GST on eBay
As of 1 July 2018, Australian goods and services tax (“GST“) will apply to sales of low value goods imported by consumers into Australia. Craig notes that the consequence of this will a significant administrative burden for small operators but this can be managed effectively through a good bookkeeping arrangement. Businesses that meet the registration threshold […]
New GST Rules for Property Developers
https://youtu.be/wGIR-zSzZrM From 1 July 2018, a Goods and Services Tax (“GST“) withholding obligation will be imposed on purchaser of certain residential premises, including certain vacant land. Purchaser must withhold the ‘GST component’ of the sale price of affected land and pay it directly to the Commissioner instead of the seller. Transitional rules may apply for […]
Basic Trust Tax
Income tax and capital gains tax issues Because a trust is not a person, its income is not taxed like that of an individual or company unless it is a corporate, public or trading trusts as defined in the Income Tax Assessment Act 1936 (Cth). In essence the tax treatment of the trust income depends […]
Basics of Testamentary Trusts
A testamentary trust can save you or your beneficiaries a lot of money when it comes to tax. They are usually used to protect assets. A testamentary trust is created by a will in order to provide a higher level of control over the distribution of assets to beneficiaries. The main benefit of a testamentary […]
Salary packaging still tax effective
With many households feeling the squeeze of financial pressure, employers may find that their staff are enquiring about their salary packaging options. Salary packaging is still a tax effective option for both employees and their employers, however caution must be had as to the types of benefits that are packaged. The packaging of Fringe Benefits […]
Basics of trusts
What is a trust? This is probably the most misunderstood aspect of trusts. A frequently held, but erroneous view, is that a trust is a legal entity or person, like a company or an individual. A trust is not a separate legal entity or person at all – it is essentially a relationship that is […]
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 […]
