Where is my PAYG Payment Summary?

It’s tax time and everybody is in a hurry to get their tax returns lodged for a nice little surprise refund from the new Low & Middle Income Tax Offset that has recently passed the Parliament and became law.

 

For those who worked as an employee in the 2019 financial year, you may notice that your employer did not provide you with a PAYG Summary (or Group Certificate). Before storming off to the payroll manager and questioning them, it is nice to know that the law has changed: Single Touch Payroll may now apply to your employer’s business. (What is Single Touch Payroll, or STP?)

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Why is my PAYG Instalment so high?

It is (again) time to pay (or vary) your quarterly PAYG Instalment.  A lot of us have received the “pink form” in early July or have received a notification from MyGov that their quarterly PAYG Instalment is available on MyGov.

Some of us would ask:

What is PAYG Instalment, why do I need to pay it?

How did the ATO work out the amount?

Why this quarter’s instalment is much higher than others?

Can I “dial it down” a bit?

Let’s have a look at the What, Hows and Whys.

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Cryptocurrency & ATO Data Matching

We all know that the ATO has the power to request information from third parties to verify information declared in our tax returns.

Some examples are where employers are required to submit their PAYG Summaries, banks are required to advise the ATO of interest earned in bank accounts, health insurers are required to confirm with the ATO the insurance covers and premiums paid for each taxpayer…

Now they have taken this to another level…

Remember in December 2018 when cryptocurrency was a hot topic, where everyone was trying to get in and have a share of the pie?

It is estimated that there are between 500,000 to one million Australians that have invested in cryptocurrency. Because of this, it has been on the ATO’s radar as it is seen to be used to move funds to the black economy, hide money offshore, and is sometimes linked with risks with unexplained wealth and undeclared taxable capital gains.

Recently the ATO announced that they are extending their data-matching program to include Cryptocurrencies.

How do they do that?

They require cryptocurrency designated service providers (DSPs) to provide reports to the ATO on an ongoing basis. The data includes the following:

  • Details of cryptocurrency owners (including details of individuals’ social media accounts)
  • Account and transaction details (including wallet addresses associated with accounts, their unique identifiers, types and amounts in transactions

How will that impact me?

If you have been declaring your cryptocurrency trading/investments in your tax returns – nothing will happen.

If you have been trading/investing in cryptocurrency, especially where you have sold/converted between different cryptocurrencies, you may be contacted by the ATO as you may have omitted declaring these in your tax return. You will be given opportunity to verify the information collected before any compliance action is undertaken.

What do I do now, if I have omitted transactions in my tax return?

You can voluntarily notify the ATO by amending your tax return to include the omitted transaction, the ATO will then prepare an amended assessment where you will be required to pay back the extra tax liability (or receive extra tax refund as a result). If you are having trouble preparing an amendment, Aston is here to help.

Private health insurance – is it worthwhile?

From time to time we get questions from clients where they ask if they should have private health insurance. While it is a very personal decision, sometimes it may make a difference to your tax position when it comes to preparing your tax return.

Let’s dive into some of the common questions asked!

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Budget Update 2019 – what you need to know NOW

The Treasurer has delivered the Federal Budget 2019 last night (2 April 2019), he has provided some good news to individual taxpayers and small business owners.

It is worth noting that most of the announcements he made in relation to income tax are related to future income years, there are only two announcements that will take into effect immediately. In this article we go through the ones that are affecting the 2019 financial year only.

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