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From the ATO

Find out how your payroll software provider will offer STP reporting – this may be through an update to your existing software, or an additional service. Also remember to:

  • check if they have a deferred start date for your product
  • find out what support they will offer to their clients to transition to STP
  • subscribe to their communications – this may be via email, newsletter or web updates.

ATO: Common GST mistakes

From the ATO: When reporting GST:

  • make sure the timing is correct, and report for the correct tax period
  • check the figures to avoid accidental miscalculations and simple transcription errors
  • ensure your clients can substantiate their claims for GST credits
  • check there is a creditable purpose, so your clients do not claim GST for goods purchased for personal use
  • make sure your clients charge GST when they need to, including your businesses clients that may not realise they will pass the $75,000 GST threshold.

Crypto Record Keeping requirements

The Australian Tax Office (ATO) requires the following records to be kept in relation to cryptocurrencies.

  • the date of the transactions
  • the value of the cryptocurrency in Australian dollars at the time of the transaction (which can be taken from a reputable online exchange)
  • what the transaction was for and who the other party was (even if it’s just their cryptocurrency address).

The sorts of records you should keep include:

  • receipts of purchase or transfer of cryptocurrency
  • exchange records
  • records of agent, accountant and legal costs
  • digital wallet records and keys
  • software costs related to managing your tax affairs

Have a short-term rental? The ATO may know

According to the ATO their are approximately 190,000 properties available for short term rentals such as Airbnb, using their “data matching” capabilities they shall be querying any understated or omitted income from owners.

Therefore, it is vital that you have up to date and comprehensive record keeping so that all income and deductions can be included and justified in your tax return.

to discuss further make an appointment with us on +613 9846 6542 or email info@townshendassociates.com

 

Bitcoin, cryptos and your taxes

The central premise to be “outside of the central banking monetary system” and the “way of the future”. If you own or are thinking to own cryptocurrencies, you should not be confused with that those that disagree with Bitcoin being money and those people not understanding it. They do, especially the Australian Taxation Office (ATO)

Buying and selling Bitcoin or any other cryptocurrency may attract a capital gain event which is reportable on your tax return.

A capital gain is the difference between the purchase and sale price and a capital gain event with cryptocurrencies can be the following:

  • sell or gift cryptocurrency;
  • trade or exchange cryptocurrency (including the exchange of different currencies)
  • convert cryptocurrency to fiat currency such as AUD
  • use cryptocurrency to obtain goods or services (source: NTAA 2018)

However,  there are some provisions which may exempt a capital gain event.

To make an appointment with us please call or email our offices +613 9846 6542 or info@townshendassociates.com

 

 

Lodged your tax return. How long will it take?

So you have lodged your tax return and expecting a refund, now when do you receive it?

Typically, if you have lodged your return electronically with your account details it should take around 12 business days (so exclude weekends), however it may take longer. Apart from any arrangements you may have with us the ATO gives the following events which may delay the assessment of your tax return:

  • The ATO identifies omitted income
  • They need to cross-check data with other government agencies, including Centrelink and Child Support
  • You have a debt obligation with the ATO
  • You are insolvent
  • Your tax file number (TFN) has been compromised
  • The ATO queries information provided in the return.

Its important that if you think any of the above applies to you, that you ensure you discuss this with us when completing your tax return.

 

 

 

Protect your privacy: ATO warns about scammers

It is imperative that you keep your personal information secure, the ATO has released another warning about increased scam activity this year.

From the ATO

Scammers frequently claim to be from the ATO and according to Ms Anderson, you should be wary of any phone call, text message, email, or letter about a tax refund or debt, especially if you weren’t expecting it. “The ATO regularly sends emails and SMS’s and we make lots of calls each week. But there are some tell-tale signs that it isn’t the ATO, including that the ATO will not:

  • use aggressive or rude behaviour, or threaten you with arrest, jail or deportation;
  • request payment of a debt via iTunes, pre-paid visa cards, cryptocurrency or direct credit to a bank account with a BSB that isn’t either 092-009 or 093-003;
  • request a fee in order to release a refund owed to you; or
  • email or SMS you asking you to click on a link to provide login, personal or financial information, or to download a file or open an attachment.

Last year the ATO received over 81,000 scams reports, with more than $2.4 million being paid to scammers and almost 10,000 people providing their personal information. Ms Anderson says that while the ATO will act on reports, the best way to stop the scammers is for the whole community to protect themselves and others, especially the elderly and people who are isolated.

The ATO’s dedicated scams line is 1800 008 540.