5 minute tax updates: 27-31 July

SMSF stats: COVID-19 not the dampener you may have thought
Tax treatment of vacant land
Stamp duty in NSW slashed for new homes below $800,000
Amendments on distribution standard for ancillary funds
ATO and SMSF Association webinar recording
No nexus between outgoings and assessable income of trust decision appealed
AAT appeal made in relation to SGC for “prescribed” employee
If a client asks, you can check the progress of their returns online
Client with “robodebt” refund? Don’t mention it
Cash flow boost estimator
STP checklist before clients start reporting
Fuel tax credit rates from 1 July
Health and GST

SMSF stats: COVID-19 not the dampener you may have thought
The SMSF quarterly statistical report up to the start of our COVID crisis (March 2020) is now available, and it shows that SMSFs were still being established (up 5,000), had less wind-ups than the previous quarter, and there were more (8,500) Australians taking up membership of an SMSF.

Tax treatment of vacant land
How the tax treatment of vacant land when your client sells it depends on its use, the ATO says, while also providing information about tax deductions if your client is building a rental property on that vacant land.

Stamp duty in NSW slashed for new homes below $800,000
Under changes announced by the NSW state government, the threshold above which stamp duty will be charged on new homes for first home buyers will increase from the current $650,000 to $800,000, with the concession reducing on higher values before phasing out at $1 million. The temporary changes are to aid people during the COVID-19 crisis.

Amendments on distribution standard for ancillary funds
Private ancillary funds and public ancillary funds are required to distribute at least 5% and 4% of the market value of the fund’s net assets respectively, but guidelines have been amended to encourage increased distributions to deductible gift recipients (DGRs) as a result of the COVID-19 pandemic.

ATO and SMSF Association webinar recording
Acting ATO Assistant Commissioner Steve Keating joined SMSF Association Technical Manager Mary Simmons to discuss how COVID-19 continues to affect the self-managed superannuation fund (SMSF) sector, and what the ATO is doing to support the super industry.

No nexus between outgoings and assessable income of trust decision appealed
An applicant in Chadbourne and Commissioner of Taxation took out a personal loan and provided funds to a trust to purchase real estate and trade in shares. They claimed deductions for interest and expenditure on rental properties and shares owned by the trust. It was held that this did not provide a sufficient nexus between outgoings and assessable income.

AAT appeal made in relation to SGC for “prescribed” employee
In Sushi Yachiyo Pty Ltd and Commissioner of Taxation, the question to be settled was whether an employee holds a position as a senior executive in a role that carries substantial executive responsibility, and therefore is an employee in respect of whom superannuation contributions were payable.

If a client asks, you can check the progress of their returns online
The ATO says practitioners can save time and check the status of their clients’ lodged tax returns and reasons for processing delays without phoning it, by using the self-serve options through Online service for agents. It spells out the steps here.

Client with “robodebt” refund? Don’t mention it
Services Australia may be sending several taxpayers refund amounts soon (repayments on debts it raised using averaged ATO income information… aka robodebt). The ATO is advising practitioners that no action should be taken regarding these amounts. They will not be taxed on it, it should not be included in a tax return, and there is no need to submit an amendment for prior years.

Cash flow boost estimator
Eligible employers who received initial cash flow boosts are now receiving additional boosts as credits in their activity statements. The ATO has provided an estimator tool that can help estimate credits for each activity statement which will be calculated for your clients, helping you prepare for their lodgments and manage cash flow for the coming months.

STP checklist before clients start reporting
There are some important steps your clients need to take before they start their Single Touch Payroll (STP) reporting. The ATO has developed two checklists to help prepare for STP reporting. The Get ready checklist – includes the initial steps, such as choosing how you will report through STP. And the Start reporting checklist – will help your client take the right steps before sending their first STP report.

Fuel tax credit rates from 1 July
Fuel tax credit rates from 1 July 2020 to 31 January 2021. This includes a link to the ATO’s fuel tax credit tools and calculator to help your client report amounts on their activity statements. Also see here for the rates for non-businesses.

Health and GST
The ATO has published a list of health services, health supplies, the National Disability Insurance Scheme (NDIS) and related transactions that are generally, under certain conditions, GST free.

[]

Post a comment