ITP - Income Tax Professionals

👉 What do people think of us? You’re welcome 😍

Leave the number crunching to the experts. With the right tax professional in your corner, they'll ensure you act on every possible deduction and credit out there.

Sit back and watch your tax savings multiply when you let the pros take charge! Accountants have all the insider tips and tricks to grow your wage into an even sweeter tax return. 💡💵

🏬 Running a small business? Let ITP's Accounting Professionals take bookkeeping off your plate! 📈

When you're busy with customers, marketing, and operations, balancing the books often slides. But with ITP bookkeepers handling your accounts, invoices, payroll, taxes - suddenly you've got room to breathe! 😌

Leave the financials to the experts and focus on your passion. ITP customizes plans based on your needs and budget. Their CPAs and accounting wizards will have you feeling finance-empowered in no time!

Say bye to bookkeeping headaches! Let ITP handle number crunching so you can keep clients happy and watch your enterprise thrive! 🚀

🚗⚡ Big News for Electric Car Owners & Employers! ⚡🚗

The future is electric and the Australian Government is supercharging it with a game-changing update! 🌿🔋

✅ As of 1 July 2022, say goodbye to fringe benefits tax (FBT) on eligible electric cars. That's right, ZERO FBT!

📊 Plus, these tax-free perks will be included in employees' reportable fringe benefits, keeping everything transparent.

🎉 This law is now in full effect, making eco-friendly rides more attractive for businesses and staff alike!

🔍 Stay tuned for a mid-2027 review on this exemption to track the electric car revolution.

Drive into a greener future with benefits that are just as clean as your ride!

🤔 Ever Felt Stumped by Taxes? A Tax Accountant Has Your Back! 🏋️

As the saying goes, a tax accountant solves a problem you didn’t know you had in a way you don’t understand! Tax rules can definitely make your head spin. 😵💫

But with an expert tax pro decoding those complex regulations for you, suddenly that mystery “problem” becomes a stack of new deductions you never spotted yourself! 💡💰

Let your tax accountant work their magic finding every last tax credit and deduction available. They’ll have you reaping write-offs you didn’t even know existed!

While you might not get their technical talk, you’ll certainly understand the benefits when your tax refund arrives! 🤑 Give those brain-busting tax forms over to the pros this year!

💡 Entrepreneurs, stop fumbling in the dark with your company finances! ITP's bookkeeping pros are here to flip the switch. 💡

Our bookkeeper whizzes will organize all those scribbled receipts and invoices into a clear financial narrative. Say goodbye to guessing about the true state of your enterprise! 📊

With ITP Accounting Professionals handling your monthly accounts, payroll, taxes and more, you’ll finally have visibility into what’s working and what’s not. ☑️ No more operating on gut instinct alone.

Gain the power to make smart, informed choices to nurture your biz. Let their decades of combined accounting expertise work for you! See why so many small companies trust ITP bookkeepers with their numbers. 🤝

👉 Big news for Aussie businesses looking to expand into Europe! Our government just signed its first ever tax treaty with Portugal.

👉 This new agreement will make it cheaper for Australian companies to access Portuguese capital markets by lowering withholding tax rates on investments. It will also reduce the tax burden on Aussie tech firms licensing their intellectual property in Portugal.

👉 The treaty aims to cut red tape too. It promises to simplify tax compliance for any businesses trading between our two countries. Overall, it gives Aussie entrepreneurs more certainty when doing business with Portuguese partners.

🏆 Great to see our government supporting trade and investment links with other nations. This tax treaty opens up new opportunities for Australian businesses looking to access the Portuguese market. Another win for strengthening our international ties!

Do you know what to do if your identity is stolen? Here are some quick tips:

✅ Report it to the police. File a report and get a police reference number and copy of the report. You'll likely need to provide this to banks, institutions, etc.

✅ Report lost/stolen identity documents like passports, driver's licenses, Medicare cards, etc. to the relevant government agencies.

✅ Contact your bank immediately if bank/credit cards are compromised. Also get a copy of your credit report and consider placing an alert for any new credit applications.

✅ Ask credit agencies to ban use/disclosure of your credit info for 21 days (can be extended). This prevents new credit applications without consent.

✅ Close any unauthorized accounts opened in your name and cancel compromised services.

