Clothing and Laundry
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. To claim a deduction it is generally expected that you will be able to provide evidence that you purchased the clothing concerned, and will have […]
Home office
You might be sick of the daily commute, or want more flexibility of hours – or it could be that you have a talent or skill and feel sure that this can translate into a fulfilling career in your own business. Or it could just be that the idea of working from home seems to […]
Borrowed money for a business debt
It was about 1990 when the ATO was asked about the tax deductibility of interest on a loan a business may have taken out to repay a tax debt. It was the third time, according to ATO records, that the matter was raised. Of the two previous requests for clarification, one was made as far […]
GST Lite for Business
The ATO says that it has “listened to the concerns of small businesses, tax professionals, industry associations and software providers”, and is working towards reducing GST compliance costs for small businesses. “We are reducing the amount of GST information required for the business activity statement (BAS) to simplify GST bookkeeping and reporting requirements,” it says. […]
Tax and holiday homes
Now that summer has come and gone, the ATO has been active in issuing reminders about the taxation issues surrounding holiday homes. The fact the ATO issues reminders is a sure sign that the topic is continuing to be a concern. Even though it is still some time before the owners of beach shacks or […]
Partnership interest deduction
Loan interest can be deductible to a partnership A general law partnership is formed when two or more people (and up to, but no more than, 20 people) go into business together. Partnerships are generally set up so that all partners are equally responsible for the management of the business, but each also has liability […]
Div 7A Compliance
Division 7A is an integrity measure that was designed to prevent companies from making tax-free distributions to shareholders or their associates. This can occur where distributions of profit are disguised as loans or other transactions. This effectively allows the shareholder or their associate to have access to the corporate tax rate. A consequence of Division […]
Div 7A Reminders
Div 7A loans result in a deemed dividend. But not all loans from private companies to their shareholders fall under Div 7a. There are ways around it. Div 7A Loans A loan from a private company to a shareholder or associate is treated as a dividend, unless repaid in time or subject to an exclusion. […]
Tax negotiation basics
When dealing with Tax Debt often one of the most important steps is to let the Australian Taxation Office know you are not ignoring them and that you have appointed a Professional Company to deal directly with them on your behalf. The Australian Tax Office has a policy of working with businesses to solve their […]
GST on Gold
When purchasing investment grade gold and silver bullion, there is no GST, but the definitions of ‘investment grade’ for precious metals are very specific. Here are the standards: According to the ATO, “No regulations have been made to specify any other substance. To be precious metal for GST purposes, the metal must therefore be gold, silver […]
