Tag: records

crypto

Investing in crypto – record keeping requirements

Posted on | by Allan Hall

Crypto asset records you should keep

You need to keep records of each of your crypto assets for each and every transaction (including coin swaps), to work out if you have made a capital gain or loss.

For your crypto assets, you should keep:

  1. receipts when you buy, transfer or dispose of crypto assets
  2. a record of the date of each transaction
  3. a record of what the transaction is for and who the other party is (this can just be their crypto asset address)
  4. exchange records
  5. a record of the value of the crypto asset in Australian dollars at the time of each transaction
  6. records of agent, accountant and legal costs
  7. digital wallet records and keys
  8. a record of software costs that relate to managing your tax affairs.

You need to keep details for each crypto asset as they are separate CGT assets. Keeping good records is essential for meeting your tax obligations, and saves us time when we prepare your tax return.

Tips for protecting crypto asset records

Keeping good records is important as crypto can be volatile. These record-keeping tips may help safeguard you against loss of information, which could happen at any time. Keep these records during the period you hold or transact using crypto:

  1. Export your transaction history regularly (eg every 3 months) to protect you in case of loss of access to your account
  2. Before closing an account, export your complete transaction history
  3. Find a reputable Australian crypto tax calculator – there are free and low-cost services you can use to sync your exchange and wallet accounts
  4. Use a blockchain explorer or contact the crypto exchange’s customer service if you need to recreate lost records.

How long to keep records

Keep records for 5 years from the latter of:

  1. when you prepare or obtain the records
  2. when transactions or acts are complete
  3. the year that the CGT event happens.

You should keep records long enough to cover your amendment period (usually 2 or 4 years) for an assessment that uses information from the record.

Your records must be in:

  1. English or be translatable to English
  2. in writing, however they can be electronic/digital or paper.

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house key

Landlords targeted in expanded ATO crackdown

Posted on | by Allan Hall

ATO Expands Property Management Data Matching Program to Strengthen Tax Compliance

The Australian Taxation Office (ATO) is expanding its Property Management Data Matching Program as part of its ongoing commitment to enhance tax compliance.

This program plays a critical role in identifying and addressing potential discrepancies in rental income reporting, particularly within the property management sector.

Key points

  • Expansion of Data Matching Program: The ATO has expanded its program to better track rental income reporting and ensure tax compliance within the property management sector
  • Enhanced Data Collection: The program now collects more detailed rental data, cross-referencing it with ATO records to identify under-reporting or non-compliance
  • Focus on Compliance: Property owners and managers are advised to maintain accurate records, as the ATO’s enhanced capabilities increase the likelihood of detecting discrepancies.

The Property Management Data Matching Program enables the ATO to collect and analyse a wide range of data from property management agencies across Australia. This includes detailed information on rental income, property expenses and other financial activities related to investment properties. The data collected is cross-referenced with other ATO records to identify cases of under-reporting or non-compliance with tax obligations.

Objective and Scope

The primary objective of the expanded program is to ensure that all property owners and managers accurately report their income and meet their tax obligations. By gathering data from property management software, rental bond authorities and other relevant sources, the ATO can detect inconsistencies between reported income and actual rental earnings. This helps to identify individuals and entities who may be attempting to under-report their income or avoid their tax responsibilities.

Implications for Property Owners and Managers

The program covers a broad spectrum of rental properties, including residential, commercial and short-term accommodations.

Property owners and managers are advised to ensure that their records are accurate and up to date. The ATO’s expanded data matching capabilities mean that discrepancies in rental income reporting are more likely to be detected, leading to potential audits, penalties or other compliance actions.

By leveraging advanced data matching technology, the ATO aims to ensure that all taxpayers meet their obligations. Read more »

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fuel pumps

Changes to fuel tax credit rates

Posted on | by Allan Hall

Fuel tax credit rates for business

Fuel tax credit rates change regularly.

