2009 TAX YEAR INFORMATION
Well, the new tax year is nearly upon us, so you will all be starting to think about compiling your information and heading off to your tax agents to have your tax returns completed. A client once told me, “Gathering up all your papers is like going to the dentist”. Whilst I agree with the pain of gathering up all the papers, I’m not sure I agree with the dentist part!
So what can we expect in 2009.
Small business & General Business Tax Break
Much has already been written about this special depreciation deduction. In a nut shell, for those larger business (i.e. with a turnover over $2m), an additional 30% claim will be made on the purchase of eligible plant & equipment for items purchased up to 30 June 2009. Items purchased after this date and up to 31 December 2009 will receive only a 10% deduction.
Small businesses (turnover less than $2m) will receive a tax deduction of 50% claim for eligible plant and equipment on items purchased up to 30 June 2009. This claim will extend into the 2010 tax year where items are purchased up to 31 December 2009.
Reminder: if you have purchased a new “business” vehicle, make sure your log book clearly defines the majority of business use.
New Education expenses tax offset
Those who receive Family Tax Benefit Part A can claim an education tax refund of up to $375 for each primary school child’s eligible education expense and up to $750 for secondary students. Even those who don’t receive FTB Part A may still be eligible if a child receive Centrelink payment such as ABSTUDY. The claim will allow for 50% back on such items as laptops, home computers, printers, software, internet connections, textbooks stationery etc.
Reminder: Gather together your receipts to be eligible for the offset.
TARGET AREAS 2009
Cash Economy:
The ATO has introduced special “benchmarks” for assessing the authenticity of certain “cash” businesses. These include trades such as painters, Tile roofing, Concreting, Bricklaying, & taxis. Where the returns of these taxpayers do not fall within the “benchmark” areas, audits may be conducted.
Occupation targets 2009
The 2009 occupation specific ATO audit targets are Employee chefs; Nursing employees and general and specialist medical practitioners. Of particular concern are motor vehicle claims, telephone allowances, travelling allowances and uniform claims.
Rental property claims
Every year the ATO puts out literature suggesting that they will be looking closely at excessive claims for rental property deductions and 2009 is no different. Already many landlords (new in 2008) have received letters of warning that this will be a target again this year. In particular the ATO is always looking for claims for larger repairs where the actual nature of the cost is a capital improvement.
Employer Obligations
The ATO is concerned that given the global downturn that some employers will not meet their obligations such as PAYG Withholding tax and SGC (Superannuation).
Reminder: SGC laws may also cover contractors where they supply labour only.
Given the Federal Government’s generous gifts of recent times, and the deficit we are now facing, this will be a time where the tolerance of the ATO may be tested. We understand that they have allowed for an additional $80m in 2009 to be allocated to their audit team to ensure compliance.
HAPPY NEW YEAR TO YOU ALL !
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