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<item>
<link>https://www.burgessbryan.com.au/news/using-your-business-money-and-assets-for-private-purposes_117s42</link>
<title><![CDATA[Using Your Business Money And Assets For Private Purposes]]></title>
<description><![CDATA[You may need to report money and assets taken from your company or trust as income in your tax return.
]]></description>
<content><![CDATA[You may need to report money and assets taken from your company or trust as income in your tax return.

Who needs to know?

This information will help you understand how money taken out of your business, or using business assets for private purposes, must be recorded and reported for tax purposes.

It applies if you are an individual who:


	is a director or shareholder of a company that operates a small business (your business)
	is a trustee or beneficiary of a trust that operates a small business (your business)
	is a director of a corporate trustee for a trust that operates a small business (your business)
	is or has been an associate of the shareholder (individual or entity). An associate can include a relative, partner, spouse, or another entity controlled by a shareholder.


How do you use money or assets from a company or trust

The most common ways you may take or use money or assets from a company or trust are as:


	salary and wages &ndash; see employment income
	fringe benefits, such as an employee using the business&#39;s car
	director fees
	dividends paid by the company to you as a shareholder (a distribution of the company&rsquo;s profits) &ndash; see paying dividends and other distributions
	trust distributions by the trust to you as a beneficiary &ndash; see trustees and beneficiaries
	loans from the trust or company &ndash; see loans by private companies
	allowances or reimbursements of expenses you receive from the trust or company.


There are reporting and record-keeping requirements for each of these types of transactions.

How to record and report the use of your business money or assets

You may need to report and must maintain appropriate records that explain transactions of which you have:


	taken money or assets from your business
	used the business&#39;s assets for private purposes.


The ATO view on minimum record-keeping standards is provided in Taxation Ruling TR 96/7.

In this section


	Salary, wages or directors&rsquo; fees
	Fringe benefits and allowances


Salary, wages or directors&rsquo; fees

You can be an employee and a shareholder or director of the company that operates your business. You can also be an employee and a beneficiary of the trust that operates your business.

You must include any salary, wages or directors&#39; fees you receive from your business as assessable income in your individual tax return.

The company or trust that operates your business can generally claim a deduction for any salaries, wages or director&#39;s fees paid.

Your business must:


	register for pay as you go (PAYG) withholding and withhold an amount from salary, wages and directors&rsquo; fees
	report the payment information to the ATO using Single Touch Payroll (STP)
	pay the amount withheld to the ATO and compulsory employee superannuation contributions to a complying super fund by the relevant cut-off dates.


Example 1: Taking money as salary or wages

Daphne is the sole director of a company that sells speciality gift hampers to customers. She and her partner Jo are equal shareholders in the company. Before this financial year, Daphne ran the business as a sole trader.

As a sole trader, Daphne paid herself $1,500 a month out of her business account and into her personal account. Daphne doesn&rsquo;t need to report this separately because it has already been included as business income on her individual tax return.

At the time she sets up the company, Daphne becomes an employee of the company and is paid $1,500 a month as a salary. Her tax agent explains to her that there are different tax consequences now that the business is run through a company, which is a separate legal entity.

Daphne now reports the $1,500 a month income she receives from her employment as salary in her individual tax return. The company reports business income and claims a deduction for the salary paid to Daphne in its company tax return. The tax agent helps Daphne to set up PAYG withholding and STP reporting, as well as meet her company&#39;s superannuation guarantee obligations.

End of example

Fringe benefits and allowances

Fringe benefits tax (FBT) applies when employees or directors of a company or their associates receive certain benefits from the company or trust. This could be a payment or reimbursement of private expenses or being allowed to use the business assets for private purposes such as the business&#39;s car.

Your business:


	may be entitled to claim a deduction for the cost of providing fringe benefits
	must lodge an FBT return and pay any FBT that applies to the fringe benefits provided to the employees or their associates
	must keep all records relating to the fringe benefits it provides, including how the taxable value of benefits was calculated.


There are various exemptions from FBT that may apply, for example, the small business car parking exemption.

The FBT liability for your business may be reduced if you (as an employee) make a contribution towards the cost of the fringe benefit.

You don&rsquo;t need to report the value of fringe benefits that you (or your associate) receive, in your tax return, unless they are included as reportable fringe benefits on your payment summary or income statement.

Example 2: FBT

Sameera is the sole director and shareholder of a small tourism company that runs tours and owns 3 coastal holiday houses.

Sameera is also one of 3 employees of the company.

Each employee of the company is given the opportunity to stay in one of the holiday houses for up to 4 weeks each year during the off-peak season.

This year, Sameera and her family take up this offer and stay at their favourite holiday house for 2 weeks of their own holidays at no cost.

This is an employee&rsquo;s private use of one the company&rsquo;s business assets. The company is providing Sameera, in her capacity as an employee, with a fringe benefit.

