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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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, […]
