rss.livelink.posts-in-node

Re: Buying stock from a non-GST registered business and selling as a GST registered business

JasonT — Thu, 27 Feb 2020 23:56:24 GMT

Hi ,

It's interesting that the business you purchase the used vehicles from is not registered for GST.

An entity is required to register for GST if:

they are carrying on a business or enterprise, and
the GST turnover is at or above the GST turnover of $75,000.00 or $150,000.00 for not-for-profit organisations

The description you've provided for the business you purchase the used cars from doesn't sound like it would meet a GST exemption.

As a GST registered entity you will be required to charge GST when you sell the vehicle, unless an exemption applies.

Representing the information on your BAS:

The purchase of the vehicle at G10
The sale of the vehicle at G1
The total amount of GST (including any adjustments) you need to pay us for the reporting period at 1A

Which BAS period you report the purchase and sale on will depend upon your accounting method for GST.

Let us know if you have any further questions,

JasonT

Re: Wages paid to Individuals who are employees of another company

TaxedoMask — Thu, 27 Feb 2020 23:29:27 GMT

As this is hypothetical - the first question is why would you do this? What is your aim? Also are these entities in a TCG or standalone? Are they related entities?

Generally Company A would not pay for Company B's expenses unless Company A is using the employees of Company B. in which case Company B would charge Company A and not the other way around.

Re: Payment reference numbers

Laura2 — Thu, 27 Feb 2020 23:22:59 GMT

Hi Kylie

I had a phone call from the ATO yesterday and they asked me to send through the payment slips. They said they would send me an email to respond to but I have not received anything yet. Could you please check if this has been sent or let me know where to send these slips?

Thank you

Re: FBT and directors loan accounts

TaxedoMask — Thu, 27 Feb 2020 23:22:43 GMT

You are repaying the loan owed to the director by paying for an expense or providing some other non-cash item.

Sounds a-ok to me.

No FBT.

Re: Lump Sum in Arrears Payment Tax Offset

Backpayment — Thu, 27 Feb 2020 23:19:13 GMT

I found the calculation in the Income Tax Assessment Act 1936 at the following link from the ATO website. It is a little hard to understand to be honest. Lots of googling coming up

https://www.ato.gov.au/law/view/document?DocID=PAC%2F19360027%2F159ZRD&PiT=**TFN removed**35958

Re: Payment reference numbers

KylieS — Thu, 27 Feb 2020 23:07:19 GMT

Hi ,

We are investigating the issue and will give you any information as soon as it has been provided to us.

Can you let us know if anyone else has the situation that payments error and don't go through. Nothing personal as we want to protect everyone's privacy as this is a public community.

and we will defiantly be in contact if we need further information to assist in the investigation.

KylieS

Re: Payment reference numbers

Cat_Hartigan — Thu, 27 Feb 2020 22:54:07 GMT

I haven't heard anything as yet. I received an email last Friday asking for my contact details so they could get in touch about it. I replied straight away but still haven't been contacted a week later.

Given that BAS and payments are now due, it's very surprising the ATO hasn't acted sooner on this. My concern is that this could cause payment plans to default if people don't realise their PRN has changed, and their payment isn't allocated to the right account.

Re: Back payment of leave on redundancy

JasonT — Thu, 27 Feb 2020 22:41:12 GMT

Hi ,

Thanks for your question.

Where a genuine redundancy applies the rate of withholding will be 32% of the total amount, disregarding cents. This applies to both Annual leave and Leave loading.

Further information regarding withholding from Annual leave

Thanks and I hope this helps,

JasonT

Re: Payment reference numbers

MAldridge — Thu, 27 Feb 2020 22:38:26 GMT

Is there an update on this situation?

We have several instances where the payment reference number has changed for our client, as well as our own.

Cannot find any ATO communication/notification on this.

Re: Travel allowance query

macfanboy — Thu, 27 Feb 2020 22:31:19 GMT

You can definitely claim travelling between the two offices on the same day.

With respect to travelling to the 'other' office, is there a pattern in which you travel eg every Monday and Friday?

Or do they let you know the night before and it could be once a month, once a fortnight etc?

FBT and directors loan accounts

Margy224 — Thu, 27 Feb 2020 22:30:41 GMT

Hi,

I am trying to determine if a FBT benefit paid by a company director can be deducted from her directors loan account and not included in her personal tax return?

In this case the company owes the director and isn't a Div 7A.

Re: forms

KylieS — Thu, 27 Feb 2020 22:23:25 GMT

Hi ,

You are able to lodge an objection to request that the return be amended, if it's out time.

Thanks

KylieS

Re: TAX AMENDMENT

KylieS — Thu, 27 Feb 2020 22:16:49 GMT

Hi @ali78,

Yes we do release all information to Centrelink, irrelevant of the age.

KylieS

Re: HELP debt and Retirement

KylieS — Thu, 27 Feb 2020 22:15:09 GMT

Hi ,

Let us know if you have any other questions.

KylieS

Re: Invoice in another language

KylieS — Thu, 27 Feb 2020 22:12:05 GMT

Hi ,

Great question.

If you are required to provide them as substantiation of an expense they would need to be translated.

KylieS

Mygovid

Johng — Thu, 27 Feb 2020 22:01:44 GMT

At the most recent Tax Professionals Webinar, it was mentioned that you could purchase a phone for under $100 that could be used to download and operate the mygovid app using a wi-fi connection with no data plan required.

I have been unable to source a phone this cheap that has a full version of Android. The all have the Go version which cannot be used.

Every salesperson I have encountered at various stores does not understand the difference in operating systems.

Could someone please provide me with a list of smart phones under $100 that can be used for mygovid.

Re: Loan from family ocerseas

KylieS — Thu, 27 Feb 2020 21:51:19 GMT

As its not income only a gift from family you would not have to pay tax on the money. I would keep records of the loan and what it is used on just incase you are asked in the future.

KylieS

Re: CSP, HECS and TFN

KylieS — Thu, 27 Feb 2020 21:48:19 GMT

Let us know if we can help with anything in the future.

KylieS

MYGovid

Blossom — Thu, 27 Feb 2020 21:30:05 GMT

A team member has successfully been using her MyGovid.

Yesterday she was unable to use it as she had an error unable to verify id.

She has downloaded the app again and put in her id and it was unable to verify her id.

