The Perfect Match Superannuation Loans

By Arthur Kassos, CPA

Superannuation is normally a very good deduction for most people as it’s tax deductible (unless you’re an employee where it is not deductible for you except in very limited circumstances) and it’s a very tax effective entity to have your investments in.

The Tax Office is warning people that there have been a lot of common errors made when claiming personal superannuation contributions.

Taxpayers are incorrectly claiming these superannuation contributions as business or partnership expenses. The Tax Office has also expressed concern at the number of taxpayers who were late in lodging their notice to claim the actual deduction with their super fund.

The ATO’s data matching has picked up these discrepancies and they’ll be monitored more closely in the 2009 2010 year and going forward.(2009 - 2010 returns can be lodged up until May next year for those on a registered agent’s list.)

Whilst we’re talking about data matching, the ATO has obtained information from EBAY and Trading Post (Australia). If you have sold goods and services greater than $20,000 in the previous 3 financials years and not declared the income, then expect a phone call from the ATO if they think you may be running all or part of your business off the books and not reporting your correct income. You will be encouraged to make a voluntary disclosure of any unreported income.

The lesson to be learned hereis that the ATO is very informed and tech savvy so if you want to sleep easy at night make sure you declare ALL of your income all of the time.

I wish everybody a very happy and safe festive season.