Division 293 tax is an additional tax on super contributions which reduces the tax concession for individuals whose combined income and contributions are greater than the Division 293 threshold. From 1 July 2017 the Division 293 threshold is $250,000. Prior to this it was $300,000. Division 293 tax is charged at 15% of an individual’s taxable contributions. Who […]

STP will be mandatory from 1 July 2019 for employers with 19 or less employees as well. Employers with 20 or more employees should have started reporting to ATO through STP from 1 July 2018 if your software is ready. What is STP? Single Touch Payroll (STP) aligns your reporting obligations to your payroll processes. You […]

Digital currency and GST Sales and purchases of digital currency are not subject to GST from 1 July 2017. This means that you do not charge GST on your sales of digital currency and similarly, you are not entitled to GST credits for purchases of digital currency. You do not have any GST consequences in relation […]

A dividend equivalent payment is assessable to you as remuneration (and therefore ordinary income) under section 6-5 when you receive such a payment for, or in respect of, services you provide as an employee, or similarly, where the payment has a sufficient connection with your employment.   Examples Example 1 – dividend equivalent payment for, […]

When you can claim a GST credit? You must be registered for GST to claim GST credits. You can claim a GST credit for a the price you pay for things that you use in your business. This is called an input tax credit, (or a credit for the GST included in the price of […]

Sharing economy activity tends to increase during the holiday season. Some of these activities include: providing ride-sourcing services for a fare completing jobs or errands for payment renting out a room or a whole house or unit renting out a vehicle or a car parking space. The tax obligations associated with each will vary depending […]

The lower company tax rate will apply to base rate entities with a turnover less than $50 million in the 2018–19 income year. The rate will then reduce to 25% by the 2026–27 income year. Income year Turnover threshold Tax rate for base rate entities under the threshold Tax rate for all other companies 2017–18 $25m […]

As per ATO’s website, the following behaviours and characteristics may attract their attention: tax or economic performance is not comparable to similar businesses low transparency of your tax affairs large, one-off or unusual transactions, including transfer or shifting of wealth a history of aggressive tax planning tax outcomes inconsistent with the intent of tax law […]