She deleted the app again and put in the information but am now unable to put in the details of her id.

What are we to do to get this working again?

All her id is Austrailan documentation, she has no foreign forms of id.

Thanks

DASP

Kirstymonington — Thu, 27 Feb 2020 21:19:10 GMT

Hi Chris
Thanks for answering my question however I’m still a little confused.
I chose the cheque option for my DASP as I no longer have an Australian bank account however I am still waiting for this. I have received a PAYG payment summary document but no cheque. Does this arrive separately?

Thanks
Kirsty

Travel allowance query

CDH_1978 — Thu, 27 Feb 2020 12:05:14 GMT

I am currently performing 2 roles with the same employer - the role relating to the position that I own plus a secondment in another role in another area of my organisation. Both roles are based in different offices a fair driving distance apart. Some days I am travelling between the 2 offices to work part day at each, other times I just go to one of the offices and perform duties for both roles from there. My question is - can I claim travel allowance for all of my travel since I am doing my usual role as well as another? Or can I just claim for travel to/from one of the offices?

Compulsory repayments

lolren — Thu, 27 Feb 2020 10:18:10 GMT

I am currently making compulsory student repayments through PAYG. However, I am also making voluntary repayments to pay it off sooner.

What happens to the money witheld from PAYG from the 2019/20 financial year if i pay off my debt in one go before the next financial year? Can it be refunded?

For example, person X owes $20,000 for the 2019/20 financial year. Throughout this financial year, money has been witheld through PAYG. Person X decides to pay off the $20,000 in full prior 2020/21 financial year.

Hope this makes sense.

Invoice in another language

lapple0128 — Thu, 27 Feb 2020 09:59:09 GMT

Hi Everyone
I am a sole trader and not registered for GST. I recently purchased some goods from overseas and the invoices I received were not in English. Just checking if invoices in another language are acceptable to the tax office?
Thanks a lot!

Payment of Super in wrong year

Helpneeded — Thu, 27 Feb 2020 09:31:30 GMT

Hi, my former company paid me no super during the financial year 2018/19, but did end up paying what was owed in a lump sum at the end of 2019.
But this means I have 2 years worth of super to be paid during 2019/20, and as a result I will go over the $25K threshold for the year, when I normally do not.
What is the implication of this and is there anyway I can have the lump sum attributed to the year in which I earned it.
Thanks
Steve

Re: HELP debt and Retirement

OzzyGuy — Thu, 27 Feb 2020 08:43:39 GMT

Can you please give me your opinion/advice regarding my post...thanks.

payment summary issued for the wrong year by employee

toby — Thu, 27 Feb 2020 08:09:00 GMT

Hi,

I worked for a company that issued me with a second payment summary after changing their payment system and needing to reconcile it. eg they had misreported to the ATO and in fact, I had earnt a few thousand more, this is true the first payment summary was short of my full earnings. I am fine with this, mistakes happen. However, what the issue is, is that they put the second payment summary in the next tax year. I did not work in this tax year for them. In fact, my employment had finished months earlier. Details are as follows I finished work in February 2018 as I was made redundant issued with payment summary all ok. Then in 2019, they issue another payment summary as they had underreported in 2018. This has tax implications for me which I do not feel I should have to bear the costs for as it was not my mistake. Is there anything I can do, so my tax filed can be true to the income I earnt it in.

CSP, HECS and TFN

OzzyGuy — Thu, 27 Feb 2020 15:23:39 GMT

Question withdrawn - I don't think anyone can answer it here.

Re: Asset disposal closing business

nicolas974 — Thu, 27 Feb 2020 07:34:50 GMT

Thank you MarkA. That s great. I have read through and understand that this will be treated as a taxable sale. However what about the market value? What if I want to sell this asset to a family memmber a very low price say $100 plus GST but the market value is $30000 for argument sake. Should I report the GST for a $100 taxable sale to a family member or would the ATO calculate the market value of the asset automatically? Thanks.
Nm

Trade support loan

James3589 — Thu, 27 Feb 2020 07:22:10 GMT

I have recently noticed I have a credit against my trade support loan in my ATO profile on my.gov how do I claim this back into my account or do I just wait until next tax return

Re: request TFN from overseas

ChrisR — Thu, 27 Feb 2020 07:20:20 GMT

Thanks for your reply.

If you want to apply for your TFN while you are still overseas, you will need to apply via mail in accordance with the information on our website. Getting your friend to do it on your behalf by submitting scanned documents wouldn't meet our requirements. Faxing your application also isn't an option.

You can have your documents photocopied and certified as true and correct by a Notary Public. If you choose this option you don't need to have them certified by way of an apostille.

For more information about our document certification requirements, have a look at the copies of documents – applicants outside Australia page on our website.

An alternative TFN application option is to wait until you are already in Australia and apply electronically. To be able to do this, you will need to meet three conditions.

You can read about those conditions as well as apply online for a TFN via the foreign passport holders, permanent migrants and temporary visitors – TFN application page.

Hope this helps.

Thanks,

ChrisR

Save yourself a call, update your personal details online

ATOCommunity — Thu, 27 Feb 2020 07:04:05 GMT

You can update your personal details online without having to call us

TAX AMENDMENT

ali786 — Thu, 27 Feb 2020 07:03:54 GMT

I DID MY AMENDMENT FOR THE YEAR 2014-2015 AND 2015-2016 IN YEAR OCTOBER 2019.

DOES THIS AMENDED INCOME IS SENT TO CENTERLINK FOR REVIEWING MY FTB FOR THAT YEAR

OR ATO DOES NOT SEND INFORMATION TO CENTERLINK IF AMENDMENT IS PAST 2 YEARS.

My NOA was issued on 24 October 2019 for these 2 years. I called centerlink for any Top up FTB Payment for that year, so they send my uploaded NOA from humservices website for data matching. But uptill this date no data match has been done or any new of the FTB payment arrived.

I just want to know does ATO releases information to centerlink if amendment is for past 2 years.

Re: government grants received

ChrisR — Thu, 27 Feb 2020 06:56:55 GMT

Thanks for your post.

The not-for-profit (NFP) organisation won't be required to pay GST on a grant if it doesn't make a supply in return for the funding. For more information you can check out the NFP grants and sponsorship page on our website.

