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Check your supplier’s ABN


Attention – Business Owners


It is important that every business making a payment should check the validity of their suppliers ABN to ensure:


1. Suppliers have provided a valid ABN that belongs to them.
2. That the supplier is registered for GST and allowed to charge GST.
3. A valid tax invoice has been received from suppliers.


If your supplier provided an invalid ABN on the tax invoice, or is not registered for GST but they have charged it, and you pay it to that supplier, then the ATO position is that you are not allowed to claim back that GST from the ATO. You will be considered to not have received a Valid Tax Invoice.


In case ABN mentioned on the tax invoice is invalid and supplier is not registered for GST, you must not pay GST and deduct ABN Withholding Tax @49% of the Ex GST invoice amount and remit this on the next BAS report and complete an Annual Payment Summary for the payee.


There are increasing reports of the ATO conducting reviews of businesses in the areas of supplier registration and validity of GST claims. Therefore, the Business Owner needs to understand that these are matters that should not be ignored and will be reviewed in an audit, with potential penalties applied by the ATO if GST is incorrectly claimed when the Business Owner knew it shouldn’t have been claimed.


There has been instances where suppliers might provide correct details on the invoice and then subsequently backdate cancellation of their GST registration. This will make your GST credits invalid. It would be a good idea to take a print out of supplier’s ABN details from ABN Lookup showing their ABN and GST status as evidence every time you receive an invoice from your supplier.


Contact Expert Tax on 0449 952 855 or 1300 8 MY TAX (1300 869 829) for further assistance on business and GST related matters.




Expenses may be deductible for periods when the property is not rented out, providing the property is genuinely available for rent – that is:


• The property is advertised, giving it broad exposure to potential tenants

• Considering all the circumstances, tenants are reasonably likely to rent the property.


The absence of these factors generally indicates the owner doesn’t have a genuine intention to make income from the property. Factors that may indicate a property is not genuinely available for rent include:


• it is advertised in ways that limit its exposure to potential tenants – for example, the property is only advertised:


o at your workplace

o by word of mouth outside annual holiday periods when the likelihood of it being rented out is very low


• the location, condition of the property, or accessibility of the property, mean it is unlikely tenants will seek to rent it

• you place unreasonable or stringent conditions on renting out the property that restrict the likelihood of the property being rented out, such as:


o setting the rent above the rate of comparable properties in the area

o Placing a combination of restrictions on renting out the property – such as requiring prospective tenants to provide references for short holiday stays and having conditions like “no children” and “no pets”.


• you refuse to rent out the property to interested people without adequate reasons.


Note – Properties that privately rented out by landlords may face difficulties in proving their property was genuinely available for rent since they are not advertising their property through a real estate agent.


However, it may not always be the case if landlord can demonstrate their genuine intent to rent by showing enough evidence that proves they have advertised their property on enough channels to solicit tenancy inquiries.


Contact Expert Tax on 1300 8 MY TAX (1300 869 829) or 0449 952 855 for further assistance on rental property related tax queries.


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Taxable payments annual report (TPAR)


Does your business operate in cleaning, courier or building industry? As of 1 July 2018, you’ll need to record payments to cleaning or courier contractors or subcontractors, and lodge a Taxable payments annual report (TPAR) each year with ATO on an annual basis.


You may need to lodge a Taxable payments annual report (TPAR) by 28 August each year if you are a business providing:


    • Building and construction services – Compliance requirement already in place. Reports are due by 28th August each year.
    • Cleaning services – for contractor payments from 1 July 2018 (first report due by 28 August 2019)
    • Courier services – for contractor payments from 1 July 2018 (first report due by 28 August 2019)


The TPAR tells ATO about payments that are made to contractors for providing services.


Contractors can include subcontractors, consultants and independent contractors. They can be operating as sole traders (individuals), companies, partnerships or trusts.


The details you need to report about each contractor are generally found on the invoice you should have received from them. This includes:


  • their Australian business number (ABN), where known
  • their name and address
  • Gross amount you paid to them for the financial year (including any GST).


ATO will use this information to identify contractors who haven’t met their tax obligations.


For further assistance contact Expert Tax on 0449 952 855 or 1300 8 MY TAX (1300 869 829)


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