The ATO has recently expressed concerns about the increase in claims by taxpayers for certain work related expenses, including clothing and laundry expenses, and has advised that it is an area where it will be “increasing attention, scrutiny and education”.
It has also reminded taxpayers that to be eligible for a deduction, clothing needs to be occupation-specific, protective, or a uniform that is unique to the organisation for whom the taxpayer works.
It is not correct that taxpayers can claim a standard deduction of $150 without spending money on appropriate clothing or laundry. While record-keeping requirements for laundry expenses are “relaxed” for claims up to the $150 threshold, taxpayers do need to be able to show how they calculated their deduction.
Category: Tax
Simpler BAS
The Government and the ATO have heralded this a big reduction in red tape for small business but for most it will be the dropping of one number only. The total purchases figure, which you will probably need to have calculated to work out how much GST you paid suppliers.
From 1 July 2017, Simpler BAS is the default reporting method for small businesses with a GST turnover of less than $10 million. They have less GST information to report on their BAS.
Small businesses only need to report:
- G1 Total sales
- 1A GST on sales
- 1B GST on purchases
The following GST information is no longer required:
- G2 Export sales
- G3 GST-free sales
- G10 Capital purchases
- G11 Non-capital purchases
Simpler BAS does not affect how other taxes are reported (eg PAYG income tax instalments or PAYG tax withheld), or how often you lodge your BAS.
You still need to keep records, such as tax invoices, as proof of any claims you make in your BAS and income tax return lodgements.
This short video provides an overview of Simpler BAS.
ATO providing financial education resources for schools
The ATO is helping teachers add tax and super to their classes this year with dedicated educational resources.
In partnership with the Australian Curriculum, Assessment and Reporting Authority (ACARA) and the Australian Securities and Investment Commission (ASIC), the ATO has developed resources that align to the Australian Curriculum for students in years seven to 10.
“Understanding tax and super is an important skill for young Australians, and we are pleased it is now part of the Australian curriculum,” Assistant Commissioner Kath Anderson said.
“We want to make it easy for teachers to help their students learn about the tax and super system, so we’ve designed a range of resources for them to use which are available from our website. Teachers can learn about how our resources align to the Australian Curriculum through ACARA’s new Curriculum Connections.
“Our educational resources include Tax Super and You, an online teaching resource containing lesson plans and interactive activities, as well in-school visits, webinars and videos.
ATO staff are also available to conduct school visits and webinars to cover a range of topics including tax file numbers, preparing for work, how to lodge tax returns, and how to use our teaching resources.
Ms Anderson said the ATO can also tailor presentations for students upon request.
For more information about Curriculum Connections, visit resources.australiancurriculum.edu.au/curriculum-connectionsExternal