Already Broken Your New Year's Financial Resolutions?

Are you having trouble keeping your new year's financial resolutions?

At a glance: According to a BankWest survey, one in five Australians will have broken their New Year's financial resolutions by Easter.

BankWest have conducted a survey that has shown that at the start of the year, about half of Australians had set themselves a financial goal. The survey showed that some people making New Year's financial resolutions intended to either start saving or increase their savings while others were looking to reduce debts and curb their spending.

However, the survey has revealed that one in five Australians find it difficult to keep their financial resolutions due to higher interest rates, increasing rents and higher priorities. According to BankWest head of marketing and products, David Rose, the key is sticking to a habit of putting a little bit away on a regular basis. Mr Rose said, "Starting and maintaining the discipline is crucial. If you do it month after month, you clear the debt and build up nest eggs."

BankWest will be launching a new section on its website www.getsaving.com.au to provide visitors with tips on how to meet their financial goals.

Remember: You should check and see whether or not you are meeting your financial goals. Speak to your financial advisor about ways of starting and maintaining the discipline of saving more and spending less. Contact us if you require any clarification or advice.

Compliance Assistance For SMSF Trustees

Are you a trustee or member of a Self Managed Superannuation Fund [SMSF]?

At a glance: Assistant Deputy Commissioner of Taxation, Mr Ian Read, has given an overview of the Tax Office's role in helping self managed superannuation funds comply with their legal obligations.

In a recent speech, Mr Read highlighted that Self Managed Superannuation Funds are now the largest superannuation market segment, both in terms of funds and assets.Mr Read said that the Tax Office was working hard to provide the best education and advice to trustees by providing various publications for trustees of SMSF's, revamping the SMSF section on the Tax Office website and publishing public rulings, determinations and taxpayer alerts specific to the SMSF's.The Tax Office has recently issued a taxation ruling on the residency of an Australian super fund, and has sent 330 letters to trustees of SMSF's that may be at risk of not meeting the definition of an Australian super fund.

The Tax Office is increasing its SMSF compliance activities and targeting risk areas in the superannuation system such as non-arm's length transactions and failing to comply with the limits for superannuation contributions.

Remember: Please ensure you are aware of your responsibilities as trustee of an SMSF and be aware of the ATO's assistance in ensuring you comply with your legal obligations. Contact us if you require any clarification or advice.

Take Off And Holiday With A GST Refund In Your Pocket

Are you a tourist or an Australian resident travelling overseas?

At a glance: The Tourist Refund Scheme [TRS] enables travellers to claim a refund for tax paid on goods purchased in Australia.

Taxpayers travelling overseas, regardless of whether they are Australian residents or not, are entitled to a refund of any Goods and Services Tax [GST] and Wine Equalisation Tax [WET] paid on eligible goods purchased in Australia.

To be eligible to claim the refund, taxpayers must:

- have spent at least $300 in one store and get a single tax invoice;

- buy eligible goods not more than 30 days before departure;

Subject to some exceptions, taxpayers are entitled to the refund for goods worn and/or carried on to the aircraft or ship as hand luggage when they leave Australia.The GST refund amount is 1/11th of the total amount of the purchase; while the WET refund is 14.5% of the total amount paid for the wine. Claims for the TRS refund can be made at Customs TRS facilities at most Australian international airports and cruise liner terminals.

The following items should be presented when making a TRS refund claim:

- The goods purchased;

- Original tax invoice totalling $300 or more;

- Passport; and

- Boarding pass or any other proof of travel.

Remember: You should be aware of the TRS If you are going to travel - Overseas travellers can claim a refund for the tax paid on goods purchased in Australia. Contact us if you require any clarification or advice.

NSW Payroll Tax Cuts

Are you an employer in NSW?

At a glance: The New South Wales [NSW] Government has confirmed that it will permanently reduce payroll tax rates in a bid to stimulate the NSW economy.

The NSW Government has confirmed that it will permanently reduce payroll tax rates in order to support the NSW economy over the next 4 years. The gradual reductions in payroll tax rates are effective beginning January 1, 2009 as follows:

 

a. From 6% to 5.75% from January 1, 2009

b. From 5.75% to 5.65% from January 1, 2010

c. From 5.65% to 5.50% from January 1, 2011

 

In addition, the payroll tax threshold was increased to $623,000 from July 1, 2008. This threshold will be indexed annually to be in line with the Consumer Price Index. According to the NSW Treasurer, businesses with a $1m payroll in 2008/09 will save approximately 20% on their payroll tax bill as a result of the new reduced payroll tax rates and indexed threshold.

