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January 2022 Client Alert

We are pleased to supply you with the latest edition of Client Alert, which contains information on a number of important taxation developments up to and including 10 December 2021.

  • ATO Medicare exemption data-matching continues – The ATO has announced the extension of its long-running Medicare exemption statement (MES) data-matching program to cover the 2021–2023 financial years. The MES exempts individuals who are not eligible for Medicare from paying the Medicare levy in their tax returns.
  • Building delays may cost you in more ways than one – With global supply chains and transport routes disrupted due to the effects of COVID-19, there have been building material shortages and construction business collapses. If you’re building or substantially renovating your home, related delays may end up costing you in capital gains tax when you decide to sell.
  • Cryptocurrency scams on the rise – Due to the unregulated nature of cryptocurrency and the recent failure of two Australian exchanges, the space has become a risky free-for-all, with Scamwatch estimating Australians lost around $35 million to cryptocurrency scams in the first half of 2021. If you’ve been scammed, you may be able to claim a capital loss deduction.
  • Take care with small business CGT concessions – Recently, some larger and wealthier businesses have mistakenly claimed small business capital gains tax (CGT) concessions. The ATO urges all businesses applying the concessions to re-check their eligibility.
  • ATO concerns on luxury car tax – The ATO is investigating certain arrangements where entities on-sell luxury cars without remitting the requisite luxury car tax (LCT) amounts. LCT doesn’t just apply to dealers selling cars; it also applies when a business sells or trades in a car that is a capital asset.
  • Up and coming changes to super – Recently, a number of significant superannuation changes were proposed in Parliament as a part of the government’s plan to enhance super outcomes for Australians.
  • SMSF trustees: reminder to apply for director IDs – Directors of corporate trustees of self managed superannuation funds should be aware that the director identification regime is now in force. Depending when you became a director, the deadline for application is either November 2022 or within 28 days of appointment.

Click here to download our Dec-Jan tax Alert