✅ Check if a mail redirect has been placed on your address with Australia Post. Confirm details with any orgs that have your address.

✅ Apply for a Commonwealth Victim’s Certificate from the Magistrates Court.

✅ Dispute liability with institutions for any debts/bills run up fraudulently in your name. Provide police reports/Victim's Certificate.

✅ Report identity theft to IDCARE and Scamwatch which provide specialized victim support.

✅ Your tax agent will assist with notifying the ATO if your tax file number has been compromised due to identity theft. The ATO can then put extra security measures on your tax records.

🚨 Sharing economy reporting regime🚨

The Sharing Economy Reporting Regime is a framework established by the Australian Taxation Office (ATO) to ensure that income earned through sharing economy platforms is reported and taxed appropriately. The sharing economy refers to platforms that connect buyers and sellers for the exchange of goods and services, such as ride-sharing, room or property rentals (like Airbnb), and freelance job services (like Airtasker).

The Sharing Economy Reporting Regime officially came into effect on July 1, 2023. This new framework established guidelines and requirements for reporting income earned through sharing economy platforms to the Australian Taxation Office (ATO).

For transactions made from July 1, 2023 onwards, the regime applied specifically to two key types of sharing economy services. This included any income generated from supplying taxi or ride-sourcing travel, as well as short-term accommodation rentals considered to be 90 consecutive days or less.

For these services occurring after the July 2023 date, the relevant sharing economy platforms were obligated to report details of the transactions to the ATO. This allowed the tax office to match the income reported by individuals and businesses against the data provided by the platforms.

The reporting requirements under the Sharing Economy Reporting Regime were expanded to cover all other types of sharing economy platform-enabled digital (EPD) services and will take effect from July 1, 2024. From this point, income from supplying any goods or services through EPDs will need to be reported to the ATO.

Data Matching: The ATO uses data matching and sharing with third-party platforms to identify taxpayers who are earning income through the sharing economy. This means that platforms are required to provide information to the ATO about the transactions they facilitate.

Reporting Obligations: Individuals and businesses that provide services or rent out assets through sharing economy platforms have the same reporting obligations as other taxpayers. This means they must report their income and any related expenses on their tax returns.

Tax Deductions: Participants in the sharing economy can claim deductions for expenses that are directly related to the earning of their income. However, they must keep records to substantiate these claims.

GST: If a person is running an enterprise and their turnover from all business activities, including sharing economy activities, is $75,000 or more per year, they need to register for Goods and Services Tax (GST), charge GST on their sales, and report it to the ATO.

Note: Any person generating income from supplying taxi or ride-sourcing travel such as UBER, are specifically required to register for GST regardless of their turnover.

Income Splitting: Income and expenses must be divided among the parties involved according to who is entitled to the income and who bears the expenses.

Superannuation: Sharing economy participants may need to pay superannuation for themselves or for any employees they might have.

For people affected by the Sharing Economy Reporting Regime, here are the steps they generally need to take:

Keep Records: Maintain detailed records of all income earned and expenses incurred through sharing economy activities.

Report Income: Include all sharing economy income on your tax return, regardless of the amount or whether tax was taken out.

Declare Expenses: Claim any allowable deductions for expenses related to earning sharing economy income, ensuring you have records to support these claims.

Consider GST: Determine if you need to register for GST, and if so, include this in your regular Business Activity Statement (BAS).

Stay Informed: Keep up to date with any changes in the ATO's policies regarding the sharing economy.

Your tax agent will advise and help you with any reporting those affected will need to do.

Need some new year’s resolution budgeting tips to make your 2024 your year to get your finances under control?

💡Track Your Spending - Apps make this a breeze! See where your cash actually goes each month. Those $5 lattes add up!
📉 Cut Unneeded Expenses - Gym membership unused? Streaming services galore? Trim the fat.
💰 Build Your Savings - Even small deposits add up over time thanks to compound interest!
🙅♂️ Avoid Debt - Credit card and loan interest can snowball fast. Use sparingly if possible.
📊 Plan & Prioritize - Create a budget aligning spending with values. Stick to it and achieve your goals! 💸🥂

🚗💼 Work takes you places, and the ATO is here to make sure you get the most out of every kilometre! If you're using your car for work, you could claim up to $4,250 in deductions each year.

