Money Work-related tax deductions could be on the chopping block as government faces calls to rewrite rules

01:16  12 january  2018
01:16  12 january  2018 Source:   smartcompany.com.au

Canada will track suicide risk through social media with AI

  Canada will track suicide risk through social media with AI The Canadian government is partnering with AI firm Advanced Symbolics to try to predict rises in regional suicide risk by monitoring social media posts. Canada isn't the only one turning to technology in order to provide better support for those considering suicide or to prevent suicides from happening. In November, Facebook began a global rollout of its AI suicide prevention tools that reach out to users who post content that could be a sign of suicidal thought and allow other users to report content that they think might show signs of suicidal risk.

Work - related tax deductions could be on the chopping block as government faces calls to rewrite rules - SmartCompany. The Tax Institute's pre-budget submission has called on the government to re -examine how taxpayers claim work - related tax deductions .

Under current rules , borrowers can deduct up to ,500 in qualifying interest paid as an "above-the-line" deduction . For someone in the 25 percent tax bracket, that works out to a 5 break.

tax© Provided by Private Media Operations Pty Ltd. tax A tax industry body has made a plea for the federal government to radically reconsider how taxpayers claim tax deductions for work-related expenses, including floating the idea that Australia scrap work-related claims entirely.

In a pre-budget submission, The Tax Institute says the current state of play for work claims adds too much complexity to the system and “imposes additional compliance costs on individuals wanting to claim expenses because they have to comply with strict substantiation rules”.

The Tax Institute suggests one option could be to introduce a standard deduction limit, of $1000 or more. Workers could claim this standard deduction and then have to provide documentation if they wanted to claim any other deductions above this amount. Reports emerged earlier this year that the federal government was considering placing a universal cap on individuals’ claims.

Twitter responds to calls to ban Trump

  Twitter responds to calls to ban Trump The calls for Twitter to block Trump were renewed on Tuesday after the president boasted about his “nuclear button."The calls for Twitter to block Trump from its service were renewed on Tuesday after the president boasted his “nuclear button” was “much bigger” than the one Kim Jong Un said was on his desk.

Work - related tax deductions could be on the chopping block as government faces calls to rewrite rules - SmartCompany. The Tax Institute's pre-budget submission has called on the government to re -examine how taxpayers claim work - related tax deductions .

How it plays out could affect several big decisions that will define the breadth and scope of the new tax law, including whether small businesses like veterinary clinics and dentists may claim a new 20 percent tax deduction

However, The Tax Institute also suggests the government could go further and remove work-related expenses from the system altogether, in a similar way to New Zealand. This option would invoice “a suitable adjustment to marginal tax rates (which we would suggest would be an overall lowering of marginal rates at all levels),” the Tax Institute argues.

In the 2014-15 financial year, $22 billion dollars was claimed in work-related expenses in Australia. In July, Tax Commissioner Chris Jordan said this figure includes a large volume of people claiming more than they should.

“While each of the individual amounts over-claimed is relatively small, the sum and overall revenue impact for the population involved could be significant – in the vicinity of, or even higher than the large market tax gap of $2.5 billion,” he said at the time.

Labor, Coalition reject sugary drink tax

  Labor, Coalition reject sugary drink tax Labor and the Coalition believe tackling obesity in Australia is a challenge but neither will support a tax on sugary drinks. The Australian Medical Association wants the government to tackle the nation's obesity crisis with a tax and advertising bans.The proposed sugary beverage tax and ban on advertising junk food to children - especially during sporting events - are among the AMA's recommendations in its statement on nutrition in 2018.

›‹ Back To Main Menu. Politics Home. My Government . Watchdog. Education. Tim KnoppStephanie Yao Long/The Oregonian/File. Economists expect the state could face a budget gap of more than billion He wants the state to go further and copy a new federal tax deduction for certain businesses.

Pulling the tax code levers inevitably creates winners and losers, but the scant details of the plan, including how it will be paid for and which deductions are on the chopping block , make it impossible to determine the Related Coverage. In Tax Code Rewrite , Republicans Ask How Low Can They Go.

Senior counsel for the Tax Institute, Bob Deutsch, told SmartCompany that while he doesn’t believe scrapping the claims category altogether is “politically likely”, it’s important to put options like this on the table given there are current problems with how workers make their claims.

