August 2018

Are you?
– A taxpayer?

At a glance:
– Interest charged by the ATO can be claimed as a deduction.

You should:
– Be aware of that the interest charged by ATO can be claimed as a deductible expense.
– Contact us if you require any clarification or advice.

Interest Charged by the ATO – Interest charged on the following can be claimed as deduction:

• Late payment of taxes and penalties
• Any increase in your tax liability as a result of an amendment to your assessment
• Any increase in other tax liabilities, such as goods and services tax (GST) or pay as you go (PAYG) amounts.
• Any underestimation of your tax liability when you vary an instalment for GST or PAY

Interest imposed by the Australian Taxation Office includes the following:

• General Interest Charge (GIC)
• Shortfall interest charge (SIC)
• Late payment interest

Taxpayers can claim a deduction in the year that the interest is incurred. It is claimed at item D10N-Cost of managing tax affairs- Interest charged by the ATO.

For more information, click here.

Remember:
– The deduction is limited to the amount of interest charged and not the actual penalty incurred.

This article was published on 31/07/2018 and is current as at that date

At a glance:
– A tax file number (TFN) is a personal identifier for taxation and superannuation dealings.

You should: 
– Ensure you keep your TFN in a safe place.
– Contact us if you require any clarification or advice.

Individual taxpayers are only entitled to one TFN regardless of whether they have changed their name, job, moved interstate or gone overseas.

If you have forgotten or lost your TFN, you should:

• Look for a notice or letter from the Tax Office;
• Log on to your myGov account; or
• Ask your tax agent.

If your TFN has been lost, stolen or accessed by an unauthorised third party, you should contact the Tax Office immediately on 1800 467 033.

Only limited people and organisations can request a taxpayer’s TFN, including:

• The Tax Office;
• Other Australian Government agencies;
• Employers;
• Superannuation Funds;
• Higher education providers;
• Registered tax agents, solicitors and accountants; and
• Banks and other financial institutions.

To find out more, click here.

Remember:
– Do not store your TFN in your wallet or on your mobile phone.

This article was published on 31/07/2018 and is current as at that date

At a glance:
– The Australian Taxation Office provides information regarding the changes to the tax concession rules that are applicable to small business entities for the financial year 2018.

You should: 
– Ensure you are aware of the changes to the tax concession rules applicable to small business entities.
– Contact us if you require any clarification or advice.

The Australian Taxation Office has provided key changes to concessional rules that are applicable to eligible small business entities.

For small business entities, the turnover to be eligible for the 27.5% company tax rate has increased from $10 million to $25 million for the financial year 2018.

The instant write-off threshold of $20,000 for new or second-hand assets has been extended until 30 June 2018. Small businesses can immediately deduct the assets that cost less than $20,000 each if they were purchased:

• from 1 July 2016 to 30 June 2018, and business turnover is less than $10 million
• from 7.30pm on 12 May 2015 to 30 June 2016, and your turnover is less than $2 million

For fringe benefits tax (FBT) concessions, the turnover threshold has increased to $10 million from 1 April 2017.

For more information, click here.

Remember:
– A business must be able to demonstrate that it is a small business entity each year it claims a concession.

This article was published on 31/07/2018 and is current as at that date

Are you?
– A taxpayer with study or training support loan from the government?

At a glance:
– When your income exceeds the repayment threshold, you will have to start repaying your study or training support loan from the government.

You should: 
– Ensure that you make repayments during the year if your taxable income exceeds the minimum threshold.
– Contact us if you require any clarification or advice.

The government provides financial assistance to people undertaking higher education, trade apprenticeships and other training programs, in the form of loans such as:

• HELP (The Higher Education Loan Program)
• SSL (The Student Start-up Loan)
• TSL (Under the Trade Support Loans)
• SFSS (The Student Financial Supplement Scheme)

Taxpayers must start making their compulsory repayments of the loan when their repayment income exceeds the minimum repayment threshold, even if they are still studying.

The repayment thresholds released by the Australian Taxation Office are adjusted each year to capture any changes in average weekly earnings.

If taxpayers have moved to overseas, they will still have the same repayment obligations as people who live in Australia.

Compulsory repayments are made directly through taxpayers’ tax returns. And they can make voluntary repayments at any time to reduce the balance of their debt.

For more information, click here.

Remember:
– Even if you have moved to overseas, you still have the same repayment obligation as people who live in Australia

This article was published on 31/07/2018 and is current as at that date