Don’t claim dodgy work-related expenses
The ATO has issued a warning to taxpayers not to deliberately claim incorrect work-related expenses deductions (e.g. claiming car expenses with false log book entries or claiming deductions for self-education expenses for conferences that were never attended).
Work related expenses are only deductible if the expense relate directly to your occupation, you incurred the expense yourself (net of reimbursements) and the expense was not private or domestic in nature.
Because the ATO’s data matching capabilities can easily identify unreasonable deductions on income tax returns, good records must be retained to substantiate your claims.
Don’t engage in dodgy retirement planning schemes
The ATO has warned against schemes where individuals who are close to retirement, channel dividends inappropriately through their self-managed superannuation fund for the main purpose of receiving franking credit refunds. The effect of such dividend stripping arrangements is to avoid paying franked dividends directly to a shareholder, but rather incorrectly to the shareholder’s SMSF.
Please contact us if you have been involved in such a scheme; the penalties for such tax avoidance schemes can be substantial (e.g. monetary penalties but also a sanction on your ability to continue to act as a trustee of your own SMSF).
GST may apply if you are receiving Government grants
Taxpayers carrying on an enterprise are reminded that any grants (that were received for making a taxable supply) should be included in calculating their GST annual turnover to ascertain whether they must register for GST. The GST annual turnover threshold is $75,000 (for a business or enterprise) or $150,000 (for a non-profit organisation).
If the threshold is exceeded, the entity must register for GST in the month they receive the grant (and must generally stay registered for at least 12 months).
Please contact us if the receipt of a grant may have resulted in the threshold being exceeded or if you need assistance in applying for government grants, or are interested in finding out what grants are available for your business.
Let us help you to find your lost super
According to the ATO, about $11.7 billion is sitting in lost super accounts (i.e. when the fund is unable to contact the individual and no contributions have been made to the fund for 5 years).
Please contact us if you think you may have some lost super so that we can assist you in tracking this lost super down. After all, this is your money which can be claimed by you at any time.
How can Nexia Edwards Marshall NT help you?
For any questions or to discuss any of the above in relation to your personal situation, please contact Sarah McEachern or your Nexia Edwards Marshall NT advisor.