Bean Counting Matters
Accounting-relevant news and updates
Division 293 tax notices of assessment for the 2012–13 financial year started issuing to affected individuals in late January 2014, with larger volumes expected to issue over the coming weeks. If your members' 'adjusted income' and low-tax contributions are greater than $300,000, they may have to pay an extra 15% tax on their taxable contributions.
The Government has released the 2013-14 Mid-year Economic and Fiscal Outlook (MYEFO), which includes, among other changes, clarification on 92 tax and superannuation measures that were announced, but not legislated, by the previous Labor Government. The Government had clarified their position on these measures in press releases dated 6 November 2013 and 14 December 2013.
With tax time just around the corner, the ATO have advised that the number of email scams reported to them have tripled to almost 11,000, compared to the same quarter last year. Traditionally, email and phone scams around this time of year are rife – using the looming tax time as a way of tricking people into giving away their personal details such as tax file numbers, banking and credit card information.
The spotlight has once again been put on big business as the Australian Tax Office (ATO) is forming a panel of experts from various fields that will help address the issue on tax evasion, particularly among big business. The ATO has recently announced on its website that it is looking to hire professionals who can provide insights on current business practices.
As part of its 2013 election commitments, the government announced changes to the instant asset write-off provisions for small business. The changes came into effect in 1 January 2014.
From the 2012–13 income year, small businesses have been able to write-off depreciating assets costing less than $6,500 in the income year in which they start to use the asset, or have it installed ready for use.