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 […]
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 […]
White labelled tax advice
Working with the C&D team allows firms to offer complex and comprehensive taxation advice without the expense of full time technical staff. We offer a mechanism that allows firm to delivery our advice as branded for the firm, with clear explanations and simplistic operative structures. Our advice is written in line with your firm’s expectations […]
Taxation of Cryptocurrency
Craig Dangar looks at the consequence of crypto currency from the perspective of taxation and how it can be treated. 1. A cryptocurrency similar to Bitcoin is not a “currency” for tax purposes The ATO in its published guidelines states that Bitcoin is not a currency, but rather is treated as an asset, the price of […]
