2021 Tax Time information for Individuals

Common tax deductions

https://www.ato.gov.au/Tax-professionals/TP/Tax-Time-Toolkit-general/?anchor=Informationaboutcommondeductionsincludin

Guides to claims by occupation

https://www.ato.gov.au/Tax-professionals/TP/Tax-Time-Toolkit-general/?anchor=OccupationGuides

Taxation in relation to rental properties

https://www.ato.gov.au/Tax-professionals/TP/Tax-Time-Toolkit---Rental-property-owners/?anchor=Informationforrentalpropertyownersinclud

Working from home info sheet - What can you claim this end of financial year?

https://www.businessaustralia.com/how-we-help/be-more-efficient/manage-costs/working-from-home-claims-shortcut-eofy

 

2021 Tax Time information for Small Business

ATO small business tax time toolkit

https://www.ato.gov.au/Tax-professionals/TP/Tax-Time-Toolkit---Small-business/?anchor=Smallbusinessguides

What income to include as a small business.

https://www.ato.gov.au/Business/Income-and-deductions-for-business/Assessable-income/What-income-to-include/

Small business tax cuts and incentives

Business Australia has put together list of government help for small business in the new financial year. Use the Business Grant Finder to find what you are eligible for.

https://www.businessaustralia.com/how-we-help/be-more-efficient/maximise-cash-flow/kick-start-the-financial-year?utm_brand=BA&utm_prodcat=event&utm_prod=article&utm_campaigntype=eng&utm_livedate=20210520&utm_target=nat&utm_campaign=tax_time_webinar&utm_medium=edm&utm_source=ba&utm_content=tax_time_webinar_kickstart_financial_year&deliveryName=DM9160

 

Budget changes coming into effect from 1^st July 2021.

Superannuation Guarantee

The Federal Government has maintained the legislated increase to the Superannuation Guarantee, which will increase by 0.5% to 10%. Employers will need to pay employees the 10% superannuation guarantee from the first full pay-week following 1st July 2021. 

Xero and MYOB will have this update effective from the first full pay-week of the new financial year. Businesses using other software will need to check with their providers to avoid penalties.

Changes to Superannuation contribution thresholds

Key super thresholds for 2021-22:

• - Concessional (before-tax) contributions cap to increase from $25,000 to $27,500
• - Non-concessional (after-tax) contributions cap to increase from $100,000 to $110,000.
• - General transfer balance cap to increase from $1.6 million to $1.7 million

Extension of business tax incentives

Temporary full expensing

The investment tax incentive announced in last year’s Budget, has been extended until 30 June 2023. Businesses with a turnover up to $5 billion will be able to deduct the full cost of any eligible asset they purchase for their business, including the cost of improvements to existing assets, until 30 June 2023.

 Temporary loss carry-back provision

Companies will now be able to carry back tax losses for an additional 12 months from the 2019/20, 2020/21, 2021/22, and now 2022/23 income years to offset previously taxed profits in 2018/19 or later income years.

 Additional student visa holder work hours

From 1st July 2021, International students can now work more than 40 hours per fortnight in the hospitality, tourism, agriculture, health and aged care sectors.

 

 

The Australian Securities and Investments Commission (ASIC) has warned investors of a rise in imposter bond scams where scammers pretend to be associated with domestic and international financial services firms. 

“Investors searching for income-generating investments are at risk of being duped into buying imposter bonds. Any prospectus offering incredible returns in the today’s economic environment is likely to be just that: incredible. ASIC warns investors to be sceptical and make proper inquiries before investing,”

Investors are at risk of identity theft and should check they are dealing with the company they think they are dealing with.  The regulator said that in many circumstances, the scam occurred after the investor had completed an online expression of interest, often via a third party or comparison site.

ASIC listed common tactics which were deployed by scammers which included:

• Sending professional looking fake prospectuses with unrealistically high returns.
• Falsely stating the bonds are issued by prominent financial services firms when this is not true and there is no underlying investment.
• Falsely claiming investor funds will be pooled to invest in government bonds or the bonds of companies with AAA credit ratings.
• Falsely claiming the purchase price of the bonds is protected under the Commonwealth Governments Financial Claims Scheme, and
• Using contact details gathered online through fake investment comparison websites to call people and pressure them to invest or risk ‘missing out’.

Following this, investors interested in these bonds are often directed to pay funds into a bank account from which it could be difficult to recover money, especially if the scammers are based outside of Australia.

 

 

The ATO is warning about a spike in automated scam calls impersonating the ATO.

This new batch of scammers are claiming they’ve suspended their target’s tax file number (TFN) following suspected fraudulent activity.

Since 1 January 2021, the ATO has received 638 reports of this scam, with 7 victims paying out nearly $118,000. For more follow this link.

https://www.ato.gov.au/Media-centre/Media-releases/Scammers-playing-the-saviours-in-new-scheme/

2020 Budget - Personal Income Tax Changes

On 6 October 2020, the Australian Government introduced personal income tax cuts as part of the 2020–21 Budget. These tax cuts bring forward legislated personal income tax cuts from 1 July 2022 to 1 July 2020. The ATO has updated tax withholding schedules to reflect the 2020–21 income year personal tax cuts. Updated schedules are available at ato.gov.au/taxtables.Employers need to adjust their payroll processes and systems, so the tax cuts are reflected in employee’s take-home pay. Employers must make sure they are withholding the correct amount from salary or wages paid to employees for any pay runs processed in their system from no later than 16 November onwards.