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SEPTEMBER 2016 |
Share economy participants reminded of tax obligations |
The ATO has reminded people who earn income in the share economy that they have tax obligations. The type of goods or services you provide, and how much you provide, will determine what you need to do for tax. Popular sharing economy services include:
The ATO notes that you need to get an ABN if you are carrying on an enterprise providing goods and services through the sharing economy, and register for GST if:
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TIP: No matter how much you earn or your reasons for providing goods or services, it's a good idea to maintain records of your income and expenses, so you can keep track of your activities and deal with tax obligations when they arise. Tax deductions may also be available in certain circumstances. Please contact our office for more information. |
Itinerant worker claim denied, so travel deductions refused |
An individual has been unsuccessful before the Administrative Appeals Tribunal (AAT), where he argued that he was an itinerant worker and was therefore entitled to claim tax deductions for travel expenses of some $38,000 for the 2011–2012 income year. |
ATO flags retirement planning schemes of concern |
The ATO has launched the Super Scheme Smart initiative to inform people about retirement planning schemes that are of increasing concern. According to the ATO, people approaching retirement are most at risk of becoming involved in schemes that are "too good to be true". While retirement planning schemes can vary, you should be aware of some common features of problematic schemes. These schemes generally:
The ATO has previously issued statements about concerning schemes that involve non-arm's length limited borrowing arrangements, dividend stripping and diverting personal services income. |
TIP: The ATO encourages people to report their involvement in such schemes early. In specific circumstances, penalties may be reduced. Please contact our office for more information. |
Deductibility for gifts to clients and airport lounge membership fees |
The ATO has recently released the following Taxation Determinations: |
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Changes to $500,000 lifetime super cap confirmed |
The Federal Treasurer has confirmed that there will be some changes to the Government's proposal for a lifetime cap of $500,000 on non-concessional superannuation contributions. A number of exemptions will be available. |
TIP:The ATO can only calculate the amount of your non-concessional contributions available based on the information it has. You may wish to review your own history of contributions. Please contact our office for more information. |
Home exempt from land tax for "world-traveller" |
An individual has been successful before the Victorian Civil and Administrative Tribunal (VCAT) in seeking the principal place of residence land tax exemption for his home located in Shoreham, Victoria, despite being a "world-traveller" whose wife lives overseas. |
TIP: Land tax regimes differ from state to state. Please contact our office for assistance or more information. |
Important: Clients should not act solely on the basis of the material contained in Client Alert. Items herein are general comments only and do not constitute or convey advice per se. Also changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. Client Alert is issued as a helpful guide to clients and for their private information. Therefore it should be regarded as confidential and not be made available to any person without our prior approval |