Deemed Dividend Rules: New 10-Year Loan Model
Division 7A is a long-standing tax integrity measure that treats certain payments by private companies to shareholders or their associates as unfranked “dividends” for tax purposes. Those deemed dividends are then assessable income of the recipient and taxed at the recipient’s marginal tax rate. Current laws include an important exception to these rules: a payment is […]
Super Guarantee Compliance: Time To Take Action
The government is getting tough on employers who fail to make compulsory superannuation guarantee (SG) contributions. A host of measures are being implemented, ranging from improved reporting systems through to proposed employer penalties of up to 12 months’ imprisonment. Here, we examine two particular initiatives that will require some businesses to take action in the next […]
New SMS scam ‘spoofs’ ATO number
ATO assistant commissioner Karen Foat said the agency has been following the development of a new scam that sends SMS messages under the guise of a phone number that appears to be sent from the tax office. The tactic, known as “spoofing”, is a common technique used by scammers in an attempt to make their […]
Instant asset write-off threshold upped to $25k
The government has increased the threshold for the instant asset write-off to $25,000 as it looks to entice the small business sector ahead of a federal election. Announced yesterday, Prime Minister Scott Morrison has pledged to increase the small business instant asset write-off to $25,000 from $20,000. The write-off will be available for small business […]
ATO flags common errors with contribution deductions
With greater numbers of clients now eligible to claim deductions for personal superannuation contributions, the ATO has identified some common errors that practitioners and their clients should avoid. For many super members, the 2017–18 financial year was the first opportunity they had to claim a deduction for personal super contributions, with the strategy previously only […]