Tag Archives: ATO 2022

Future of superannuation

The government has showed its hand in terms of potential future changes to the Australian superannuation system. The Assistant Treasurer and Minister for Financial Services, Stephen Jones, outlined two main areas the government will be focusing on. This includes legislating an objective for super (ie for use in retirement), which will then able conversations around the taxation of super, in particular tax concessions given to high asset SMSFs. The second area the government will seek to tackle is performance tests, on which work has already commenced.

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Proposed new method for calculating WFH expenses

Taxpayers could soon be dealing with more paper work at tax time or face the prospect of a lower deduction for work from home expenses if the ATO gets its way. The ATO has recently released a proposed new revised fixed rate method of calculating work from home expenses of 67c per hour. This will replace the previous shortcut method of 80c per hour which most taxpayers have been using during the pandemic as well as the previous fixed rate method from 1 July 2022. This proposal is still in draft stage and open to submissions from interested parties.

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ATO to resume collecting aged debts

Taxpayers with aged debts that the ATO had paused collecting or put on hold should be aware that offsetting aged debts against tax refunds or credits has now resumed. Letters were sent out in May 2022 to remind taxpayers that they have aged debts and that June 2022 will see the recommencement of debt collection. The aged debts can be offset either from ATO accounts or credits from other government agencies, although the debt will not be offset if the only available credit relates to a Family Tax Benefit amount.

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Current compliance issues in the SMSF space

The SMSF space has always been a complex area for both trustees, beneficiaries, and advisers. In the past few years, the ATO has made many concessions and has put compliance action on hold because of COVID-19 and its after effects. However, for the 2022-23 year and beyond, it is looking to scale up its compliance program as a reaction to indicators of heightened risk in the sector. One specific area it will be targeting is those failing to lodge annual returns, which has been identified as a red flag leading to illegal early release.

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