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Non-arm’s length income from trusts and SMSFs

Posted on Mar 28, 2018 by admin

The ATO is reminding self-managed super funds (SMSFs) of the rules regarding non-arm’s length income from trusts. The non-arm’s length income rules can apply to investments, transactions and other arrangements undertaken by SMSFs when the terms of the relevant investment, transaction or arrangement are uncommercial in nature. If income is distributed from a discretionary to a SMSF beneficiary, it is: – automatically deemed non-arm’s length income of the SMSF (regardless of the nature of the dealings of the relevant parties) – taxable at the highest marginal tax rate. Income received by a SMSF that is a fixed entitlement to trust […]

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Bitcoin tax scammers

Posted on Mar 28, 2018 by admin

The Australian Tax Office (ATO) is warning taxpayers to be aware of scammers impersonating the Tax Office and demanding cryptocurrency such as Bitcoin as payment for fake tax debts. The ATO became aware of these fraudsters late last year with over $50,000 paid in Bitcoin to scammers claiming fake ATO debts. Once scammers receive payment, it is virtually impossible to recover it as cryptocurrency operates in a digital world. The ATO is also warning taxpayers to be wary of other tax scams such as those demanding direct deposits into third-party bank accounts, demanding payment via iTunes cards or with a […]

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SMSFs and cryptocurrencies

Posted on Mar 23, 2018 by admin

Bitcoin and other cryptocurrencies have become increasingly popular over the past few years. As many keen investors jump on board, the ATO is reminding SMSFs to be aware of the tax consequences. Cryptocurrencies are classified as capital gains tax (CGT) assets, therefore, upon their disposal they may be subject to capital gains tax (CGT). It is essential to keep records of cryptocurrency transactions within a SMSF such as acquiring and disposing a cryptocurrency. An investment within a SMSF must: – Be allowed under the trust deed – Be in accordance with the investment strategy of the fund – Comply with […]

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Employers urged to act now for Single Touch Payroll

Posted on Mar 23, 2018 by admin

The Australian Tax Office (ATO) is urging employers with 20 or more employees to prepare for the introduction of Single Touch Payroll. Single Touch Payroll will be introduced from 1 July 2018, requiring employers to report their employee’s tax and super information to the ATO through Single Touch Payroll approved software. Employers will report each time they pay their employees, i.e., weekly, fortnightly or monthly. The information that will be reported includes withholding amounts, superannuation liability information or ordinary times earnings (OTE) and salary, wages, allowances and deductions. Single Touch Payroll will provide greater transparency and connect businesses to the […]

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Eligibility for the downsizer measure

Posted on Mar 16, 2018 by admin

As of 1 July 2018, the Government will introduce a new measure that allows the contribution of up to $300,000 of proceeds from downsizing a home to be added to superannuation. The new measure will benefit those aged 65 years and over, provided they meet certain eligibility rules including: The amount you are contributing is from the proceeds of selling your home where the contract of sale was exchanged on or after 1 July 2018. Your home was owned by you or your spouse for 10 years or more prior to the sale. Your home is in Australia and is […]

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