Please find below tax updates and deduction tips for this week.
- Important tax law changes to professionals: Professional firm profit allocation arrangements will need to be changed to be in compliance with the new ATO requirements. Read below link on how ATO is engaging with individual professional practitioners to assess and mitigate the risks of profit allocation arrangements. This Guideline applies to relevant arrangements within professional firms including, but not limited to, those providing services in the accounting, architectural, engineering, financial services, legal, medical and management consulting professions. You can find more details in this ATO link: Professional firm profit allocation arrangements
- Don’t forget to claim masks & hand sanitizers during COVID: During COVID ATO allows tax payers to claim deductions on masks or hand sanitizers (as PPE items). You can find more details in this ATO link: Protective items, equipment and products. We are still in the middle of COVID. You might want to start keeping written evidence (such as receipt) to support your claims for this current tax year.
- ATO Scam Alerts: Do you know you could lose thousands or tens of thousands of dollars if a scammer have your private information? So be very careful with your personal details, especially your TFN and DOB. Recently there are a high number of scams pretending to be ATO and try to extract information from victims. You can click on this ATO link to find common scams: Scam alerts. In the meantime, when you engage a tax accountant to help you, check out what cyber protection systems they are using to protect you.
P.S.: Apart from advanced fire wall and antivirus software, at Impact Taxation & Financial Services, we also use Practice Protect to protect login information for all our operating systems, and Karbon to exchange information with our clients. So if you are our client, you are already protected to the top level.
CPA, RTA, SAPEPAA