Latest News
ATO reminder about family trust elections
Taxpayers may be considering whether they should make a family trust election (‘FTE’) for a trust, or an interposed entity election (‘IEE’) for a trust or other entity. Making an FTE provides access to certain tax concessions (assuming the relevant tests and conditions are satisfied), although there are important things to consider. In particular, once […]
Taxpayer’s claims for various ‘home business’ expenses rejected
In a recent decision, the AAT rejected in full a taxpayer’s claims for “several classes or categories of deductions.” For the relevant period of 1 July 2021 to 30 June 2022, the taxpayer was (according to his employer) a ‘technical architect’. However, the taxpayer also claimed he worked from home 6am to 11pm seven days […]
SMSFs cannot be used for Christmas presents!
There are very limited circumstances where taxpayers can legally access their super early, and the ATO is reminding taxpayers that “paying bills and buying Christmas presents doesn’t make the list.” Generally, taxayers can only access their super when they: reach preservation age and ‘retire’; or turn 65 (even if they are still working). To access […]
ATO’s tips for small businesses to ‘get it right’
While the ATO knows most small businesses try to report correctly, it understands that mistakes can happen. The ATO advises taxpayers that it is important to get the following ‘basics’ right: using digital tools and business software to help track and streamline processes to increase the efficiency of their business; keeping accurate and complete records, […]
Reminder of December 2024 Quarter Superannuation Guarantee (‘SG’)
Employers are reminded that employee superannuation contributions for the quarter ending 31 December 2024 must be received by the relevant super funds by 28 January 2025. If the correct amount of SG is not paid by an employer on time, they will be liable to pay the SG charge, which includes a penalty and interest […]
Can staff celebrations attract FBT?
With the holiday season coming up, employers may be planning to celebrate with their employees. Before they hire a restaurant or book an event, employers should make sure to work out if the benefits they provide their employees are considered entertainment-related, and therefore subject to fringe benefits tax (‘FBT’). This will depend on: the amount […]
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Capital Gains Tax
A capital gain or capital loss on an asset is the difference between what it cost you and what you receive when you dispose of it. You pay tax on your capital gains. It forms part of your income tax and is not considered a separate tax – though it’s referred to as capital gains […]
Borrowed money to pay a business tax debt? Is the interest deductible?
It’s a question that the ATO has been asked very infrequently, but after the third such request, it decided to issue a ruling – which still stands. It was about 1990 when the ATO was asked about the tax-deductibility of interest on a loan business may have taken out to repay a tax debt. It […]
Fringe Benefits Tax (FBT)
Fringe benefits tax (FBT) is tax employers pay on certain benefits they provide to their employees, including their employees’ family or other associates. The benefit may be in addition to, or part of, their salary or wages package. If you are a director of a company or trust, the benefits you receive may be subject […]
Hiring Employees and What You Need to Know
You may have tax and superannuation obligations if you employ or contract workers into your business, either full-time or part-time. This includes your family members and you if you are a director. Your obligations may include: Pay as you go (PAYG) withholding Superannuation guarantee Fringe benefits tax (FBT) You have responsibilities from the day your […]
Division 293 Tax
What is Division 293 tax? Division 293 tax is being introduced from the 2012-13 year to reduce the tax concession on superannuation contributions for individuals with income greater than $300,000 a year. Division 293 tax will be charged at 15% of an individual’s taxable concessional contributions above the $300,000 threshold (which is capped at $30,000). […]
Medicare levy surcharge, thresholds and rates
Different Medicare levy surcharge thresholds and rates apply to individuals and families. We use a special definition of income (called income for MLS purposes) to determine whether you are liable to pay the Medicare levy surcharge and the rate you will have to pay. What is included in income for MLS purposes? If you have […]
