Articles by ATO

We’re here to provide you with information to help you identify concessions you might be eligible for. There are many types of concessions available. The ones you can qualify for will depend on factors such as your company structure, the industry you’re in and your annual turnover. There’s lots to know about small business concessions; but to give you an example, you could be eligible to claim: some of the costs of setting up a new business, for example, professional services including legal and accounting and any government fees and charges you’ve paid an immediate deduction for prepaid expenses, such as your business premise lease or advertising expenses, where the payment covers a period of 12 months or less that ends in the next income year fringe benefits tax exemptions for work-related devices such as laptops and phones you provide to staff accelerated depreciation of some business assets used in primary production, such as water facilities and fencing. Capital Gains Tax (CGT) concessions allow eligible small businesses to reduce, defer or even disregard some or all capital gains from an active business asset. There are 4 kinds of CGT concessions you may be able to claim if you meet the eligibility requirements. You’ll need to keep proof in paper or electronic form for claims you make. The document format is up to you, but you may find electronic record keeping simpler and more convenient. You’ll generally need to keep documentation for 5 years. Remember, registered tax agents can help you with your tax. For more information visit www.ato.gov.au

Did you know that fuel tax credits change regularly? Here's how to get your claim right this quarter. Check you used the reduced rates that applied for fuel acquired between 30 March and 28 September 2022 (during the temporary reduction in fuel excise duty). If you didn’t use the fuel tax calculator, you may have overclaimed. For example, if you only used fuel in your heavy vehicle for travelling on public roads in this period, you weren't eligible to claim fuel tax credits. Fuel tax credit rates increased 1 February in line with fuel excise duty indexation. Apply the new rate to get more from your fuel tax credits. Remember, when you’re calculating fuel tax credits on your BAS: use our fuel tax credit calculator every time you make a claim you can easily fix errors and make adjustments on your current BAS always keep accurate records to support your claims. Registered tax and BAS agents can help you with your BAS. For more information visit www.ato.gov.au

A new year brings the possibility of doing things differently. Did you know that many small businesses are reaping the rewards of going digital? At the ATO we’re moving towards digital options for tax, super and employer systems and obligations. Here are some steps you could take now to start on your digital journey in 2023. One: Register for our online services ATO Online services allow you to access a range of tax and super services in one place. ATO online services for individuals and sole traders and Online services for business are available now. You can check due dates, lodge your activity statements and keep track of your super online. You can easily update your details and, if you are using ATO online services for individuals and sole traders, you can lodge your tax returns. Our online services are convenient, secure and available at any time. Two: Try out the ATO app Our ATO app is free and particularly helpful if you’re a sole trader. You can use our ATO app to: record your business income record and manage car trips and other expenses on the go keep track of your deductions in the myDeductions tool use the information to pre-fill your tax return send your tax return information to a tax professional. Three: Make payments electronically There are many ways to make payments to us including BPAY, debit and credit cards, through our online services and using the Government’s Easy Pay system. We’ll always work with you, but we are moving away from cheques and encourage you to pay electronically. Paying electronically saves you time and is processed on your account much faster. Four: Find out about software solutions Do you know about the options for eInvoicing or the benefits of Single Touch Payroll? To help you on your digital journey, you could also investigate how a software package could help with your business. You don’t need to change everything at once, you can start with one area that you think will most help your business. There’s software to help with many business activities, for example you can: record sales, refunds and exchanges track and manage stock and orders produce invoices and receipts manage payroll do budgets or forecast your cash flow get regular reports. Five: Check your security These days online security needs to be top of mind. We take the security and privacy of your personal information very seriously. We have systems in place to make sure your data and any online transactions with us are secure and safe. Taking your business digital can increase the risk of scams and security threats. There are steps you can take to help protect your business from cyber threats. There are many advantages to digital record keeping and business systems. A registered tax or BAS agent can advise you about tools available to help you in your business and to meet your tax, super and employer obligations safely and more efficiently. For more information visit www.ato.gov.au

If you lodge your business activity statement (BAS) quarterly, your next statement is due on 28 February. Here are our latest tips to help you complete your BAS. Lodge and pay online. It's quick, easy and secure, and you may receive an extra 2 weeks to lodge and pay. You’ll receive notifications to help you get it right and avoid mistakes before you lodge. Fuel tax credit rates changed from 1 February 2023. Use the fuel tax credit calculator to correctly calculate your claim. Lodge online via Online services for individuals and sole traders (accessed through myGov], Online services for business or Standard Business Reporting-enabled software. You can pay your BAS with BPAY or a credit/debit card. You can also pay securely online using our Online services. Even if you have nothing to report, you still need to lodge your BAS as 'nil'. If you lodge online, you don't need to send us the paper form. If you're unable to lodge or pay on time, engage with us early to discuss your options. Remember, you can lodge your BAS through a registered tax or BAS agent. For more information visit www.ato.gov.au

