Basics of Family Trust Elections (FTEs)
Most practitioners have heard of family trust elections (“FTE“), and some may have made FTE’s to err on the side of caution. However, in many cases, a clear explanation of the reasons for making a FTE is not readily available. This article aims to provide a practical explanation of the main situations in which a […]
Repairs, replacement and maintenance
You can claim a deduction for repairs and maintenance to machinery, tools or premises you use to produce business income, as long as the expenses are not capital expenses. What you can claim You can claim the cost of allowable repairs and maintenance, including: painting; conditioning gutters; maintaining plumbing; repairing electrical appliances; mending leaks; replacing […]
Small Business Tax Concessions – Basics
In addition to the capital gains tax (“CGT“) exemptions and rollovers available more widely, there are four concessions that allow you to disregard or defer some or all of a capital gain from an active asset used in a small business: 15-year exemption – If your business has continuously owned an active asset for 15 years […]
FBT and entertainment
New changes to salary packaged entertainment From 1 April 2016, all employers providing salary packaged meal entertainment or entertainment facility leasing expenses (EFLE) benefits to employees will be unable to use the 50/50 split method and 12 week register method for valuing the salary packaged benefits. Only the actual method can be used to determine […]
What is Division 7A? A basic explanation
Division 7A only applies to private companies, all loans, advances and other credits made by private companies to shareholders (or their associates), and so is highly relevant in the SME market. This is an area of high risk for the ATO. Craig Dangar notes that this is an area of concern for many businesses, especially […]
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 backpacker taxes
The Australian tax year runs from 1st July to 30th June each year. Tax returns lodged by individuals have to be filed any time from 1st July to 31st October, for the previous year. If you do not fill in a tax return, penalties can apply. Backpackers are almost always not considered residents for tax purposes. Though most of us will […]
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 […]