No talk of boycott at Margaret Court Arena

  No talk of boycott at Margaret Court Arena Nick Kyrgios says he will try to "block out" Margaret Court's views on sexuality if he plays on her namesake court at the Australian Open. Margaret Court's controversial views remain a talking point at Melbourne Park but leading players have shied away from suggestions of a boycott at her namesake arena.Tennis trailblazer Billie Jean King on Friday used the occasion of being named Australian Open woman of the year to call for the renaming of Margaret Court Arena.

The plan’s scant details make it hard to know what, exactly, is on the chopping block . While the plan specifically calls for preserving the mortgage interest deduction , real estate agents are warning that a Republicans have only slightly tipped their hand as to the overall structure of the tax rewrite .

Education assistance slashed: The tax bill would eliminate tax deductions for interest on student Not so permanent, as it turns out: The tax bill would eliminate the deduction , which can be taken by their parents—that so called stepped-up basis isn't on the chopping block , unlike so many tax

It’s definitely worth putting out there, though it is less likely to be met with acceptance … but what we’re trying to grapple with here is that deductions are problematic for the tax office,” he says.

While other jurisdictions like the UK place stricter limits and have clearer terms on when work deductions can be claimed, the Tax Institute argues the rules for claiming different expenses in Australia — from home offices to clothing — are currently too complicated.

Over the past year the Australian Taxation Office has expressed the view that Australians do not understand when they are legitimately allowed to claim deductions for clothing, vehicles and workplace expenses.

Founder of Healthy Business Finances, Stacey Price, says the concept of scrapping work deductions in favour of changes to personal income tax rates will likely be very unpopular, as taxpayers will not be able to easily understand the benefit to them.

However, simplifying the claims system would help the tax agent community, as misunderstandings from clients about workplace claims are common.

Queensland warned to expect more covert speed cameras

  Queensland warned to expect more covert speed cameras Drivers hate them and the police union claims frontline officers do too but despite the calls to cease using them, Queensland Police say hidden speed cameras are here to stay. Police have defended the use of covert speed cameras on Queensland roads as a way of saving lives."We do need to get our road toll down," Assistant Commissioner Mike Keating said.A Monash University study has shown covert speed cameras can reduce serious accidents by 30 percent, with police claiming that is why they are necessary.But Queensland Government budget papers tell a different story.

Shutterstock. House Republicans have called for eliminating the popular property tax deduction - one claimed by millions of New For a homeowner near the top tax bracket, it could mean saving more than ,000. Deal in the works ? Kenney to meet with Made in America exec, Sixers co-owner. Penn.

RELATED CONTENT. Corker Boards Tax Train as GOP Opposition… The bill does not repeal, however, an electric vehicle tax credit that was put on the chopping block in the House's bill. Violators face an on - the -spot fine of 750 euros, or some 0.

“For tax agents, [simplification or removing the claims] would eliminate an area that does generate a lot of scrutiny,” Price says.

The big challenge with the system at the moment is that taxpayers often approach accountants thinking that they can make a claim that isn’t valid.

“People can try to educate themselves first about claims, which is great, but [it] can also be a downfall,” she says.

“They just Google ‘workplace deductions’ and then go hell for leather.”

Accounting body CPA Australia is more cautious about the concept of introducing a standard claims amount for work-related expenses.

“A standard deduction for all taxpayers may seem appealing on simplicity grounds but we believe it fails on equity grounds,” Paul Drum, head of policy at CPA Australia, says.

However, Deutsch tells SmartCompany placing a standard deduction amount in place would work if taxpayers were allowed to claim above that amount by providing proof they had incurred legitimate expenses.

While changes to how work-related expenses are claimed could form part of a broader review of the system, Drum says the idea of removing them entirely is also not the way to go.

“If work-related expenses were to be removed, we believe providing adequate compensation through changes to marginal tax rates would be unaffordable,” Drum told SmartCompany.

The horrifying truth about The Block's Gatwick property .
The Block are about to start filming at the infamous Gatwick property and insider has revealed the horrific truth about how much of a drug den it was.Channel Nine bought the decrepit property last year for an eye-watering $10 million. But now that producers are prepping the hotel for filming (and the new Blockheads to move in), they've had to call in specialist forensic teams to clean up the mess.

—   Share news in the SOC. Networks

Topical videos:

This is interesting!