The Australian Government recently announced some important changes related to tax, claims & SMSF. We wanted to provide an update on what is happening and keep you in touch with future changes.
ATO’s Focus On Work Related Expenses
The ATO advises that they are paying closer attention to what employees are claiming as other work-related expense deductions. Before claims are included at label D5, you are urged to prove:
- That you spent the money and were not reimbursed by your employer;
- The expense was directly related to earning income;
- You have records to prove it.
There is no automatic entitlement to any standard deduction. Your evidence may include use of the myDeductions tool in the ATO app. Download it and trial it for your expenses. A number of our clients have decided to use this app. They are able to send a spreadsheet to us each quarter for BAS preparation purposes or annually for their income tax returns. A photo of the receipt is considered evidence of the expense for the ATO and is retained on your telephone.
Motor Vehicle Expenses
Motor vehicle expenses will be easier to keep track of now that the ATO has approved a smart phone based vehicle logbook. The app, called EzyCarLog, will enable an employee who uses their own motor vehicle to log individual trips for work related purposes. The app is available for both iOS and Android to download from.
The ATO app which includes myDeductions also has options for recording motor vehicle expenses and mileage records.
Claiming GST credits
The ATO has issued a reminder to all GST registered businesses that they must have a valid tax invoice for all purchases over $82.50 inclusive of GST if they intend to claim the GST as an input tax credit. It is not sufficient to use a credit card statement, bank statement, delivery docket or purchase order as these do not satisfy tax invoice requirements. Tax invoices themselves have different requirements determined by whether the sales value is greater than $1,000 or not. Refer to our office or click here for specific requirements.
The ATO advises that scammers are sending out fake ATO emails asking people to complete a “tax refund form” to receive their refund. The form asks for online banking essentials, credit card numbers and limits, and personal address information. You should not click or save the attachment as it may download malicious malware onto your computer. And, definitely do NOT disclose the personal information being requested.
The SMSF Association is holding their inaugural expo in Melbourne from 27 – 29 April. The expo will provide you with an opportunity to investigate educational resources, service providers and investment considerations for SMSF trustees. The event will be held at the Melbourne Convention and Exhibition Centre and entry is only $30 at the door or $20 online.
Business Assistance Program
If you are new to business and do not understand your tax and superannuation obligations required for running a business, there is a Business Assistance program that may assist you.
The program is available to small businesses that have recently registered for an ABN and recently or likely to register for GST in the near future. Topics include the tax obligations of your business structure, GST obligations, employer obligations, superannuation obligations, record keeping requirements and using the ATO digital services. Contact either myself or Candy and we will put assist you with the registration process.