The company reports the fringe benefit in its FBT return and pays FBT on the benefit.

End of example

Distribution of income and profits

In this section


	Dividends
	Trust distributions


Dividends

If your business is run through a company, the company can distribute its profits to its shareholders, which can include you.

This distribution of profits is known as a dividend.

If the company has franking credits, it may be allowed to frank the dividend by allocating a franking credit to the distribution. A franking credit represents income tax paid by the company on its profit and can be used by the shareholder to offset their income tax liability.

A company must issue a distribution statement at the end of each income year to each shareholder who receives a dividend. It must show the amount of the franking credit on the dividends paid and the extent to which they were franked. The company may also need to lodge a franking account tax return in certain circumstances.

Any dividends that you receive and franking credits on them must be reported in your tax return as assessable income.

The company cannot claim a deduction for dividends paid as these are not a business expense, but rather a distribution of company profit.

Trust distributions

If your business is operated through a trust, the trustee may make the beneficiaries presently entitled to a share of trust income by the end of the financial year according to the terms of the trust deed.

By the end of a financial year, the trustee should advise and document in the trustee resolution:


	details of the beneficiaries
	their share of the net income of the trust.


If the trustee resolution is not made according to the terms of the trust deed, it may be ineffective and, instead, other beneficiaries (called default beneficiaries) or the trustee may be assessed on the relevant share of the trust&#39;s net (taxable) income. Where a trustee is assessed, it may be at the highest marginal tax rate.

Details of the trust distribution should be included in the statement of distribution which is part of the trust return lodged for each financial year.

The trust cannot claim a deduction for distributions paid as it is not a business expense, but rather a distribution of trust income.

If the beneficiary of a trust is a company, and the trust does not pay the amount the company is presently entitled to, Division 7A of the Income Tax Assessment Act 1936 can apply.

Closely held trusts

If you have a trust within your family group, in some circumstances you may need to include a trustee beneficiary statement as part of the trust return lodged.

For further guidance, see closely held trusts.

Lending money or assets

In this section


	Companies lend money or assets to shareholders and their associates
	Trustees lend money or assets to beneficiaries and their associates


Companies lend money or assets to shareholders and their associates

A company can make a loan to its shareholders and associates.

When a company lends money or assets to a shareholder, the shareholder may be taken to have received a Division 7A deemed dividend if certain conditions are not met. If this happens, the shareholder will need to report an unfranked dividend in their individual tax return and the company will have to adjust their balance sheet to reduce their retained profits.

To avoid a Division 7A deemed dividend, before the company tax return is due or lodged (whichever comes first), the loan must either:


	be repaid in full
	put on complying terms.


To put a loan on complying terms, the loan must:


	be in a written agreement and signed and dated by the lender
	have an interest rate for each year of the loan that at least equals the benchmark interest rate
	not exceed the maximum term of 7 years, or 25 years in certain circumstances when the loan is secured by a registered mortgage over real property.


The company must include any interest earned from the loan in its tax return.

You (the shareholder):


	must make the minimum yearly repayment each year (use the Division 7A calculator to work this out)
	cannot borrow money from the company to make the minimum yearly repayment
	can make payments on the loan using a dividend declared by the company. This dividend must still be reported in your individual tax return as assessable income.


Example 3: Loan received from the company

Amir is the sole director of a company that provides administration services to other businesses. He and his partner Aiesha are equal shareholders in the company. Before this financial year, Amir ran the business as a sole trader.

Amir&#39;s and Aiesha&#39;s daughter is about to start high school and they have to pay $2,000 in school fees. The business has had a few good years and Amir decides they should use the money from the business to pay for the fees.

However, Amir knows that he cannot pay for a private expense using the company&rsquo;s money without properly accounting for it. As the director, he decides that the company will lend him and Aiesha the $2,000.

He draws up a written loan agreement for the loan to be repaid over 2 years, with an interest rate equal to the benchmark interest rate. The loan agreement identifies the company, Amir and Aiesha as the parties, and the repayment terms. It is signed by all parties.

The company lends Amir and Aiesha the money, which they pay back to the company with interest each year according to the agreement over the next 2 years. When Amir prepares the company tax return, he declares the interest as income for the company.

End of example

Trustees lend money or assets to beneficiaries and their associates

If you borrow money from the trust, you will need to keep a record of it. If the loan is on commercial terms, you will need to repay the principal and interest as per the loan agreement. The trust will need to report the interest as assessable income in its tax return.

There may be a situation where someone receives an amount of trust income instead of the beneficiary who is presently entitled to that amount in an arrangement to reduce tax. This can happen where the trustee, instead of paying the trust income to the presently entitled beneficiary, lends that money on interest-free terms to another person.

This is called a reimbursement agreement and section 100A of the Income Tax Assessment Act 1936 may apply. This means that the net income of the trust that would otherwise have been assessed to the beneficiary (or trustee on their behalf) is instead assessed to the trustee at the top marginal tax rate.

