Travel Expenses
Working out what can be claimed as travel deductions is an area many taxpayers find confusing. To obtain a deduction three “golden rules” need to be considered and met: The most common question we get asked – “is my home to work travel claimable?” Firstly, home to work travel is generally considered private in nature […]
Basics of Downsizing Contributions
The Federal Government recently announced that, as of 1 July 2018, downsizers aged 65 years or older may opt to contribute proceeds from the sale of their home (up to a total of $300,000 each) toward their super fund(s). Referred to as a downsizer contribution, it is treated as being non-concessional; existing in addition to […]
Increase in SMSF member numbers
In late April 2018, then federal minister for revenue and financial services Kelly O’Dwyer issued an announcement [1]declaring an expansion of the limit on the maximum number of members that are able to comprise a self-managed superannuation fund (SMSF). The raise – from four to six – was implemented by the then Turnbull Government so as to […]
Div 7A doing nothing
If so, then you need to keep reading….. Over the years, we have seen many business owners taking money out of their own companies – mainly because they believe it is theirs. The money is then used to purchase the family home, a new car, boat and for many other good reasons. This is not […]
Trust Tax Losses
Australian trust loss rules are complex, poorly understood and onerous to apply. As a result, business or investment trusts risk claiming losses incorrectly, a situation that can result in a significant tax liability. By making a family trust election (FTE), small to medium sized privately-held businesses operating as a trust can satisfy the trust loss […]
Corporate Tax Losses
Do you pass the ‘continuity of ownership’ (COT) test? If your company has past tax losses that haven’t been used as a tax deduction, this tip is for you… Check the conditions under which a company’s past losses may be claimed as tax deductions. The benefits may include significant reductions in corporate tax payable. Owners […]
Mitigating penalties on Div 7A
Introduced almost 19 years ago, Division 7A and its various exemptions apply to all private companies, their shareholders and shareholder associates across the country. While I consider this matter an Accounting & Tax 101 function, I regularly see it applied incorrectly which is concerning when you consider the significant tax penalties it can bring. Good […]
DIVISION 7A – No obligation to repay principal on sub-trust loan
Practical Compliance Guideline (PCG) 2017/13 has been released by the ATO to deal with Division 7A UPEs under sub-trust loans which are likely to mature in the coming year. The PCG enables the conversion of a “7-year option 1 investment” sub-trust arrangement (Option 1 Loan) into a compliant loan, pursuant to section 109N of the Income Tax […]
GST on Amazon Fees
Amazon has just announced that it will charge 10% GST on Selling on Amazon fees from 1 July 2017 for Australian based Amazon sellers unless they are registered for GST. So What Does This Mean? You will have to provide your ABN (Australian Business Number) to Amazon, and You will have to register with the Australian Taxation Office for GST […]
Div 7A Traps
Division 7A Traps – Loan Repayments that are NOT Loan Repayments! Division 7A (or Div 7A for short!) is an anti-avoidance measure designed to prevent private companies from making tax-free distributions of profits to shareholders or to their associates in the form of payments, loans, forgiven debts or via the use of private company assets. […]