You can also take a look at the following thread for information on how to contact us if you require further guidance about the GST aspect of your question: Grant received

As to whether the NFP would have to declare the grant as income, have a read of the following thread: NFP Community Organisation Gov't Grant

Hope this helps.

Thanks,

ChrisR

Re: Capital gains tax and prior year income tax losses

MrG — Thu, 27 Feb 2020 06:54:05 GMT

TaxedoMask

Brilliant! Thank you so much. This will help me with my future plans.

Re: RAM Setup

DebC — Thu, 27 Feb 2020 06:41:37 GMT

Thank you for your post!

You may be using these instructions on our website already but I find them the easiest to follow and goes through the process step by step from beginning to end Principal Authority – link your business.

Another possible solution is to refresh your system as a slow internet connection can cause it to take a long time to link.

Hope this helps!

Regards

DebC

Re: RAM Setup Error Code

NateH — Thu, 27 Feb 2020 06:35:19 GMT

Hi ,

Yes so long as the copies are certified, they meet the criteria listed on page 2 of the form you submitted.

At this stage we are not sure on the exact time frames for processing the forms, give it a little while and if you haven't heard anything contact the help desk.

Thanks, NateH

Periodic AirBNB for the whole of own home and CGT

Ray_Dee — Thu, 27 Feb 2020 06:08:41 GMT

Dear ATO Community,

I own my little home and am away on business travels around half of the time in stretches of 1 month or so. If I let all of my place to short-term renters via say AirBNB when I am away anyway, do you think the 6-year rule will let me not consider any CGT consequences when I need to sell the place? Just to be clear, I am not going to dedicate part of my place to be rented out. I'd like to let AirBNB guests use all of it when I am away anyway, and when I am back I have all of my place to myself.

The alternative of having the place professionally valued before and after each AirBNB rental is clearly not practical. I really liked it how ATO was able to accommodate the phenomenon of ride-sharing such as Uber into a clear and unambiguous guide. I hope there will be a guide for the typical cases of AirBNB letting too some day.

With thanks,

Ray

Re: Loan from parents

ChrisR — Thu, 27 Feb 2020 06:00:08 GMT

Thanks for your post.

We have answered your question in another thread. You can access it here: Family Member lead money to help business

Thanks,

ChrisR

Re: Family Member lead money to help business

ChrisR — Thu, 27 Feb 2020 05:57:41 GMT

Thanks for your question.

From what you have advised it doesn't sound like there will be any tax implications for you or your parents. You can check out the following pages on our website for more information:

Also check out the information from the other thread that you have posted your question in: Loan from parents

Hope this helps.

Thanks,

ChrisR

Re: Untaxed Superannuation Funds

BrendonBeh — Thu, 27 Feb 2020 05:54:14 GMT

I might also add that one interesting anomoly here is that members of untaxed funds do not have a choice in electing to pay their 15% tax owing on contributions and earnings prior to being subject to application of the untaxed plan cap. If they had this ability then the taxation of excess balances pursuant to the untaxed plan capwould be a lot fairer. For instance - before exiting a fund today a member with an untaxed balance of $1.7M could pay the $255K tax owing to reduce their balance below the cap limit. Instead as it stands today , as I understand the rules - the same member would effectively be liable to pay tax of $310,500K. Is there a policy reason why this is the case?

Re: Travel Expenses

Doc — Thu, 27 Feb 2020 05:51:49 GMT

Hi, one more point came to my mind from the paragraph 45 of TR 2019-D7. In this example the employee's both work places were related as he had only one employer.

In my case there is no relation between my employer in Brisbane and my private work in Bundaberg.

Doe sit mean that i have two different places of regular work and hence travelling expenses not deductible

It doesnt matter if two work places are connected with each other or not and my travel expenses are still deductible as my normal place of work and home is Brisbane?

Re: Obtaining a TFN from overseas.

DebC — Thu, 27 Feb 2020 05:42:04 GMT

Thank you for your response, always welcome!

I would understand the form you should be referring to is the Tax file number - application or enquiry for individuals living outside Australia, (NAT 2628).

If you check page 5 on these instructions you should be able to see what is required as acceptable proof of identity documents for someone living overseas. To sum it up once we receive the application we can search and verify our database accordingly with whatever data exists on file.

Hope this information helps!

Regards,

DebC

Re: Asset disposal closing business

MarkA — Thu, 27 Feb 2020 05:39:53 GMT

Welcome to the community.

What you are describing is essentially GST and the disposal of capital assets. Refer to the link I have included and it should provide the answer you need for when you sell, transfer or otherwise dispose of a capital asset.

Kind regards

MarkA

Re: SMSF

ChrisR — Thu, 27 Feb 2020 05:35:22 GMT

Thanks for your post.

is correct if that is what you mean by your questions. If you are asking whether your SMSF can lend money to you so that you can purchase a property, there are restrictions on that.

You can't lend money or provide direct or indirect financial assistance from your fund to a member, or a member’s relative. For more information about that, have a look at the SMSF loans and early access page on our website.

Any super contributions that your employer pays for you need to be directed to your SMSF account. Your employer can't pay them to you directly. If you have legitimately lent money to your SMSF, your fund can use those contributions to repay you in accordance with the terms and conditions of the loan arrangement.

As has said, consider appointing professionals to help you with these types of investments.

Hope this helps.

Thanks,

ChrisR

Re: Untaxed Superannuation Funds

BrendonBeh — Thu, 27 Feb 2020 05:25:28 GMT

Thankyou again Seb. Is there anyone at the ATO who can confirm that the untaxed plan cap rules definitely apply to tax payable up-front from both lump sum payments and the commencement of income streams from constitutionally protected (untaxed) funds? I'm interested to know and understand the policy reasoning for the seemingly harsh treatment of excess balances above cap limits for these untaxed funds which ultimately aim to give bigger growth and balances over time through delayed payment of tax on contributions and earnings, whilst applying a cap threshold below that applying to ordinary transfer balances.

Re: MyGovId

KylieS — Thu, 27 Feb 2020 05:15:20 GMT

Hi ,

Thanks for your question.

We have been advised that this would not work for you.

KylieS

Re: Bad debt and personal income tax deduction

ChrisR — Thu, 27 Feb 2020 05:12:17 GMT

Thanks for your reply.