Repayments of loans made to companies and trusts

If you have lent money to your business, your business will make repayments to you.

Your business cannot claim a deduction for any repayments of principal it makes to you but may be able to claim a deduction for interest it pays to you on the loan. The company or trust should keep records of any loan agreements and documents explaining these payments being made to you.

You do not have to declare the principal repayments, but any interest you receive from your business is assessable income to you and must be included in your individual tax return.

When you take your business&#39;s money or assets in another way

If you take money out of your business or use its assets for private purposes in a way not described above, you or your business may have unintended tax consequences. This may include triggering Division 7A.

To ensure your business transactions are transparent:


	You should consider setting up a separate bank account for your business to pay business expenses and avoid using it to pay for your private expenses.
	If you take money out of the business or use its assets, make sure you keep proper records that explain all your business transactions, including all income, payments and loans to you and your associates from the business and loans from you to the business.
	If your company lends money to you or your associates, make sure it&#39;s based on a written agreement with terms that ensure it&#39;s treated as a complying loan &ndash; so the loan amount isn&#39;t treated as a Division 7A dividend.
	Ensure the transactions are correctly reported for tax purposes.


If you make an honest mistake when trying to comply with these obligations, you should tell us or your registered tax agent as soon as possible.

ATO
ato.gov.au
]]></content>
<guid isPermaLink="true">https://www.burgessbryan.com.au/news/using-your-business-money-and-assets-for-private-purposes_117s42</guid>
<pubDate>15 Mar 2023 07:13:00 GMT</pubDate>
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<link>https://www.burgessbryan.com.au/news/what-is-capital-gains-tax_117s33</link>
<title><![CDATA[What is Capital Gains Tax]]></title>
<description><![CDATA[How to calculate capital gains tax (CGT) on your assets, assets that are affected, and the CGT discount.
]]></description>
<content><![CDATA[Capital gains tax (CGT) is the tax you pay on profits from selling assets, such as property.

You report capital gains and capital losses in your income tax return and pay tax on your capital gains. Although it is referred to as &#39;capital gains tax,&#39; it is part of your income tax. It is not a separate tax.

If you have a capital gain, it will increase the tax you need to pay. You may want to work out how much tax you will owe and set aside funds to cover it.

List of CGT assets and exemptions
Check if your assets are subject to CGT, exempt, or pre-date CGT.

Acquiring CGT assets
Establish the date you buy or acquire an asset, your share of ownership and records to keep.

CGT events
How and when CGT is triggered, such as when an asset is sold, lost or destroyed.

CGT discount
Find out if your asset is eligible for the 50% CGT discount.

Calculating your CGT
Use the calculator or steps to work out your CGT, including your capital proceeds and cost base.

Property and capital gains tax
How CGT affects real estate, including rental properties, land, improvements and your home.

Shares and similar investments
Check if you are an investor or trader, and how it affects tax on your shares or units in a fund.

Inherited assets and capital gains tax
How and when CGT applies if you sell assets you inherited, including properties and shares.

Foreign residents and capital gains tax
How CGT affects your assets if you are a foreign or temporary resident, or change your residency.

Relationship breakdown and capital gains tax
Find out if you can defer, or &#39;roll over&#39;, CGT on assets that transfer to you in a divorce.

Market valuation of assets
When and how to get your assets valued for CGT purposes.

How to complete the capital gains section in your tax return
Instructions for completing the CGT section of the individual income tax return.

Small business CGT concessions
Find out if your small business can reduce, disregard or defer CGT on an active asset.

Depreciating assets
How CGT affects depreciating assets like business equipment.
]]></content>
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<pubDate>15 Mar 2023 06:10:00 GMT</pubDate>
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<link>https://www.burgessbryan.com.au/news/details-of-tax-calculation-for-3m-threshold-a-39mixed-blessing_117s38</link>
<title><![CDATA[Details of tax calculation for $3m threshold a &#39;mixed blessing]]></title>
<description><![CDATA[The proposed tax on earnings calculation for balances exceeding $3 million will see some members paying tax on unrealised earnings, says the SMSF Association.
]]></description>
<content><![CDATA[The proposed tax on earnings calculation for balances exceeding $3 million will see some members paying tax on unrealised earnings, says the SMSF Association.

Treasury has released a fact sheet explaining the details of how tax on earnings will be calculated in the wake of its decision to revise the treatment of super balances above $3 million.

SMSF Association chief executive Peter Burgess said the good news was that it meant super funds, including SMSFs, would not be required to calculate the earnings attributable to the member&rsquo;s balance above $3 million.

&ldquo;The ATO will use a prescribed formula to calculate the proportion of total earnings which will be subject to additional 15 per cent tax,&rdquo; Mr Burgess said.

&ldquo;Negative earnings can be carried forward and offset against this tax in future year&rsquo;s tax liabilities.

