Key Summary of What’s New for 2016

Date: Author: Categories: Companies, Personal TaxNo comments yet.

For individuals:

Individuals who are small business entities may be entitled to 5% tax discount;

Car expense claims have been simplified;

Recent tribunal decisions affecting self-education expense claims will increase ATO scrutiny;

New ATO guidelines for claiming mobile phone, home phone and internet costs;

New withholding obligation for property acquisitions from foreign investors meeting certain tests;

New ATO ruling affects certain landlords renting out units and apartments with common property;

We expect greater compliance attention from the ATO in the following areas:

Work related expense claims – unusually high work-related expense claims, claims for travel between work and home, claims for expenses already reimbursed by employers;

Rental properties – claiming repairs to newly acquired properties and interest claims related to rental properties;

The Dependent (Invalid and Carer) Tax Offset ;

Medicare levy and Medicare levy surcharge;

CGT issues with applying main residence exemption – namely where dwellings first used for income earning purposes, and activities involving backyard developments.

For businesses:

New CGT roll-over relief allows for small business restructuring;

$20,000 immediate write-off for small business entity taxpayers;

New government initiatives to boost start-up businesses by allowing immediate write-off for certain start-up costs of a business;

Areas under the ATO’s audit microscope in 2016:

Cross-referencing insurance policies over luxury lifestyle assets (boats, luxury cars) to ensure proper income, CGT and fringe benefits compliance;

Increased scrutiny of overseas dealings following ‘’Panama leaks”

Uber drivers, Air Bnb operators and “Apps” sellers

To ensure your 2016 tax returns are done properly and making sure you take advantage of all concessions provided by the government, contact Pearce Davis today.

2016 Tax Return Checklist

Date: Author: Categories: Personal TaxNo comments yet.

Preparing your 2016 tax return? Make sure you consider the following questions:

1. Have you declared all income and ensure it is consistent with the information the ATO has on you?

      • PAYG Payment Summary
      • Centrelink Summary
      • Bank and Dividend Statements
      • Rental Income Statement
      • Trust or Partnership Distributions

 

2. Have you included all capital gains and applied any discounts you may be eligible for?

3. Have you captured all deductible expenses you incurred during FY 2016?

      • Work Related Expenses
      • Self Education Expenses
      • Travelling Expenses
      • Car Expenses
      • Gifts and Donations
      • Uniform Expenses
      • Rental Property Expenses

 

4. Have you taken advanatge of and complied with obligations relating to, where applicable,

      • Private Health Insurance and Medicare Surcharge
      • Study and Training Support Loans (HECS, HELP, SSL, TSL, SFSS)

 

We can help you with the above.

Contact Pearce Davis today.