We understand that the question asked in the other thread may not have been the same as yours however the information and links in the posts should have been helpful.

We recommend that you read paragraphs 42 - 46 of Tax Ruling 92/18 as it expands on paragraph 7.

If you're not sure whether it applies to your circumstances, you may want to request an early engagement discussion. You can find out more about that by referring to the early engagement for advice page on our website.

Hope this helps.

Thanks,

ChrisR

Re: Trust

Sue83 — Thu, 27 Feb 2020 05:05:04 GMT

Thanks very much for the clarifications!

You've made it very clear to me where I confused myself!

Re: GST - electronic distribution platform operators

MayW — Thu, 27 Feb 2020 04:45:06 GMT

Thank you for your post.

As your question is not stating a specific product the following is general.

For an entity to charge Goods and Services Tax (GST), they must be registered for GST.

Hope the information about GST and second-hand goods on our website helps.

Thanks
MayW

Re: HELP Debt

ChrisR — Thu, 27 Feb 2020 04:44:37 GMT

Thanks for your post.

This is a question that gets asks frequently in our Community. You might want to have a look at the following thread: Help Debt

We also have a Knowledge Base Article that explains how your employer's withholding amounts are applied to your HELP debt. You can check it out here: Paying my HELP debt. Pay particular attention to the last section - Why isn't my loan decreasing?

If you're not sure how much your employer has withheld since the start of the financial year, refer to your payslips or have a chat with your employer. You can also use our tax withheld calculators as a guide.

Hope this helps.

Thanks,

ChrisR

Re: bring large amount of money from overseas

DebC — Thu, 27 Feb 2020 04:39:30 GMT

Welcome and thank you for your post.

Essentially money brought from overseas is not taxable when it constitutes income from money earned overseas as a non-resident. However, if you put your overseas money into your Australian bank account and earn interest from it, it will be assessable income to be included in your tax return. Refer to website Interest Income information.

Just keep appropriate records so if the ATO or Australian Security and Investment Corporation (ASIC) were to query it you can establish the source.

Hope this information is helpful.

Kind Regards, DebC

MygovID error UNK000001

LS1 — Thu, 27 Feb 2020 04:33:47 GMT

Like many others, I am having trouble setting up the MYGOVID app.
I have tried EVERYTHING suggested (numerous times) to get it running.
I have uninstalled and reinstalled the app. I have cleared the cache and data. I have checked the dates and languages. I have double checked that the data I am entering is correct. I an STILL getting the UNK000001 error.
I have a Levono tab7 (Android 7)

Please help!!!

Wages paid to Individuals who are employees of another company

ijaz_aziz — Thu, 27 Feb 2020 04:32:23 GMT

This is a hypothetical question with these facts:

Company A would like to pay the wages/withholding tax/super etc to employees of company B.

The employees would be formally employed by Company B however, Company B is not set up for payroll, they require Company A to perform the payroll function of company B until such time that Company B is set up for payroll, e.g. single touch payroll, IT withholding, super etc.

During this time, Company A would charge Company B a fee for all costs associated with this arrangement.

Is there an issue with this arrangement? In particular, can company A pay and report the wages paid to employees of Company B in its payroll if the employees are not formally employed by Company A.

Thanks,

Jaz.

MYGOVID system error UNK000001

LS1 — Thu, 27 Feb 2020 04:28:44 GMT

Like many others, I am having trouble setting up the MYGOVID app.

I have tried EVERYTHING suggested (numerous times) to get it running.

I have uninstalled and reinstalled the app. I have cleared the cache and data. I have checked the dates and languages. I have double checked that the data I am entering is correct. I an STILL getting the UNK000001 error.

I have a Levono tab7 (Android 7)

Please help!!!

Re: forms

TaxedoMask — Thu, 27 Feb 2020 03:47:06 GMT

Did you make a mistake/omit information on your return? If so - amend the tax return.

Just be mindful of the amendment time limits.

Re: Retirement earnings

TaxedoMask — Thu, 27 Feb 2020 03:45:02 GMT

Your super withdrawals when you are over 60 are generally tax free.

The income you earn from working will form part of your assessable income. You should get SG on the wages you earn.

Re: Exempt Scholorships

TaxedoMask — Thu, 27 Feb 2020 03:41:14 GMT

Use the ATOs tool here to check if the receipient needs to treat the amount they receive as taxable income.

The funds does not need to come from a school. A nfp/scholarship fund can provide scholarships too.

Re: Tax Deduction for removal of Horticultural Plants

MayW — Thu, 27 Feb 2020 03:40:12 GMT

Please visit our website for information how you can claim a deduction for the decline in value of horticultural plants.

Hope this helps.

Thanks
MayW

Re: Private Health Insurance Suspension while travelling abroad

TaxedoMask — Thu, 27 Feb 2020 03:35:24 GMT

Should be ok. Canstar have a guide on this.

Re: Tax deductions

TaxedoMask — Thu, 27 Feb 2020 03:28:37 GMT

No, private or domestic expenditure is not deductible, no nexus with the derivation of income.

MyGovID Error Code

Lena14 — Thu, 27 Feb 2020 03:36:35 GMT

Hi I just downloaded the MyGovApp and it seemed to be working fine. But once I tried to to login to accept the RAM authorisation request I received an error code UNK00001. I followed the instructions and reset the app, cleared cache & data and now as soon as I go into the app I receive the error code System Error code NWK000001 (Please try again later).

I am using a tablet with Android 8.

And now I can't access the portal as my Auskey is no longer working as I have set up a mygovID account!

Please help.

Re: Trust

TaxedoMask — Thu, 27 Feb 2020 03:26:29 GMT

Trust is a "flow through" entity unless for some reason (eg. no beneficiary presently entitled) the trustee is assessed.

This means that the trust itself normally does not pay tax on the income it makes. Rather it's assessed in the "hands" of the beneficiary.

In the case of a company, if it receives say $1,000 in distributions. then it treats this as income - and pays $300 in income tax on this. Here the trustee doesnt pay any tax. Note that the trustee/trust and the company are separate entities and should be considered separately.

Re 2nd query, if the trustee buys a property, isn't it treated as acting for the Trust? Div 7A applies when private companies lending to the trust, but in this case the trustee buys and mangaing assets for the trust, div 7A shoudn't apply right?

