30 June is fast approaching; therefore, we are beginning our usual tax planning activities. As per guidance given by the ATO “You have the right to arrange your financial affairs to keep your tax to a minimum – this is often referred to as tax planning.” What is good for one company however, is not necessarily the right choice for another. Your accountant can evaluate your YTD profits, forecast how that will convert over the full year, estimate possible tax payable if no action is taken and suggest the actions that can be taken to give you the best tax outcome. For all your current and future tax planning needs, contact DD’s Taxation and Accounting Centre.
Generally, most individual, partnerships, trusts and some company tax returns with a good lodgement history with the ATO will be due on 15 May 2018, if lodged by an accountant. if absolutely necessary they can usually attain a further extension if an accountant has a good record with the ATO.
Lodgement date 5 June 2018 is for all entities with a lodgment due date of 15 May 2018. However, if the tax is payable, payment is required on lodgement date. This is a concessional arrangement where penalties will be waived if lodgment and payment are made by this date.
For further information and assistance with lodging your tax return, please contact DD's Taxation and Accounting Centre.
It is important to distinguish between a business and a hobby. When you sell services or products with no intention of making a profit, your activity may be a hobby rather than a business.
It’s likely you’re not in business if your activities are:
- not aimed at making a profit - i.e you gift or sell your work for the cost of materials
- small in size and scale
- not carried out in an organised manner
- conducted in your spare time or when people call you
- mostly for your own satisfaction and enjoyment.
Should your activities be a hobby, you cannot claim GST credits on your purchases and should cancel your GST registration.
If you’ve already made any GST claims for your hobby, your registered BAS and tax agent can help you amend your past activity statements. For all your tax advice contact DD's Taxation and Accounting.
Generally speaking, there are no income tax or CGT implications if you're not in business or carrying on an enterprise and you simply pay for goods or services in bitcoin. However, if bitcoin is used for personal use and you have a capital gain or loss of $10,000 or more from the disposal of the bitcoin, capital gains tax will apply.
Capital gains and losses need to be reported in your income tax return and you would pay tax on your capital gains. When capital gains are made, they are added to your assessable income and may drastically increase the tax you need to pay. This income or loss is part of income tax, not a separate tax. Discount of 50% on capital gain tax is available if cryptocurrency was held more than one year.
For further information on the treatment of tax in relation cryptocurrency please contact DD's Taxation and Accounting Centre.
In recent years, the Australian Taxation Office has seen a rise in the number of scams that are designed to trick you into paying money or giving out personal information over the phone, email or even social media.
If you are in doubt about an interaction you have had with someone claiming to be from the ATO, or you think you have fallen victim to an impersonation scam, you can call the ATO on 1800 008 540 between 8:00am–6:00pm Monday to Friday to verify.
If you have provided your tax file number (TFN) to someone who should not have it, or you suspect someone is misusing your TFN, phone the ATO's Client Identity Support Centre on 1800 467 033 to discuss the best way to protect your tax account. All suspicious emails should be forwarded to ReportEmailFraud@ato.gov.au without changing or adding any additional information.
The ATO will NOT:
- Ask you to transfer money into an account with a BSB that is not held with the Reserve Bank of Australia
- Ask for payment through unusual methods such as iTunes gift cards or other prepaid cards
- Ask you for money in order to receive a refund or other payment
- Stay on the phone with you while you go to the bank, post office, or shops to make a payment.