Single Touch Payroll (STP) reporting has been expanded. This is known as STP Phase 2. If you're not already on board, our resources will help you as an employer to get ready for the changes. They include: updates to the STP Phase 2 employer guidelines new web content to help with reporting, featuring a new series of short, topic-based videos. While STP Phase 2 reporting began on 1 January 2022, you can only start STP Phase 2 reporting when your Digital Service Provider (DSP) updates the payroll product you use. If your DSP has a deferral, it will cover you. They'll let you know if they have a deferral, and when it’s time for you to start. We expect many employers will be transitioning to STP Phase 2 in the coming few months. It's important you understand the changes and get ready to report the additional information and follow your provider’s instructions. For more information visit www.ato.gov.au

Recent data breaches show how important personal information is. This Cyber Security Awareness Month, take the time to check if your cyber security practices need a spring clean with some simple steps. 1. Update your devices and applications. Regular updates are critical to maintaining secure systems. Cyber criminals hack devices by using known weaknesses in systems or apps. Check your devices for updates and turn on automatic updates to apply future updates straight away when charging and connected to Wi-Fi. 2. Turn on multi-factor authentication. Multi-factor authentication (MFA) is a security measure that requires at least 2 proofs of identity to grant access, such as a physical token, random PIN or fingerprint. Turning on MFA will boost your protection against criminals. While they might steal one proof of identity, such as your password, they will be locked out of your account without the other. 3. Back up your files. Backing up your data saves copies of your files to an external storage device, or an online server like the cloud. Setting up automatic backups means you can recover your important information if something goes wrong. Once you've followed these tips you might like to check out the Australian Cyber Security Centre’s Small Business Cyber Security Guide which gives more advice to help smaller organisations build their cyber security resilience. Remember, registered tax agents can help you with tax advice.   For more information visit www.ato.gov.au

From 20 September, .au domain URLs are available to the public. These new URLs are distinct from previously available URLs, as they don't include '.com' or '.net' after the unique part of the URL. Anyone can register your business’s .au equivalent domain name unless you have secured it. Since March this year, businesses with an existing domain name (i.e, whose websites end in .com.au or .net.au) have been given priority to reserve their matching .au domain name. For example, a business with an ‘ato.com.au’ domain name can also register as ‘ato.au’. Remember to consider the benefits of registering an .au domain for your business and your individual circumstances. One of the benefits of registering is that you safeguard your brand’s identity on the internet. If you don't reserve your business's .au domain name, impersonators, web name campers or cyber criminals may potentially take it. The Australian Cyber Security Centre has issued an alertExternal Link on the risk of cyber criminals using your brand’s domain to impersonate your business and conduct fraudulent cyber activities. You can register your domain name’s .au equivalent at .au Domain Administration Limited (auDA) or through an auDA accredited registrar to protect the digital identity of your brand. For more information visit www.ato.gov.au

If you're a director of an Australian company you must apply for your director identification number (director ID) by 30 November 2022. While it might be tempting to wait until the deadline, we encourage you to apply now – the fastest way to apply is by using the myGovID app to log in to ABRS online. Once you've logged in, you'll need to verify your identity with information we have on record. The most commonly used documents include: details of the bank account where your tax refunds or payments are made and received  an ATO notice of assessment.  You may need to contact your agent to request this information. You can check if your business is registered as a company with ASIC at ASIC Connect. You don't need a director ID if you're running a business as either a sole trader or partnership. Not sure if you need to apply? You can check if you need a director ID at who needs to apply. Our director ID demonstration video takes you through the steps you need to complete to apply for your director ID online. For more information visit www.ato.gov.au

Whether you use a registered tax agent or lodge your own tax return, it’s helpful to have information you can refer to when you want to get ready for tax time. The Tax Time 2020 toolkit is now available, and it includes a directory of links as well as several updated, and new, fact sheets for small business. The fact sheets can help you get an overview of what you need to know if you're: claiming deductions for the costs of using your home as your main place of business claiming a deduction for motor vehicle expenses for your business claiming a deduction for expenses you incur when travelling for your business a director or shareholder of a company that operates a small business, and you take money out of your company or use its assets. We also have information to help if you’ve had to pause or permanently close your business due to COVID-19. Ask for help if you need it, it’s never too late to speak with us or a registered tax professional. For more information visit www.ato.gov.au