Here's the deal:
👉 Claim 85 cents for every work-related kilometre 🛣️
👉 Cap it at 5,000 km/year – that's a potential $4,250 back in your pocket! 🎉

Maximise your tax return and fuel your financial goals! Start tracking those kms and drive your tax savings home! Don’t forget to keep your vehicle expenses log book and record your business related kilometres. 🚀💰

🚨 Do you need to pay your employees super?🚨

Employers have a duty to contribute to their employees' superannuation funds. This obligation is not contingent on the employee's income level. The requirement to contribute applies to all employees, regardless of the amount they earn. (Before 1 July 2022, you did not have to pay super guarantee for a worker earning less than $450 a month. You now have to pay regardless of their earnings.)

There are specific guidelines to follow when it comes to the age of your workers. For those who are 18 years old and above, superannuation contributions must be made irrespective of the number of hours they are employed. However, for employees under the age of 18, the obligation to contribute is triggered only if they work in excess of 30 hours per week.

The current superannuation contribution rate stands at 11%. When calculating the minimum contribution necessary, employers should base their calculations on the employee's ordinary time earnings (OTE) if contributions are made promptly. OTE refers to the payment received for the standard hours of work. In instances where contributions are delayed or missed, the calculation should instead be based on the employee's total salary and wages to determine the required superannuation guarantee and any applicable superannuation guarantee charge.

👉 Paying after 30 June 2022 for work done before then
When it comes to superannuation contributions for payments made post-June 30, 2022, for work performed prior to July 1, 2022, the timing of the payment dictates the superannuation guarantee calculation. The critical factor is the date on which the employee receives payment, not the period in which the income was earned.

If an employer disburses wages to a qualifying employee on or subsequent to July 1, 2022, the obligation to contribute to the employee's superannuation applies. This is the case regardless of the employee's earnings, and it holds true even if the payment covers work done before the commencement of July 2022.

👉 Eligibility for Superannuation Contributions
The criteria for superannuation contributions are broad, encompassing virtually all types of employees. An employee's eligibility for super guarantee contributions is not influenced by their employment status. This includes those who are employed on a full-time, part-time, or casual basis.

Those individuals who are still in the workforce but are already drawing from a super pension or annuity, including those who are transitioning to retirement, are also entitled to these contributions. The same applies to temporary residents in the country, for instance, individuals on a working holiday.

Super guarantee contributions are not restricted by corporate roles or familial relationships within a business. As such, company directors and family members who are employed by the business are equally entitled to superannuation contributions.

There are additional eligibility rules for:
• employees under 18
• domestic or private workers
• contractors
• international workers
• self-employed people
• high income earners who opt out of super.

👉 Superannuation Contributions for Young Employees
Employers are required to make superannuation guarantee contributions for employees who are under the age of 18 when their working hours exceed 30 hours within a single week. The amount of money these employees earn is not a factor in determining the necessity for superannuation contributions.

Clarified in Superannuation Guarantee Determination SGD 93/1, it states that the consideration is based on the precise number of hours an employee works within a given week. Employers are not permitted to calculate this on an average basis over the course of longer pay periods such as fortnightly or monthly cycles. The focus is strictly on the actual hours worked in the specific week in question.

It's no joke - one overlooked deduction could cost you hundreds, even thousands in missed tax deductions. 💰 But with an eagle-eyed tax accountant scouring every nook of the tax code on your behalf? Suddenly those kids have some serious refund competition! 😉

This tax season, put your financial fate in the hands of a trusted ITP tax expert. Let them find every last write-off and credit to grow your tax return to its full potential. 💡

With the right accountant on the case, you could save way MORE than you bargained for! 🤑 Don’t pay more money on tax than you have to. Partner up with a tax pro now!

🛑 Beware of Super Scams Amidst Rising Costs! 🛑

Feeling the pinch from the cost of living? If someone's offering a quick fix by dipping into your super early, press pause! 🚫 Your retirement fund is precious – don't let scammers put it in jeopardy.

🔑 Remember, there are specific conditions for early super access:
Common conditions of release 🌟
Special conditions of release 🌟

Always check the rules before you act. Protect your future by staying informed! 🔒 We're here to safeguard your nest egg from illegal super withdrawal schemes.