Remember: - Ensure you are aware of the three stage reductions to the NSW payroll tax rates over the next 4 years. Contact us if you require any clarification or advice.

Tax Office Talks Trust Cloning

Are you looking to transfer an asset between trusts?

At a glance: The Tax Office has recently addressed the criteria that must be met in order to access the Trust Cloning CGT exemption.

Trust Cloning refers to the Capital Gains Tax (CGT) exemption that is available where an asset is transferred between two trusts and the beneficiaries and terms of the trusts are the same. In a recent speech, Second Tax Commissioner Bruce Quigley said the Tax Office acknowledged that there were contentious issues regarding the strictness of the test of sameness that must be met in order to access this exemption. These issues include the requirement that both trusts have the same appointers and make the same family trust or interposed entity election in respect of the same test individual or family group. As such, the Tax Office has recommended funding for suitable test cases on these issues to assist taxpayers when accessing the Trust Cloning CGT exemption.

However, until these test cases are heard, taxpayers in doubt are advised to apply for a private ruling before transferring an asset to a cloned trust.

Remember: You must be aware of the requirements for the CGT exemption to apply as the criteria that must be met for the Trust Cloning CGT exemption is very strict. Contact us if you require any clarification or advice.

Capital Gains Tax: What is meant by the Phrase 'At Least 12 Months Before'?

Are you a taxpayer who has made a capital gain after 11.45am on September 21, 1999 or a taxpayer who holds Capital Gains Taxable assets?

At a glance: A Capital Gain is only eligible for a Capital Gains Tax (CGT) Discount if the CGT asset being disposed of was acquired at least 12 months before the date of disposal.

A Capital Gain is only eligible for a Capital Gains Tax (CGT) Discount if the CGT asset being disposed of was acquired at least 12 months before the date of disposal (Click here for more information on the CGT discount). According to the Tax Office, the use of the words 'at least' requires a clear period of 12 months to expire between the acquisition of the CGT asset and the date of disposal. As such, a period of 365 days must elapse between the day on which the asset was acquired and the day on which the asset was sold/disposed of.

For example, an asset purchased on February 2, 2001 will qualify for the discount if it was sold on or after February 3, 2002. Note that for years in which the month of February has 29 days, there must be 366 days between the date of acquisition and the date of disposal.

Remember: You may be able to reduce the CGT payable on the sale of an asset by holding the asset for more than 12 months and meeting the other eligibility criteria and be aware of the requirements for the CGT discount. Contact us if you require any clarification or advice.

Pension Phase Self-Managed Superannuation Funds - Treatment of Capital Gains and Losses

Are you a trustee or member of a self-managed super fund?

At a glance: A publication called "Self-Managed super funds and tax exemptions on pension assets" has been released by the Tax Office to provide guidance on the tax treatment of capital gains and losses for self managed superannuation funds in pension phase.

Generally, ordinary income and statutory income earned by a superannuation fund from assets held to provide for pensions is exempt from income tax. Generally, where the assets having the sole purpose of paying the pensions have been set aside from all the other fund assets, a capital gain or loss resulting from the disposal of one of these assets can be disregarded.Net capital losses from these segregated assets cannot be used to offset any other capital gains earned by the SMSF.

For SMSF's with unsegregated pension assets, all the funds capital gains and losses are calculated each year and any net capital gain or loss must be added to any other assessable income of the fund before working out how much of the income is exempt from tax as per the actuarial certificate.

Click here for a copy of the guide and to visit the ATO website at http://www.ato.gov.au.

Remember: Ensure you are aware of the exemptions available for superannuation funds in pension phase and the tax treatment of capital gains and losses for SMSF's in pension phase. Contact us if you require any clarification or advice.

A Blow for Superannuation Co-contributors

Are you an individual who is making personal eligible superannuation contributions?

At a glance: In the recently released 2009 Federal Budget, the government has announced they will cut the amount of their co-contributions to superannuation until the 2014/15 year.

The Superannuation co-contribution scheme was introduced by the federal government to assist eligible individuals in saving for their retirement by matching their personal superannuation contributions. Since the 2007 budget the government has been matching eligible contributions at 150% meaning that for every eligible $1 contributed the government co-contributed $1.50. In the recently released federal budget for 2009 the government announced it will be cutting this matching rate as of June 30, 2009.