However, on the debit side, the ATO will be using an individual&rsquo;s total super balance to calculate their earnings, which means it will include all notional (unrealised) gains and losses.

&ldquo;This essentially means some members will be paying tax on unrealised earnings which is highly unusual,&rdquo; he said.

Mr Burgess said the association&rsquo;s preferred approach would have been for the ATO to do a calculation of &quot;notional earnings&quot; using a similar approach to the existing excess contributions tax regime.

The fact sheet states that the ATO will use a set formula to calculate the earnings based on the information it receives from each super fund every year.

This formula will calculate the difference between the member&rsquo;s total super balance for the current and previous financial year and adjust for net contributions (excluding contributions tax paid by the fund on behalf of the member) and withdrawals, it said. 

The ATO already uses super fund reporting to calculate the total amount that individuals have in the super system.

Miranda Brownlee
03 March 2023
accountantsdaily.com.au
]]></content>
<guid isPermaLink="true">https://www.burgessbryan.com.au/news/details-of-tax-calculation-for-3m-threshold-a-39mixed-blessing_117s38</guid>
<pubDate>12 Mar 2023 06:37:00 GMT</pubDate>
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<link>https://www.burgessbryan.com.au/news/sharing-economy-reporting-regime-commences-soon_117s37</link>
<title><![CDATA[Sharing economy reporting regime commences soon]]></title>
<description><![CDATA[As a part of the Federal Government&rsquo;s strategy to combat the tax compliance risks posed by the sharing economy, it has passed into law new requirements for operators of electronic distribution platforms.
]]></description>
<content><![CDATA[As a part of the Federal Government&rsquo;s strategy to combat the tax compliance risks posed by the sharing economy, it has passed into law new requirements for operators of electronic distribution platforms to provide information to the Australian Taxation Office on transactions made through their platforms.

An &ldquo;electronic distribution platform&rdquo; is one that delivers services through electronic communication (i.e. over the internet, including through applications, websites or other software) and allows entities to make supplies available to end-user consumers through the platform. A service isn&rsquo;t considered an electronic distribution platform if it only advertises or creates awareness of possible supplies online, operates as a payment platform or serves a communication function.

Examples of sharing economy electronic platform operators include Uber, Airbnb, Car Next Door, Menulog, Airtasker and Freelancer.

The new reporting regime applies to platform operators rather than to individuals who use their sites or apps, but if you&rsquo;re part of the sharing economy it&rsquo;s still important to give the ATO the right information. If you rent out your home for short stay accommodation, work as a delivery driver or take on side jobs as a freelancer, we can help you keep your tax affairs in order.

Electronic platform operators will soon be required to regularly provide transaction information to the ATO through the Taxable Payments Reporting System (TPRS). The information obtained will be used in ATO data-matching to help identify entities that may not be meeting their tax obligations.

Acctweb
]]></content>
<guid isPermaLink="true">https://www.burgessbryan.com.au/news/sharing-economy-reporting-regime-commences-soon_117s37</guid>
<pubDate>09 Mar 2023 06:32:00 GMT</pubDate>
<enclosure url='https://www.burgessbryan.com.au/uploads/117/37/med-blog-online-distribution.jpg' length='28951' type='image/jpeg'/>
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<link>https://www.burgessbryan.com.au/news/later-retirement-takes-oldies-back-to-living-in-70s_117s36</link>
<title><![CDATA[Later retirement takes oldies back to living in &#39;70s]]></title>
<description><![CDATA[The labour shortage and increased workplace flexibility has seen potential retirees remain in the workforce for longer, says KPMG.
]]></description>
<content><![CDATA[The great retirement is actually the great unretirement according to KPMG which says older people have returned to the 1970s in terms of when they stop work. 

KPMG urban economist Terry Rawnsley said more experienced workers were being kept in jobs longer due to the labour shortage, the lack of international migration and greater workplace flexibility. 

&ldquo;Strong labour market conditions are helping to retain older workers in jobs for longer,&rdquo; said Mr Rawnsley. 

&ldquo;The lockdowns during the pandemic made many older Australians in professional jobs realise that they could semi-retire and continue to dabble in the workforce from home or even from down at the coast.&rdquo; 

&ldquo;And in what is a tight labour market, given the lack of international migration in recent years, employers have obliged.&rdquo; 

KPMG found that in 2022 the expected retirement age for men was 66.2 years, the highest since 1972, and for women it was 64.8 years, the highest since 1971. 

Over the past 20 years the retirement age for men had risen from 63.2 years while for women it had increased from 61.7 years. 

The great unretirement began during the pandemic with 537,000 extra employees joining the workforce during 2019&ndash;22, of which 179,000 were over 55. 

KPMG said the pandemic also brought more women into full-time employment, while an increase in less physically demanding jobs had seen men work later in life. 

&ldquo;Over the last 30 years we&rsquo;ve seen a shift towards service-based jobs and away from more physically demanding jobs,&rdquo; said Mr Rawnsley. 