👫💰 Super Tip: Boost Your Spouse's Super with Contribution Splitting! 💑🌟

Looking to strengthen your partner's superannuation? Consider 'contributions splitting' to share the wealth! Here's the lowdown:

✔️ Transfer up to 85% of your taxed splittable contributions, like employer and certain personal contributions, directly to your spouse's super.

📝 Eligibility Check:
You can apply at any age.
Your spouse must be under their preservation age or between that age and 65, and not retired.

🤝 It's super easy:
Chat with your super fund to see if they offer contribution splitting and any associated costs.
Fill out the necessary forms they provide.
Make sure both you and your spouse are members of the same super fund.

💡 Financial Strategy:
Weigh up other options like the spouse contributions tax offset or personal super contributions deduction.

Get advice from your fund, a tax pro, or a financial adviser to maximize your benefits.
Your contribution counts as your spouse's non-concessional contribution.
Plan together, benefit together! 🚀

🎮 Game Developers, Level Up Your Tax Game! 🚀

The Australian Government has just powered up the industry with the new Digital Games Tax Offset (DGTO)! 🌟

📜 Officially part of the law as of 23 June 2023, the DGTO is your golden power-up to boost your game development journey.

Here's the cheat code to unlock this benefit:
👉 A whopping 30% refundable tax offset on qualifying Aussie game dev expenditure from 1 July 2022.
👉 Applicable for game completion, ongoing development, or porting.
👉 Meet the criteria in Division 378 of the ITAA 1997.
👉 Get the green light from the Arts Minister.
👉 Rack up at least $500,000 in qualifying expenses.

💰 Score Big: The offset maxes out at $20 million per company/group per income year. That's a high score requiring around $66.7 million in eligible spending.

🌏 Who Can Play?
👉 Australian resident companies with an ABN.
👉 Foreign companies with a permanent setup in Australia and an ABN.
👉 Ready to transform your digital dreams into reality? The DGTO is your game-changer!

😜 It's definitely no laughing matter trying to keep track of business finances all on your own. But with savvy accountants on the case, suddenly everything adds up!

Accountants shine a spotlight on every last asset and revenue stream, no matter how small. By knowing your accounts inside out, they'll help transform those hidden potentials into profit! 💰

So let those clever number ninjas work their magic uncovering your business' full financial story this year! With accountants building your books from the ground up, your small enterprise is sure to count in big ways! 📈

🚨 Changes to NFP’s lodgement requirements🚨

Starting in the 2023-2024 financial year, non-charitable not-for-profit organizations (NFPs) that have an active Australian Business Number (ABN) will need to submit an annual tax return.
The Australian government recently implemented a new annual reporting requirement for non-charitable not-for-profit (NFP) organizations. In May 2021, changes were announced to improve oversight of NFPs that claim income tax exemption. Starting on July 1, 2023, this new reporting process took effect.

The goal of the new reporting requirement is to bring more transparency and accountability to the administration of NFPs. Now, any non-charitable NFP that has an active Australian Business Number (ABN) must submit an annual return form. In this return, the organization will self-assess its ongoing eligibility for income tax exemption.

By instituting this annual review, the government aims to ensure only legitimate NFPs can access tax-exempt status.

👉 How the self-review return will work
The new annual self-review return process for non-charitable not-for-profits (NFPs) will begin with the 2023-2024 tax year. NFPs can complete and submit the return online through the Australian Taxation Office (ATO) website. Tax agents registered with the ATO may also file the return electronically on an NFP's behalf.

The self-review return will include questions similar to those found in the ATO's existing self-assessment worksheets. These worksheets can currently be used by NFPs to evaluate their tax status. The return will guide NFPs through considering how their purpose and activities align with the eligibility criteria for income tax exemption. However, it will not ask for financial details, except to indicate the approximate income range of the organization.

Upon submitting the return, NFPs will receive automatic notification summarizing their self-determined eligibility status. In future years, NFPs can simply confirm or update pre-populated information from the prior return. Failing to file the annual self-review return may result in an NFP being deemed ineligible for tax exemption, and penalties may apply under the ATO's non-compliance policy.

👉 When the first self-review return is due
The initial annual self-review return must be submitted between July 1, 2024 and October 31, 2024. This first return will cover the 2023-2024 tax year. NFPs are not required to file any retrospective returns for periods before July 1, 2023, when the new reporting requirement began.

