ATO to increase penalties for late lodgment

Taxpayers who fail to lodge their year-end Tax Returns and ongoing Business Activity Statements are soon to be hit with even bigger fines.

These fines are set to increase by 35% and are likely to take effect midway through 2023.

The ATO has the power to issue these increased fines even if lodgment is only a little late. The ATO still retains the right to waive penalties in certain circumstances, nonetheless, it is very important for taxpayers to remain vigilant and punctual in keeping their tax obligations up to date, because no one wants to be hit with these increased penalties.

Federal News

In our recent Federal Budget Newsletter we detailed proposed legislation which were announced on the night. The following proposals have recently passed as law and explained in further detail below:

Child care subsidy changes

From 1 July 2023, the maximum Child Care Subsidy (CCS) first child rate is set to be increased from 85 per cent to 90 per cent for eligible families earning less than $530,000, up from $356,756. The current benefit for families receiving the higher subsidy rates of up to 95 per cent for any additional children in care aged 5 and under will continue.

The government will also aim to improve the transparency of the child care sector by requiring large providers to publicly report CCS-related revenue and profits.

The subsidy is applied on a scale depending on family income. If you need assistance calculating how much you can get, please contact us.

FBT exemption for electric vehicles

From 1 July 2022, an employer who provides an employee with an electric vehicle will not be liable for fringe benefits tax on the employee's private use.

To be eligible for the exemption, the electric vehicle must be below the luxury car limit, which is currently sitting at $84,916. The eligible cars must be first held and used on or after 1 July 2022.

Disclaimer

The information provided in this article does not constitute advice. The information is of a general nature only and does not take into account your individual situation. It should not be used, relied upon, or treated as a substitute for specific professional advice. We recommend that you contact Brentnalls SA before making any decision to discuss your particular requirements or circumstances.