The firm also found the level of education influenced a worker&rsquo;s retirement age. Those with postgraduate degrees retired later than the rest of the labour force at 67. 

Workers with a bachelor&rsquo;s degree had an expected retirement age of approximately 66 and for those without tertiary education it was about 65. 

Mr Rawnsley said the continued tight labour market and the increasing shift of work towards less labour-intensive roles meant the expected retirement age would stay high.

&ldquo;On top of that, our economy is slowly becoming more and more educated, which is likely to shift the age of retirement for the whole labour force,&rdquo; he continued. 

KPMG said data from the Bureau of Statistics showed only 40 per cent of Australians retired when reaching the eligible age for superannuation with the remaining 60 per cent deciding to retire for other reasons.

Josh Needs
27 February 2023
accountantsdaily.com.au
]]></content>
<guid isPermaLink="true">https://www.burgessbryan.com.au/news/later-retirement-takes-oldies-back-to-living-in-70s_117s36</guid>
<pubDate>05 Mar 2023 06:30:00 GMT</pubDate>
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<link>https://www.burgessbryan.com.au/news/changes-to-working-from-home-deduction-started-1-jul-2022_117s35</link>
<title><![CDATA[Changes to working from home deduction - started 1 Jul 2022]]></title>
<description><![CDATA[ATO brings in changes for calculating working from home deductions.
]]></description>
<content><![CDATA[These changes will require more paperwork and time, and they come into effect for the 2022-2023 tax year.

How it works

You can claim 67 cents for each hour you work from home during the relevant income year. The rate includes the additional running expenses you incur for:


	home and mobile internet or data expenses
	mobile and home phone usage expenses
	electricity and gas (energy expenses) for heating, cooling and lighting
	stationery and computer consumables, such as printer ink and paper.
	The rate per work hour (67 cents) includes the total deductible expenses for the above additional running expenses. If you&#39;re using this method, you can&#39;t claim an additional separate deduction for these expenses.


A fixed rate of 67 cents per hour can be claimed.

Broadly put, the ATO will require a timesheet / diary / log book or similar evidence to be kept with the dates / exact numbers of hours worked (from home) on each date.

You must however still keep a record / invoice for at least one of these expenses, so we recommend you retain with your tax records an annual internet, phone and electricity invoice.

A transitional period will apply from July 2022 to February 2023 for the 2023 income tax return only.

Additional information is available here: https://www.ato.gov.au/individuals/income-and-deductions/deductions-you-can-claim/working-from-home-expenses/fixed-rate-method---67-cents/

Acctweb
]]></content>
<guid isPermaLink="true">https://www.burgessbryan.com.au/news/changes-to-working-from-home-deduction-started-1-jul-2022_117s35</guid>
<pubDate>01 Mar 2023 06:29:00 GMT</pubDate>
<enclosure url='https://www.burgessbryan.com.au/uploads/117/35/med-blog-wfh.jpg' length='42301' type='image/jpeg'/>
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<link>https://www.burgessbryan.com.au/news/accountants-face-client-backlash-over-blizzard-of-tax-changes_117s34</link>
<title><![CDATA[Accountants face client backlash over blizzard of tax changes]]></title>
<description><![CDATA[Revised rules require fresh advice but clients often blame their tax professional, says Tim Munro.
]]></description>
<content><![CDATA[Accountants have emerged from the pandemic into a blizzard of changes and keeping clients up to date risks a backlash over tighter compliance rules and increased fees says Tim Munro, CEO of Change Accountants and Change GPS.

Speaking on the latest Accountants Daily podcast, he said accountants worked hard to keep small businesses alive during COVID-19 only to be &ldquo;suddenly bombarded from all different angles&rdquo;.

&ldquo;It is just insane what accountants are facing right now,&rdquo; he said. &ldquo;We&rsquo;ve got professional firm profits, we&rsquo;ve got section 100A, we&rsquo;ve got payroll tax changes, we&rsquo;ve got things like working from home deductions and changes, we&rsquo;ve got things like [the] Owies case which affect family trusts.

&ldquo;&hellip;These are monumental changes some of them, affecting a lot of our clients all at the same time and I fear that accountants &ndash; unless they put enough time and maybe technology into their businesses to help them to do these things &ndash; they won&rsquo;t be able to give clients the advice that the clients need, and they will end up down the track having problems with clients if the ATO doesn&rsquo;t like the approach that&rsquo;s been taken.&rdquo;

He said some accountants were &ldquo;scared&rdquo; of telling their clients that things had changed and they would need to charge them for new advice.

&ldquo;Because they say, &lsquo;Oh, but my client will tell me, you set it up for me like this in the past, you&rsquo;re telling me that advice was wrong?&rsquo;

&ldquo;They don&rsquo;t know how to explain that life has changed and circumstances have changed to their clients.

