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AUGUST 2009
ATO's 2009/10 Compliance Targets
On 6 August 2009, the Commissioner released his Compliance Program for 2009/10 outlining where he intends to concentrate his focus for the current tax year. One constant theme was the use of data matching and new technologies throughout all segments. Other key areas of focus dissected into industry segments are: click here for more details.
The Cash Economy and the new Personal living expense guide
The ATO has developed a new guide to explain the importance they place on examining taxpayers' household expenditure when identifying omitted cash income in the course of reviews or audits.
Basically, what the ATO will do is work out the taxpayer's family's living expenses, and compare this to their declared income – if the income is less than the expenses, the taxpayer may be asked to reconcile the difference. click here for more details.
Tax Bonus = Child support bonus
Following on from the last point, many taxpayers do not know the consequences of dealing with tax authorities without taking advice. For example, the Child Support Agency (CSA) has been able to recoup $32.4 million in outstanding child support payments following an increase in the lodgment of tax returns.
According to the ATO, 263,000 'new' taxpayers came forward to claim their tax bonus.
Although most of them received refunds on lodging their outstanding tax returns, many of them had outstanding child support obligations. We do not condone or assist cheating the system. The point illustrates that telling the ATO, what many taxpayers consider to be straightforward or harmless communications, can have significant and costly ramifications.
Employee Share Schemes
The Government has confirmed the final changes to the taxation of employee share schemes, which will apply to all shares and rights acquired on or after 1 July 2009 (not 13 May 2009 as originally announced). click here for more details.
Related party transactions of SMSFs under review
The ATO is warning SMSF trustees to be careful about people offering to set up an agreement between their SMSF and a related party to purchase assets, particularly properties. click here for more details.
Claiming the Tax Break on laptops
Small businesses can still take advantage of the Tax Break (the bonus 50% deduction) in relation to most depreciating assets acquired by 31 December 2009 which cost at least $1,000. click here for more details. From 1 July 2009, people living in a same-sex de facto or registered relationship will be recognised as being partners for taxation, Centrelink and Family Assistance Office (FAO) purposes. The Tax Office has advised that the car depreciation limit for the 2009/10 financial year is $57,180 (unchanged from the 2008/09 year). This is the same limit used for luxury car tax except for fuel efficient cars which have a limit of $75,000.
Recognising same-sex relationships
This means that same-sex couples and their families are recognised and have the same entitlements and obligations as other couples.
Their entitlements and payment rates will be worked out in the same way as for all couples, which may affect people who receive social security and family assistance payments and services.
Children from same-sex relationships will also be recognised by law.
Car depreciation limit for 2009/10
Liability limited by a scheme approved under Professional Standards Legislation.
The information in this newsletter is quite general in nature and anyone intending to apply it practically to their own circumstances should seek professional advice to verify it’s individual applicability.
If you have any queries regarding the information contained in this
update please do not hesitate to contact us.
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