 The adjusted superannuation co-contributions rates from July 1, 2009 will be:

- 100% until the end of the 2011/12 income tax year, with a maximum co-contribution of $1000, reduced by 3.333 cents for each dollar by which the person's income exceeds the shade out threshold.

-  125% for the 2012/13 and 2013/14 income tax years, with a maximum co-contribution of $1,250, reduced by 4.167 cents for each dollar by which the person's income exceeds the shade out threshold.

- Return to 150% from the 2014/15 tax year and onwards, with a maximum co-contribution of $1,500, reduced by 5 cents for each dollar by which the person's income exceeds the shade out threshold.

Remember: The reduction in government co-contributions to superannuation is only temporary. You should understand how the cut in co-contributions may affect your superannuation planning. Contact us if you require any clarification or advice.

Bringing the Old Briefcase Back In Fashion

Are you an Employer who provides fringe benefits to your employees?

At a glance: In a recent meeting, the FBT Subcommittee has highlighted the definition of "briefcase" for FBT purposes.

The Fringe Benefits Tax Legislation provides an exemption from Fringe Benefits Tax [FBT] for certain work related benefits provided to an employee provided they are used primarily in the employees employment. In a recent meeting, members of the Fringe Benefits Tax [FBT] subcommittee discussed the meaning of "briefcase" as it relates to the FBT administration and how to determine whether the item is "primarily used for work related purposes".

The Tax Office uses the Macquarie Dictionary which defines briefcase as "a flat rectangular case or other material used for carrying documents, books, manuscripts etc". The Tax Office advised that the exemption does not extend to other forms of bags that may be used in employment such as satchel bags, wheeled business cases, laptop bags etc.

The Tax Office also advised that the time for ascertaining whether a benefit is used primarily in the employee's employment is the time when the benefit is first provided. Generally, this means that the benefit should be provided with the intention that it will be primarily used for work purposes.

Click here for the detailed minutes of the FBT subcommittee meeting and visit the ATO website at http://www.ato.gov.au.

Remember: You must ensure you are aware of the FBT Exemption for work related items. Contact us if you require any clarification or advice.

Government Triples the Temporary Investment Allowance

Are You a Small or General Business Owner?

At a glance: The Government recently announced a 30% temporary business tax break to support the economy.

The Government has announced the Small Business and General Business Tax Break, under which small and general business owners can claim additional tax deductions. This replaces the 10% temporary investment allowance which was announced by the Government in December 2008 [Click here for more information].

For small businesses with annual turnover of $2 million or less, the new investment allowance allows for a 30% tax deduction on all eligible purchases that meet the minimum $1,000 threshold. All other business can receive the same deductions for eligible assets costing greater than $10,000. The additional tax deduction is calculated as 30% of the cost of the depreciating asset, to the extent that it will be used for a taxable purpose in carrying on a business. For example, a small business that buys and installs a $2,000 computer can claim an additional $600 tax deduction.

The 30% deduction is in addition to the tax deductions available for depreciation under Div 40 of the Tax Act.

To qualify for the investment allowance, the following requirements must be satisfied:

a. The taxpayer must start to hold the asset under a contract entered into between December 13, 2008 and June 30, 2009;

b. The asset must be in use or installed ready for use by June 30, 2010;

c. The asset must qualify for deductions for decline in value under Div 40 (capital allowances provisions) and must be used in Australia;

d. For assets that are partly used for private or non taxable purposes, only the portion that is used for a taxable purpose in carrying on a business will qualify for the 30% investment allowance.

Eligible assets purchased from July 1, 2009 to December 31, 2009 will only qualify for a 10% deduction. Full details of the new investment allowance are available by clicking by visiting the Treasurers website at http://www.treasurer.gov.au

Remember: You must be aware of the new small business and general business tax break and the requirements of the new investment allowance. Contact us if you require any clarification or advice.

Education Tax Refund for Approved Care Organisations

Are you associated with an Approved Care Organisation?

At a glance: Approved Care Organisations (ACOs) are entitled to claim the education tax offset for eligible education expenses that have been incurred on primary or secondary school children in their care. Approved care organisations (ACOs) can claim the education tax refund for eligible education expenses that have been incurred for each child in primary or secondary school in their care. To claim the Education Tax Refund, ACOs must be entitled to receive family tax benefit part A for primary or secondary school children in their care. Eligible families and ACO's can claim a refund of up to 50% of eligible expenses with a maximum of $750 [a refund of up to $375] for primary school students and $1,500 [a refund of up to $750] for students in secondary school.

