GST Withholding for Developers
GST withholding will apply to any taxable supply of ‘new residential premises’ or ‘potential residential land’. There are some exceptions: supplies of ‘substantial renovations’ and ‘commercial residential premises’ are excluded. There is also an exception where the purchaser is registered for GST and acquires the supply for a ‘creditable purpose’. Giving a notice to the […]
Tax planning tips
All taxpayers are allowed to arrange their affairs in a manner that remains legal but which minimises their taxation liabilities. So here is 30 ways to minimise the tax you pay, and to leave a few dollars in your pocket, not the tax man. What is Taxable Income? The trading profit of a business is […]
Depreciation of intangibles
Business taxpayers will know that asset depreciation is an important aspect to their business’s tax health and longevity. However the importance, and revenue generation role, of knowledge-based or intangible assets has become much more common in the modern business landscape. Innovative companies know that changes in the economy, including globalisation and digitisation, have elevated the […]
Confusion in Div 7A
Division 7A of the ITAA36 has been operational since 1997. However, the provisions are complex and their application extends beyond the boundaries of what many accountants think. Below are some common misconceptions around the application of Division 7A that I still seem to see: 1. Loans provided by a private company to another entity (say a […]
FBT or Div 7A
A common occurrence, particularly in family companies, is the provision of benefits to shareholders of a company in which those same shareholders are also directors of the company. The question will then arise; is that payment caught by Division 7A or FBT? As a general rule, a fringe benefit arises if the company provides a […]
Managing a SMSF overseas
Are you an SMSF trustee who loves to travel? Sounds like a great lifestyle, however while planning your summer break you need to be aware that there can be negative consequences if you are out of the country for too long. If you are a trustee and you relocate overseas for an extended period, the […]
Rollover relief for CGT
Where a depreciable asset is transferred between related entities and CGT rollover relief is available, the balancing adjustment can be deferred until the next balancing adjustment event occurs. The conditions for automatic rollover relief are: Type of CGT rollover Legislation Disposal of asset by an individual or trustee to a wholly-owned company The transferor […]
Tax deductions for SMSFs
One overarching fundamental that SMSF trustees should ideally keep in mind is the sole purpose test — that is, every decision made and action taken is required to be seen as being undertaken for the sole purpose of providing retirement benefits for the fund’s members. If an SMSF trustee incurs an expense in the usual […]
Child recipient in super
The death of a parent is hard on all those involved, however once the grieving has eased, a time comes to address financial matters. One of these issues can be what happens to any superannuation they have left. Making things harder is the fact that the new transfer balance cap (TBC) brought in as of […]
Base penalty amounts can be reduced
The ATO says its base tax penalty amount may be increased (s284-220) or reduced (s284-225). The base penalty amount may be increased where the taxpayer hinders the ATO, but it also may be reduced in the following circumstances. Voluntary disclosure The voluntary disclosure to the Commissioner of a tax shortfall will result in a reduction […]
