Latest News
ATO’s appeal against decision that UPEs are not “loans” fails
The Full Federal Court recently dismissed the ATO’s appeal against an AAT decision that unpaid present entitlements (‘UPEs’) owing by a trust to a corporate beneficiary were not “loans” for Division 7A purposes. A corporate beneficiary had become entitled to a share of the income of a trust for the 2013 to 2017 income years. […]
Taxpayer’s claim for input tax credits unsuccessful
In a recent decision, the Administrative Review Tribunal (‘ART’) rejected a taxpayer’s claim for input tax credits on the basis that all the relevant GST returns (i.e., BASs) were lodged out of time. For the GST periods from 1 October 2015 to 31 March 2017, the taxpayer filed each of her GST returns more than […]
ATO “busts” NFP myths
Editor: As the Not-for-profit (‘NFP’) self-review return is due in March, the ATO has recently published a document ‘busting’ various NFP ‘myths’. Myth 1: All NFPs are income tax exempt. ATO response: This is not true. Some NFPs are income tax exempt and some are taxable. Myth 2: There is only one way to lodge […]
Claiming fuel tax credits when rates change
Fuel tax credits changed on 3 February, and taxpayers could receive more savings for fuel they have acquired on and from this date. Different rates apply based on the type of fuel, when it was acquired and what activity it is used for. The ATO has the following tips for taxpayers to ensure they are […]
ATO’s tips to help taxpayers stay on top of their BAS
The ATO has the following tips to help taxpayers get their BAS right before they lodge: They should make sure they enter the figures for their obligations at the correct label, and only complete applicable fields. If lodging online, or through a registered tax or BAS agent, they may be able to get an extra […]
How to master employer obligations in 2025
Taxpayers who employ staff should remember the following important dates and obligations: Fringe benefits tax (‘FBT’) 31 March 2025 marks the end of the 2024/25 FBT year. Employers should remember the following regarding their FBT tax time obligations. They should identify if they have provided a fringe benefit. If they have, they should determine the […]
Share Dividend Income and Franking Credits
Mum and dad investors in receipt of dividends from their share portfolio often benefit from investing in blue chip shares because they usually have franking credits attached. As a general rule, an Australian resident shareholder is assessed for tax on dividends received plus any franking credits attached to those dividends. The shareholder is assessed on […]
Where has the year gone?
Where are we going? If you decide to go on a week’s holiday you wouldn’t normally just jump in the car and take off, would you? You would need to consider many things before leaving: Where do you want to go? Where to stay? Availability of accommodation? What to take with you? How much money […]
Identifying a good investment property
Most of us have heard the saying ‘Location, location, location’, but have we thought about what it actually means? Is it the only factor when considering buying an investment property? Location, location, location There is no doubt that location is one of the most important factors in determining a good investment property. It influences your […]
Gumtree sourced assets, and the realities of making a claim
A recent case before the Administrative Appeals Tribunal (AAT) brought into focus a growing phenomenon that you should keep in mind for work-related or business expense deduction claims, especially where the acquisition of claimable assets is made in a certain way. THE ENGINEER AND HIS “INVOICE” The AAT case involved a taxpayer’s attempt to make […]
The CGT Implications of Subdividing and Building on the Family Property
Given the state of the property market in Australia these days, a not-uncommon situation can arise where a residential propefty owner seeks to demolish and subdivide the block containing the family home and build residential units. lf you have the available land of course, the above is a solid strategy. However it can cause headaches from a tax perspective – and in […]
Are Personal Carer Travel Costs Claimable? It Depends …
A recent Administrative Appeals Tribunal decision has ramifications for taxpayers with disabilities, and who are in need of a personal carer. The decision centres around what is or is not acceptable as a tax deduction in relation to the costs that arise with regard to that carer under certain conditions. The circumstances of the taxpayer concerned in the case are particularly relevant, […]