Bills for minimum tax for multinationals passes the senate

Income and tax deductions from rental properties is one of the four key areas the Australian Taxation Office (ATO) is focusing on this tax time. It’s an area that’s easy to get wrong, and needs extra care when lodging. The ATO Random Enquiry Program has found that nine out of ten tax returns that reported rental income and deductions contain at least one error, even though most of those property owners were assisted by a registered tax agent. The ATO is therefore urging rental property owners to ensure they carefully review their records before declaring income or claiming deductions this tax time, and for registered tax agents to ask a few extra questions of their clients. Assistant Commissioner Tim Loh explained “Registered tax agents can only work with the information they gather from their clients, and we know some clients won’t know everything they need to tell their agent. We don’t expect agents to be Sherlock Holmes, but we do expect them to ask the right questions to ensure their client’s return is right.” Mr Loh said that rental property owners are urged to ensure they know what income they need to declare and what can be claimed as a deduction. “We are concerned about mistakes, and in particular, leaving out income or deliberate over-claiming of rental property deductions this year.” “Getting it right the first time, will ensure you receive the tax refund you are owed, and avoids us knocking on your front door down the track.” The ATO are looking to ensure: · You include all rental income · You get your claim for expenses right · You disclose any sales of rental properties as a CGT event · You obtaining a clearance certificate before you sell · You keep good records to prove your claims Rental property deductions – the ATO is particularly focused on interest expenses and ensuring owners understand how to correctly apportion loan interest expenses where part of the loan was used for private purposes or the loan was refinanced with some private purpose.

NSW Budget 2022–23, 21 June 2022

ATO support measures for those affected by Coronavirus outbreak, 18 March 2020 The ATO will implement a series of administrative measures to assist Australians experiencing financial difficulty as a result of the COVID-19 outbreak. Businesses impacted by the coronavirus are encouraged to get in touch with the ATO to discuss relief options. Options available to assist impacted businesses include: • deferring by up to four months the payment date of amounts due through the business activity statement (BAS, including PAYG instalments), income tax assessments, FBT assessments and excise • allowing businesses on a quarterly reporting cycle to opt into monthly GST reporting in order to get quicker access to GST refunds they may be entitled to • allowing businesses to vary Pay As You Go (PAYG) instalment amounts to zero for the March 2020 quarter; businesses that vary their PAYG instalment to zero can also claim a refund for any instalments made for the September 2019 and December 2019 quarters • remitting any interest and penalties, incurred on or after 23 January 2020, that have been applied to tax liabilities, and • working with affected businesses to help them pay their existing and ongoing tax liabilities by allowing them to enter into low-interest payment plans. Employers will still need to meet their ongoing super guarantee obligations for their employees. To make it easier for people to apply for relief, the ATO will be increasing its presence in the areas of highest impact. A temporary shopfront with staff specialising in assisting small business will be established in Cairns within the next few weeks. It will also consider ways to enhance its presence in other significantly affected regions. Additional temporary shopfronts and face-to-face options are currently under consideration. The ATO will also continue to work with the tax profession, other government agencies and local organisations to make sure other impacted communities are also supported. Outside of business, the ATO will also work with individuals experiencing financial hardship, and their tax agents, and will apply appropriate tax relief measures for serious and exceptional circumstances, such as where people cannot pay for food or accommodation. Unlike the bushfire relief measures, which applied automatically to particular geographic areas, assistance measures for those impacted by COVID-19 will not be automatically implemented. Anyone impacted by COVID-19 is advised to contact the ATO to request assistance on their Emergency Support Infoline 1800 806 218. Alternatively ask us to contact the ATO on your behalf.

COVID-19 The ATO can provide relief for some tax obligations for people and businesses affected by the coronavirus outbreak on a case by case basis. Businesses impacted by COVID-19 can phone the Emergency Support Infoline on 1800 806 218 for help tailored to your circumstances. The ATO has translation and interpreting services available to help you with your call 13 14 50 Aboriginal and Torres Strait Islander peoples can phone the Indigenous helpline 13 10 30 If you have difficulty hearing or speaking to people who use a phone you can contact the National Relay Service External Links (NRS) You can also talk to us so we can work with the ATO to support you to manage your tax affairs. This LINK provides more information.

The superannuation guarantee amnesty bill passed Parliament on 24 February and has now received Royal Assent and is law. This law change provides a number of incentives for employers to pay any unpaid historical superannuation guarantee ("SG") amounts (the compulsory employer superannuation contribution for employees) relating to the period 1 July 1992 to 31 March 2018. This is a one off opportunity. Please read the newsletter HERE and get in touch if you would like to discuss in further detail.

Travel Allowances Travel allowance is a payment made to an employee to cover accommodation, food, drink or incidental expenses they incur when they travel away from their home overnight in the course of their duties. In most circumstances, when claiming other deductions you will be expected to be able to substantiate the expense being claimed with documentary evidence and be able to produce that evidence if requested by the ATO. Guidelines provided by the ATO are updated annually on exceptions to substantiate claims – if the ATO considers the total claimed to be 'reasonable'. For more information on travel allowances, keeping travel expense records, visit the ATO website. If you would like to discuss this or any topic further, please email: mail@watsonerskine.com.au Read our newsletters at www.watsonerskine.com.au and find current and archived information under client tools, newsletter and report.

Watch out Scammers about! The ATO has warned of a current scam involving pre- recorded robocalls impersonating the ATO and threatening immediate arrest for an unpaid tax debt. The number shows in caller ID as a genuine ATO number. If you receive one of these calls or a voice mail HANG UP or DELETE it. If you have shared any personal information, please call us immediately. As always, if you have any concerns with your tax affairs please call us. For more information from the ATO on scammers follow this link – FAKE Or email mail@watsonerskine.com.au

Employers - Changes to deductions for non-compliant payments to workers From 1 July 2019 the rules for claiming deductions for payments to workers are changing. Deductions can only be claimed for payments made to workers where the employer has met the pay as you go (PAYG) withholding obligation for that payment. Where the PAYG withholding rules require an amount to be withheld, you must: withhold the amount from payment before you pay the worker report that amount to the ATO The deduction won't be lost if the following is withheld: An incorrect amount by mistake – to minimise any penalties the mistake can be corrected by lodging a voluntary disclosure in the approved form from the ATO. The correct amount but make a mistake when reporting The deduction will only be lost if there is a withholding or reporting requirement and no amount is withheld or reported to the ATO unless a voluntary disclosure in the approved form is made before the ATO has begun an examination of your affairs. The change is part of the government response to recommendations from the Black Economy Taskforce. From the ATO website: changes to deductions for non compliant payments to workers.