Expenses that are eligible for the Education Tax Refund include:

- Laptops, home computers and associated costs, - Internet connections, - Stationary and text books

Eligible education expenses do not include expenditure on school fees, school uniforms and school excursions.

Any excess in eligible education expenses above the limits can be carried forward to the following year, up to the maximum of one year, on the condition that the children still meet the eligibility requirements in the following year. Receipts or records of any expenditure must be maintained to substantiate any claims for the Education Tax Refund.

For more information please click here and visit http://www.ato.gov.au.

Remember: You may be entitled to claim a refund of half the eligible expenditure incurred on the education of a child in your residential care, subject to limits. So you should be aware of the Education Tax Refund. Contact us if you require any clarification or advice.

Donations to Victorian Bushfire Relief Efforts

Are you intending to assist those affected by the Victorian Bushfires or Queensland Floods?

 In an effort to encourage taxpayers to donate, the Tax Office has announced that taxpayers will be able to claim a deduction in their 2008-09 income tax returns without the usual requirement to keep a receipt for donations of $10 or less made to victims of the Victorian Bushfires and Queensland floods. Taxpayers who make donations over the internet or by phone of more than $10 need only use their web receipt or credit card statement to substantiate their claim.

 Donations collected through third parties such as banks and retail outlets will be treated in the same way.

 The Tax Office will be releasing further information about how it intends to help people directly affected by these natural disasters with any tax issues.

 Affected taxpayers seeking more information or assistance regarding their tax affairs can call the Tax Office on 13 28 61.

 For more information on other natural disaster relief measures that have recently been announced or proposed, visit the ATO website at www.ato.gov.au.

 Remember: Ensure you are aware of the relief available if you are affected by the Victorian Bushfires or Queensland floods.

National Awareness Campaign - Taxpayers Beware

Are you a taxpayer?

The Tax Office has commenced a national awareness program that is aimed at assisting taxpayers protect themselves against promoters who market 'dodgy tax schemes'.Under the program the Tax Office aims to inform taxpayers about investigating the tax planning and avoidance schemes and how to recognise and report these types of schemes.

 According to the Tax Office, taxpayers should do the following before committing themselves to an investment or tax scheme:

a. Check the promoters' license details at http://www.fido.gov.au;

b. Contact ASIC if they haven't received a product disclosure statement or prospectus;

c. Get independent financial advice from a recognised professional;

d. Check Tax Office rulings on the ATO website, and;

e. Contact the Tax Office about dodgy tax schemes.

 Details regarding the awareness program can be found online and consist of two brochures:

a. For "Tax Planning - investigate before investing" click here,

b. For "Recognising and reporting tax avoidance schemes" click here.

 For more information you can visit the Tax Office website at http://www.ato.gov.au

Remember: - You should seek professional advice prior to investing in tax schemes.

Luxury Car Tax Refunds

Are you a primary producer or tourist operator?

At a glance: The Australian Taxation Office has announced that most primary producers and tourist operators can claim refunds of the increase in Luxury Car Tax (LCT) on eligible cars.

You should consider whether you are eligible to claim the LCT refund or contact us if you require any clarification or advice.

The Luxury Car Tax (LCT) is a levy imposed on vehicles with a GST inclusive price exceeding the car depreciation limit.

For the 2008/09 financial year, the car depreciation limit is $57,180.

The LCT for the 2008/09 financial year is 33%, up from 25% in the 2007/08 financial year [Click here for more information].

From July 1, 2008 most primary producers and tourist operators will be able to claim refunds relating to the increase in LTC on certain luxury cars.

The maximum claimable refunds are as follows: a. Primary producers can claim a refund of up to $3,000 for one eligible car in a financial year; and b. Tourism operators can claim a refund of up to $3,000 for each eligible car in a financial year.

Eligible taxpayers can claim the LCT refund by completing the form Application for luxury car tax refund - for primary producers and tourism operators.

For more information on the LCT refund, click here and visit the ATO website at http://www.ato.gov.au.

Remember to check if you are eligible to claim refunds of the increase in Luxury Car Tax.

Are You Eligible For The HECS-HELP Benefit?

Are you a recent graduate with a HELP debt?

