ATO Targeting Investment Property Dealings
The ATO has launched a program to ensure that taxpayers are correctly meeting their tax and other obligations.
The collection of information includes, landlords’ names, rental periods, rental bond amounts, payable rents, dates of property trans relating to property, by obtaining information on all taxpayers as far back as 1985.
The information collected will be matched with the information that the ATO already holds on the 11.3 million individual taxpayers and the tax returns that they have lodged.sfers, names of transferors and tranferees and the valuation details.
If you think that you may have understated/undeclared income or gains, or have over claimed expenses in the past 30 years, you should visit your tax agent. It is now simple for the ATO to build a picture of property related transactions, a voluntary disclosure before the ATO comes to talk to you, is far better than the penalties that will arise from the audit that may take place.
For further information on investment/rental properties contact Absolute Accounting Solutions on 1300 488 330
Who does SuperStream apply to?
SuperStream is mandatory for all employers that make superannuation contributions for employees using either an APRA-regulated super funds or a self-managed superannuation fund (SMSFs).
According to the ATO the SuperStream standard is part of the government's Super Reform package. Designed to provide a consistent, electronic method of transacting, that links data and payments to superannuation funds as contributions.
It has been implemented to improve the efficiency of contributions, assist with the timeliness of rollovers, while attempting to reduce the amount of lost accounts and unclaimed monies within the superannuation system.
Employers must make their payments by an electronic bank transfer, and can no longer make superannuation payments by any other means. If you continue to send cheques, you will not be compliant with SuperStream and may face penalties under the law.
For employers with 19 or less employees.
SuperStream will start from 1 July 2015. You have until 30 June 2016 to meet the SuperStream requirements when sending an electronic transfer for superannuation contributions for employees.
Your options may include:Superannuation
For employers with more than 20 employees
SuperStream started from 1 July 2014. From that date, employers needed to start implementing SuperStream and have until 30 June 2015 to meet the SuperStream requirements when sending superannuation contributions by an electronic transfer for employees.
Self Managed Super Funds (SMSFs)
If you have a Self Managed Super Fund you will need to register your SMSF on the Register of SMSF messaging providers as from 1st July 2014.
The ATO has stated that "From 1 July 2014, self-managed superannuation fund (SMSF) trustees are required to receive both electronic messages and payment when making contributions for employees using the SuperStream data and electronic payments."
As an SMSF trustee, you will need to obtain an electronic service address (alias) from an SMSF messaging provider so that you can receive contribution messages sent using SuperStream.
Once the SMSF is registered with the messaging provider, they will be able to link your SMSF with the electronic service address of the provider.
If you have an employer, the employer will need your SMSFs electronic service address and bank details to be able to make contributions to your fund electronically.
SMSF members should be aware that if they do not provide their fund's Australian business number (ABN), electronic service address and bank details to their employer, they may be asked to complete a standard choice form.
Below is a link to a register of SMSF messaging providers and it is open to all SMSF trustees.
Feel free to contact us on 1300 488 330 or via our contact us page if you want to discuss this with one of our expert accountants.
2015 Budget - Small Business what a night!
The Treasurer last night announced the expected reduction of the company tax rate of 30% by 1.5% to 28.5%.
Sole traders, partnerships and trusts did not miss out and will enjoy a 5% tax discount, capped at $1000 per person, per year. This will be given as a tax offset at the end of the financial year.
The hugely unexpected announcement for small business with a turnover of less than $2mil, was the $20,000 immediate tax write off for any new purchase of tools or machinery that the small business will make from 7.30pm May 12, 2015 and June 30, 2017.
While this can be a great for the small business that will make a large profit in a specific year, assisting to reduce their
immediate year's taxable profit. The accelerated write off can have implications later in the event that the small business was to sell or dispose of the asset. The small business will have to pay tax on the whole amount of the sale price as it has been written off. The election of whether to use the immediate tax write off, should be applied by a case by case basis discussed with your Accountant.
Capital Gains Tax (CGT) rollover reliefs was only available to sole traders or partnerships that chose to become a company, new changes will allow a small business (that has a turn over of less tha $2mil) to change their legal structure without triggering a CGT liability from 1 July 2016. The Government has recognised that new small businesses may have chosen an initial incorrect structure that may not be appropriate later when the business is established.
As small business was the highlight of last nights Federal budget, it also addressed the complexities individuals have had with business start-ups. The introduction of one website to provide ease for the registration of a business name, application for ABNs and other Government requirements will all in one place, there will also be an immediate deduction for some of the expenses associated with the starting-up a new business these are professional, legal and accounting advice, this is a welcome improvement.
Thinking about starting a new business?
The new financial year is coming, many people have approached me about starting new business.
To give you a bit of an advantage, I found some information for free business information and courses that the Victorian Government hold to assist new business owners. Understanding what is involved and ideas of how to manage, control and advertise your new business, is one of the most difficult hurdles to get over and accomplish.
Here is a quick link, have a browse of the web site and tell me what you think and if you found it helpful.
Wave Accounting is a free accounting package for the small business owner. So far the testing has been fun. Besides creating your invoices and any other financial document you need, I liked the way you can link your bank accounts to it, so that it is uploaded directly into your Wave Accounting package. Once it is all set up you can download an app to your phone or tablet that allows you to take a photo of your receipts and they too load into your Wave Accounting package.