ATO Tax Report

Combating the cash economy

Find out how we detect, deter and deal with the cash economy on our recently updated webpage.

If you have clients operating businesses where cash transactions are common, our website provides practical information and support tools to help them get it right.

We know the majority of taxpayers do the right thing; however some people deliberately under report their cash income and undermine the fairness of our system.

For more information, refer to Cash economy.

GST and property adjustments

We have recently developed a new fact sheet to clarify the circumstances when a goods and services tax (GST) adjustment may need to be made during a property transaction along with relevant supporting information.

Your clients may need to make an adjustment on their activity statements if they have recently bought, sold or rented a property and have:
changed how they intended to use the property
purchased a property as part of a business sold to them as a GST-free going concern
purchased GST-free farmland
ceased an enterprise and cancelled their GST registration.
To find out more and to download the fact sheet, refer to GST and property adjustments (NAT 73602).

Progress report 14 – income tax returns since 1 July 2010
Since 1 July we have received over 10 million returns and as of 4 November we have issued refunds worth more than $20 billion.

ATO warns retirement village operators about excessive GST claims
Tax Commissioner Michael D’Ascenzo has warned retirement village operators that the ATO will review arrangements where they sell services, such as electricity, to residents in an attempt to gain a tax advantage.

Investing in futures
Speech by Tax Commissioner, Michael D’Ascenzo to the annual Consilium charity dinner in Canberra on 26 October 2010.

New era of international cooperation
Commissioner’s online update on the expansion of Australia’s tax information exchange agreements (TIEAs) and double taxation agreements (DTAs) to combat offshore avoidance arrangements.

Death of William ‘Bill’ O’Reilly – Australian Taxation Commissioner (1976-84)
It was with great sadness I heard the news of the death of William ‘Bill’ O’Reilly, Australian Taxation Commissioner, 1976-84, at age 91.

Project Wickenby – is it worth the risk?
Provides information on Project Wickenby including activities, results as of 30 September 2010, participating agencies and how you can make a voluntary disclosure.

Tax help for small business in Toowoomba, Warwick and Dalby regions in Queensland during November 2010
We invite small business operators to attend free one-on-one information sessions to help them stay on track with their tax and super obligations. Bookings are essential.

System maintenance and issues
This page contains scheduled downtime and details of issues currently affecting our online services.

Keydates for registered agents – November
November key dates for registered agents.

Consumer price index (CPI) rates
These consumer price index (CPI) rates have been updated to include the September 2010 quarter figure.

Foreign exchange rates
List of daily, monthly and annual foreign exchange rates.

WETD 2010/D1 – Wine equalisation tax: what are the results for entities that engage in an arrangement described in Taxpayer Alert TA 2009/7?
This draft wine equalisation tax (WET) determination looks at the consequences for entities engaged in arrangements that may not result in an entitlement to the WET producer rebate.

Changes to taxation of special disability trusts
This measure is intended to ensure that the unexpended income of a special disability trust is taxed at the beneficiary’s personal income tax rates, rather than the top personal tax rate plus Medicare levy.

Legal Database updates
The latest updates to the Legal Database.

New SMSF member verification system
Information for self-managed super funds (SMSFs) about a new SMSF member verification system that provides greater transparency around super rollovers from Australian Prudential Regulation Authority (APRA)-regulated super funds into SMSFs.

Stopping schemes to illegally access super
We are working to protect the retirement savings of Australians from schemes to illegally access super.

Tips to help you keep track of your super contributions
Information to help you keep track of your super contributions.

Approved auditor disqualification register
The people listed in the disqualification register have been disqualified from acting as approved auditors of superannuation entities regulated under the Superannuation Industry (Supervision) Act 1993 (SIS Act).

Give your business a health check
Outdated or unreliable business systems could be costing small businesses time and money due to incorrectly reporting GST.

New this year to family tax
A summary of the changes to tax that can affect families for the last completed tax year and changes announced for the current year.

