Have you missed the deadline to apply for a director identification number (director ID)? If so, you can still apply! The ATO says it will take a reasonable approach with directors who are trying to do the right thing. Importantly, directors who need additional time to apply (beyond 14 December 2022), can request an extension of...

Access our Wallace Partners Client Information Newsletter February 2023 below: Wallace Partners CIN February 2023  

In the final week of November, the ATO announced that more than one million directors still need to apply for their director identification number (director ID). Importantly, while penalties can apply if the deadline (generally 30 November) is not met, the community can expect that the ATO and Australian Business Registry Services (ABRS) will take...

Limited recourse borrowing arrangements (LRBAs) have been greenlit by a recent enquiry, and also comments from the Assistant Treasurer. The Council of Financial Regulators in November released its second report on Leverage and risk in the superannuation system. Consistent with the 2019 report, the Council found that LRBAs are “unlikely to pose a material risk to...

Electric vehicles are set to become more affordable for both households and businesses after the government sealed a deal with crossbench Senators on legislation to exempt low and zero emission cars from fringe benefits tax (FBT). The new law introduces an electric car discount in the form of an FBT exemption. This allows for car...

Hiring additional employees to help with surging end-of-year demand? A New employment form,   accessed through ATO online services, will help reduce your compliance time. It’s an easy way for your employees to provide you and the ATO with the information that the ATO need. If your new employee has a myGov account linked to the ATO,...

The ATO has issued new draft guidelines around a new method (the revised fixed rate method) of calculating work-from-home running expenses from 1 July 2022 (as an alternative to calculating the actual work-related portion of all running expenses). The new revised fixed rate method will replace both: the 52 cents fixed-rate method set out in...

From 1 July 2021, the law was changed to allow for six-member SMSFs (up from five members). At the time of writing, the uptake has been slow so far with just 228 funds with six members. At the other end of the spectrum, it is permissible to have single member funds. The main advantage of...

In a recent speech, ATO assistant Commissioner Justin Micale outlined the ATO’s latest compliance issues for those who operate an SMSF. ID fraud and investment scams While ID fraud and investment scams are still quite rare in the SMSF sector, they are becoming more prevalent. In the 2022 financial year, the ATO identified increasing numbers of individuals...

Christmas is traditionally a time of giving, including employers showing gratitude to their workers for a job well done throughout the year. However, depending on the nature and value of the gift, and also who it is gifted to, such magnanimity can attract unwanted tax consequences. So how as an employer do you gift most...