Author name: trovegroupaus

The Government will temporarily increase the instant asset write-off threshold to $20,000 from 1 July 2023 to 30 June 2024.
Small businesses – those with aggregated annual turnover of less than $10 million – will be able to immediately deduct the full cost of eligible assets costing less than $20,000 that are first used or installed ready for use between 1 July 2023 and 30 June 2024. The $20,000 threshold will apply on a per-asset basis, so small businesses can instantly write off multiple assets.

The ATO has released a Decision Impact Statement on 24th April outlining its response to the Full Federal Court decision of Commissioner of Taxation v Guardian AIT Pty Ltd ATF Australian Investment Trust [2023] FCAFC 3 (24 January 2023) (“Guardian Case”).

What is a director penalty? A company director becomes personally liable for the company’s unpaid amounts of: pay as you go withholding (PAYGW); goods and services tax (GST); and super guarantee charge (SGC).

Recent results of sample audits across individuals conducted under the ATO random enquiry program appeared to show a net tax gap of $9bn for the 2020 income year, with the incorrect reporting of rental property income and expenses being a significant driver of the gap.

The ATO has released a draft compliance guideline which contains the methodology for calculating the cost of electricity when an eligible electric vehicle is charged at an employee’s or an individual’s home.

For the 2022-23 FBT year (1 April 2022 to 31 March 2023), your business may be able to receive an FBT exemption for certain eligible electric cars and associated car expenses which could lower the tax bill. There are a few hurdles to jump over regarding eligibility, including the type of car, the cost, and when it was first held and used.

The FBT ruling on car fringe benefits has finally been updated to include changes to address the concept of primary place of employment as a result of the Full Federal Court’s decision in FCT v Virgin Australia Regional Airlines Pty Ltd [2021] FCAFC 209. A draft addendum was previously issued by the ATO late last year on the topic and this has now been finalised, largely unchanged from the draft.

The ATO has recently issued a Taxpayer Alert warning that it is reviewing arrangements where an individual taxpayer accesses the profits of a private company in tax-free form through the use of an interposed holding company. It notes that the Alert will apply to all arrangements when, viewed objectively, there is an indication that the dominant purpose of the arrangements is for the individual to avoid tax.

With 2023 in full swing, the ATO is looking to finalise a number of FBT-related issues currently under consultation. For businesses, the outcome of these consultations and subsequent issue of draft rulings or guidelines may affect the applicability of FBT in certain circumstances, as well as the calculation of FBT benefits.

Recently, Assistant Commissioner Jennifer Moltisanti reflected on the ATO’s administration of not-for-profits and outlined behaviours which may attract unwanted attention in the not-for-profits space. The two most current and pressing concerns that the ATO has for the not-for-profits sector is the use of private not-for-profit foundations to avoid tax, and public benevolent institutions using schemes to avoid or reduce FBT.