It can be easy to ignore emails and text messages from myGov, however we cannot stress enough just how crucial it is to pay attention to these alerts. These messages could contain vital information regarding outstanding lodgements or debts to the ATO.
The ATO has identified three main areas of focus for this tax season: rental property deductions, work-related expenses, and Capital Gains Tax (CGT). These are areas where mistakes are frequently made and the ATO is now prioritising them.
The costs associated with Christmas parties are exempt from FBT if it occurs on a working day, on the business premises, and consumed by current employees. The property benefit is not available for associates (spouses, friends, children).
In early September, the Treasury released draft legislation that will introduce a Skills and Training Boost and a Technology Investment Boost tax incentive. These incentives will support businesses and address skill shortages in the workforce
Beware of tax scams as we head into the new financial year. Tax fraud and scams happen year round, but with tax on people’s minds, they can often be more susceptible to falling for scams at this time of year.
On 13 July 2022, the ATO issued its final position on the Division 7A consequences on unpaid present entitlements (UPEs) to corporate beneficiaries. This final tax determination was initially released in draft in February of this year and remains largely unchanged.
Reduced tax rates may be available to eligible entities. Eligible entities include companies, corporate unit trusts and public trading trusts. If your company is a ‘base rate entity’, your company tax rate is 25% for the 2021–22 income year and foreseeable future.
As we enter the new financial year, several new tax changes will be coming into effect as of 1 July 2022