JUNE 2006 - Practice Update 05.06.2006
Click here to access the June 2006 Practice Update (PDF) >>
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No deduction for fees paid to a psychologist 24.11.2005
The AAT has held that fees paid to a psychologist by a nurse who worked in an extremely stressful work environment were not deductible because treatment for physical or mental health is inherently private in nature (even though it helped him progress......
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GST on long-term non-reviewable contracts 24.11.2005
Long-term non-reviewable contracts that were GST-free during the initial transitional period cease to be GST-free after 30 June 2005. From 1 July 2005, there are three ways to account for GST on a long-term non-reviewable contract:
the supplier pa......
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"LowDoc" loans targeted 24.11.2005
The Tax Office commenced a project last year that investigated people using low documentation (LowDoc) loans on the basis that many people using these products may have either understated their income or failed to lodge income tax returns.
This ye......
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Planning opportunity: The otherwise deductible rule and joint loans 24.11.2005
The Tax Office has recently confirmed the existence of a planning opportunity for couples who own rental properties jointly, especially where one member of the couple has a much higher income than the other member.
A recent Interpretative Decisio......
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Industry norms-an example of how the ATO puts them to use 24.11.2005
As part of its ongoing audit programs, the Tax Office has advised that they use a range of industry norms and ratios that they collect from all activity statements for particular industries. This gives them their `normal' boundaries for different ind......
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ATO 24.11.2005
Editor: Since 2002/03, the Tax Office has released a 'Compliance Program' each year, setting out its specific targets for the coming year. The 2005/06 Compliance Program follows the trend set in previous years, but there are some surprising elements.......
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June quarter CPI 24.11.2005
The Consumer Price Index (CPI) number for the June 2005 quarter is 148.4 (up from 147.5 for the March 2005 quarter).
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Bankrupt has no standing to appeal assessment 24.11.2005
The Federal Court has held that a taxpayer could not apply for an extension of time to appeal against an assessment because, as a bankrupt, he had no standing to appeal.
This is because by being made bankrupt, the taxpayer's interest in his proper......
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GST instalment rollover 24.11.2005
The ATO has issued a reminder to taxpayers that from this year onward, the option to pay GST by instalments rolls over.
As long as a taxpayer remains eligible, they will be sent an instalment notice for each quarter and they simply need to pay th......
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New simplified GST accounting method for food retailers 24.11.2005
The Tax Office has issued a new determination setting out a'Simplified GST accounting method' for food retailers that have "adequate" point of sale equipment.
They have provided it to help taxpayers work out, at the end of their tax period, the a......
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Donations to certain hurricane charities to be deductible 24.11.2005
The Government has announced that donations to certain charities for the purposes of providing relief to victims of Hurricane Katrina in the US will be tax deductible:
• Donations to the Red Cross Hurricane Katrina Appeal; and
• Donations to th......
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How the Tax Office got it wrong 24.11.2005
A number of clients of accounting firms have received letters from the Tax Office telling them they had to produce car log books for claims made in the 2005 income tax year.
The correspondence incorrectly stated that a new log book had to be comp......
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