&ldquo;It&rsquo;s like a mobile phone &ndash; no matter what brand of phone you have, once a month there&rsquo;s a software update. There&rsquo;s little tweaks, things change all the time, maybe fix something that was broken, not quite right. That&rsquo;s a normal part of life.

&ldquo;Accountants need to get into the habit of explaining to their clients, &lsquo;Look, I don&rsquo;t make the tax laws. I don&rsquo;t interpret things like the ATO does. But when they do, I&rsquo;m here to explain to you what has changed and your options for what you need to consider. And that way, you&rsquo;ll keep on the good side of the ATO.&rsquo; The podcast was recorded prior to PCG 2023/1 on work-from-home deductions and the revised 1 March start date stricter record-keeping requirements. However, Mr Munro said it was one example of how accountants faced a dilemma when draft regulations specified changes that might be amended later.

&ldquo;We&rsquo;re in this limbo-land between draft ruling and final ruling where things might change &ndash; that makes it incredibly difficult to advise clients.&rdquo;

&ldquo;Sometimes, you might need to tell your clients to keep invoices for everything and we&rsquo;ll work out at the end of the year if we&rsquo;re going do an actual claim, or the claim that the ATO will allow you per hour. You don&rsquo;t know until we get to the end of the year.&rdquo;

&ldquo;The accountant can only go so far. We can tell our clients, you need to do this. But if they don&rsquo;t keep those invoices, if they don&rsquo;t keep those records, then there&rsquo;s nothing that we can do, we mightn&rsquo;t be able to claim certain things.

&ldquo;And that&rsquo;s when the clients will blame the accountant &ndash; I&rsquo;ve seen happen so many times.&rdquo;

Philip King
20 February 2023
accountantsdaily.com.au/
]]></content>
<guid isPermaLink="true">https://www.burgessbryan.com.au/news/accountants-face-client-backlash-over-blizzard-of-tax-changes_117s34</guid>
<pubDate>26 Feb 2023 06:27:00 GMT</pubDate>
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<link>https://www.burgessbryan.com.au/news/ato-figures-reveal-final-2022-dpn-tally_117s32</link>
<title><![CDATA[ATO figures reveal final 2022 DPN tally]]></title>
<description><![CDATA[After a slow start in May, figures show how the office went up through the gears with director penalty notices.
]]></description>
<content><![CDATA[The ATO accelerated up through the gears on debt collection in 2022 to issue a total of almost 18,500 director penalty notices, figures released yesterday reveal.

The office also unsheathed a fresh weapon in its armoury by disclosing the tax debts of almost 500 businesses to credit referral agencies for amounts of $100,000 and above.

The final figures show that more than one in three directors failed to act after an April mail blitz by the ATO warned 52,000 directors about debts involving 30,000 companies.

By August, the ATO had issued 7,000 DPNs and was dispatching them at the rate of 120 a day. For the final five months of the year, it was also referring about 20 businesses a day to credit agencies after sending warning letters to more than 29,000.

The ATO said its debt recovery campaign, suspended during the pandemic, had been a success.

&ldquo;We&rsquo;ve seen an encouraging response to our letter campaigns, with a significant level of clients making payments or entering payment plans,&rdquo; an ATO spokesperson said.

&ldquo;The value of debt owed by clients at the start of the campaigns was $17.3 billion. As a result of these two campaigns, over $714 million has already been paid in full and a further $5.4 billion is now actively managed under payment arrangements.

&ldquo;For those that have not responded we have progressed to issuing DPNs and disclosing the tax debt information of eligible businesses.

&ldquo;In the 2022 calendar year, we issued almost 18,500 DPNs to individual directors in respect of more than 13,500 companies for unpaid GST, income tax withholding, and superannuation guarantee charge.

&ldquo;In relation to Disclosure of Business Tax Debt, we disclosed nearly 500 businesses in 2022 to credit reporting agencies.&rdquo;

The result of the ATO campaign also showed up in final insolvency figures for 2022, released by ASIC.

They revealed 4,806 total appointments over companies for the second half of 2022, a rise of 51 per cent of the corresponding period in the previous year.

Philip King
19 January 2023
accountantsdaily.com.au
]]></content>
<guid isPermaLink="true">https://www.burgessbryan.com.au/news/ato-figures-reveal-final-2022-dpn-tally_117s32</guid>
<pubDate>21 Feb 2023 06:34:00 GMT</pubDate>
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<link>https://www.burgessbryan.com.au/news/residential-rental-properties_117s31</link>
<title><![CDATA[Residential rental properties]]></title>
<description><![CDATA[Some good information about residential rental properties versus holiday homes and what you need to do if you rent out properties.
]]></description>
<content><![CDATA[If you rent out property, you need to:


	keep records right from the start
	work out what expenses you can claim as deductions
	work out if you need to pay tax instalments throughout the year
	declare all rental-related income in your tax return
	consider the capital gains tax implications if you sell.