Credit and debit card data matching
We are conducting data matching activities using data supplied by banks identifying credit and debit card sales made by businesses. This data was used to develop the new cash sales benchmarks.

Cash sales benchmarks
The new cash sales benchmarks show the ratio of cash sales to total sales for different industries. These benchmarks were developed using information reported on activity statements and data provided to us by banks.

Capital allowances: solar generation assets – draft effective life
This document makes available for comment the draft effective life for solar generation assets. Comments should be made by 24 December 2010.

Non-Profit News Service No. 0302 – Phone service available for non-profit sector
For help with matters specific to non-profit organisations, phone us on 1300 130 248.

ATO Update – reposted by andre di cioccio

PAYG instalments – making annual elections online Did you know annual pay as you go (PAYG) instalment elections can be submitted electronically? This means no more waiting on the phone! You can: access an e-form on our website by searching ’3133′ submit requests for up to 20 clients at once partially complete the form and submit it later (but before the due date for elections). The e-form will: generate a receipt number followed by an email confirmation within 48 hours of transmission issue a confirmation letter to the client’s postal address when the form is processed. For more information about PAYG instalment elections via e-form, refer to Choosing to pay an annual pay as you go (PAYG) instalment. PAYG instalments – discussions with selected tax professionals and business operators During October 2010, we will be contacting selected tax professionals and business operators in the $2 million to $100 million annual turnover range, to discuss instances where the amount of PAYG instalment received for the quarter under review, is significantly different to the amount of PAYG instalment received in a previous quarter. Businesses should review their PAYG instalment rate each quarter to ensure they are not paying more than is necessary. For more information, refer to How to vary pay as you go (PAYG) instalments. Lodgment deferrals for quarterly BAS – do you lodge electronically? Did you know that if you lodge your clients’ quarterly business activity statements (BAS) electronically, you get a four week electronic lodgment and payment concession? Quarterly BAS lodged electronically have a lodgment and payment concession of four weeks for quarters 1, 3 and 4 and have until 28 February for quarter 2 lodgments. This means that if you lodge electronically, the quarter 1 BAS is due for lodgment and payment by 25 November 2010. If you are experiencing hardship and need further time to lodge, you need to apply for a deferral. For more information, refer to Lodgment Program 2010-11 – details of the program – Activity statements. Progress report 9 – income tax returns since 1 July 2010 Since 1 July we have received 7.28 million returns and have issued refunds worth nearly $15.15 billion. The ATO’s regulation of SMSFs – the compliance program, specific risks and other areas of focus Address by Neil Olesen, Deputy Commissioner of Taxation, to the ICAA SMSF Conference in Sydney on 23 September 2010. Super funds and taxation: working together for effective compliance Address by Stuart Forsyth, Assistant Commissioner Superannuation, in Brisbane on 15 September and in Melbourne on 17 September 2010. Tax help for small business in Bundaberg and Hervey Bay regions in Queensland and Yarra City Council Victoria during October 2010 We invite small business operators to attend free one-on-one information sessions to help them stay on track with their tax and super obligations. Bookings are essential. System maintenance and issues This page contains scheduled downtime and details of issues currently affecting our online services. Keydates for registered agents – September September key dates for registered agents. Foreign exchange rates List of daily, monthly and annual foreign exchange rates. Legal Database updates The latest updates to the Legal Database. ATO data match to identify people avoiding tax obligations We continue to identify people who deliberately under report income or participate in the cash economy to hide income and evade their tax obligations. Excess contributions tax – applying to have your contributions disregarded or reallocated Information about applying to have contributions disregarded or reallocated. SuperUpdate September to November 2010 SuperUpdate provides news and information for those working in the superannuation industry. Non-Profit News Service No. 0299 – Senate Economics Legislation Committee releases report on public benefit test The Senate Economics Legislation Committee has released its report on Tax Laws Amendment (Public Benefit Test) Bill 2010.