With the Liberal Government being re-elected for the next term, many are wondering what impact this has on them from a tax and super perspective. The short answer is not a lot will change. Most of the controversial measures such as banning negative gearing and removing the refunding of franking credits were proposed by the Labor party. So these attempts at major tax reform have been rebuffed it appears in favour of a more steady, status quo approach proposed by the Liberal Government. As such, there is no proposed changes to most super and taxation legislation.
The ATO has announced that it will begin to collect data from cryptocurrency designated service providers shortly in a bid to identify taxpayers who have neglected to declare income made on cryptocurrency trades and therefore short paid their tax liability.
As the Federal Election draws closer, Labor is continuing to release further information regarding its tax policies.
The 2019 Federal Budget has been released with many taxpayer friendly proposals as the Liberal Government seeks re-election in the upcoming Federal Election. Given this election, most of these measures will not be passed and become law unless the Liberal Government is re-elected however with Labor’s tax policies being publicised it is important to consider the Liberals’ proposals as outlined in this Budget.
The ATO has recently announced the results of its recent investigation into 300 random rental property claims. Alarmingly although tax agents were responsible for the preparation of 85% of these returns, errors were found in 9 out of 10 tax returns which resulted in the taxpayer owing further taxes to the ATO.
With legislation now passed to impose the electronic reporting requirements of Single Touch Payroll (STP), software providers are scrambling to come up with cost effective solutions for those small businesses impacted by the change. Although STP has applied to employers with more than 20 employees from 1 July 2018, the legislation passed sets a date of 1 July 2019 as the starting reporting date for those businesses with less than 20 employees.