spacer
spacer
spacer
spacer



CPA LOGO
spacer
Latest News
Hot Issues
Small businesses may ‘collapse under strain of payday super’, IPA warns
ATO’s hands tied with scrapping on-hold debts, expert says
What Drives Your Business Growth and Profits?
Australian Taxation Office (ATO) shifting to firmer debt collection activity
Why employee v contractor comes down to fine print
Sharing economy reporting regime for platform operators
Countries producing the most solar power by gigawatt hours
Illegal access nets $637 million
Accessing superannuation benefits.
Does your business have a company Power of Attorney?
Labor tweaks stage 3 tax cuts to make room for ‘middle Australia’
GrantConnect
2 in 3 SMEs benefit from instant asset write-off, survey reveals
Updated guidance on R&D claims
Do you know how to recover debts?
Wheat Production by Country
Types of small business benchmarks
What is a Commercial Lease?
ATO warns advisers against suspect R&D tax claims
The year of workplace law upheaval
How to Resolve Invoice Payment Disputes
Raft of revenue tweaks in MYEFO to raise millions
The Countries that Export the Most Wine in the World
Articles archive
Quarter 4 October - December 2023
Quarter 3 July - September 2023
Quarter 2 April - June 2023
Quarter 1 January - March 2023
Quarter 4 October - December 2022
Quarter 3 July - September 2022
Quarter 2 April - June 2022
Quarter 1 January - March 2022
Quarter 4 October - December 2021
Quarter 3 July - September 2021
Quarter 2 April - June 2021
Quarter 1 January - March 2021
Quarter 4 October - December 2020
Quarter 3 July - September 2020
Quarter 2 April - June 2020
Quarter 1 January - March 2020
Quarter 4 October - December 2019
Quarter 3 July - September 2019
Quarter 2 April - June 2019
Quarter 1 January - March 2019
Quarter 4 October - December 2018
Quarter 3 July - September 2018
Quarter 2 April - June 2018
Quarter 1 January - March 2018
Quarter 4 October - December 2017
Quarter 3 July - September 2017
Quarter 2 April - June 2017
Quarter 1 January - March 2017
Quarter 4 October - December 2016
Quarter 3 July - September 2016
Quarter 2 April - June 2016
Quarter 1 January - March 2016
Quarter 4 October - December 2015
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Quarter 3 of 2022
Articles
Why you need a contract of employment
Tax benefits for unused “carry forward” concessional superannuation contributions
Cyber security and work-from-home become key executive concerns
Largest wind power producers in the world
Chalmers revives 120% deductions for spending on skills, digital
What is Single Touch Payroll Phase 2?
Australian Taxation Office (ATO) reminder to small businesses this tax time
Declare cash sales or run the risk, business told
Sub-trusts ‘redundant’ under final Div 7A ruling
Tax Office homing in property deductions, SMSFs warned
Proof of ownership flagged as ‘biggest’ crypto issue for SMSFs
ATO adds indebted sole traders to credit referrals
State and Federal Covid support --- Aug 2022
ATO casts net wide when it comes to taxable business income
Largest natural gas produces by country from 1970-2021
NALI ‘a special problem for SMSFs’
Tax time tips
Census 2021 Data
Single Touch Payroll: Phase 2 deferral reminder
Largest inflation rates by country in Oceania
Write a business plan
Be wary of trust disclaimers, ATO warns
Tax time guide offers path through 100A
Car allowance increase ‘welcome news’
Car allowance increase ‘welcome news’

Professional accounting bodies have backed an increase to the cents-per-kilometre deduction rate for car expenses effective 1 July.



Earlier this month, ATO Deputy Commissioner of Taxation Ben Kelly confirmed the cents-per-kilometre deduction rate for car expenses would be lifted to 78¢, rather than 75¢ as initially promised in mid-March.


The new rate applies to eligible taxpayers who elect to use the cents-per-kilometre method when calculating income tax deductions for their work-related car expenses.


“The Commissioner of Taxation has determined that the rate is 78 cents per kilometre and applies to eligible taxpayers who elect to use the cents per kilometre method when calculating income tax deductions for their work-related car expenses,” Mr Kelly said.


“This rate applies to the income year commencing 1 July 2022 and remains applicable to subsequent income years until such time as the Commissioner of Taxation, having regard to subsection 28-25(5), determines that it should be varied.”


The move to 78¢ comes after the ATO was criticised after saying it’d lift the deduction to 75¢ from July in mid-March – with many noting it’d leave millions of taxpayers short-changed and did not reflect the stark rise in petrol prices in 2022.


“It’s not reflective of the bowser price,” said Tony Greco of the IPA at the time. “Fuel has almost gone up 50 per cent since December. It’s got to be more than 3c just based on simple mathematics.


“It certainly looks undercooked.”


Mr Greco said the new rate of 78¢ was more suitable.


“Given the experience people are facing at the petrol pump, this is most welcome news,” he said.


“We made a submission that the proposed rate was not reflective of current circumstances as it was based on outdated data i.e. December quarter 2021.


“Motorist are going to need all the support they can get especially when the reduced excise is taken away at the end of September 2022.”


Senior manager of tax policy at CPA Australia, Elinor Kasapidis, said the professional accounting body is pleased to see the ATO implement the new rate however noted it must remain wary of additional pressures facing taxpayers.


“It’s good that the ATO has been responsive to the sharp rise in fuel prices and upgraded the rate. However, with future prices expected to increase even further, will it be enough?” Ms Kasapidis said.


“It’s important the ATO continues to monitor prices and potentially update the rate throughout the year.


“Tax agents should still consider the actual cost method as this alternative may provide a much better outcome for their clients. It’s important clients keep records and receipts so tax agents can determine the most appropriate method.”


 


 


 


Emma Ryan
28 June 2022
accountantsdaily.com.au




9th-July-2022
spacer
Privacy Policy | Disclaimer