How powerful is the ATO?

Clear Vision • April 17, 2018

ABC News has an interesting article about the ATO which states the Australian Tax Office has been described as one of the most powerful institutions in the country.

And if you didn’t watch Four Corners last week, you may be interested to hear about a joint investigation by Four Corners and Fairfax Media which has exposed disturbing behavior within the Tax Office, sparking calls for more oversight and accountability.

The ATO has extraordinary powers and when it makes mistakes, it can destroy small businesses and livelihoods, states ABC News.

Here are a few eye opening, jaw dropping facts you may not know:

  • If the ATO comes knocking, you have to prove your innocence. Innocent until proven guilty is not how it works with the Tax Office.
  • The ATO can search your property without a warrant “When using our access powers, we are authorised to enter and remain on any land, premises or place and have full and free access to books, documents, goods or other property,” an ATO statement says
  • The ATO can divert your income…. to itself. This power allows the ATO to instruct a bank to immediately divert income sent to a small business to the Tax Office.

If you want to protect yourself now you may want to consider Audit Shield Service. You may not be targeted but if you are, wouldn’t it be comforting to know that in the event that you are subject to an audit, enquiry, investigation or review in relation to your lodged returns, if you participate in our Audit Shield service you will be covered for the professional fees associated with the response process (up to a prescribed limit). It’s basically giving you peace of mind.

To find out how call us on 07 4688 2500.

You can read more about it at www.abc.net.au

What Records to Keep for Your Rental Property

By Caroline Gillies • August 3, 2025
If you own a rental property or holiday home, keeping the right records is key to maximising your tax deductions and staying ATO-compliant. This week, we’re highlighting what the ATO expects you to keep when it comes to residential rental properties. Here’s a quick checklist of the documents you should hold onto: Purchase & Sale Documents – Contracts, settlement statements, and legal documents. Loan & Ownership Records – Loan statements, refinancing documents, land tax assessments. Rental Income – If you don’t have a rental statement you will need to document all rental income received, including bond money retained, insurance payouts, and any other reimbursements. Expenses & Repairs – Keep receipts and invoices for expenses like advertising for tenants, property agent fees, council rates, strata levies, repairs, maintenance, insurance, and interest on loans. Depreciation & Capital Works – Receipts for assets over $300, depreciation reports, and capital improvement records. Before and after photos of any capital works. Holiday Home Use – If your property is rented out part-time, you’ll need evidence of when it was genuinely available for rent (e.g. booking requests, advertising, availability calendars). How long to keep records: You’ll need to keep most records for at least 5 years after lodging your tax return, or longer if claiming capital works or carrying forward losses. Keeping detailed records ensures you claim everything you're entitled to—and makes things much easier in the event of an ATO audit.  Need help getting your documentation in order? Reach out to our team at Clear Vision Accountancy Group—we’re here to help. To read a more detailed list of items you need to keep for your rental property visit: Records for rental properties and holiday homes | Australian Taxation Office

How Much Do You Need to Make? Understanding Business Turnover

By Caroline Gillies • July 13, 2025
Running a business isn’t just about making sales — it’s about making enough sales to cover your costs and pay yourself what you deserve. But how do you figure out how much turnover (aka revenue) you actually need to make each month? Knowing this number helps you: Set realistic sales targets Price your products or services properly Know when to cut costs or increase margins Understand when your business is sustainable This isn’t just about numbers — it’s about clarity and control. Once you know your required turnover, you can stop guessing and start planning. Whether you’re a solopreneur, a growing startup, or a small business owner, this is the foundation of making your business work for you — not the other way around. We love numbers — seriously. And we get that not everyone does. If you need help breaking things down in a way that’s simple, practical, and actually makes sense (even if numbers aren’t your thing), call Clear Vision Accountancy Group today on 4688 2500.

12% Superannuation Guarantee - 1 July 2025

By Caroline Gillies • June 22, 2025
From 1 July 2025, the Superannuation Guarantee (SG) rate in Australia will increase to 12%. This means employers will be legally required to contribute at least 12% of an eligible employee's ordinary time earnings to their superannuation fund. This increase is the final step in a legislated rise from 9.5% in 2021 to 12% by 2025, aimed at boosting retirement savings for Australian workers. If you use Xero for payroll, the SG rate should automatically update in the system. However, we recommend you double-check your payroll settings to ensure everything is correct. If you’re unsure or need assistance, please contact your bookkeeper or get in touch with us at: Clear Vision Accountancy Group (07) 4688 2500 We’re here to help you stay compliant and avoid any costly errors.