Australia has had its fair share of disasters over the last few years – drought, bushfires and floods – that have ramped up the volume of insurance claims. Most people would assume that if and when they need to claim on their insurance, the insurance payout covers the damage and is not income assessed for […]
Read moreChanges from 1 July 2021 will impact on how much money you can contribute to superannuation and how much you can have in your retirement phase superannuation account. In general, your superannuation is either in an accumulation account (when you are building your super), a retirement account (when you meet preservation age and certain conditions […]
Read moreLate last year, legislation passed that provided that certain grant payments in response to COVID-19 would be made non-assessable non exempt income. The legislation requires the Treasurer to declare that a grant program is eligible by legislative instrument if he is satisfied that it was in response to the economic impacts of the coronavirus pandemic […]
Read moreAs a small business owner, it is important you are aware of the CGT concessions available to you when you sell your business. These concessions can be generous and result in a business owner paying no CGT. It is normal that planning should occur many years before you sell, to make sure full advantage can […]
Read moreIf your company has made a loss, you may be able to claim a tax refund for tax previously paid on profits. In the 2020-21 Federal Budget, the Government announced that businesses with turnover under $5bn will be able to offset any losses made between 2019-20 and 2021-22 against previously taxed profits between 2018-19 and […]
Read moreStimulating investment is high on the Government’s agenda. To encourage spending, the 2020-21 Budget introduced a measure that allows businesses with turnover under $5bn to immediately deduct the cost of new depreciable assets and the cost of improvements to existing assets in the first year of use. This means that an asset’s cost will be […]
Read moreAs a reminder, when concessional contributions are made into your super fund, commonly being amounts paid by your employer from your before-tax income or a personal contribution that you are claiming a tax deduction for in your personal tax return, they are generally taxed at a reduced rate of 15% – which can be a […]
Read moreMy business received a grant from the State Government. Do I pay tax on it? Short answer; probably. Income tax Grants are likely to be taxable unless they are specifically excluded from tax. If the grant relates to your continuing business activities, then it is likely to be included in assessable income for income tax […]
Read moreServices Australia has an online payment guide that guides you through the payments available if you are impacted by COVID-19 and what you might be able to access. Pandemic Leave Disaster Payment for Victoria If you have to self-isolate or quarantine at home because of COVID-19 or are caring for someone who is, and cannot […]
Read moreDuring lock down I have had to work from home. I’ve set up a full home office with paintings, plants, a desk, computer equipment, a water tower and a sculpture. I presume I can claim everything I have purchased for this office and claim part of my mortgage and running costs? In general, home office […]
Read moreThe Australian Government has announced a $66.1 Billion stimulus package to support businesses, boost income support payments, provide targeted changes to superannuation rules and relax corporate insolvency laws. What this means for businesses: Tax-free payments up to $100,000 for small business and not-for-profit employers. An increase in the previously announced initial tax-free payments for employers […]
Read moreDownload your free checklist for purchasing a business here! Download Here! We have created this checklist to assist in the initial review of assessing a business. The checklist is designed to be thought provoking and help identify issues and opportunities in a business. the checklist covers basic operational and some financial performance considerations. It is […]
Read moreThe digital age is evolving, which means that technology such as laptops, tablets and mobile phones can be carried everywhere. Common items your employees use in their everyday life. As a result, work can be completed nearly anywhere in the world, including remote areas. These devices are usually owned / purchased by the employee as […]
Read moreATO focus area Work related deductions Last financial year, over 8.8 million taxpayers claimed $21.98 billion in deductions for work related expenses. It’s an area under intense review by the Australian Taxation Office (ATO). If you claim work-related deductions, it’s important to ensure that you are able to substantiate any claim you make. To […]
Read moreIn brief Changes and actions Pre 30 June 2019 • Ensure that contributions are made and received by 30 June. If contributions are by EFT, ensure that the contributions is recognised in the bank account as at 30 June. • Where applicable, ensure minimum pension payments have been withdrawn from the fund’s bank account by […]
Read moreKey Dates 29th January 2019 • Instant asset write-off increased from $20,000 to $25,000 2nd April 2019 • Instant asset write-off increased from $25,000 to $30,000 (7:30pm AEDT) • Threshold to access instant asset write-off expanded to businesses with an aggregated turnover up to $50 million Pre 30 June 2019 • Companies – Review shareholder […]
Read moreThis article highlights the instant asset write off concession and the changes the Government have announced (which are now law) regarding this concession and the eligibility requirements. We note, we now have a tax system with three ways to claim deductions on asset purchases. What is the instant asset write off? The instant asset […]
Read moreSmall Business CGT concessions allow eligible small businesses to disregard or defer some or all of a capital gain resulting from the disposal of an active asset used in a small business. The small business CGT concessions are only available if certain conditions are met, with some of the concessions requiring further specific conditions to […]
Read moreIt is common for legal practitioners to seek reimbursement for costs, in addition to the charge for services. However, the GST treatment of such reimbursements depends on the nature of the arrangement entered into, commercial terms of the transaction, and whether it was incurred as agent of the principal. Incorrect treatment of GST on reimbursements […]
Read moreThe Commissioner of Taxation recently released a taxation ruling, TR 2018/3, which provides guidance on reporting profits derived and losses incurred from long-term construction contracts. While the understandings are not vastly different to a previous release from 1987 (IT 2450), it is a healthy reminder that long-term construction contracts must be correctly accounted for to […]
Read moreGST does not currently apply when goods are imported into Australia if they have a customs value of $1,000 or less and the supplier is not registered or required to be registered for GST. Arguably this places Australian retailers / suppliers at a competitive disadvantage compared with foreign suppliers that are not required to be […]
Read moreIn Uber B.V. v FC of T, the Federal Court has held that services provided by an Uber driver constituted a supply of “taxi travel” for GST purposes. Accordingly, the driver was required to be registered for GST. Facts: The applicant applied for a declaration that one of its drivers did not supply “taxi travel” […]
Read moreThe ATO has released a public taxation ruling covering the ATO’s views on the deductibility of expenditure incurred in acquiring, developing, maintaining or modifying a website for use in the carrying on of a business. Importantly, if the expenditure is incurred in maintaining a website, it would be considered ‘revenue’ in nature, and therefore generally […]
Read more‘UPE’ (or ‘unpaid present entitlement’) arises where a trust makes a beneficiary entitled to an amount of the trust’s income (and therefore the beneficiary may have to pay tax on their share of the trust’s taxable income that year), but that amount has not been physically paid to the beneficiary. If the beneficiary never receives […]
Read moreThe AAT has held that GST applied to the disposal of four properties that had been built, leased and then sold. GST does not ordinarily apply to sale of residential premises unless they are ‘new residential premises’. However, there is a special rule in the GST law that states that a newly constructed property will […]
Read moreThe Australian Taxation Office is paying particular attention to claims that investment property owners make for repairs to rental properties. All clients should note repairs are deductible, improvements are not. Though improvements may add to the cost base. There are many examples of case law to assist in differentiating between repairs and improvements and the […]
Read moreThe imputation system provides a way for Australian and New Zealand corporate tax entities that pay Australian tax, to pass on to their members a credit for Australian income tax they have paid. This prevents the same income from being taxed twice – once when the income is earned by the entity, and again when the income […]
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