Or maybe the Corporate Trustee as a beneficiary of the trust, its accounts need to be seperated from it's function as a trustee?

Holy ... yeah that's... "sub-optimal" to put it lightly. You cannot and should not ever mix the Corporate Trustee (in its capacity as trustee) with the Corprate Trustee (in its capacity as a beneficiary). These need to be kept distinctly separate - though generally speaking, this practice is highly discouraged as there is a high chance of getting things wrong and the consequences of getting it wrong are... severe.

Do you have an accountant and tax adviser? It sounds like you need proper advice that is outside the scope of this forum.

Re: Newzealand dividends paid to Aust Trusts

TaxedoMask — Thu, 27 Feb 2020 03:14:35 GMT

NZ div: treat as Foreign Income.

Withholding tax: treat as Foreign income tax offset.

Normally Gross less WHT = net. not sure how you got the numbers as it doesn't tie up.

Re: OnePath Plus

ChrisR — Thu, 27 Feb 2020 02:54:36 GMT

Thanks for your question.

If you are referring to OnePath Masterfund, they merged with IOOF's Retirement Portfolio Service last year. In turn you will need to update the ABN. You may also need to update the USI but you should check that with your employee.

You can find the ABN on the Super Fund Lookup by searching for Retirement Portfolio Service. You will see that there are a number of USIs listed hence why you should ask your employee which one you should use.

For more information about the Small Business Superannuation Clearing House, check out our website.

Hope this helps.

Thanks,

ChrisR

Re: Untaxed Superannuation Funds

SebReiter — Thu, 27 Feb 2020 02:52:30 GMT

Hi again

Oh, ok. An untaxed defined contribution scheme. One of the constitutionally protected funds. I haven't looked at these that closely before.

I assume your understanding of the tax treatment is correct - ie that the tax is payable up-front, even if you choose to start up an income stream from the fund.

The difference between how this works and how the Transfer Balance Cap works is that in your situation the tax is payable at the top marginal rate on the excess. Whereas for the Transfer Balance Cap, an earnings amount is calculated on the excess, and the earnings amount is taxed at 15%. The excess and the earnings must then be moved back out of the pension phase.

Let's say your untaxed amount is $100,000 above the untaxed plan cap. You'll pay tax at 45%, so $45,000 on this $100,000.

Compare this to an excess transfer balance amount of $100,000. For calculation purposes let's say this is made up of $90,000 that exceeded the $1.6m cap, plus $10,000 of earnings calculated on this excess amount. The $100,000 will need to be commuted - ie moved back out of the pension phase. Tax is then payable on the $10,000 earnings amount at 15%, so $1,500 tax. Basically, the excess amount shouldn't have been in pension phase, the earnings on the excess shouldn't have received the 0% concessional rate that applies to pension phase accounts and should have instead been taxed at 15%. So the outcome is trying to replicate the outcome that would have occurred if the excess hadn't happened.

So, very different outcome between the two. They're not trying to be equivalent policies, apart from trying to limit the overall concessional tax treatment that an individual can receive from the superannuation environment.

I'm an ATO employee voluntarily providing my time here

Re: Gift for house deposit

KylieS — Thu, 27 Feb 2020 02:51:01 GMT

Hi ,

If your brother is giving you money as a gift there is no tax applicable.

It he is going to be part owner, the money is still considered a gift but he would be subject to capital gains tax on his part of the property when you sell it.

KylieS

Re: NZ Citizens on the SCV 444 - CGT on shares?

NateH — Thu, 27 Feb 2020 02:50:39 GMT

Hi ,

We have a page on our website that covers capital gains for foreign residents and temporary residents.

You are correct that the 50% discount doesn't apply to foreign or temporary residents. There are no special rules except for if you are acquiring the shares through an employee share scheme.

Let us know if you have any further questions!

Thanks, NateH

Re: getting money from overseas, to an Australian bank account

KylieS — Thu, 27 Feb 2020 02:45:37 GMT

We wouldn't have an issue with the money being transferred from another country. I would suggest keeping all records.

You would need to check if is something that you should report on your income tax return. If you are an Australian resident for tax purposes you would need to report your world wide income.

KylieS

Newzealand dividends paid to Aust Trusts

Derek — Thu, 27 Feb 2020 02:48:13 GMT

Hi, I hold shares in Auckland Airport (ASX: AIA), within a family trust. I'm unable to find on the ATO website how to report my NZ dividends, what supplementry forms to use (if any), and what I need to show, not show or claim. An example of the dividend is (in A$)

Security, rate, shares,declared Div, Supplementary div, withhold tax, imputation credit, gross taxable Div, net payment

Full Ord , 0.10, 750, $79.08 , $13.69 , $13.69 , $16.79 , $93.04 , $ 79.08

For each item above where do I show it on the Trust Tax Form, what do I leave out and what can or can't I claim.

Much Appreciated

Re: Main residency and transfer title

KylieS — Thu, 27 Feb 2020 02:40:22 GMT

Hi ,

To claim the main residence exemption you have to have lived in the property to establish it as your main residence.

So the 6 year rule wouldn't apply if ownership changes and you don't live in the property/

If only a percentage is changed you will need to pro-rata the share of the property that can be claimed as the main residence.

You should also check out the changes for foreign residents and the main residents exemption.

KylieS

Re: Refinancing Investment loans

KylieS — Thu, 27 Feb 2020 02:30:15 GMT

Hi .

There is no problem with you consolidating the loans. However, if the amount of the loan for the rental property increases you will not be able to claim the increased interest.

Thanks

KylieS

Re: Release of funds and contract dates

ChrisR — Thu, 27 Feb 2020 02:28:12 GMT

We are still looking into this one for you and will get back to you as soon as we can.

Thanks,

ChrisR

Re: FHSSS - using funds

ChrisR — Thu, 27 Feb 2020 02:25:07 GMT

Thanks for your question.

After you have submitted your FHSS release request, it can take between 15 and 25 business for us to pay the balance of your released amount to you.

For more information about receiving your amount, have a look at the FHSS scheme page our website.

The fact that you appear to have a SMSF and have likely sent the requested amount to us as quickly as possible should theoretically speed up the process.

It is important to note that we also require time to withhold the appropriate tax and check for any outstanding Commonwealth debts that the amount needs to be offset against before we pay the remaining amount to you.

