If it’s the end of the month. You know I come bearing the latest tax and accounting news.
Here’s all you need to know about the latest ATO updates and how they will affect you. Let’s get started!
Reporting for sole traders
When you operate as a sole trader, even if your income is below the tax-free threshold, you will need to lodge the following:
- tax return for individuals, including the supplementary section
- business and professional items schedule for individuals
Tip: Make sure you have all the necessary information prepared and ready to go for tax time.
This would also be a good time to check your ABN (Australian Business Number) details. In case you no longer operate as a sole trader, you might want to change your business structure or cancel your ABN.
As a sole trader, it’s also important to keep your details up-to-date in order to make sure other businesses can access and verify your information.
You might also be interested in: June Tax And Accounting Roundup: Things You Need To Know
The ATO’s hit list
The ATO (Australian Taxation Office) updated their tax issues guide.
Now you can learn in advance about the types of behaviour and tax issues that are likely to attract the ATO’s attention.
Did you know…? The ATO’s hit list is particularly aimed at privately owned groups.
[ctt template=”7″ link=”kw_e2″ via=”no” ]Did you know…? The ATO’s hit list is particularly aimed at privately owned groups.[/ctt]
Whether you work with privately owned groups or high net wealth individuals, make sure you take some time to review this guide. It’s always better to be aware and prevent any issues that are likely to come under ATO scrutiny.
Removal of 10% test for personal superannuation contributions
Starting from 1 July 2017, you will no longer need to worry about the 10% maximum earnings condition to claim a deduction for personal superannuation contributions.
This is good news, especially for those of you who earn your income from multiple sources additional to your monthly salary.
However, you will still need to meet the age requirements and notify the fund of your intention to claim a deduction for personal superannuation contribution.
It will no longer be necessary to determine how much of your income relates to employment activities. This will allow a broader range of taxpayers to claim a deduction for personal super contributions from 1 July 2017 onwards – which means it’s already started.
You might also be interested in: How To Make A Break-Even Analysis For Your Business
Get your $20,000 instant asset write-off
Have you purchased an asset before 1 July 2017 that cost less than $20,000? You can be eligible for business portion deduction in your 2017 tax return.
I discuss more about this asset write-off in June’s accounting roundup. Read more about it here.
The only change this month is the write-off threshold of $20,000 has been extended to 30 June 2018.
Want to know more about how these updates affect you?
One of our specialists here at Shuriken Consulting is ready to assist you with any questions you might have about the latest tax and accounting updates. Get in touch with us today: