Newsletter Subscription





* essential
  
Business Start-up

Business Start-up

A business in start-up should be an exciting time, not one of stress of the unknown.

Business Start-up
Grow your Business

Grow your Business

Do you want to grow your business? Are you looking to expand, increase revenue and grow your profits?

Grow your Business
Expand your Business

Expand your Business

Do you plan to expand your business into new locations? Perhaps you'd like to franchise, or take on licensees?

Expand your Business
Protect your Assets

Protect your Assets

As important as acquiring assets is the need to protect them.

Protect your Assets
Exit your Business

Exit your Business

Have you considered all the possible reasons why you might exit your business, and have you put a contingency plan in place for it?

Exit your Business

September 2013 - Individual Edition

In this issue

  • ATO Compliance Focus
  • Low income earners may still need to lodge a return
  • Medicare Levy rising to pay for DisabilityCare Australia
  • Updated ATO information on private health insurance rebate and Medicare levy surcharge
  • Net medical expenses tax offset phase out
  • Did you receive an employment termination payment in 2013?
  • Are you a Senior or Pensioner and a Foreign resident? Are you entitled to a tax offset?
  • Information for Businesses and Contractors in the Building and Construction Industry
  • Reporting of personal services income and business income
  • Capping of Education Expense Deductions for Employees
  • Proposal to abolish FBT statutory formula for cars
  • Are you a property owner?
  • Letters to directors with outstanding obligations
  • Combatting "Dividend Washing"
  • Tax Avoidance Schemes – Warning to Investors from ATO
  • Employee share scheme rules under review
  • Tax advice provided by financial planners to be regulated
  • Treasurer promises a 5 year freeze on superannuation changes
  • Trans-Tasman super portability regulations made
  • When a superannuation income stream commences and ceases – TR 2012/5
  • Useful ATO Link

Election 2013

With the certainty of the 2013 Federal Election being held on 7 September 2013, for the last few weeks, the Government has been in Caretaker mode. Until the Election passes and the new Government settles in, apart from Election promises made, we are unlikely to see much activity in the tax space. However, prior to the Election officially being called, there was significant activity in the tax space. Read more


ATO Compliance Focus
The ATO has published its "Compliance in focus 2013-14" document. This document sets out what the ATO is doing to manage the risks to and maintain the integrity of Australia's taxation and superannuation systems for the next 12 months. Read more

Low income earners may still need to lodge
a return
If your income falls under the tax-free threshold for the 2013 income year, that is it is less than $18,200, generally you should not have to lodge a tax return. However, there are certain reasons why you may still need to lodge a tax return form with the ATO. 
  
Medicare Levy rising to pay for DisabilityCare Australia
With the introduction of the Government's new initiative, DisabilityCare Australia, comes an increase in the Medicare Levy. From 1 July 2014, the Medicare Levy will increase by 0.5% to 2% to assist to fund the DisabilityCare Australia program. 

Updated ATO information on private health insurance rebate and Medicare levy surcharge

Given the changes to how the r

ebate for private health insurance is to apply, the ATO has included a detailed explanation on its website, which can be accessed from their website. Read more


Net medical expenses tax offset phase out
In the 2013-14 Federal Budget handed down in May this year, the Government announced that it would phase out the net medical expenses tax offset (NMETO). Transitional arrangements will apply for people who claim the NMETO in the 2013 income year. 

Did you receive an employment termination payment in 2013?

If so, you need to be aware of the fact that there have been some changes to the taxation of employment termination payments (ETP) that apply from 1 July 2012. 


Are you a Senior or Pensioner and a Foreign Resident? Are you entitled to a tax offset?

Recently, amendments were made to the Regulations which govern how the "seniors and pensioners tax offset" (SAPTO) applies to foreign residents. Read more


Information for Businesses and Contractors in the Building and Construction Industry

From 1 July 2012, businesses in the building and construction industry will need to report to the ATO each year the total payments they make to each contractor for building and construction services. Read more

 

Reporting of personal services income and business income
Earlier this year, the ATO wrote to some taxpayers asking them to review their tax return for the 2011-12 income year to work out if the business income they have reported may, in full or in part, be classified as personal services income (PSI) and subject to the PSI rules. Read more

Capping of Education Expense Deductions for Employees

In April this year, the Government announced that the deduction for work-related self-education expenses claimed by employees would be capped at $2,000 per annum, rather than remain unlimited as it is currently. Read more


Proposal to abolish FBT Statutory Formula for Cars

On 16 July 2013, the Treasurer, Chris Bowen, announced that the statutory formula to calculate car fringe benefits would be removed and that only the operating cost method would be available. Read more

 

Are you a property owner?

If so, you should note that the ATO has put together a Property page on its website. It is a repository for easily accessible information relevant to all property related transactions. There may be information on this page to help you better understand your tax obligations at different points in the lifecycle of acquiring, owning and selling property.  Read more


Letters to directors with outstanding obligations

From 1 July 2012, changes were made to the tax and superannuation laws to reduce the scope for companies avoiding liabilities and payments of employee entitlements. Read more


Combatting "Dividend Washing"

The Assistant Treasurer has announced a measure to combat "dividend washing". Read more


Tax Avoidance Schemes – Warning to Investors from ATO

In a media release issued in June this year, the ATO recently warned investors about new and complex tax avoidance schemes being marketed as people get ready to lodge their 2013 tax returns. Read more

 

Employee Share Scheme Rules under review

The Government announced in June this year that it will review the policy around employee share schemes (ESS). The review is part of the Government's Advancing Australia as a Digital Economy: Update to the National Digital Economy Strategy project for Australia to become a trusted hub in the global digital economy. Read more

 

Treasurer promises a 5 year freeze on superannuation changes

The current Treasurer, Chris Bowen, has promised that a re-elected Rudd Labor Government would make no major changes to superannuation tax policy for a five-year period, commencing immediately. Given the constant changes to the taxation of superannuation over recent years, this may be welcome relief. Read more


Trans-Tasman super portability regulations made

New regulations have been made which will allow Australians and New Zealanders to take their superannuation with them when they move permanently from one country to the other. The regulations began to apply from 1 July 2013. Read more

 

When a superannuation income stream commences and ceases - TR 2013/5

On 31 July 2013, the ATO issued Taxation Ruling TR 2013/5 entitled "Income tax: when a superannuation income stream commences and ceases". Read more


Useful ATO Link

The ATO has published on its website some useful information about the superannuation contribution and cap amounts that apply in certain circumstances. Read more



Latest Make Cents Accounting News

If you would like to keep up to date with what is going on at Make Cents and would like to recieve uselful financial information and helpful tips, please subscribe to our newsletter by clicking the link below.



Get in touch

Suite 11, Level 5, 35 Buckingham Street
Surry Hills, NSW 2010

Ph: 02 9699 9171
Fax: 02 9699 9112

Copyright Make Cents Accounting © | Disclaimer | Site Map | Online software for accountants by Wolters Kluwer