Vehicles and FBT
Restrictions on reducing Fringe Benefits Tax (“FBT”) on car expense payments From 1 April 2016, the “otherwise deductible” rule has changed for car expense payment fringe benefits (i.e. where an employer meets or reimburses an employee for fuel or other running expenses). Previously, employers could elect to reduce the taxable value of car expense benefits […]
Detail of Personal Services Income (PSI)
What are the PSI Rules meant to do? The rules were designed to improve the integrity of the tax system by addressing both: The capacity of individuals and interposed entities providing the personal services of an individual to claim higher deductions than employees providing the same or similar services; and The alienation of personal services […]
2018 Federal Budget
The item that may receive the most analysis from the whole of this year’s federal budget will be the increase of the 32.5% tax bracket, and an expansion of the Low Income Tax Offset. A win for small businesses in this year’s budget sees the retention of the $20,000 instant asset write-off for another 12 […]
FBT for Schools
You may be aware that draft Taxation Ruling TR 2018/D2, Fringe benefits tax: benefits provided to religious practitioners (‘TR 2018/D2’) was recently issued for comment. It seeks to provide guidance as to the application of the FBT legislation in respect of whether benefits provided to religious practitioners of religious institutions may be treated as exempt […]
Basics of Personal Services Income (PSI)
How do the Personal Services Income Rules work? If 80% or more of the PSI comes from one source, the results test must be passed. Otherwise, the business is not a PSB and the PSI rules will apply. If less than 80% of the PSI comes from one source, the business will be a PSB […]
Family succession planning for business owners
For many business owners, the objective is to pass a profitable and successful business through to the next generation, but this is not something that simply happens and the planning you undertake for a business sale should be similar to transferring a business within the family group. If you are a business owner, you may […]
What is my Tax Rate?
As a result of some confusion, the Federal Government has introduced legislation to confirm when a company is eligible to be classified as a Small Business Entity and be taxed at the 27.5% tax rate. The proposed new legislation is contained in Treasury Laws Amendment (Enterprise Tax Plan Base Rate Entities) Bill 2017. The proposed […]
2018 Federal Budget
The item that may receive the most analysis from the whole of this year’s federal budget will be the increase of the 32.5% tax bracket, and an expansion of the Low Income Tax Offset. A win for small businesses in this year’s budget sees the retention of the $20,000 instant asset write-off for another 12 […]
Extension of application of 2017/13
On 15 August 2018, the Australian Tax Office (ATO) updated Practical Compliance Guideline (PCG) 2017/13 to extend its application to Division 7A sub-trust arrangements adopted in accordance with Practice Statement Law Administration 2010/4 (PS LA 2010/4) that mature in the 2019 income year. PCG 2017/13 as amended provides that the same circumstances that apply to the 2017 and […]
Amendments to Div 7A
Division 7A of the Income Tax Assessment Act 1936 aims to prevent shareholders (or their associates) from inappropriately accessing the profits of private companies via payments, loans or debt forgiveness transactions without recognition as income by the ultimate beneficiary. Essentially, Division 7A stops private companies from avoiding dividend taxation and making tax-free distributions of profits to shareholders. […]