For NFPs that use an approved alternative accounting period, the self-review return submission date will correspond with their substituted financial year. The online return form will not be available until after July 1, 2024. Therefore, NFPs with accounting periods ending before that date, such as December 31, 2023, must wait until after July 1, 2024 to complete their first return even though their 2023-2024 financial year has already concluded. Going forward, all NFPs will lodge annually between July 1 and October 31.

🚨 ATO’s software related payments and intangibles migration arrangements🚨

On the 17th January, 2024, the Australian Taxation Office (ATO) unveiled its latest advisory documents, which include the preliminary Taxation Ruling TR 2024/D1 and the Practical Compliance Guideline PCG 2024/1. These documents provide updated insights into the tax implications of software-related transactions and the transfer of intangible assets.

The newly issued draft TR 2024/D1 offers the ATO's perspective on the circumstances under which international payments for software-related agreements should be treated as royalties, thereby attracting the Australian royalty withholding tax. The determination of whether a cross-border payment qualifies as a royalty is guided by the definitions provided in the applicable double tax agreements and the Income Tax Assessment Act 1936, specifically section 6(1).
This draft ruling, which supersedes the previous draft TR 2021/D4, has garnered considerable attention from multinational corporations involved in software licensing and distribution. The ATO has also responded to feedback on the earlier draft by releasing a comprehensive compendium.

The ATO's guidance clarifies the types of cross-border payments that may be deemed royalties, including payments for:
• The licensing of intellectual property (IP);
• The utilization of an IP right;
• The provision of expertise or support in using the IP; or
• In some cases, the sale of physical products that incorporate software.

Furthermore, the ATO delineates the types of payments that do not constitute royalties and discusses scenarios where it may be necessary to split a payment into royalty and non-royalty components. The draft ruling also offers various scenario analyses to aid multinational companies in compliance.

The ATO has invited public commentary on this draft ruling until the 1 March, 2024, highlighting its significance for entities distributing software and related services.
In addition to the draft ruling, the ATO has also finalized and published the Practical Compliance Guideline PCG 2024/1 on the same date. This guideline supersedes the earlier drafts PCG 2021/D4 and PCG 2023/D2 and is pivotal for multinational entities as it addresses the transfer of intangible assets across borders.

The PCG 2024/1 provides a framework for assessing the risk associated with the transfer of intangible assets, particularly in relation to Australia's general anti-avoidance regulations, including the diverted profits tax and transfer pricing rules. It also focuses on the mischaracterization and non-recognition of Australian activities related to intangible assets.

The ATO has included a risk assessment framework within the guideline to help taxpayers evaluate their risk profile concerning the development, enhancement, maintenance, protection, and exploitation of intangible assets. The guideline is comprehensive, offering 15 examples of intangible asset transfer arrangements and detailing the ATO's expectations regarding supporting documentation and evidence.

Both the draft Tax Ruling and the Practical Compliance Guideline are essential for informing taxpayers about the tax considerations, structural decisions, and risk management strategies associated with software licensing/distribution and the transfer of intangible assets.

PCG 2024/1 does not cover the proposed multinational tax integrity measure related to non-deductible payments for intangible assets in low corporate tax jurisdictions, which was announced in the 2022-23 Australian Federal Budget.

🫰 Most things we buy have GST built into the final price, but financial services like home loans are an exception. Home loans don't attract the 10% GST charge.

🏠 However, that doesn't mean property is tax-free. When you purchase a home, you may need to pay stamp duty or annual land tax. And later on, any capital gains when you sell are generally subject to capital gains tax.

🧑‍💼 Always check with your tax advisor or accountant to understand your specific tax situation. They can help navigate the ins and outs of taxes related to property.

👉 What do people think of us? You’re welcome 😍

🚗 Has your car's upholstery seen better days thanks to kids, pets or coffee spills over the years? Are those new scratches and dings starting to add up? While it's only natural for a vehicle to show some wear over time, you may be surprised what your auto insurance policy actually covers.

🚗Most insurers won't replace or repair ordinary wear and tear on things like seats, dashboards and paintwork. Everyday stains, scuffs and minor dents from regular use fall under "depreciation" - the expected decrease in value as a car ages. Since this type of damage occurs gradually, it's considered normal wear rather than accidental damage from a specific incident.