Hope this helps.

Thanks,

ChrisR

Re: Tax refund cheque lost in mail

MayW — Thu, 27 Feb 2020 02:12:28 GMT

You will need to phone us on the individual line to request a replacement cheque or to have the refund issued electronically.

When you call us, you may need to update your contact and financial institution details.

Hope this helps.

Thanks MayW

Re: Tax for Employee Shares Scheme

KylieS — Thu, 27 Feb 2020 02:04:03 GMT

Hi ,

Thanks for your patience.

It is most likely that either you will have to pay income tax or your employer will have to pay fringe benefits tax in these circumstances. The timing and kind of tax depends on the particular details of this arrangement.

Ordinarily, your employer should be able to advise you about any tax consequences of this arrangement for you. If they cannot, it is recommended that you seek an Early-engagement-for-advice request

KylieS

Re: Trust

Sue83 — Thu, 27 Feb 2020 02:00:27 GMT

Thank you for your answers!

But I am a bit confused - with the 1st query, you said No, but also said "company receving the distributions pays tax at the corporate tax rate". In this case, the trustee is a corporate/company, and receives distributions as a beneficiary, so the trustee/company pays tax at corporate tax rate?

Or maybe the Corporate Trustee as a beneficiary of the trust, its accounts need to be seperated from it's function as a trustee?

Thanks!

Tax deductions

Bush66 — Thu, 27 Feb 2020 01:56:45 GMT

Can a psychologist who works from home claim Gym Hire Equipment as a 'self care' deduction?

Retirement earnings

Kimlovee — Thu, 27 Feb 2020 01:53:07 GMT

I retired last year but now want to work - if I work the last three months of the tax year but I have taken money out of my super (I am 63) will I get a tax bill based on my earnings and super withdrawal? Thanks in advance

Capital Gains Tax

nzbigglesau — Thu, 27 Feb 2020 01:31:39 GMT

Hi,

We inherited an investment property in 1995. What is the ato procedure for assessing the cost base? Also if their value is lower than my esitmate what steps should I take to resolve the difference? The cost base that was suggested to me (by family) is twice what I was expecting.

Thanks

Mark

Re: Super paid directly to fund after an SG Charge statement lodged

Snappysam — Thu, 27 Feb 2020 01:15:58 GMT

Hi Chris,

Could I please ask, what if the same situation has occurred but the fund won't refund the money and there is no option to carry it forward as the business was sold. How can you get the ATO to acknowledge that the super has been paid?

According to there statement the super is still outstanding, but it was just paid to the funds direct instead of through the ATO.

Thanks, Sam

Re: Visa Change

MayW — Thu, 27 Feb 2020 01:13:45 GMT

Welcome to the Community and great question.

You will need ask your employer or payroll to check how you answered question 7 and question 8 on your Tax file number declaration.

If you answered 'No' at either of these questions, you'll need to complete a withholding declaration and provide this to your employer, therefore going forward you will be taxed at the correct rate.

When lodging your tax return you can advise us if you 'Are you a Resident for tax purposes?'.

Hope this helps.

Thanks MayW

Re: Loan provided to the company by the shareholder/director/employee of the company

Mark029 — Thu, 27 Feb 2020 01:11:57 GMT

Hi.

Does it make a difference in the process if the one giving out the loan is a business entity (not under the director's or employee's name), who is also a shareholder of another company that was asking for a loan?

What interest benchmark do we follow at this rate, is it the one under Div7A https://www.ato.gov.au/Rates/Division-7A---benchmark-interest-rate/ which is 5.37%.

It might be a newbie question, but is the 5.37% interest a yearly one or a monthly interest?

Can anyone please assist. This is sorta urgent. I have called ATO for clarification, but I was just transferred line after line.

Thank you.

Re: Tax deduction eligibility for personal super contributions

Glenn4802 — Thu, 27 Feb 2020 00:59:44 GMT

If you are claiming a tax deduction for a personal contribution it becomes a concessional contribution. The person would be able to make tax-deductible contribution to take them to their concessional contribution limit. Additional amounts (without a tax deduction available) could be put into super as non-concession contributions. There is also a limit on these contributions.

This link gives details of the contribution limits.

Re: Downsizer super contribution

Glenn4802 — Thu, 27 Feb 2020 00:47:01 GMT

As Bruce4Tax has advised, the exchange of the sale contract needs to have happened on or after 1 July 2018. This exchange of contract is the time when both parties sign the sale agreement and typically at or before the time when the deposit is paid. In nearly all cases htis is before the settlement day. So if the contract was signed by both parties in June 2018 (or earlier), with settlement in July 2019 the seller would not be eligible for downsizer contribution.

Re: Family Loan

Glenn4802 — Thu, 27 Feb 2020 00:29:41 GMT

When the original amount is paid by your parents, the full amount would be considered a loan. When you obtain the mortgage to repay 50% the amount of the loan is reduced. There would still not be any tax issues with this proposal.

You have clarified that the remaining balance is to be treated as a loan. Centrelink should be comfortable with that, although they will deem your parents to have earned interest on this amount (even though the loan is interest free) when calculating any payment entitlements. It would also be wise to ensure that details of the loan are included in your parents' wills and that you keep records of any repayments that you make.

Re: DASP

ChrisR — Thu, 27 Feb 2020 00:28:32 GMT

Thanks for your post.

This is something that is frequently asked in our Community. You can find the answer to your first and third questions in the following thread: Claiming DASP as former permanent resident

Regarding your second question, if you are eligible for a DASP it will be taxed in accordance with the applicable DASP tax rates. You can find out more about how DASP is taxed on our website.

Assuming that you haven't held a working holiday maker (WHM) visa (the visas that you have mentioned aren't WHM visas), the DASP ordinary tax rates will apply. You can check out the DASP for working holiday makers page for more information.

Hope this helps.

Thanks,

ChrisR

Lump Sum in Arrears Payment Tax Offset

Backpayment — Thu, 27 Feb 2020 00:25:32 GMT

Hi, can anyone please direct me to where I can find the calculations the ATO uses to work out what a Lump Sum in Arrears Payment Tax Offset should be? I have determined that my LSIAP meet all eligibility requirements. I would however like to know how this is worked out so I can check if the amount the ATO has come to is actually correct. Without knowing the formula used, it is really impossible to determine whether a figure is correct or not to allow for an objection. Thanks in advance, hoping someone can help.