Key points

  • Using the fuel tax credit calculator is the easiest way to work out what you can claim in your business activity statement (BAS), or calculate an adjustment or correction for a previous BAS
  • Before claiming fuel tax credits, check your eligibility to claim using the ATO’s eligibility tool
  • Fuel tax credit rates are indexed twice a year – in February and August – in line with the consumer price index (CPI). The CPI indexation factor for rates from 5 February 2024 is 1.018.

Fuel excise duty was temporarily reduced from 30 March 2022 to 28 September 2022. This reduction applied to excise and excise equivalent customs duty rates for petrol, diesel and all other fuel and petroleum-based products (except aviation fuels). This affected the fuel tax credit rates during that period.

Fuel tax credit rates also change for fuel (liquid fuels such as petrol and diesel, and gaseous fuels such as liquefied natural gas) used in a heavy vehicle for travelling on a public road due to changes in the road user charge.

Rates for biodiesel (B100) will also change each year until 1 July 2030.

Current fuel tax credit rates

For current fuel tax rates, see From 1 July 2024 to 4 August 2024.

Past fuel tax credit rates

There are time limits for claiming fuel tax credits or making adjustments and correcting errors. You need to claim your fuel tax credits within 4 years of the due date of the earliest BAS in which you could have made your claim. If you don’t claim the credits within that time, you’ll no longer be eligible to claim them. Use the fuel tax credit calculator to work out the amounts for your BAS up to 4 years ago.

Always keep accurate records to support your claims:

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car buying private or business

Changes to car thresholds from 1 July

Posted on | by Allan Hall

The following car threshold amounts will apply for the 2024–25 financial year.

Income tax

  • The car limit for 2024–25 is $69,674. This is the highest value you can use to calculate depreciation on a car where both of the following apply:
    • you use the car for business purposes
    • you first use or lease the car in the 2024–25 income year.
  • As a business owner, you can claim a tax deduction for expenses for motor vehicles you use for business purposes.
  • If you use a motor vehicle for both business and private purposes, you can only claim a deduction for the business part. You must be able to show the percentage you claim as business use and have records to support your claim.

Goods and services tax (GST)

  • If you buy a car and the price is more than the car limit, the maximum GST credit you can claim (except in certain circumstances) is one-eleventh of the car limit. For the 2024–25 income year, the maximum GST credit you can claim is $6,334 (that is, 1/11 × $69,674).
  • You can’t claim a GST credit for any luxury car tax you pay when you buy a luxury car, even if you use it for business purposes.

Luxury car tax (LCT)

  • The LCT threshold for 2024–25 is:
    • $91,387 for fuel-efficient vehicles. This is in line with an increase to the motor-vehicle purchase sub-group of the Consumer Price Index (CPI)
    • $80,567 for all other luxury vehicles, in line with an increase in the ‘All Groups’ CPI.

If you’re looking to buy a luxury car, remember to be cautious of those who offer to buy one from a dealer on your behalf at a discount. This may be a scheme to evade LCT. You may be at risk if they don’t have the right insurance or if the car is damaged or defective.

To find out more about LCT, including when you need to apply it and what’s included in the LCT value of a car, visit the Luxury car tax page on the ATO’s website.

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cash in a hessian sack

SMSF record-keeping best practices

Posted on | by Allan Hall

ATO reminds SMSFs to keep good records

How self-managed super fund (SMSF) trustees can meet their responsibility to keep accurate tax and super records.

Keeping good records

Keeping good records is more than just knowing which records to keep and for how long. It involves having a system for organising and maintaining records that makes it easier for you, and any SMSF professional you use, to:

  • complete the fund’s independent audit each year
  • lodge your fund’s annual return.

It may also help reduce audit and administration costs for your fund.

To help keep your records organised, you may want create separate files for your fund’s more permanent records, and for records that relate to a specific financial year.