If you have an investment property that isn&#39;t rented or available for rent, such as a holiday home, then you generally can&#39;t claim deductions because it doesn&#39;t generate rental income.
To download a PDF guide on how to treat rental income and expenses, see our rental properties guide.

Owning and renting a property or holiday home
Find out about owning and renting a property and holiday home and check what records you should keep.

Records for rental properties and holiday homes
Find out about what records to keep and for how long for rental properties and holiday homes.

Rental income you must declare
Check which rental income you must declare and where you should declare it in your tax return.

Rental property genuinely available for rent
Find out if your rental property is genuinely available for rent so you can claim deductions and find out what shows your property isn&#39;t genuinely available to rent.

Rental property as investment or business
Work out if your rental arrangements are in the form of an investment or a business.

Rental expenses to claim
Check the deductions you can claim for your rental property.

Rental expenses you can&#39;t claim
Check the expenses you can&#39;t claim as a deduction for your rental property.

Holiday homes
Check if you can claim deductions for your holiday home expenses and any capital gains tax implications if you sell.

Selling your rental property
Find out about capital gains and losses when you sell or dispose of a rental property.
]]></content>
<guid isPermaLink="true">https://www.burgessbryan.com.au/news/residential-rental-properties_117s31</guid>
<pubDate>18 Feb 2023 06:34:00 GMT</pubDate>
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<link>https://www.burgessbryan.com.au/news/did-you-pay-your-superannuation-guarantee-payment-late_117s30</link>
<title><![CDATA[Did you pay your superannuation guarantee payment late?]]></title>
<description><![CDATA[After the Christmas and new year break, it is quite possible that some employers may have missed the
due date.
]]></description>
<content><![CDATA[After the Christmas and new year break, it is quite possible that some employers may have missed the due date for the December 2022 quarter superannuation guarantee contributions (SCG) payment of 29th January 2023.

If this the case, then you are also will also need to ensure that you prepare and lodge a Super Guarantee charge statement to the Australian Taxation Office by the due date of 28 th February 2023.

The statement will include any super guarantee shortfall amounts, nominal interest of 10% per annum and administration fees of $20 per employee, per quarter. The statement is required even if you paid
your SCG obligations after the due date. Any later payments can be offset on your final liability or can be used to offset future payments.

This statement can be prepared on Online Services portal, completing a SGC statement spreadsheet or printing and mailing the pdf version of the SGC statement (although the ATO recommends online or spreadsheet methods). If you require assistance with the calculation, there re SCG calculator tools on the ATO website.

Acctweb
]]></content>
<guid isPermaLink="true">https://www.burgessbryan.com.au/news/did-you-pay-your-superannuation-guarantee-payment-late_117s30</guid>
<pubDate>13 Feb 2023 04:31:00 GMT</pubDate>
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<link>https://www.burgessbryan.com.au/news/ato-issues-fresh-warning-on-illegal-early-access-schemes_117s40</link>
<title><![CDATA[ATO issues fresh warning on illegal early access schemes]]></title>
<description><![CDATA[With illegal early access schemes on the rise, the Tax Office has issued a fact sheet warning super members about the promoters of these schemes.
]]></description>
<content><![CDATA[In a recent update, the ATO warned superannuation members to be wary of anyone known as promotors who want to help set up an SMSF for the purposes of illegally accessing super.

The ATO said it&rsquo;s important that anyone running an SMSF is aware that accessing super can be illegal at times.

&ldquo;As a trustee of a SMSF it is your responsibility to ensure that if you are accessing your super early, you are doing this within super laws,&rdquo; the ATO cautioned.

 

The ATO has recently released a fact sheet, Accessing your super may be illegal, which highlights what SMSF trustees need to know about accessing their super and what to do if they are approached by a promotor.

The fact sheet warned that some promotors may say they can help individuals set up an SMSF in order to access their super for reasons such as paying off your credit card, buying a house or to go on a holiday when this is actually illegal.

&ldquo;These people will often charge you a lot of money, tell you to transfer some or all your super from your existing super fund to the SMSF and tell you that you can use as much as you need for personal expenses,&rdquo; the fact sheet warned.

The ATO also warned there is the risk of identity theft with these kinds of schemes.

&ldquo;These promoters may also ask for your personal information. If you give it to them, they can steal your identity. With your personal information, they can steal your super for themselves,&rdquo; the ATO warned.

The ATO advised anyone contacted by one of these promotors to contact the ATO on 13 10 20 straight away to get advice.

&ldquo;Do not agree to anything and do not sign any documents or give them your personal details,&rdquo; it stated.

&ldquo;Don&rsquo;t access your super before you retire unless you meet one of the conditions that makes it legal to access your super and receive relevant approval.&rdquo;

The ATO reminded SMSF trustees that most people can only access their super when they retire and turn 60 or when they turn 65, otherwise it&rsquo;s illegal.

