Patane Accounting Pty Ltd is a CPA Practice
The ATO has received additional Government funding to continue their focus on improving the voluntary compliance of wealthy Australians until 30 June 2017. The ATO began focusing on wealthy Australians in 2009-10 with the ultimate goal of influencing all wealthy Australians to pay their fair share of tax. The ATO hoped to do this by…
From 1 April 2014 taxpayers will be required to provide their financial institution account (FIA) details when lodging fringe benefit tax returns. From 1 July 2014 taxpayers will be doing the same for tax return lodgements, even if the details have been provided before. These requirements were first put in place for individual tax return…
Business owners sometimes borrow money from their own company for a variety of personal and financial reasons. However, there can be an issue with tax law compliance if the proper steps are not carried out in treating the transaction correctly. Division 7a is an integrity measure of tax legislation that comes into effect when there…
Recent government amendments have provided tax certainty for superannuation funds upon the death of members in receipt of a superannuation income stream. This amendment effectively allows a superannuation fund trustee to dispose of pension assets on a tax-free basis to fund the payment of death benefits. Also, the meaning of ‘superannuation income stream benefit’ now…
A tax may apply to individuals with high incomes to reduce the amount of concession paid on their super contributions. This tax is known as Division 293 tax. Division 293 tax was introduced to reduce the concession on superannuation contributions for individuals with income greater than $300,000 per annum. Under Division 293 of the Income…
The ATO is continually monitoring Division 7A as it has been recognised as a high risk area of tax. Division 7A tax applies to all loans, advances, and other credits made by private companies to shareholders, or their associates. It is important to consider any tax consequences under Division 7A. For example, if: -shareholders or…
Super fund members saving for retirement should remain vigilant about the risk of excess contributions tax. The amount of contributions an individual makes into their super each financial year is subject to contributions caps. If the contributions exceed the caps, the level of contributions above the cap is known as ‘excess contributions.’ The amount of…
The Medicare levy will increase from 1.5 per cent to 2 per cent from 1 July 2014. The money raised from this increase will be placed into a National Disability Insurance Scheme (NDIS) fund. Individuals could be affected if they are individual taxpayers, individuals and trustees who are in the pay as you go instalments…
In recent years, the ATO have noticed an increase in the number of invalid objections and withdrawn objections lodged by clients. In 2012-13, the ATO received over 2,600 invalid objections and 2,800 objections that were lodged and subsequently withdrawn, predominantly because they were unable to be made valid. This increase in invalid and withdrawn objections…
A recent legal case in the Victorian Supreme Court has highlighted the importance of ensuring that the correct GST clause is used in business contracts. A properly drafted GST clause can avoid any problems or unintentional financial consequences. The recent Victorian case involved a contract that failed to list GST as being inclusive or exclusive…
