency announced earlier this year that it would double the number of audits scrutinising rental deductions.
The move came as nearly 2.2 million investment property owners experienced financial pressure from dropping property prices, oversupply, and increasing vacancy rates in every capital city, according to data from Domain.
ATO to use new tax return label for SMSF risk profiling
|19 June 2019
Credit: SMSF Adviser
As previously reported by SMSF Adviser, the 2019 SMSF annual return contains a new label requiring tax agents or trustees to indicate whether Part A of the fund’s audit report was qualified.
While SMSFs were asked in previous years whether Part B of the audit report had been qualified, which is the section relating to the fund’s compliance, this is the first year funds will also need to answer if Part A was qualified.
Unreported 'cash in hand' payments to workers no longer tax deductible
|18 June 2019
The Australian Taxation Office (ATO) today reminded employers that any unreported ‘cash in hand’ payments made to workers from 1 July 2019 will not be tax deductible.
‘Cash in hand’ refers to cash payments to employees that do not comply with pay as you go (PAYG) withholding obligations. Payments made to contractors where the contractor does not provide an ABN and the business does not withhold any tax will also not be tax deductible from 1 July.