Tax Season

Taxable Payments Annual Report (TPAR)

The Taxable Payments Annual Report (TPAR) is due for lodgement by the 28th of August every year. This report is now required by businesses in the following industries: building & construction industry cleaning services courier services road freight services IT services security, investigation or surveillance services You will be required to lodge this report if you paid any subcontractors during the previous financial year. If you did NOT pay subcontractors during the previous financial year, then you will need to make a non-lodgement declaration here. Failure to lodge or make a non-lodgement declaration may results in fines and reminders from the ATO. How to lodge the TPAR: Through your MyGov or ATO Business Portal account Through your bookkeeping software such as MYOB or Xero Post a paper form to the ATO...

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COVID19 Home Office Deductions

Due to COVID19 the ATO is temporarily allowing us three options to calculate our home office expenses. _ shortcut method ─ (only available for work conducted between 01 March 2020 – 31 December 2020) Claim a rate of 80 cents per work hour to cover all additional running expenses. You are not required to have a dedicated work area for this particular method. If you use this method between 01 March – 30 September 2020, you cannot claim other office expenses such as telephone, depreciation, etc. _ fixed rate method ─  you may claim all of these a rate of 52 cents per work hour to cover heating, cooling, lighting, cleaning and the decline in value of office furniture the work-related portion of your actual costs of phone and internet expenses, computer consumables, stationery the work-related portion of the decline in value of a computer, laptop or similar device. actual cost method ─ claim the actual work-related portion of all your running expenses. You need to use a reasonable basis to calculate this. For full details about eligibility, and what you can and cannot claim, please see...

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How To Access Your ATO Account

You may wish to have access to your ATO account to view and mange the following Apply for JobKeeper View account statements and balances (Cash Flow Boost payments for COVID19 will be seen here if you are eligible for them) Manage payment arrangements Download notice of assessments (for individuals & sole traders) View and lodge BAS/IAS and various other services   Individuals & Sole Traders:  Create a MyGov account (instructions here) Link your MyGov account to the ATO (instructions here)   Sole Traders, Partnerships, Trusts, & Companies: (Please note that the principal of the business should follow these steps. Other authorised persons may follow steps 1 & 4.) 1. Download the MyGovID app to your smartphone (further details here) – Note: MyGovID is a two-step authentication system. It is not the same as a MyGov account. 2. Use your MyGov ID to log into RAM (Relationship Authorisation Manager) 3. Once you have logged into RAM, link your business and then manage authorisations if you would like other people to access your business with their own MyGovID. – Trusts: You may need to call 1300 287 539 and select option 3 if you experience any problems linking your business. 4. Once your business is linked to RAM, you and anyone else that you have authorised can login into...

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PAYG Instalments Comments Off on PAYG Instalments

PAYG Instalments

Are you confused by one of these letters from the ATO???   Why did you receive it? This letter is generally triggered by the lodgement of a tax return with a tax bill of more than $1,000. This tax bill is often due to positively geared investment properties and/or business profits from sole traders, trusts, or partnerships. Unlike your salary from your employer who withholds tax from your wages, the above income does not automatically have tax withheld from it during the year. This means that you’ll pay all the tax on this extra income when you lodge your tax return. Unfortunately this can often mean that you end up with a very high tax bill. Therefore, the ATO requests that in the future you pay this tax in smaller instalments leading up to the lodgement of your next tax return.   What does it mean for you? First, the ATO will send you a letter similar to the above to notify you that you are being put into the Pay As You Go Installment (PAYGI) system. The notional tax is your estimated tax bill for the next year. It will be estimated slightly higher than the tax bill from the tax return just lodged. This figure will then...

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Uniform & Laundry Deduction

CAN YOU CLAIM YOUR WORK CLOTHING AS A TAX DEDUCTION? The ATO allows you to claim the purchase and washing of work clothing if it satisfies certain criteria. To be eligible, your work clothing must meet at least one of the following criteria. Protective: your work clothing protects you from the risks inherent to your job. Steal capped boots, hard hats, high visibility clothing, aprons, & overalls are all considered protective clothing. However, a receptionist in an office could not claim steal capped boots as a tax deduction as there are no inherent risks in the job that would require steal capped boots. Occupation specific: Work clothing that is not everyday in nature and allows the public to easily identify your occupation can be claimed as a tax deduction. A chef’s checked pants, a judge’s robe and wig, and a security guard’s uniform are all examples of occupation specific clothing. A business suit is not an occupation specific uniform as it is everyday in nature and does not identify the occupation. Likewise, the black pants and white shirt of a waiter are not occupation specific clothing as they are everyday in nature and don’t identify the occupation. The swimsuit of a swimming instructor is also not deductible under these...

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