J.A.P TAXATION

From 1 July 2019 , if taxpayers do not meet their PAYG withholding and reporting obligations, they will not be able to claim a tax deduction for payments: ·       of salary, wages, commissions, bonuses or allowances to an employee; ·       of directors’ fees; ·       to a religious practitioner; ·       under a labour hire arrangement; or ·       made for services where the supplier does not provide their ABN. The main exception is where you realise there is a mistake and voluntarily correct it before the ATO begins a review or audit. In these circumstances, a deduction may still be available if you voluntarily correct the problem but penalties may still apply for the failure to withhold the correct amount of tax . There is also an exception for situations where you make payments to a contractor but then later realise that they should have been ...

If you have: ·       A total superannuation balance below $500,000 as at 30 June; and ·       Not utilised your entire concessional contributions cap ($25,000) for the year then you can ‘carry forward’ the unused amount on a rolling 5 year basis. For example, if your total concessional contributions in the 2018-19 financial year were $10,000 and you meet the eligibility criteria, then you can carry forward the unused $15,000 over the next 5 years . You may then be able to make a higher deductible personal contribution in a later financial year. If you are selling an asset and likely to make a taxable capital gain, a higher deductible personal contribution may assist in reducing your tax liability in the year of sale. Remember: ·          Your total superannuation balance must be below $500,000 as at 30 June of the prior year before you utilise any carried forward amount (wi...