The CGT implications of subdividing & building on the family property
A common question concerns the effects on the CGT main residence exemption where the owner decides to subdivide the land containing their principal place of residence to build residential units. We provide 3 typical scenarios. Read more
Selling up your business? Don't forget the "going concern" GST exemption
The concept of a "going concern" exemption for the purposes of GST does cause confusion when businesses are sold. What is a "going concern" and what are the requirements for the exemption? Read more
Business costs & the deductibility of interest expenses
If a business racks up an interest bill from borrowing funds to pay for the expenses of running the business, this expense is generally allowed as a tax deduction for the relevant year. What are the factors? Read more
Company tax franking implications
The recent cut to the tax rate to 27.5% for incorporated businesses that turnover less than $50 million a year can bring with it some important considerations when it comes to distributing franked dividends. The rate change will be staggered, starting with companies that turnover up to $10 million a year. Read more
End of year tax planning tips for business
The general rule is that you can claim deductions for expenses your business incurs — but there are also some less obvious options left available just before the end of the income year to further reduce your enterprise’s tax burden for the year. Read more
What is a tax loss & how to turn it to good use
Certain deductions that would otherwise be allowable cannot be claimed as deductions where doing so would give rise to a tax loss, such as payments of pensions; gratuities or retirement allowances; gifts or contributions; personal superannuation contributions. Read more
Who is assessable on interest income?
It is a fairly well-established and welcome act for a parent or family member to open a savings account for a young family member. However, for taxation, while the account may be in the child's name, the investment income is assessable to the person who beneficially owns the money. Read more
The transitional CGT relief measure and your SMSF
Transitional CGT relief is temporary relief available to all complying super funds, not just SMSFs, for certain CGT assets that would otherwise give rise to a taxable capital gain through the necessary efforts to comply with the new transfer balance cap and new conditions to be applied to transition to retirement income streams. Read more
How will the 2017 Federal Budget affect you
On Tuesday 9 May, the Federal Treasurer, The Hon Scott Morrison MP, handed down the 2017-2018 Federal Budget announcing a range of proposed changes and initiatives. Read more
FBT & cars - a perennial head-scratcher
The provision of cars by employers to employees remains an issue that continues to create confusion for some business taxpayers, identifying that a car fringe benefit has been provided. In the past theATOhas undertaken data matching activities with state based road registration authorities to identify newly registered vehicles under a company or trustee’s name. (April 2017) Read more
Can salary sacrifice work for you?
Salary sacrifice can be a great way to get a part of your remuneration in a form other than cash – and not personally pay tax on it. Options that may be allowed by your employer include a car, shares or payments for your expenses, such as school fees, child care or home internet connection costs for example. (April 2017) Read more
Gumtree or Facebook group sourced assets, & the realities of making a claim
A recent case before the Administrative Appeals Tribunal brought into focus a growing phenomenon that should be kept in mind for work-related or business expense deduction claims, especially where the acquisition of claimable assets is for items that are bought through Gumtree or Facebook groups and the need to be able to substantiate such deductions. (April 2017) Read more
Simplified depreciation & the small business pool
The simplified depreciation rules are attractive for small businesses as they allow an immediate write-off for assets costing less than $20,000. (April 2017) Read more
Tax & the sharing economy
Think Uber, think Airbnb. By now, most people will have realised that the “sharing” part of the concept refers to the use and access of shared physical or human resources or assets. As for the taxation treatment of these transactions, the ATO has found it necessary to provide guidance. (April 2017). Read more
SMSFs & the in-house asset rules explained
A not-uncommon conundrum for many SMSF trustees is what to do when the fund is found to have breached the in-house asset rules. What’s an in-house asset? How does the limit work? And what does the ATO say in relation to the in-house asset rules? (April 2017) Read more
What is your "total superannuation balance"?
Recent superannuation reforms introduced a concept of “total superannuation balance”, which on the surface may give the simple impression that it is the sum of the balances of a person’s superannuation interests. However, this is not the case. (April 2017) Read more
Getting deductions for clothing & laundry expenses right
The ATO allows certain taxpayers to claim a deduction for the cost of buying and cleaning occupation-specific clothing, items of protective wear and for certain unique, and usually distinctive, uniforms. But what do you need to claim a deduction? (April 2017) Read more
Start-up businesses: Which is the right structure for you?
