Avoid a tax time shock
Individual taxpayers can take the following steps right now to ensure
the correct amount of tax is being put aside throughout the year:
- let their employer know if they have a
study or training support loan, such as a HECS or HELP debt;
- check they are only claiming the tax-free
threshold from one employer;
- consider whether the Medicare Levy
Surcharge may affect them this financial year (i.e., whether they have the
appropriate private health insurance);
- check their income tier is correct for
their private health insurance rebate; and
-consider voluntarily entering PAYG
instalments and pre-paying tax throughout the year to avoid a large tax bill at
tax time for investment or business income.
Editor: If you would like to discuss or implement any of these steps and strategies in more detail, please feel free to contact our office.
Reminder of September Quarter Superannuation Guarantee ('SG')
Employers
are reminded that employee super contributions for the 1 July 2024 to 30
September 2024 quarter must be received by the relevant super funds by 28
October 2024 in order to avoid being liable to pay the SG charge.
myGovId changing its name to myID
The
digital identity app 'myGovID' will soon be changing its name to 'myID'. While the name is changing, the login and
security will not change.
Taxpayers
who have already set up their myGovID and use it to access government online
services will not need to do anything when the app changes to myID. They will still have:
- the same details - there is no need to set up a new myID. Their login details (including email address)
and identity strength remain the same;
- continued use - once available their existing app should
automatically update to myID or they can manually update it from the APP Store
or Google Play; and
- access to services - they can still use the app to securely
access government online services.
The
new name aims to reduce the confusion between myGovID and myGov.
ATO security safeguards for victims of fraud
recently enhanced
Where
a taxpayer has been the victim of identity, tax or super fraud, the ATO may
apply security safeguards to their account to prevent further harm. This may require the impacted taxpayer to
contact the ATO each time they need to access their information and cause
inconvenience for the taxpayer as well as their tax agents.
The
ATO has recently enhanced processes to improve ongoing access to ATO online
services. Impacted taxpayers must
contact the ATO for initial access and then set a Strong online access
strength.
To set
a Strong online access strength, taxpayers need to:
- set
up their myGovID to a Strong identity strength using their Australian
passport;
- connect
their myGovID to their myGov account;
- sign
in to myGov with their myGovID; and
- go
to ATO online services.
Once
set, taxpayers no longer need to contact the ATO every time they access their
information.
Impacted
taxpayers must continue to use their Strong myGovID whenever they access
ATO online services, or account access will be restricted to maintain ongoing
protection of client information.
Valuing fund assets for SMSFs
One of the many responsibilities SMSF
trustees have every income year is valuing their fund's assets at market value.
The market value of an asset is the amount
that a willing buyer and seller would agree to in an arm's-length
transaction. These valuations will be
used when preparing the fund's accounts,
statements and SMSF annual return ('SAR').
Asset valuations will be reviewed by an
approved SMSF auditor as part of the annual audit prior to lodgment of the
SAR. The auditor will check that assets
have been valued correctly and assess and document whether the basis for the
valuations is appropriate given the nature of the asset. The auditor is not responsible for valuing
fund assets.
Taxpayers should ensure that they have
their valuations done before going to the auditor.
It is the responsibility of the SMSF
trustee to provide objective and supportable evidence to their auditor for the
valuation of the fund's assets, including all relevant documents requested to
prevent delays in auditing the fund.
Failure to do so could result in a potential late lodgment of their
annual return or a contravention if mistakes have been made.
SMSF trustees should start researching now
to find what type of evidence they need to support the valuation as this can
take time. For some asset types
valuations must be undertaken by a qualified independent valuer.
ATO's notices of data-matching programs
The ATO will acquire officeholder data from ASIC and other bodies for the 2024 to 2027
income years, including name, address, date of birth, ABN, contact details,
organisation details and officeholder details.
The ATO estimates that records relating to more than 11 million
individuals will be obtained.
The ATO will acquire property management data from property
management software companies for the 2019 to 2026 income years, including
property owner identification details, property details, and property
transaction details.
The ATO estimates that records relating to approximately 2.3 million
individuals will be obbtained each financial year.
The ATO will acquire lifestyle assets data from insurance
providers for the 2024 to 2026 income years.
Insurance policy data will be collected for the following classes of
assets, where the asset value is equal to or exceeds the nominated thresholds.
|
Asset class |
Minimum asset value threshold |
|
Caravans, motorhomes |
$65,000 |
|
Motor vehicles |
$65,000 |
|
Thoroughbred horses |
$65,000 |
|
Fine art |
$100,000 per item |
|
Marine vessels |
$100,000 |
|
Aircraft |
$150,000 |
The data items include client
identification details (names, addresses, contact details, dates of birth and
ABN) and policy details (including total value insured, description and
purchase price of the property insured).
The ATO estimates that the total number of policy records obtained will
be approximately 650,000 to 800,000 each financial year, and that approximately
250,000 to 350,000 matched records will relate to individuals.
Please note: Many of the comments in this publication are general in
nature and anyone intending to apply the information to practical circumstances
should seek professional advice to independently verify their interpretation
and the information's applicability to their particular circumstances.