MGAA AboutTax Blog

What did we do till now?

As part of modernising the Business Registers Program, Australian Business Registry Services have introduced Director ID or Director Identification Number (DIN). This is a mandatory requirement for all directors. It is a 15 digit identifier given to a director and applies forever, even though you may no longer be a director for a company, change your name, or move interstate or overseas.

The ATO has recently published fact sheets in relation to Single Touch Payroll (STP) changes which will take effect on 1 July 2021. Small employers will commence to report STP for closely held payees on a weekly, fortnightly, monthly or quarterly. Quarterly reporting is only allowed if you've met certain criteria.

In preparation for tax time 2020, undoubtedly you would be excited about claiming all your home office expenses for the months you were required to work from home. To assist you with your preparations, we have put together a simple guide, per below;   Tax Tips! It is important that you maintain a diary of 4 weeks for both pre Covid and during Covid periods (separately) to be able to justify your claim. The diary could be in form of an excel file log showing hours worked with a short description of work done over a continued period of 4 weeks. You can use roster records (showing work from home) as an alternative, if provided to you by work. Remember, you need to pass the 3 tests to be able to claim an expense as work related: The incurred test - You need to have spent money and not be reimbursed. The nexus test - The amount spent should be directly related to your work and not be ancillary. The substantiation test - You need to maintain records to substantiate your expenses.  For further information on work related expenses please click the below helpful links from the ATO: Working from home Support for individuals and employees working from home Additionally, please feel free to download your copy of our extensive checklists here in preparation for your appointment.

A barber and an accountant

In just the last few days and weeks, businesses have been closing down, workers are being stood down and people are queuing miles long outside Centrelink. Looks like our economy is falling apart like a house of cards!

In a recent high profile speech at The Tax Institute's National Convention, Tax Commissioner Chris Jordan said, quite proudly:

Capital Gains Tax – One Problem – Three Solutions