Last year, ATO assistant commissioner SMSF risk and strategy, Justin Micale, warned that the ATO was seeing an increasing number of trustees taking advantage of their direct access to their superannuation bank account and using these savings to pay for business debts, holidays, renovations and new cars.

Mr Micale said the ATO was stepping up its focus on licensed and unlicensed promoters of illegal early access schemes.

&ldquo;This behaviour is unacceptable particularly as we know promoters often target people who are in vulnerable communities, under financial pressure and with low financial and super literacy,&rdquo; he said.

Miranda Brownlee
23 January 2023
smsfadviser.com
]]></content>
<guid isPermaLink="true">https://www.burgessbryan.com.au/news/ato-issues-fresh-warning-on-illegal-early-access-schemes_117s40</guid>
<pubDate>27 Jan 2023 07:06:00 GMT</pubDate>
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<link>https://www.burgessbryan.com.au/news/five-new-years-tax-resolutions_117s41</link>
<title><![CDATA[Five new year&#39;s tax resolutions]]></title>
<description><![CDATA[Don&rsquo;t clean out the garage. Forget that lapsed gym membership. Here are 5 new year&rsquo;s resolutions to keep if you want to stay on top of your tax and super in 2023.
]]></description>
<content><![CDATA[Know if you&rsquo;re in business or not!

Are you earning an increasing income from a hobby? You might already be in business for tax purposes. Follow our step-by-step guide and find out how to meet your obligations.

Keep your business details and registrations up to date!

If you&rsquo;re the director of an Aussie company, you need to apply for a director IDExternal Link. It&rsquo;s important to update your ABN detailsExternal Link as emergency services and government agencies use this information to support businesses during disasters. Also, if you&rsquo;re going to earn over $75,000 this financial year, you&rsquo;ll need to register for GST.

Keep accurate and complete records!

Good record keeping helps you manage your business and its cash flow. See our record-keeping tips at record keeping for business.

Work out if Personal Services Income (PSI) rules apply to you!

PSI is income produced mainly (more than half) from your skills or efforts as an individual. If you&#39;re earning PSI, you&#39;ll need to work out if you&#39;re a personal services business to determine whether the PSI rules apply to your income. The rules affect how you report your income and the deductions you can claim.

Look after yourself!

The last few years have thrown some curve balls at small business, so it&#39;s good to be prepared. If you&#39;re struggling, the NewAccess programExternal Link can help. It&rsquo;s free, confidential and designed for small businesses doing it tough.

We wish you all the best and hope you&rsquo;re on track to thrive in 2023. When the fireworks have faded, know that we&#39;re always available to support businesses just like yours.

ato.gov.au
]]></content>
<guid isPermaLink="true">https://www.burgessbryan.com.au/news/five-new-years-tax-resolutions_117s41</guid>
<pubDate>17 Jan 2023 07:07:00 GMT</pubDate>
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<link>https://www.burgessbryan.com.au/news/looming-changes-for-the-buy-now-pay-later-market_117s39</link>
<title><![CDATA[Looming changes for the &quot;buy now, pay later&quot; market]]></title>
<description><![CDATA[The Federal Government has released a consultation paper seeking views on options to regulate the &ldquo;buy now, pay later&rdquo; (BNPL) market.
]]></description>
<content><![CDATA[Currently the BNPL space is unregulated in Australia because it falls under the exemptions available to certain types of credit under the National Consumer Credit Protection Act 2009.

This means BNPL products aren&rsquo;t subject to responsible lending standards or the other requirements of the Credit Act, and BNPL providers don&rsquo;t need to hold an Australian credit licence. This is despite involving financial products that offer credit.

Consumer advocates argue that this regulatory gap has the potential to create harm &ndash; &ldquo;instant&rdquo; access to BNPL credit, without the lack of requirements and financial checks and potential uncertainty on terms and fees which could end up in unsustainable debt.

The Reserve Bank of Australia estimates that approximately seven million active BNPL accounts made a total of $16 billion in transactions in the 2021&ndash;2022 financial year &ndash; around a 37% increase on the previous year. The majority of these are low value BNPL products with spending limit of $2,000, although some include limits of up to $30,000 for large ticket items.

The consultation paper proposes three broad options for regulatory intervention. Option 1 would impose a bespoke affordability assessment for BNPL providers under the Credit Act and address any other regulatory gaps in a strengthened industry code to make it fit-for-purpose. Option 2 would require BNPL providers to hold a credit licence and comply with modified responsible lending obligations and a strengthened industry code. Option 3 would impose the strictest regulation, with BNPL providers needing to hold a credit licence and comply with all its regulations and the responsible lending obligations, including taking reasonable steps to check that their BNPL products are suitable for each person who accesses them.

Acctweb
]]></content>
<guid isPermaLink="true">https://www.burgessbryan.com.au/news/looming-changes-for-the-buy-now-pay-later-market_117s39</guid>
<pubDate>15 Nov 2022 07:03:00 GMT</pubDate>
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