Small Business Assistance Program: tax update
ISSUE 20 – week ending 4 June 2010
Making investment decisions- have you done your research?
Are you considering a tax effective investment? It’s important you have all the facts to make an informed decision.
Some investments offer tax benefits such as reducing assessable income or increasing deductions, but end up being outside
the law. You can check with the ATO to ensure promised tax benefits will be available.
Find out as much as you can about an arrangement before investing. Make sure the arrangement has a prospectus or product
disclosure statement and get independent advice about the promised tax benefits from a professional advisor.
Start by visiting www.ato.gov.au/investing and read the ‘Investigate before investing’ fact sheet. It provides information about tax
effective investing and how to detect potential tax avoidance schemes.
You can also check if the arrangement you’re considering is covered by an ATO Product Ruling confirming the tax benefits, or if
a Taxpayer Alert has been issued warning about the arrangement.
Doing your research will help you avoid negative consequences including having to repay tax and incurring interest and
BAS services providers - notify now
If you provide BAS services for a fee or reward, you must register with the Tax Practitioners Board.
Generous transitional arrangements are available and you can notify online before 31 August 2010.
When you notify you:
can register for free
are taken to be registered for two years from 1 March 2010
can secure time to gain educational qualifications and experience required by the Board
can avoid a civil penalty fine for being unregistered
Visit www.tpb.gov.au for more information.
Withholding tax tables
We no longer mail paper copies of PAYG withholding tax tables. Instead we will contact employers to advise them when tax
rates have changed and how to access the tax tables.
To access PAYG withholding tax tables online, refer to Tax tables.
You can obtain paper copies from newsagents, ATO shopfronts or by phoning 1300 720 092
Debt self-help phone service
Does your client have a tax debt that is less than $25,000? If so, they can use the ATO's automated phone service to arrange a
late payment or to pay by instalments.
The self-help service operates 24 hours a day, seven days a week. Phone:
Business self-help on 13 72 26
Personal self-help on 13 28 65
For more information, refer to How to pay a tax debt using our automated self-help service
The Treasurer handed down the 2010-11 Federal Budget, announcing a range of new tax measures.
Superannuation and record keeping
As an employer, you must keep adequate records showing the amount of super made for each employee.
Your records should include:
• how you calculated any reportable employer super contributions you made
• how you calculated the employee-influenced portion of the total reportable employer super contributions you made
• how you calculated each of your employees' salaries or ordinary time earnings
• copies of relevant salary sacrifice agreements you have entered into with your employees
• copies of relevant industrial agreements you have with your employees.
You must keep your records:
• for five years after they are prepared, obtained or the transactions completed, whichever occurs last
• in English, or in a form the ATO can easily access and convert into English.
We have a range of online tools to help you meet your super obligations, including the:
• employee/contractor decision tool
• superannuation guarantee eligibility decision tool
• superannuation guarantee contributions calculator
• superannuation guarantee charge statement and calculator tool
• employment termination payment calculator.
For more information about super and record keeping:
• refer to Record keeping essentials
• visit our website at www.ato.gov.au/employersuper
• phone us on 13 10 20 between 8.00am and 6.00pm, Monday to Friday.
Registered BAS agents included in the Lodgment Program 2010-11
For the first time, our lodgment program for the upcoming financial year will offer registered BAS agents lodgment concessions
to assist them in managing their workloads.
The Lodgment Program 2010-11 will be available at Lodgment essentials from 1 July 2010
Deductions for education expenses against Youth Allowance
On 23 April 2010, the High Court granted the Commissioner special leave to appeal against the decision of the Full Federal
Court in Federal Commissioner of Taxation v. Anstis. In that case, the Full Federal Court decided that Ms Anstis, who received
Youth Allowance as a university student, was entitled to a tax deduction for her education expenses.
The High Court is expected to decide the appeal later in 2010. Until this matter is resolved, we will continue to apply the view
set out in Income Tax Ruling TR 98/9. That is, education expenses are not deductible against various Commonwealth
educational assistance schemes.
Paying your general interest charge free arrangements on time
Businesses that have entered into a 12-month general interest charge (GIC) free payment arrangement need to ensure they
make all payments by the due date.
Superannuation tips for young people
This document provides young people with answers to common questions about superannuation.
Guide to wine equalisation tax
Wine equalisation tax (WET) is a value-based tax which is applied to wine consumed in Australia. It applies to assessable
dealings with wine (unless an exemption applies) which include wholesale sales, untaxed retail sales and applications to own
Key superannuation rates and thresholds
These are the key rates and thresholds that apply in relation to contributions and benefits, employment termination payments,
superannuation guarantee and co-contributions.
Workforce education news - Issue 3/2010
This third issue of Workforce education news 2010 covers a range of topics affecting employers and professional associations,
and their employees and members, including tax time information.
Important information about your online security including examples of the latest ATO related scams as we become aware of
Motor vehicle data matching
Provides information about our motor vehicle data matching project.
Save time - do your business online
Encourage clients to use Electronic Commerce Interface (ECI) for bulk reporting and lodgment.
Individual tax return 2010
2010 individual income tax return for tax agents and information on ordering paper copies.
Information for primary producers 2010
A primary producer is an individual, a trust or a company carrying on a business of primary production.
List of 2010 forms, instruction guides and schedules
Contains a list of the 2010 forms, instruction guides and schedules
Tax time 2010 product changes
Contains an overview and detailed list of changes to tax forms, instruction guides and schedules for 2010.
Taxation Ruling TR 2010/3
Income tax: Division 7A loans: trust entitlements
Information from other government agencies
Exposure drafts of the Business Name Registration Bill and the associated Business Name Registration (Fees) Bill have been
released. The draft legislation is available on the Commonwealth Department of Innovation, Industry, Science and Research's
website. The website link is
The website provides links to the exposure drafts, a fact sheet and frequently asked questions relating to the Australian
Business Number (ABN) Business Names Registration Project.
Comments on the exposure drafts should be sent to firstname.lastname@example.org by 27 June 2010.
Thinking about expanding your operations?
Business.gov.au's Growing a business how-to guide provides information on increasing staff, diversifying products or services,
exporting goods, franchising and moving to bigger premises.