Working holidaymakers and tax returns for 2017

20-Sep-2017

If your business employs working holidaymakers – or you’ve been one yourself this year! – you need to know about the “backpacker tax” changes that came into effect from 1 January 2017. Employers needs to issue two payment summaries to each working holidaymaker for the 2016–2017 financial year: one for income earned up until 31 December 2016; and one for income earned after 1 January 2017 (using payments code H). All employers need to include code H on payment summaries of backpacking workers’ post-1 January income, even if the employer isn’t registered with the..

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Employee travel expense deductions

12-Sep-2017

The ATO has also released new guidance on work-related travel deductions. To claim for transport or other employee travel expenses (like accommodation and meals) in your tax return, you must have incurred the expenses as part of gaining or producing your taxable income. Private and domestic travel expenses, including the costs of your ordinary home-to-work travel, aren’t claimable. Transport costs for work-related travel may be deductible, but the ATO will consider factors such as: whether the travel is a necessary part of performing your work (you can’t pretend your family holiday..

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Does your business import or export goods and services?

11-May-2017

The ATO reminds business owners that if your business imports or exports goods or services in Australia, it is important to be aware of your GST responsibilities so you can get the information on your business activity statement (BAS) right. Exports from Australia are generally GST-free, but special conditions apply in some situations. For example, if it takes longer than 60 days for you to receive payment for your exports, then GST could be charged. When importing, you are generally required to pay GST (10% of the value of the taxable importation). This GST is usually paid to the Depart..

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Companies held to be resident and liable to tax in Australia

01-Dec-2016

In a long-running saga, the High Court has unanimously dismissed the appeals of four corporate taxpayers. The Court confirmed the taxpayers were Australian residents for income tax purposes, and therefore liable to tax in Australia on the profits they made from share trading activities on the Australian Stock Exchange. In making this decision, the Court rejected the taxpayers’ contention that because Justice Perram had in the first case found that the directors of each taxpayer were resident abroad, and because meetings of those directors were held abroad, then Justice Perram and the Full Fe..

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Travel expense and transport of bulky tools claim denied

01-Nov-2016

An individual has been unsuccessful before the Administrative Appeals Tribunal in a matter concerning certain deduction claims for work-related travel expenses. The individual was a sheet metal worker whose home was located some 60 km from his employer’s main work site. The individual made a number of work-related deduction claims. However, after various concessions made by both the individual and the Commissioner of Taxation, the remaining issue between the parties was whether the taxpayer was entitled to a deduction for work-related travel expenses. The man argued that his employer requ..

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