There is political speak about “limiting” the amount someone can claim for “managing their tax affairs”.
The ATO already requires various disclosures on the amount that is claimed.
Changes to the tax return labels may require a new account in the chart of accounts
From a bookkeepers point of view: Do we dissect every element of what the accountant does or the Bookkeeper does in order to disclose the amount of “Tax Management”? What is tax management? Is it everything to do with BAS, PAYGW, GST, Income Tax?
If so then the figure might be all encompassing.
If not then it seems like an unnecessary additional disclosure.
Impact for Bookkeepers: Leave it to the tax agent to make this special disclosure.
If the accountant wants a dissection in the chart of accounts, that also makes sense. Then we need to ensure a common understanding of what is coded where.
If the business begins to incur “Litigation” costs or “Interest” to the ATO then they should be separately identified.
Updated: 21st February, 2018