(@leacalais)

Too taxing: reducing red tape

Removing S&W deductions from tax returns using tax cuts

Maybe as little as 10 years ago there used to be a lot of talk about removing the need for individuals to lodge tax returns. This talk seems to have disappeared in recent years. While I agree that the boat has probably sailed on that idea, I think there is a way to simplify individual tax returns by reducing the need for S&W individuals to claim work related expenses. This could be done using tax cuts to 'give' individuals... more »

(@leacalais)

Too taxing: reducing red tape

Bright line tests for potentially capital expenditure

There are a number of categories of expenditure which can be either capital or revenue in nature (depending on case law) or are capital items with write off provisions attached (eg borrowing costs). Someone actually made this suggestion in the context of a senate inquiry a few years ago - why not simply have statutory maximums set for these kinds of expenses so that people can treat these items as revenue and write them... more »

(@anita.wildman)

Too taxing: reducing red tape

Cut compliance - Borrowing Costs Threshold to be increased

Currently if your total borrowing expenses are more than $100, the deduction is spread over five years or the term of the loan, whichever is less. i.e. $20 per year - to me this is immaterial and a waste of time to require a whole process to keep track off/carry forward this information. It adds time/cost to the client to do it correctly. I think we should increase this to say $10,000. There is no loss to the revenue,... more »

(@elinor.kasapidis.cpaaustralia)

What were they thinking

Redundancies after the age of 65 aren't 'genuine' – is it fair?

Subsection 83.175(2)(a) of the Income Tax Assessment Act 1997 requires that the employee is dismissed before the day he/she turns 65 to satisfy the genuine redundancy provisions. The provision was inserted in July 2007 as part of the Tax Laws Amendment (Simplified Superannuation) Bill 2007. No mention of this provision was included in the Explanatory Memorandum, nor in the second reading speeches. The earlier Treasury... more »

(@onesuperidea)

What were they thinking

Superannuation on resignation

When an employee leaves they are paid annual leave and long service leave, but no superannuation. This means that when an employer won't let the employee work out their leave, the employee misses out on the super. This is unfair and confusing. The super for the annual leave is confusing. Under the Fair Work Act 2009 Section 90 it says "If, when the employment of an employee ends, the employee has a period of untaken... more »

(@moderatorboardoftaxationsecretariat)

Can government fix it

Treatment and remediation of excess super contributions

The Board has received the following suggestion during the course of its consultations. The existing process for the treatment and remediation of excess superannuation contributions is unfair and overly bureaucratic. Many directors with contributions multiple organisations and death and disability insurance find it difficult to comply with the existing caps. Where they don't they are required to be advised by the... more »

(@michaelc)

What were they thinking

Adjusted income calculations - double counting of losses

Some odd outcomes can arise when working through adjusted income calculations for certain tax and other purposes. The problem seems to mainly arise when someone has a net investment loss for the year as well as an overall tax loss for the year. For example, for some purposes a taxpayer will need to calculate their 'income for surcharge purposes' (eg, to determine whether Division 293 applies, applying the private health... more »

(@michaelc)

What were they thinking

ESS start up options held by associates

Amendments were made to the employee share scheme rules in 2015 to introduce concessions for small start up companies. If certain conditions are met, the discount provided in relation to shares / options is not included in the assessable income of the employee. Section 115-30 has been amended to ensure that for the purpose of the CGT discount, when options are issued under the start up rules the ownership period is not... more »

(@jenniferfay)

Can government fix it

Making it easier to pay taxes

My idea is for a tax system that makes it easier for sole traders and small businesses to pay their taxes as they go without the worry of larger quarterly instalment bills and or large tax return bills. What I would like to see is a simple tax bracket system based on earnings as you go rather than predicting your future earnings which may not be accurate. For example for every invoice payment from a client received... more »

(@gcollie)

Too taxing: reducing red tape

cryptocurrency registry or autofill function

Many inexperienced investors have plunged headlong into crypto investments, in many instances with little or no record keeping nor in some cases any knowledge of the tax treatment of their investments. It would be of great assistance to taxpayers to be able to maintain a registry of their crypto investments online, with the ATO, which could potentially calculate current liabilities. Similarly, akin to the existing autofill... more »

Voting

1 vote
1 up votes
0 down votes
(@moderatorboardoftaxationsecretariat)

Can government fix it

Allow TFNs to be transferred in a demerger

Under current arrangements shareholders of listed companies are asked to provide their TFN to the investee company. If shareholders do not provide their TFN, the company must withhold tax at the highest marginal rate on any non-fully franked dividends paid to these shareholders. In a demerger situation, the demerging company is not permitted to transfer the TFN of a shareholder that will also have or has a shareholding... more »

Voting

2 votes
2 up votes
0 down votes
(@smdtag)

Too taxing: reducing red tape

Expand foreign income reporting labels: add deductions label

Currently, labels on the income tax returns for reporting foreign income contain only "net income" and "gross income" for various income types. This hides the amount of deductions claimed against foreign income, and in case of individuals - against each income type. It also appears to overly complicate the reporting because the deductions need to be apportioned from D labels for individuals and/or subtracted from income... more »

Voting

2 votes
2 up votes
0 down votes
(@centrumsolutions)

Can government fix it

Tax robots equivalent to NES standards.

In the future taxation revenue may be down due to less manual workers and more automated robotics taking over blue collar jobs. Inevitably more people will be out of work and there will be greater dependancy on government services with potentially less revenue coming in from employee PAYE contributions. I propose to offset some of the lost revenue that the government introduce a automation taxed, where robots would be... more »

Voting

1 vote
1 up votes
0 down votes
(@peter.j.somerville)

Can government fix it

Variable Company Tax Rate

Intent: Income derived from goods and services provided in Australia are taxed in Australia. How: 1. Company tax is either (choice is made by the Company) paid on revenue (at a low rate, say 1%) or profit (at a higher rate, say 30%). 2. Deductions are only allowed for domestic goods or services. Impact: 1. Foreign companies will create domestic companies (“Domestic Shells”) to service other domestic companies so that... more »

Voting

1 vote
1 up votes
0 down votes
(@smdtag)

Can government fix it

Repeal s82A ITAA36 - there is no apparent policy basis for it

There is no apparent policy basis for the $250 reduction in the claim for the self-education expenses. Section 82A ITAA36 creates a set of comparatively complex rules and definitions that impact on the deductibility of self-education expenses. The view is that these rules achieve nothing apart from added complexity. The aim it intends to achieve is not clear and nowadays the $250 is not going to go far in terms covering... more »

Voting

4 votes
4 up votes
0 down votes