Volunteering and tax
What you need to know about volunteering & tax The worryingly early start to Australia’s bushfire season in New South Wales means scores of local volunteers are standing on the frontline, battling and protecting residents from the devastating fires. This raises the important practical question – do payments to volunteers constitute assessable income and are […]
Travelling to work
A recurrent topic of conversation and enquiry when it comes to possible tax deductions is when taxpayers travel to a work location, and the eligibility or otherwise of certain claims in regard to that travel. Work-related travel is a hot focus area of the ATO as taxpayers can often get claims wrong. While trips between […]
Start up costs
Historically, taxpayers may have been able to claim a deduction for the costs associated with setting up a business or raising finance, including the costs incurred in: – establishing a company or other business structure – converting a business structure to a different structure – raising equity for the business – defending it against a […]
Depreciation pool
The simplified depreciation rules are attractive for small businesses as they allow an immediate write-off for assets costing less than $20,000. In contrast, tax paying entities that do not qualify as a small business must use the general depreciation rules (also known as the uniform capital allowance rules), where assets costing more than $100 need […]
Business interest expenses
If a business racks up an interest bill from borrowing funds to pay for the expenses of running the business, or to acquire other income-producing assets or investments, this expense is generally allowed as a tax deduction for the relevant year. For business taxpayers under the accruals accounting method, a claim can be made for […]
Buying assets on gumtree
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 case involved a taxpayer’s attempt to make a […]
Bad debt deductions
A debt to a business that is unpaid and deemed to be a “bad” debt can be an allowable deduction as long as it was included as assessable income in the present or even a previous income year, and that it is written off as “uncollectable” in the same year that a deduction is claimed. […]
Training courses for employees
Running a successful small business sometimes requires an upskilled team. If you need your employees to grow their expertise in a particular area, spotting them for short-courses, seminars, one-day intensives or a bunch of “101s” can be a worthwhile endeavour. For example, accounting firms generally pay for their employees’ CA or CPA program course fees. When […]
Working from home
In general terms, the Tax Officetakes the view that expenditure associated with a person’s place of residenceis more likely to be of a private nature. However if you produce assessable income at home, or some of it, and you incur expenses from using that home as your “office” or “workshop”, you will generally be in […]
Novated Leases
A novated lease is a popular way for employers to reward and incentivise their staff. Through a salary sacrifice arrangement that includes a novated lease, employees are provided with a vehicle and can also reduce their personal tax liability. However, employees should understand how fringe benefits tax (FBT) might apply to their arrangement and what […]