Tax deduction eligibility for personal super contributions

Wongman — Thu, 27 Feb 2020 00:03:42 GMT

Hi, I'd like to clarify the answer to the following situation:

Person is 61 years of age working full time (income approx. $90,000 pa) and has sold one of their investment properties recently. Wishes to make a lump-sum contribution (non-concessional) from the sale proceeds into their complying superannuation fund.

Will they be able to claim a full tax deduction for this lump sum super contribution after submitting a notice of intent to claim form to the super fund? I've read the rules and believe it's ok but want to be 100% sure.

They are not over 65 and the sale is not their own home so it's not a downsizer contribution (I know these contributions do not qualify).

Your advice would be appreciated. Thanks

Re: First Home Super Saver - Calculation and Withdrawal Amount

Shikhar — Wed, 26 Feb 2020 23:58:04 GMT

Thank you Chris for a perfect and well explained reply.

I have cleared all my doubts around how the scheme works.

I just have one hestiation in order to derive the actual amount I will be saving:

1) I will be paying 15% tax on my suber contributiuon ( which is understood)

2) and i will be blocking another 15% at the time of withdrawal (Because my contributions are concessional I can only withdraw 85%) .

I understand that I am not loosing money on the 15% blocked into super (2) and I will access that money on retirement. But from a first home saving prepsective I am loosing my 30% (1) plus (2) in order to get a 30% tax offset benefit at the time of withdrawal.

Am I missing something here or it doesn't make sense to go through all the hurdle in order to get barely neglegible benefit. ( I am just trying to understand the benefit I will get out of the scheme).

Your thoughts please ?

Thanks!

Shikhar

Re: Capital gains tax and prior year income tax losses

TaxedoMask — Thu, 27 Feb 2020 00:52:50 GMT

(a) At what point in the capital gain calculation are the prior year CGT losses expunged; (before or after discount?).

Brought forward capital losses (ie. capital losses from prior years) are treated in a similar manner to current year capital losses. Capital losses reduce the gross capital gain prior to discounting. If you have non-discounted capital gains, you can allocate the loss to these first.

(b) When the calculated capital gain is added to taxable income, can prior year income tax losses be used to reduce the "combined" taxable income and potentially a lower marginal rate tax band.

Yes, tax losses from prior years can reduce the net capital gain.

(c) After the net capital gain is added to taxable income does it also attract medicare levy?

Yes, medicare levy is levied on taxable income.

EDIT:

Prior years CGT losses: $30,000

Prior years income tax losses: $80,000

Discount Capital Gain: $400,000

400,000 - 30,000 = 370,000 gross (discount) capital gain = 185,000 net capital gain

185,000 - 80,000 = 105,000 taxable income

Loan from family ocerseas

Gurtej — Wed, 26 Feb 2020 23:48:28 GMT

Hey, i have a car loan here in australia and the interest rate is bit much, so i’m thinking to pat my loan off by the help from my family living overseas and i’m gonna return their money slowly without interest. Do i have to pay tax on the money i receive in my bank account from overseas or have to answer or inform anyone about it?

Re: First Home Super Saver - Calculation and Withdrawal Amount

ChrisR — Wed, 26 Feb 2020 23:30:21 GMT

Thanks for your questions. To make it easier, we will answer them one at a time.

1. How much will we be able to save?

The FHSS scheme allows you to save money for your first home inside your super fund. You are able to take advantage of a higher rate of earnings and for those who salary sacrifice or claim a deduction, a reduced rate of tax.

A good way of looking at how much you and your wife can save is to combine your after tax FHSS release amounts with the tax credits that you will be entitled to due to claiming tax deductions for your contributions.

The following example combines your 2019-20 and 2020-21 contributions together and assumes a 37% marginal tax rate for both of you. Refer to the individual income tax rates page on our website for more information.

Total tax withheld by super funds after receiving notice of intents: $9,000 ($60,000 x 15%)
Total tax payable on assessable FHSS released amounts (excluding associated earnings): $5,400 ($60,000 x 37% plus Medicare levy minus 30% offset)
Total tax credits due to personal contribution deductions: $23,400 ($60,000 x 37% plus Medicare levy)
Total amount saved: $69,000 ($60,000 minus $9000 (1) minus $5,400 (2) plus $23,400 (3))

The associated earnings amount is harder to demonstrate because it will depend on what months you and your wife make your voluntary contributions and when you both submit your FHSS determination requests. The longer your contributions remain in your funds, the more you will earn.

When you submit your FHSS determination request, we will calculate the associated earnings using a deemed rate of return – this is based on the 90-day Bank Bill rate plus three percentage points. You can view these rates by checking out the shortfall interest charge (SIC) rates page.

Whatever the associated earnings amount ends up being, based on a marginal tax rate of 37%, it will be reduced by 9% (37% plus Medicare levy minus 30% offset) as it forms part of your assessable FHSS release amount.

2. Will the voluntary contributions be concessional or non-concessional?

They will be classed as concessional contributions due to the fact that you are both claiming personal contribution tax deductions. You can find out more about concessional contributions on our website.

3. How much will we be able to withdraw from our super funds?

You will be able to withdraw 85% of the concessional contributions plus associated earnings. You can also withdraw 100% of non-concessional contributions but that doesn't apply to your scenario.

4. Can we use the FHSS scheme to purchase land?

No. If you purchase vacant land to build a home on, it is the contract to construct your home that must be entered into to meet the FHSS scheme requirements. You can also use the scheme to purchase a home. Have a look at the after your savings have been released section of the FHSS scheme page for more information.

5. Are we missing anything that can increase the benefit of using the FHSS scheme?

As mentioned previously, the longer you leave your contributions in your super fund, the more your associated earnings will be. Also, if you would like your voluntary contributions to be classed as concessional contributions, another way of achieving that is via salary sacrifice arrangements with your employers (if applicable).

We recommend that you have a really good read of the first home super saver scheme page before you make a voluntary contribution, sign a contract or submit a FHSS determination or release request.

Hope this helps.