At a glance: The Australian Taxation Office has provided details in relation to the proposed HECS-HELP benefit for eligible graduates and education teachers.

You should consider whether you are eligible for the HECS-HELP benefit or contact us if you require any clarification or advice.

 The proposed HECS-HELP benefit is available to eligible maths or science graduates or early childhood education teachers who have a debt under the Higher Education Loan Programme (HELP).

The HECS-HELP benefit aims to reduce the eligible taxpayer's:

 a. Compulsory HELP repayment included on their notice of assessment; or b. Accumulated HELP debt if they are an early childhood education teacher who does not have to make a compulsory HELP repayment.

To be eligible, taxpayers must meet the eligibility requirements relating to their:

 a. Course of study; b. Occupation; c. Work location (for early childhood education teachers only), and d. HELP debt status.

The maximum annual benefit has been set at $1,500 for maths and science graduates and $1,600 for early childhood education teachers. The benefit amount, which will be indexed annually, also depends on the number of weeks you were employed in an eligible occupation and location.

For more information on the requirements, click here and visit the ATO website at http://www.ato.gov.au.

Taxation Treatment of Capital Protected Borrowings

Are you an investor in capital protected products?

At a glance: A guide has been released by the Tax Office to explain the taxation treatment of capital protected products and borrowings.

You should understand how capital protected products are treated for tax purposes or contact us if you require any clarification or advice.

Capital protected borrowings are borrowings usually associated with the purchase of shares in a company, units in a trust or stapled securities such as instalment warrants, where the underlying asset is protected from a fall in value. The purchased securities are then used as security for the borrowings.

The key issues highlighted in the guide include:

 

- What are capital protected products and borrowings?;

- How are capital protected products and borrowings treated?;

- Capital protected products - change to benchmark interest rate.

 

Click here for a copy of the guide at the ATO website at http://www.ato.gov.au

Remember, ensure you are aware of how capital protected products are treated for taxation purposes.

Education Tax Refund - Been Keeping your Receipts?

Are you a parent and entitled to Family Tax Benefit Part A?

At a glance:  - The Government has issued a reminder to taxpayers of the Education Tax Refund and has again advised parents to keep the receipts of all amounts spent on their children's education expenses.

The Education Tax Refund is designed to support parents by offering refunds of their children's education expenses of up to:

a. $375 per year for primary school students; and b. $750 per year for secondary school students.

Eligible families will be able to claim a deduction of up to 50% of the expenses with a maximum of $750 for primary school students and $1,500 for secondary school students. Eligible expenses include but only:  a. Laptops, b. Home computers and associated costs, c. Home internet connections, d. Printers, e. Education Software, f. Trade tools for use at school, and g. Stationery and school text books.

Parents can claim a deduction for these education expenses in their income tax returns at the end of the financial year.

Separate claim forms are available from the Australian Taxation Office at http://www.ato.gov.au. All receipts must be kept as documentary evidence.

Remember: You may be entitled to a deduction for your children's education expenses.

Everything You Need to Know About "Market Value"

Are you Required to determine the market value of something for taxation purposes?

At a glance: The Tax Office has released a guide to assist taxpayers and their advisers on the processes to establish a market value for taxation purposes.

Under tax law, many taxpayers are required to ascertain the market value of items for taxation purposes.

For example, market valuation is required for the following situations:

Taxpayer -  Situation Requiring Market Valuation

Individuals -  Transfers of real estate or shares between related parties

Employees - Non-cash benefit transactions

Small Businesses - Transfers of assets to related parties,

Asset threshold tests for Capital Gains Tax concessions

Property Developers - GST margin scheme

All Taxpayers - Many anti-avoidance provisions

 

The guide, titled "Market Valuation for Tax Purposes", provides guidance on commonly valued things and supplements other advice and guidance provided on valuations.

The guide is split into 6 parts, as follows:

a) Market value for tax purposes, b) Real property and plant and equipment, c) Business valuations, d) Valuation Reports, e) Allocating value to underlying assets, and f) Tax Office processes

 

"Market Valuation for Tax Purposes" can be accessed here, at http://www.ato.gov.au

Remember, you must understand the process to establish the market value of an item for tax purposes or contac us for further clarification and advice.

 

Tax Bonus Eligibility Extended for Disaster Victims

Are you a taxpayer affected by the disasters?

