The ATO is writing to taxpayers who have varied their PAYG instalments to nil over multiple years, reminding them that the general interest charge (‘GIC’) may apply where their instalments have been significantly understated. Where varied instalments are less than 85% of the total tax payable,...
From 1 April 2027, employers will no longer be able to use the ‘otherwise deductible rule’ to reduce the taxable value of an expense payment fringe benefit provided to an employee where the expense is: - work-related; - covered by the new $1,000 standard deduction; and - provided...
The ATO has highlighted several misconceptions that commonly lead to incorrect claims under the cents per kilometre method for claiming deductions for car expenses. Common errors include: - Claiming travel between home and work, which is generally private and non-deductible; - Automatically claiming 5,000 kilometres without the...
From 1 July 2026, the $20,000 instant asset write-off has been made permanent for small businesses. Businesses with an aggregated turnover of less than $10 million may be able to claim an immediate deduction for the business portion of an eligible depreciating asset costing less than...
The re-introduced ‘loss carry back’ measure has also now become law, applying to income years starting on or after 1 July 2026. Where eligible, companies will broadly be able to carry back a tax loss (revenue in nature) and apply it against tax paid in either,...
The ATO is continuing its visa data-matching program, acquiring data from the Department of Home Affairs from the 2027 to the 2029 income years. Under this program, the data collected may include: - address and contact history for visa applicants, sponsors and migration agents; - histories of...
The car limit for the 2027 income year is $69,883. This is the highest value that a taxpayer can use to calculate depreciation on a car where they use the car for work or business purposes (and they first use or lease the car in the...
The ATO has added an extra verification step for super transfer and consolidation requests made through the ATO's online services. This step is the latest ATO app security feature that helps protect against fraudulent activity. If a taxpayer has registered their device using the ATO app, they...
The ATO is reminding business taxpayers of recent changes they should keep in mind this Tax Time, including the following: From 1 July 2026, Payday Super applies. Employers will need to pay super to an employee's nominated super fund each payday, and it must reach the...
The Government has recently legislated several of the tax reform measures announced in the 2026 Federal Budget (and in later media releases). These include, among other things: - Replacing the CGT discount with cost base indexation and a 30% minimum tax on gains accruing from 1...