Thanks,

ChrisR

Re: GST Being Charged in USD

TaxedoMask — Wed, 26 Feb 2020 23:29:17 GMT

Aside from dubious nature of MLMs (see here), high levels of loss for "downstream" participants (see here) and it's similarities to pyramid schemes (see here). The importation of goods (assuming we're talking about physical products) to Australia is generally subject to GST. See here.

I would strongly advise you to consider what you are doing as part of a MLM scheme given the significant number of horror stories.

Re: Significant Global entities & Joint Ventures

NateH — Wed, 26 Feb 2020 23:22:29 GMT

Hi ,

We'll check on this for you and get back to you

Thanks, NateH

Re: TFN Declaration errors

TaxedoMask — Wed, 26 Feb 2020 23:16:00 GMT

They should fill out the form correctly (and its in their interest to do so).

You should not be amending such documents on their behalf.

Main Residence Exemption

Agni — Wed, 26 Feb 2020 22:57:36 GMT

Hi All

I have a residential property where I had been living till 2015, and since then I have let out the property from October 2015. Now I wish to dispose it and claim the CGT Main Residence Exemption. My question is : when is the last date that I can dispose off the property?

Many Thanks.

Re: Downsizer super contribution

Bruce4Tax — Wed, 26 Feb 2020 22:10:59 GMT

We settled on the sale of our property on 4th July 2018. I assume we meet the date restriction for allowing fir a 'downsizer' super contribution? Is that correct?

Yes, but you need to meet all the conditions below.

This means that the super fund needed to receive the contribution, and the downsizer form, no later then 04/07/2018 + 90 days.

From ATO:

Eligibility for the downsizer measure

You will be eligible to make a downsizer contribution to super if you can answer yes to all of the following:

you are 65 years old or older at the time you make a downsizer contribution (there is no maximum age limit)
the amount you are contributing is from the proceeds of selling your home where the contract of sale 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 – the ownership period is generally calculated from the date of settlement of purchase to the date of settlement of sale
your home is in Australia and is not a caravan, houseboat or other mobile home
the proceeds (capital gain or loss) from the sale of the home are either exempt or partially exempt from capital gains tax (CGT) under the main residence exemption, or would be entitled to such an exemption if the home was a CGT rather than a pre-CGT (acquired before 20 September 1985) asset
you have provided your super fund with the Downsizer contribution into super form either before or at the time of making your downsizer contribution
you make your downsizer contribution within 90 days of receiving the proceeds of sale, which is usually at the date of settlement
you have not previously made a downsizer contribution to your super from the sale of another home.

Note: If your home that was sold was only owned by one spouse, the spouse that did not have an ownership interest may also make a downsizer contribution, or have one made on their behalf, provided they meet all of the other requirements.

Re: New credentials without smartphone

KylieS — Wed, 26 Feb 2020 22:00:06 GMT

Thanks for your feedback.

AUSkey was released over a decade ago to enable business to transact online with Government. The system has not kept pace with modern advances in technology or expectations of the community, and there are a number of issues, including:
• incompatibility with most modern internet browsers
• the requirement for a separate AUSkey for every business a person acts on behalf of
• not available on mobile devices
• difficulty installing and recovering when a password is forgotten.

In addition to user irritants there are significant issues with the misuse of the AUSkey system, including the sharing of credentials and passwords which compromises the integrity of the ATO online environment.

We already conduct proof of identity checks and have a strong history of protecting client data. As we offer more online services to the community with greater access to personal data, a higher degree of certainty of the person interacting with us is required.

AUSkey and Manage ABN Connections (MAC) access to our online services will end on 27 March 2020, replaced with myGovID and RAM. myGovID is a digital identity credential that is unique to an individual, similar to completing a 100 point ID check RAM allows a user to link their myGovID to an ABN.

Your myGovID is unique to you and cannot be shared to ensure the safe keeping of your data and integrity of ATO online systems. Accessing myGovID via a smart device allows use of the identification and security features provided by the smart device – like fingerprint and face verification to provide additional protection of your identity. The myGovID app is only required for the log in step and a user can continue to use their preferred device and browser when accessing online services. This means you can access online services on any device or browser and are not restricted to use on a desktop computer or laptop. It also provides a simpler way to set-up and manage your access and you no longer need to request and setup a new AUSkey when you forget your password.

To setup a myGovID and log in to ATO online services you will be required to verify two of the following four identity documents:
• Australian passport
• Medicare card
• Australian drivers licence
• Australian birth certificate

Additional identity documents, including change of name certificates, marriage certificates and immigration documents will be progressively supported from mid-March 2020.

If you don’t have two of the identification documents required, you may be able to use myGovID with a Basic identity strength to access many ATO online services from mid-March.

Relationship Authorisation Manager (RAM) allows you to set up and manage relationships and authorisations across government online services. You control who can act on behalf of your business online. It gives you greater assurance and visibility over who is transacting on behalf of your business. Linking associated ABNs to your myGovID means you no longer need to setup and maintain multiple AUSkeys for each ABN you are authorised to represent. You only need one myGovID.

If you are operating through a trust we have help available to link your myGovID to your ABN.
Contact our support line and choose option 3 if you have five or less ABN’s to link. We are currently contacting Corporate trustees with more than five ABN’s to create these links for them, as this process will take a little longer.

We hope this helps clarify why we are making the move to myGovID and RAM as well as answer your questions. You can find more detail and links to other resources on our Accessing online services with myGovId and RAM page.

Exempt Scholorships

Lozza18 — Wed, 26 Feb 2020 21:48:53 GMT

Hello,

For a scholarship to be tax exempt to the recipient, I understand the following:

To be eligible for tax exemption, a scholarship, must be open to a wide range of candidates.

Scholarships are exempt from PAYG withholding and personal income tax where payment is:

made to a student receiving full time education, that is, undertaking a full-time course
not received ‘on the condition’ that they become, or continue to be, an employee
principally for educational purposes
does not have any requirement attached that amounts to the student having to render services.

My question is, does the scholarship have to come from a school, college or university or can any entity give a sponsorship that can be exempt to the recipient? What are the criteria for the entity giving the scholarship for it to be exempt to the tax payer?

Thanks

MyGovId

petermsgroup — Wed, 26 Feb 2020 21:42:55 GMT

Hi,

I've been asked if I can install an Android emulator on a corporate PC for MyGovId challenge.

Is this solution allowed?

Thank you