Stay Tax Savvy: Updates You Need to Know from this month:

Keeping up with tax changes is a must. Here are key updates:

1. GST Credit for Reimbursements:

Employers can claim GST credits for business-related employee reimbursements, not allowances or notional expenses.

2. TPAR Reminder:

Taxable Payments Annual Reports (TPAR) for contractors in specific services are due by August 28th. Maintain payment records to stay compliant.

3. Deduction Tweaks:

Deductions have changed:

• Cents-per-kilometre method increased from 72c to 78c per km.
• Car depreciation limit raised to $64,741.
• Work from home expenses updated from 52c to 67c per hour, and taxpayers are no longer required to have a dedicated home office space.

4. Downsizer Contribution Extended:

Older Australians can boost super with main residence dwelling sale funds, known as "downsizer contributions", of up to $300,000 per individual or $600,000 per couple. The age requirement has been lowered from 60 to 55 for these downsizer contributions.

5. Excess Contribution Reallocation Denied:

AAT ruled no special circumstances for reallocating excess concessional contributions. Stay informed, consult pros, and act wisely. Always refer to official sources for details.

Disclaimer: the above comments in this blog post are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.

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