State and Federal Covid support — Aug 2022

The following links are to the latest state and federal government plans, schemes, programs, and initiatives to help businesses and individuals manage continued national hardships. Covid resources updated 01-08-2022   The government has re...
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Sub-trusts ‘redundant’ under final Div 7A ruling

With interest-only loans no longer an option the commercial incentive for sub-trusts ends, says the Tax Institute.   Sub-trusts have been made redundant by the ATO’s final tax determination on Division 7A released this week, according to the ...
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NALI ‘a special problem for SMSFs’

Tax benefits attract miscreants, but non-arm’s length rules should allow minor transgressions to be fixed, says CA ANZ.   Non-arm’s length rules designed to punish egregious behaviour make no allowance for benign transgressions in SMSFs that ...
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Tax Office homing in property deductions, SMSFs warned

With property deductions a big focus for the ATO this tax time, SMSFs have been warned on some of the pitfalls in this area that can land them in trouble.   The ATO has recently indicated that rental property expense claims will be a signific...
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ATO adds indebted sole traders to credit referrals

The step should help promote transparency and fairness, says IPA. The ATO has begun disclosing tax debts of sole traders to credit reporting bureaus (CRBs) if they meet its criteria for referral.   General manager of technical policy at the I...
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ATO casts net wide when it comes to taxable business income

Commissions, investment earnings, gratuities and more must be included to be assessed, the office warns.   Frequently forgotten revenue streams such as tips and patent royalties need to be included in the assessable income of a business, the ...
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100A ruling turns tax avoidance logic on its head

The ATO’s 100A draft ruling on trusts has turned the logic of “tax avoidance” on its head and may be fundamentally flawed, according to tax law specialist Ron Jorgensen. The Thomson Geer specialist said the draft shifted the onus onto taxpayers ...
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Forget the Tim Tams in your WFH claim, say fun police

Humour has become the weapon of choice for CPA Australia when it comes to raising awareness of accountants at tax time. It said a year of split working between home and office holds potential pitfalls in claiming work expenses, and suggests a “y...
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