The ATO focus for this year is largely upon rental properties. A random audit of rental property was
conducted and the ATO found errors in 9 out 10 of the samples checked. The main problems the ATO found were:
It is important that when you take money out of your home
loan account for something other than maintenance, repairs or improvements to
the house itself that you account for this personal drawing when calculating
interest. For example, if you decide to
buy a new car and extend the mortgage to do that, then the amount you borrowed
for the car needs to be converted to a percentage of the overall loan and that
percentage of the interest is no longer tax deductible.
I recently had to find out some information on government assistance for small business for a discussion group I am a part of, and I thought it would be good to share the information I found here.
Queensland Government Assistance
The first place to go for state government assistance is the Business Queensland website. From the home page you can access a range of information on starting and running a small business. There is information about buying a business (including a franchise), the tourism industry, creating a website, legal obligations, and so much more. You can sign up for the Small Business Connect newsletter for updates on new rounds of grant funding, awards and other initiatives for small business.
There are a number of grants available for small businesses to help them get started or expand. Most of the grants work in rounds as funding is approved, so at any time applications for a particular grant may be closed, but it could open back up again at any time – subscribing to the newsletter above will keep you informed about which grants are currently open to applications. There are also mentoring programs and business growth workshops either provided free or at a price subsidised by the State Government as well as a number of webinar recordings on YouTube. Continue reading “Help for Small Business”
ATO focus on the “income tax gap” for individual tax payers
The ATO has been signalling for months now that it is going to target work related and rental property deductions for individual tax payers this year. They have been conducting random audits of taxpayers, and recently published the results of the 2014-15 financial year audits. The result of this is that they have estimated a net tax gap over around 9.6 million individual taxpayers of $8.7 billion for an average of $906 for each taxpayer. The tax gap is defined as the difference between the tax actually paid by people and the amount that would be paid if everyone did the right thing. Continue reading “2018 ATO Focus”
Hello, my name is Mai Pauling and I am the founder of Pure Tax Accounting.
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