Will the ATO chase me?
TO debt is split into 4 main general areas – 1. GST 2.Income Tax 3. PAYG 4. Superannuation. The first two attract no personal liability whilst the last two may expose Directors for personal liability. GST and Income tax are company debts and at no stage are they ever a Director’s personal liability. If you […]
Mistaken claims in rental properties
The Tax Office has found that there are some landlords who may not be entirely sure about whether they are correctly claiming their rental property deductions. In particular, it has found that many property investors are making simple mistakes that could be avoided with a little guidance. The Tax Office has identified some of the […]
Share trader or investor
There’s a saying that many share market investors may have already heard: Don’t let the tax tail wag the investment dog. In other words, the best advice for your share portfolio is to base your decisions on investment merit, not on trying to save tax. Even so, there are taxation consequences for everyone with an […]
Holiday house taxes
Many of us look forward to an annual getaway, either to the beach or the bush, as the best way to unwind and re-charge after another tiring year. While having a holiday house is a luxury that a lucky few may be fortunate enough to be able to own outright, for many Australians having a […]
Negative gearing basics
Negative gearing – how it works and pros and cons Taking out a loan to raise money for an investment is a well-used tactic for many Australians. In fact, borrowing to buy big ticket items is part of financial reality – for example, how many of us could afford to buy a house out of […]
Capital deductions for rental properties
Rental property investors can claim capital works deductions for construction costs for a rental property, however there are limits imposed in relation to the dates such works were completed. The deductions are only available on residential properties if these were built after 17 July 1985. Generally, up to 15 September 1987 the rate is 4% […]
Debt forgiveness
“Pardon” is a word that can sound somewhat archaic — which could be why the term “debt forgiveness” is barely mentioned in discussions on “bankruptcy”, even though the two concepts are related. Bankruptcy is dramatic, Hollywood; debt forgiveness seems dated, even mildly medieval. In reality debt forgiveness, on the face of it, is a means […]
Wine Equalisation Tax
How the Wine Equalisation Tax works When the goods and services tax was introduced on to the Australian tax landscape in 2000, there was a lot of angst about the negative effect on the cost of living that this blanket 10% impost would have. A glimmer of consolation was that pulling a cork out of […]
Undercover employee
The undercover employee The Tax Office’s ongoing compliance efforts have some constant focus. One of these is the often flawed characterisation of an employee as a contractor by businesses. The mischief from the Tax Office’s point of view is the avoidance of employer obligations relating to the Superannuation Guarantee (SG) and Pay As You Go […]
Franking credits under the new rates
The recent cut to the tax rate for small incorporated businesses, while generally welcomed, can bring with it some important considerations when it comes to distributing franked dividends. The rate change to 28.5%, which applies from July 1, 2015, means that small businesses could easily frank dividends in excess of the underlying taxes paid on […]
