Latest News
PAYGW reminders for activity statement lodgments
The ATO will be sending certain employers a reminder to lodge their activity statements. The reminder will include the amounts the ATO has on record for them, such as: PAYG withheld amounts reported through Single Touch Payroll; and any other pre-filled amounts, including GST instalments and PAYG instalments (instalment amount option). The ATO’s reminders are […]
ATO AFCX data-matching program
The ATO will acquire relevant account and transaction data (data-matching) from the Australian Financial Crimes Exchange (‘AFCX’) for the 2025 to 2027 income years, including the following: Client identification details (names, addresses, phone numbers, dates of birth, identity verification document details, IP addresses, etc); and Bank account transaction details (bank account details, transaction date and […]
Small Business Superannuation Clearing House is closing
The Small Business Superannuation Clearing House (‘SBSCH’) will close on 1 July 2026. Editor: The SBSCH is a free online service provided by the Australian Government through the ATO. The SBSCH can be used by employers to pay superannuation for all their employees through a single payment. The SBSCH will then distribute the money to […]
Getting the main residence exemption right
The ATO has the following tips for taxpayers in relation to the CGT main residence exemption. They should consider if they have bought or disposed of property in the past income year. If they have sold property, were they using it solely as their primary place of residence, earning income from it (rental or business), […]
Bill to reduce student debt now law
Legislation has recently been enacted which delivers on the 2025/26 Federal Budget announcement to reduce student debts. Pursuant to this legislation: there is a one-off 20% reduction to Higher Education Loan Program debts and other student loans that were incurred on or before 1 June 2025; the minimum repayment threshold is increased from $54,435 in […]
ATO to include tax ‘debts on hold’ in taxpayer account balances
From August 2025, the ATO is progressively including ‘debts on hold’ in relevant taxpayer ATO account balances. Editor: A ‘debt on hold’ is an outstanding tax debt where the ATO has previously paused debt collection actions. Tax debts will generally be placed on hold where the ATO decides it is not cost effective to collect […]
High Income Earners – Beware Division 293!
Have You Heard of Division 293? If your remuneration, including reportable fringe benefits and salary sacrificed superannuation contributions is in excess of $250,000 pa, you may have an additional tax liability over and above the normal income tax payable on such earnings due to Division 293. Now that would be a fairly substantial salary package, […]
Immediate Deductions For Start Up Costs
Historically taxpayers may have been able to claim a deduction for the start up costs associated with setting up a business or raising finance, including the costs incurred in: establishing a company or other business structure converting a business structure to a different structure raising equity for the business defending it against a takeover unsuccessfully […]
Accelerated Depreciation For Small Business Has Been Extended.
In the 2015-16 federal budget, the government increased the small business immediate deductibility threshold from $1,000 to $20,000, which was originally due to end at June 30, 2017. But a law amendment bill has recently been passed by Parliament that extends that measure by 12 months until June 30, 2018, after which the deductibility threshold […]
Simplified depreciation rules for small business
The simplified depreciation rules are attractive for small businesses as, among other things, they allow an immediate write-off for assets costing less than $20,000. In contrast, tax paying entities that do not qualify as a small business must use the general depreciation rules (also known as the uniform capital allowance rules), where certain assets need […]
Getting deductions for clothing and laundry expenses right
The ATO allows certain taxpayers to claim a deduction for the cost of buying and cleaning occupation-specific clothing, items of protective wear and for certain unique, and usually distinctive, uniforms. To claim a deduction it is generally expected that you will be able to provide evidence that you purchased the clothing concerned, and will have […]
Private Health Insurance Rebate and Medicare Levy Surcharge
If you have private health insurance cover, you may be eligible for the private health insurance (PHI) rebate. Most people claim the rebate as a reduction in the amount of premiums they pay to their insurer. The rebate is income tested, which means that if you have a higher income, your rebate entitlement may be […]