Start up businesses need to make one important decision from the outset – what type of business set-up will suit their enterprise best? Sole Trader, Partnership, Company or Trust. (November 2016) Read more
Travel to a workplace: What’s in, what’s out
Work-related travel is a hot focus area of the ATO when it comes to possible tax deductions when taxpayers travel to a work location, and the eligibility or otherwise of certain claims in regard to that travel. (November 2016) Read more
Setting up an SMSF: What you need to know
The ATO’s compliance (and penalty) regime has improved greatly. The ATO asks all prospective SMSF trustees to consider the following aspects before deciding whether they should manage their own super. (November 2016) Read more
Borrowed money to pay a business tax debt? Is the interest deductible?
It’s a questions that the ATO has been asked very infrequently, but after the third such request it decided to issue a ruling – which still stands. (November 2016) Read more
What types of legal expenses are allowable as tax deductions?
When a legal expense is incurred in relation to the operation of a business to produce assessable income, it is generally allowable as a deduction. What can be claimed and what cannot?
When is refinancing loan interest deductible to a partnership?
Partnerships are generally set up so that all partners are equally responsible for the management of the business, but each also has liability for the debts that business may incur. (November 2016) Read more
Home renovations: Overlooked tax deductions for investors
Many investment property owners may be missing out on valuable property depreciation entitlements, simply by not being up-to-speed on what is and is not depreciable. (August 2016)Read more
Novated leases explained
Wrapping a car into a salary package is a very popular choice, and doing so as part of a salary sacrifice arrangement often raises the topic of novated leases. (August 2016)Read more
Real estate: Buyers turned into tax collectors
New withholding rules on the sale of property by foreign residents have been introduced – which essentially makes purchasers tax collectors. (August 2016) Read more
What you need to bring to your tax return appointment
If you’re coming in soon to discuss your tax return for yourself or your business, be prepared with some records or access to them. It is not only wise, but saves a lot of time and effort for both yourself and for us. (August 2016)
The ATO has recently warned that it is continuing to see instances of scam emails, SMS messages or telephone calls where criminals try to steal money or information from taxpayers. Avoid becoming a victim by knowing what to do. (August 2016)
SMSF trustees: Non-arm’s length LRBA grace period extended
The ATO had previously held that limited recourse borrowing arrangements (LRBAs) which are not maintained on arm’s length terms need to be fixed before June 30, 2016. (August 2016)Read more
Work-related deductions: What’s on the taxman’s radar?
This year the ATO will be paying extra attention to people whose deduction claims are higher than expected, in particular those claiming car expenses, including claims for transporting bulky tools, deductions for travel, internet and mobile phone, and self-education expenses. (August 2016)Read more
Gumboots: check. Akubra? Check. Tax status?
It is true that small rural landholders may be pursuing “lifestyle” dividends rather than a genuine livelihood, but the option to claim the tax concessions that are available to bona fide primary producers is still available, should these small farm holders prove eligible. (August 2016)Read more
ATO's key results in 2014-15
The ATO has released some interesting statistics. (August 2016)Read more
Renting out all or part of your home
Generally, if you rent out part or all of your home, the rent money you receive is assessable. But be warned - if you rent out part of your home, such as one room, you also may not be entitled to the full main residence exemption from capital gains tax (CGT). This means you will be required to pay CGT on part of any capital gain made when you sell your house. (August 2016)
Are you the trustee of an SMSF but also a travel aficionado? Nothing wrong with that; however trustees need to be aware that there can be negative consequences if you are out of the country for too long. (August 2016)Read more
5 smart things to do with your tax refund
For many people, their tax refund is treated like a mini lottery win. This tax time, consider putting your “gift” from the ATO to good use. (August 2016) Read more
Tax issues for volunteers
Given that there are many hundreds of volunteers throughout the nation, and in the spirit of thorough tax planning, an important practical consideration for many may be if payments to volunteers constitute assessable income and are their expenses tax deductible? (August 2016) Read more
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