🚗An agreed value policy won't increase over the years to match small reductions from normal usage. So that maximum payout amount you locked in could be less than the car is realistically worth now if major repairs were needed.

🚗The best defense is regular maintenance to prevent small issues from escalating into bigger, more costly problems down the road. Keep up with vacuuming, washing and detailing to protect and preserve your ride. That way, wear and tear won't leave you out of pocket if an insurable accident did occur.

👉 Looking for a car loan? ITP offers a variety of car loans suitable for your needs. Click here for more” https://buff.ly/3EyRujb

ATO data matching involves the ATO collecting information about taxpayers from various sources like employers, banks, super funds, and sharing economy platforms. They then compare this third party data against the income and details reported in individual tax returns.
Some key points about ATO data matching:

🧐 The ATO collects data from sources like your employers (payment summaries), banks (interest and dividends earned), health funds, rental property managers, rideshare platforms, and super funds.

🧐 This third party data is matched against the information in your tax return to check for any discrepancies or unreported income.

🧐 Organizations are legally required to report payment information to the ATO, so your financial transactions are not considered private. The ATO has expanded data collection to include overseas institutions as well.

🧐 Common examples of income that may be uncovered include cash jobs, rental income, capital gains, sharing economy earnings like Airbnb or Uber, and income from small businesses.

🧐 If unreported income is identified, the ATO will contact you requesting further information. Penalties like back taxes, fines, and interest may apply depending on the circumstances.

🧐 It's best to avoid issues by reporting all your income accurately in your tax return in the first place. But you can make voluntary disclosures to the ATO if you realize you've underreported something.

🧐 ATO data matching aims to promote tax compliance by identifying unintentional or deliberate errors and omissions in tax reporting. It allows them to "follow the money trail."

🚨 Latest Changes to Superannuation in the National Employment Standards🚨

The landscape of employee entitlements in Australia has seen a significant update with the recent enactment of the Fair Work Legislation Amendment (Protecting Worker Entitlements) Act 2023. This pivotal legislation has introduced a new dimension to the National Employment Standards (NES) by incorporating a specific provision for superannuation rights.

Previously, employers were mandated to contribute to their employees' superannuation funds to avoid the superannuation guarantee charge as stipulated by the Superannuation Guarantee Charge Act 1992. The latest amendment to the Fair Work Act 2009 fortifies this requirement by embedding it within the NES. This integration ensures that adherence to superannuation laws is synonymous with compliance with the NES, thereby simplifying the obligations for employers.

The inclusion of superannuation within the NES is a strategic move to provide a broader spectrum of employees with a legally enforceable superannuation claim. Before this amendment, only those employees under a modern award or enterprise agreement with specified superannuation contributions could seek legal recourse, including the option to file a claim in the small claims court. Now, the scope of protection is extended, allowing more workers to assert their right to superannuation, with the possibility of enforcement by employee organizations or Fair Work Inspectors.

👉 Implications of the Legislative Update
The scope of employees who can now legally challenge unpaid superannuation has broadened significantly. This means that a greater number of employees within the national system can approach the courts to address issues of unpaid superannuation.

While the Australian Taxation Office (ATO) retains the primary role of overseeing compliance with the superannuation guarantee and related duties, employees are expected to continue reporting any discrepancies in superannuation payments to the ATO. The Fair Work Ombudsman will maintain its capacity to refer cases of unpaid superannuation to the ATO and, where necessary, will act in a supportive capacity to the ATO by addressing unpaid superannuation under the new NES provision, as well as under the terms of modern awards, enterprise agreements, or other industrial instruments.

Employees are precluded from seeking recovery of unpaid superannuation through the courts if the ATO has already initiated legal action to reclaim those specific unpaid amounts.

👉 Commencement of the New Provisions
The revised provisions have taken effect from 1 January 2024. This commencement date is strategically chosen to coincide with the quarterly schedule that employers must adhere to for making superannuation contributions on behalf of their employees, as required by superannuation legislation to avoid the superannuation guarantee charge. This synchronization ensures a seamless transition and adherence to the updated legal framework for both employers and employees.

For more information on the Protecting Worker Entitlements package visit: https://buff.ly/486x3sh