Tag: income

Government Doubles Tax On Super Balances Over $3M

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Treasurer Dr, Jim Chalmers has said that the labour government will be doubling the tax rate applied on the future earnings for superannuation balances over $3 million as of 2025-26. Currently, this concessional rate stands at 15% but will increase to 30% in a couple of years. It is estimated…

Wage Increases and Worker Shortages Affects SMEs

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According to a new Xero survey, the small business sector is burdened by record wage increases that are occurring at the same time the industry is also contending with reduced sales growth driven by inflation. Following huge increases in sales figures, sales growth has slowed down to 5.8%, with the…

ATO to Resume Recovery of Debts on Hold

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The Australian Tax Office (ATO) has informed tax professionals that their clients will begin receiving notification letters on any outstanding aged debt beginning May 2022. Aged debt, or debts on hold, are uneconomic non-pursued debts that are not visible on the balance of taxpayers’ accounts as they have been classified…

IPA Criticizes ATO On New 100A Guidelines

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The Australian Tax Office (ATO) released draft documents concerning the tax treatment of trusts. These guidelines provide recommendations as to how section 100A under the Income Tax Assessment Act of 1936 should be applied in regards to trust stripping arrangements. A key focus of the documents is where distributions are…

Directors Targeted In ATO Debt Collection Drive

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Seen as a sign that the government is now ending its soft approach to tax debt since the pandemic started, the Australian Tax Office (ATO) announced earlier this year that they would be contacting company directors via letter concerning their potential liability for company tax debts. Since then, over 50,000…

FHSS Changes to Help First Home Buyers Get On the Property Ladder

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In keeping with announcements made during the 2021-2022 Federal Budget, the government has announced that it will increase the maximum releasable amount that contributors can draw upon in making their first home purchase. This is after the proposed changes received Royal Assent on 22 February 2022. The First Home Super…

CA ANZ Releases Playbook for Addressing Gender Pay Gap Problem

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In 2021, Chartered Accountants Australia and New Zealand (CA ANZ) published the results of its Member Remuneration Survey that found female accountants were being paid far less than their male counterparts. This amounted to a gender pay gap of about $50,000 in Australia and $60,000 in New Zealand. These figures…

ATO Reports Improved GST Cash Collections for 2020-21 Period

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Despite the challenges brought on by the pandemic, the Australian Tax Office (ATO) is reporting improved goods and services tax cash collections for the 2020-21 period. According to the recently released GST administration annual performance report 2020-21, net GST cash collections, including Department of Home Affairs collections of $4.8 billion,…

Tax Professionals Issued Client Verification Guidelines By ATO

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Following consultations with the Tax Practitioners Board (TPB), the Australian Tax Office (ATO) has developed client verification guidelines to help tax professionals ensure consistency and alignment. The ATO has recommended that the guidelines be utilised alongside the TPB Practice Note (PN) 5/2022 that covers Proof Of Identity Requirements For Client…

Tax Organisations Urged To Better Safeguard Client Information

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Recent research by tech firm Tenable indicates that cybersecurity incidents increased during 2021. According to their findings, over 40 billion records were exposed from 1,825 data breach incidents. More than double the 730 incidents identified in 2020. Of the incidents in 2021, 236 occurred within APAC, resulting in the exposure…