190,000 taxpayers ‘examined’ in ATO online rental blitz

The Australian Taxation Office (ATO) has announced a new data-matching program targeting taxpayers earning income from the exploding popularity of short-term rentals available on platforms like AirBNB and Stayz.    Utilising information from online platform sharing sites matched to information from financial institutions, the ATO is targeting 190,000 individuals to make sure they have not failed to declare or under declared rental income or have overclaimed deductions. In effect, whatever…  Read more

Clothing deductions hung out to dry

The Australian Taxation Office is closely examining work-related clothing and laundry expense claims of taxpayers submitting their 2017-18 tax returns. The ATO says that clothing claims are up nearly 20% over the last five years with people either making mistakes or deliberately over-claiming. Common mistakes include people claiming ineligible clothing, claiming for something without having spent the money, and not being able to explain the basis for how the claim…  Read more

Tax time is looming…

No one wants to pay more tax than they need to or face unnecessary risks. We’ve compiled a list of our top tips for you. Donate – If you are going to donate to charity, now is the time. Any donations you make to deductible gift recipients can be deducted this year. Remember, if you received something in return for the money, like goods purchased at a charity auction, you…  Read more

Car expense claims on the ATO’s radar

This tax season the ATO will be keeping an eye on car expense claims. Whilst the ATO acknowledges that the rules can be confusing, its imperative to only claim for genuine travel. There are three golden rules that should be adhered to when making a claim for travel: only make a claim if you paid for the expenses yourself and you were not reimbursed. ensure the travel is directly related…  Read more

2018/19 FEDERAL BUDGET

Personal income tax changes Targeted tax relief to low and middle income earners The Government will introduce the Low and Middle Income Tax Offset, a non-refundable tax offset of up to $530 per annum to Australian resident low and middle income taxpayers. The offset will be available for the 2019, 2020, 2021 and 2022 income years and will be received as a lump sum on assessment after an individual lodges…  Read more

Will your business be audited?

How the ATO identifies audit targets. The ATO is very upfront when it comes to their compliance activity. Every year they publish small business benchmarks that outline what a typical business ‘looks like’ in different industries. If your business falls outside of those benchmarks, the ATO is likely to take a closer look at why that is. Falling outside of the benchmarks might not indicate a tax related problem. It…  Read more

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