For example, in your permanent file you may want to keep:

  • the fund’s trust deed
  • the fund’s investment strategy
  • details of the regular reviews of the fund’s investment strategy, including the consideration of insurance for members of the fund
  • reasons for decisions on the storage of collectables and personal use assets
  • minutes of trustee meetings
  • all signed trustee declarations
  • records of trustees consenting to their appointment as a fund trustee
  • records of all changes in fund members and trustees.

As each SMSF is unique, with its own investment strategies to achieve its objectives, you should consult with a professional licensed adviser when setting up a record-keeping system that suits your fund.

Keeping all relevant records together will simplify the process of compiling the records you need to give to your fund’s independent auditor. If your fund regularly holds trustee meetings, you could create a separate folder for them, and sort them by date.

Take minutes of all investment decisions

You should take minutes of all investment decisions, including:

  • why a particular investment was chosen
  • whether all trustees agreed with the decision.

This is because if you, as one of the fund’s trustees, invest the SMSF’s money in an investment that fails, the other trustees could take action against you for failing to be diligent in your duties.

However, if your investment decision was recorded in meeting minutes signed by the other trustees, you will have a record to show that they agreed with your actions.

Signature requirements for financial statements

Under Australia’s super laws, SMSF trustees must sign their SMSF’s financial statements before finalising their annual audit. This includes an operating statement and a statement of financial position which must be signed by the required number of trustees or directors of the corporate trustee.

Minimum record-keeping requirements

The most important reason for keeping good records is that it’s a legal requirement for you to do so. You may also need to provide accurate records to us if we ask to see them.

You need to keep any SMSF records for a minimum of 5 years.

Despite what you may have heard or read elsewhere, you cannot access your super before you retire unless you meet one of the very few exceptions to this fundamental rule of super law. Read more »

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calculator on AUD$

Using business money for private purposes

Posted on | by Allan Hall

2 steps to take

If you use money or assets from your company or trust for private purposes and don’t account for the transactions correctly, there can be tax consequences.

That’s why it’s important to get it right.

Business money and assets you take or use for private purposes can include:

  • salary and wages
  • director fees
  • fringe benefits, such as an employee using the company car
  • dividends paid by the company to you as a shareholder (that is, distribution of the company’s profits)
  • trust distributions if your business operates under a trust and pays you as a beneficiary
  • loans from a trust or company
  • ad hoc drawings or takings
  • allowances or reimbursements of expenses you receive from a trust or company.

If you’ve used business money or assets from a company or trust for private purposes, follow these steps to avoid unintended tax consequences:

  1. Keep accurate records of the transactions, and
  2. Account for the transactions in the company or trust tax return and your individual tax return, if applicable.

Remember, there are different reporting and record-keeping requirements for each type of transaction, so make sure you know how to keep accurate records to suit your circumstances.

You can also practise good record-keeping habits by regularly cross-checking your records against the original documents so you can fix mistakes earlier and monitor your business’s cash flow.

Taxpayers are ultimately responsible for keeping business records and what you claim in your tax returns, however Registered Tax or BAS Agents like Allan Hall on the Northern Beaches can help and advise on your tax.

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discretionary trust income

Trust distribution reminder

Posted on | by Allan Hall

All trustees need to consider their trust distributions for the 30th June 2023

As we approach the end of the financial year all trustees need to be considering their trust distributions for the 30th June 2023.

Trustee minutes document the trustee’s decision in relation to the distribution of income for the financial year, and many Trust Deeds require the decision to be made prior to the end of the financial year.

This is a reminder to make sure you make your determinations before the end of the 30th June, and we provide a download to a pro forma document (below) to help you record the decisions.

This is for recordkeeping purposes, noting the final distribution amounts (based on your percentage (%) distributions) will be determined, once the final 30 June 2023 accounts and tax returns are complete.  It is a record of your decision.

If you have any questions, please contact us on 02 9981 2300.

DOWNLOAD RESOLUTION RECORD FORM (Word doc)
working from home

WFH changes and what the ATO is looking for

Posted on | by Allan Hall

Calculation and record-keeping requirements of your working from home (WFH) deductions may have changed for the 2022-23 income year.

