Asset Financial Accounting

Happy New Financial Year!
It is a huge thank you to all our clients for your ongoing support over the past financial year & we look forward to working with you again this year!

Do you trade in Crypto currency?

We use specialised software to analyse your trading & create an accurate gains or losses schedule to enable accurate reporting - contact our offices & get your crypto reporting correct the first time!! 08 94097054.

Update from the ATO...

"Cryptocurrency under the microscope this tax time
The Australian Taxation Office (ATO) is concerned that many taxpayers believe their cryptocurrency gains are tax free or only taxable when the holdings are cashed back into Australian dollars.

ATO data analysis shows a dramatic increase in trading since the beginning of 2020. It is estimated that there are over 600,000 taxpayers that have invested in crypto-assets in recent years.

"This year, we will be writing to around 100,000 taxpayers with cryptocurrency assets explaining their tax obligations and urging them to review their previously lodged returns. We also expect to prompt almost 300,000 taxpayers as they lodge their 2021 tax return to report their cryptocurrency capital gains or losses.” Assistant Commissioner Tim Loh said.

Last year, the ATO directly contacted around 100,000 taxpayers who had traded in cryptocurrency and prompted 140,000 taxpayers at lodgment.

Mr Loh explained that gains from cryptocurrency are similar to gains from other investments, such as shares. Generally, as an investor, if you buy, sell, swap for fiat currency, or exchange one cryptocurrency for another, it will be subject to capital gains tax (CGT) and must be reported.

CGT also applies to the disposal of non-fungible tokens (NFTs).

“We are alarmed that some taxpayers think that the anonymity of cryptocurrencies provides a licence to ignore their tax obligations.” Mr Loh said.

“While it appears that cryptocurrency operates in an anonymous digital world, we closely track where it interacts with the real world through data from banks, financial institutions, and cryptocurrency online exchanges to follow the money back to the taxpayer.”

The ATO matches data from cryptocurrency designated service providers to individuals’ tax returns, helping us ensure investors are paying the right amount of tax.

“We know cryptocurrencies can be complicated. That’s why our focus is on helping people get it right.”

“The best tip to nail your cryptocurrency gains and losses is to keep accurate records including dates of transactions, the value in Australian dollars at the time of the transactions, what the transactions were for, and who the other party was, even if it’s just their wallet address.” Mr Loh said.

Businesses or sole traders that are paid cryptocurrency for goods or services, will have these payments taxed as income based on the value of the cryptocurrency in Australian dollars.

Holding a cryptocurrency for at least 12 months as an investment may mean you are entitled to a CGT discount if you have made a capital gain. In limited circumstances cryptocurrency may be a personal use asset.

“If you realise you’ve made a mistake and correct your return, we will significantly reduce penalties. However, failing to report on crypto-assets and not taking action when reminded will prompt penalties and potentially an audit.”

Directors Identification - time is running out to remain compliant!
Tips & information from ASIC:

"When directors must apply for their director ID depends on the date they first become a director:

Intending new directors must apply before being appointed.
Directors appointed on or before 31 October 2021 have until 30 November 2022 to apply.
New directors appointed for the first time between 1 November 2021 and 4 April 2022 had 28 days from their appointment to apply.
While those appointed on or before 31 October 2021 have until 30 November 2022 to apply, all directors are strongly encouraged to apply now.

Directors of companies registered with the Office of the Registrar of Indigenous Corporations (ORIC) have a different time frame in which to apply. More information is available from the ABRS website.

The fastest way to get a director ID is to apply online using the myGovID app.

Setting up myGovID

Most successful applicants use two of the following Australian identity documents that verify their identity to set up their myGovID:

passport (not more than three years expired) and
Medicare card.
Alternatively, the following can also be used:

driver’s licence or learner’s permit
visa (using your foreign passport)
citizenship certificate
birth certificate
ImmiCard"

Please feel free to contact the team at Asset Financial Accounting if you need any assistance on 0894097054

Happy New Financial Year - its business as usual at Asset Financial Accounting!

The team at Asset Financial Accounting have been gearing up, in preparation of our clients year end reporting & compliance matters & continue to operate through the current lock down period & continue to offer their high service standards & thank all our clients for their continued support & loyalty through another challenging year! We look forward to assisting you through the next financial year & beyond!

Business breakfast yesterday with WA Premier Mark McGowan as keynote speaker.