eLink An email bulletin for tax professionals - Issue 28/10

Entrepreneurs' tax offset (ETO) - additional income test

Changes to the ETO to apply additional income testing to the eligibility criteria for individuals became law on 3 June 2010 and will apply from 1 July 2009.

The broad changes include:
From the 2009-10 income year, the amount of ETO payable for individuals in respect of partnership or sole trader activities or income from a trust is reduced if the income for ETO purposes exceeds the relevant threshold.
Under the new income test, the ETO amount will be reduced where the income for ETO purposes exceeds the following thresholds:
- $70,000 for singles
- $120,000 for families.
For more information, refer to our fact sheet Entrepreneurs' tax offset.

New form to request copies of returns

A new form is available to make it easier to request copies of notices of assessment, lodged tax returns and group certificates or payment summaries.

There is no fee for electronic record requests. However, there is a $10 administrative fee for each original paper return. Our aim is to respond to the request within 28 days.

The form should be completed on screen and then posted or faxed to us.

For more information and to access the form, refer to Copies of returns request - individuals and authorised representatives.

Refunds for 2010 income tax returns commencing
Broadcast sent 16 July 2010 to advise tax agents that we are starting to send refunds to their clients.

Flyer mailed with the statement of account for income tax
You can download the flyer that we are enclosing with our new statement of account for income tax.

Reportable employer super contributions on payment summaries
Information about what super contributions must be included on payment summaries.

Trust tax return instructions 2010
For use by trusts to assist with completion of 2010 tax returns.

Partnership and trust distributions - common mistakes to avoid
This fact sheet will help you avoid common mistakes when you complete your clients' tax returns and reduce the chance that we will select them for audit or review.

Keydates for tax agents - July
July key dates for tax agents.

Foreign exchange rates
List of daily, monthly and annual foreign exchange rates.

Australia-New Zealand treaty
The Australia-New Zealand treaty is now in effect.

First home saver accounts - rates and thresholds
First home saver account (FHSA) account balance caps and government FHSA contribution thresholds. Updated to include 2010-11 rates.

Legal Database updates
The latest updates to the Legal Database.

Fringe benefits tax - rates and thresholds
Fringe benefits tax (FBT) rates and thresholds for the 2009-10 and 2010-11 FBT years.

Division 7A - trust amounts treated as dividends - payments and loans through interposed entities
This fact sheet provides information on payments and loans made by the trustee to a shareholder or an associate of a shareholder of the company through one or more interposed entities, rather than directly to the shareholder or their associate.

Division 7A - closely held corporate limited partnerships
This fact sheet provides information on the application of Division 7A to arrangements involving loans or payments made, or debts that are forgiven by a closely-held corporate limited partnership to partners or associates of the partner.

Managed investment trusts: election into capital treatment
This fact sheet gives an overview of the managed investment trust (MIT) capital treatment rules, including eligibility requirements and how to make an election.

SME Communicator - June 2010
SME Communicator provides relevant information specific to businesses with an annual turnover between $2 million and $250 million.

Electronic Superannuation Audit Tool
The electronic Superannuation Audit Tool (eSAT) has been specifically designed to help you fulfil your obligations, carry out the annual compliance audit and lodge an Auditor/actuary contravention report.

Non-Profit News Service No. 0290 - Legislation tabled: volunteer bushfire brigades
Proposed amendments tabled in parliament on 23 June 2010 contain measures to extend gift deductibility to volunteer based emergency services, including volunteer fire brigades.