The 80c per hour temporary shortcut method ended on 30 June 2022.

For the 2022-23 income year you may be able to use either the revised fixed rate method or the actual cost method to determine your working from home deductions.

Whilst the actual cost method remains unchanged, the fixed rate method has increased from 52c per hour to 67c per hour.  The revised fixed rate method incorporates the following usage expenses:

  • electricity
  • gas
  • stationery
  • computer consumables, such as printer ink
  • internet
  • phone.

It is not possible to claim an additional deduction for expenses that are already covered by the revised fixed rate method. However, you may be eligible to claim a separate deduction for the depreciation of assets, including items like laptops, mobile phones, and office furniture.

To claim your working from home deductions using the revised fixed rate method, you must be able to provide both:

  • A representative record of the total number of hours worked from home during the period from 1 July 2022 to 28 February 2023.
  • A record of the total number of actual hours worked from home for the period 1 March 2023 to 30 June 2023.

If you choose not to use the fixed rate method, you may be able to use the actual cost method. Please contact your Allan Hall Accountant to assist you in getting the best tax deduction for your personal circumstances.  

Regardless of the method you choose, it is important to maintain accurate and complete records for at least 5 years to support your claims for home-based business expenses.

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family domestic violence

Paid Family and Domestic Violence Leave

Posted on | by Allan Hall

10 Days of Paid Family and Domestic Violence Leave Effective from 1 February 2023 

As of 1 February 2023, all employees of non-small business employers (including part-time and casuals) will be able to access 10 days’ paid family and domestic violence leave (FDVL) in each 12-month period. 

Small business employees can access this paid leave from 1 August 2023. Until then, they are entitled to take unpaid family and domestic violence leave.  

To access this paid leave, in accordance with the Fair Work Act requirements, employees will need to provide notice and show evidence that they require the leave to respond to the impact of family and domestic violence, where it is not practical for them to do so outside of working hours. Employers must accept the evidence, provided that a reasonable person would be satisfied that the employee was entitled to take the leave. 

Important payroll implications for businesses 

  • FDVL is counted and paid as time worked. Therefore, an employer must pay the leave at the employee’s full pay rate (inclusive of incentive-based payments and bonuses, loadings, monetary allowances and overtime).  
  • FDVL is reset annually, meaning it does not accrue and each year on the anniversary of employment, the leave count renews to 10 days.  
  • From February 2023, employers must not include information relating to FDVL on the payslip. This includes the balance of leave and when it was taken. FDVL taken by an employee must be recorded on a play slip as ordinary hours of work or another kind of payment for performing work, such as an allowance, bonus or overtime payment. 
  • The balance of or taking of FDVL cannot be displayed on any employee timesheet and attendance portal. There should also be no email or text trail of an employee applying or being permitted this leave. Businesses should restrict record keeping and communication to in person and in writing (in an employee’s physical file) at the workplace only. This is a big change from usual payroll requirements and is for the safety of the victim, as domestic violence offenders will often have access to the victim’s email, work logins and physical mail. 
  • Written notes between the employer and employee that the employee has signed off on should be securely stored to provide evidence that the business has engaged with the employee and provided access to the entitlement, should a future dispute arise as part of an unfair dismissal or adverse action claim.  

Suggested Actions for Employers  

  • inform payroll about the rules in relation to providing family and domestic violence leave information on payslips
  • review or develop a workplace policy which provides guidance for employees who experience family and domestic violence, in respect to accessing leave or additional support
  • implement an Employee Assistance Program (EAP) to provide an anonymous and confidential forum for employees to express their concerns with trained professionals. 

If you would like further guidance or assistance with developing policies and procedures regarding FDVL, implementing new payroll processes, having difficult conversations with employees, or implementing an EAP, please do not hesitate to contact the team at Allan Hall HR.   

Contact us

Our experienced HR Consultants are available to support you with any employee-related questions. Please get in touch with us today on 1300 675 393 or at [email protected] .