The Australian Taxation Office (ATO) has announced that victims of the recent bushfires and floods who have failed to lodge their tax returns on time will still be eligible for the stimulus package.

You must be aware of the tax Bonus & contact us if you require any clarification or advice.

The Commissioner of Taxation has confirmed that those affected by the recent Victorian bushfires and Queensland floods will not miss out on the Federal Government's stimulus package even if they fail to lodge their 2007/08 tax return on time.

The tax bonus is a one off cash bonus of up to $900 for eligible taxpayers earning less than $100,000 per year.

Taxpayers must lodge their 2007/08 income tax return by June 30, 2009 to be eligible for the tax bonus [click here for more information].

The ATO has announced that those who have been affected by the recent disasters will be granted an additional 12 months to lodge their 2007/08 income tax return without losing their eligibility for the tax bonus. 

The Tax Office will commence making the tax bonus payments to eligible taxpayers from April 6, 2009.

For more information on other natural disaster relief measures that have recently been announced, visit the ATO website at http://www.ato.gov.au.

Remember - Ensure you are aware of the assistance available if you have been affected by the recent bushfires and floods disasters.

Personal Services Income Data Matching Program

Are you a taxpayer who has received contract payments?

The Tax Office has recently announced that it has commenced a personal services income [PSI] data matching project. You must be aware of the ATO's data matching projects & contact us if you require any clarification or advice.

The Tax Office has announced it has commenced a personal services income data matching project in which records of approximately 30,000 individuals and entities will be reviewed.

 

Under the project, the records of entities and individuals who have received contract payments will be matched against information collected from labour hire firms, placement agencies and computer consultancy firms. Some of the firms include:

 

-      Adecco Holdings Pty Ltd                         - Aker Kvaerner Advantage Pty Ltd

-      Brunel Technical Services Pty Ltd               - Chandler Macleod Group Pty Ltd

-      Collective Resources I.T Recruitment Pty Ltd    - Clarius Group Pty Ltd

-      Dare Holdings Pty Ltd                           - Drake Australia Pty Ltd

-      Entity Solutions Services Pty Ltd               - Greythorn Pty Ltd

-      Hays Specialist Recruitment (Aust) Pty Ltd      - HR Connect Pty Ltd

-      Hudson Global Resources (Aust) Pty Ltd          - Infosys Technologies Australia Pty Ltd

-      Labourforce Solutions Pty Ltd                   - Link Recruitment Pty Ltd

-      LOGICACMG Pty Ltd                               - Manpower Services (Aust) Pty Ltd

-      Michael Page International (Aust) Pty Ltd       - Netstar Australia Pty Ltd

-      Paxus Australia Pty Ltd                         - PeopleBank Australia Ltd

-      Randstad Pty Ltd                                - Robert Walters Pty Ltd

-      Ross Human Directions Ltd                       - SAP Australia Pty Ltd

-      Service Stream Communications Pty Ltd           - Service Stream Solutions Pty Ltd

-      Technical Resources Pty Ltd                     - The Trustee for ADAPS Unit Trust

-      The Trustee for Swan Drafting Unit Trust        - Unisys Australia Pty Ltd

-      Unisys West Pty Ltd                             - UXC Ltd

 

The project will enable the Tax Office to identify non-compliance with lodgement and debt payment as well as improve the strategic approach towards its business activities.

For more information on the ATO's data matching initiatives visit http://www.ato.gov.au and remember you must ensure you are aware of the ATO's data matching program on personal services income.

Mining Industry Data Matching Program

Are you a taxpayer contracting to the mining industry?

Recently the Tax Office has announced a data matching program for contractors who provide personal services specifically to the mining industry.

You must be aware of the ATO's data matching projects & contact us if you require any clarification or advice.

The Tax Office is currently undertaking a data matching program which is aimed at contractors who provide their personal services to the mining industry.

 

Under the project, the Tax Office will seek to obtain information from several sources including:

a. Mining companies;

b. Contracting companies in the mining industry; and

c. Labour hire firms that specialise in labour for the mining industry.

 

The Tax Office will only look at payments made to entities such as companies, partnerships and trusts that comprise a reward for personal efforts or skills.nThe Tax Office aims to match the data from various sources against its taxpayer records to identify and address non-compliance with the personal services income rules.

Click here for more information on the ATO's data matching initiatives on Personal Services Income or visit http://www.ato.gov.au.

Remember you must ensure you are aware of the ATO's data matching program on personal services within the mining industry.