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Capital works deductions for rental property
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.
What the new - your future, your super means for you
Recent legislative reforms to the superannuation arena are set to change the retirement savings landscape for many Australians.
What lockdown support is available to business?
The NSW and Federal Governments have announced a series of new measures to support business during extended lockdowns of four weeks or more.
Avoid common mistakes in your business return, and include appropriate income
We know you want to get your tax right, so it may help you this tax time to know how to avoid making what the ATO has found are the most common tax mistakes.
Getting deductions for clothing and laundry expenses right
The ATO allows certain taxpayers to claim a deduction for the cost of buying and cleaning occupation-specific clothing, items of protective wear and for certain unique, and usually distinctive, uniforms.
Steps to take when winding up your SMSF
There will most likely come a time when your SMSF will need to be wound up, with a change in members, the fund’s finances, perhaps separation or other family causes among the many reasons why winding up the fund becomes necessary.
When the taxman sends a bill, not a refund
Most people who earn income as employees have tax payments made on their behalf throughout the year through pay-as-you-go (PAYG) withholding to help them meet their annual tax obligations. But this withholding of amounts can sometimes miss the mark.
Super Guarantee rate increase on 1 July 2021
As of 1 July 2021, the minimum super guarantee rate will rise from 9.5% to 10%, with further increases over the next five years.
The ATO’s eligibility requirements for SMSF trustees or directors
All members of a self-managed super fund (SMSF) must be individual trustees or directors of the fund’s corporate trustee. Anyone 18 years old or over can be a trustee or director of a super fund as long as they’re not under a legal disability (such as mental incapacity) or a disqualified person.
New guidance on “personal services income” rules
The ATO has recently updated its guidance material on the operation of the personal services income (PSI) and personal service business (PSB) rules.
The tax treatment of cryptocurrency
Cryptocurrencies, once again surging in popularity, have a unique tax treatment that every taxpayer dealing with cryptocurrency should be aware of.
Federal Budget 2021-22
The Government has decided not to go down the austerity path, which will be a relief for many taxpayers and businesses.
Evidencing SMSF property valuations
The ATO recently clarified the evidence that is required to support real property valuations within SMSFs, particularly in light of the unique challenges brought about by COVID-19.
The SME Recovery Loan Scheme is now open
Loans for small to medium enterprises (SMEs) are available until 31 December 2021 under the Federal Government’s SME Recovery Loan Scheme. The scheme is designed to support the economic recovery, and to provide continued assistance, to firms that received JobKeeper and also to businesses that are flood-affected.
Dealing with excess before-tax super contributions
Making extra before-tax contributions into super (called concessional contributions) can help boost a person’s retirement savings. But fund members need to be aware of the implications for when they exceed the concessional contributions cap.
EOFY tips for your tax plan
The financial year is almost over, but there are still effective strategies you may be able to put in place.The aim is to make sure you pay no more tax than you have to for the 2020-21 year and maximise any refunds you may be entitled to. This is still the case, if not more so, in the on-going COVID-19 environment.
Some payments are not counted as income by the ATO
It is possible to receive certain payments that do not need to be included as income in your tax return. However some of these amounts may be used in other calculations, and may therefore need to be included elsewhere in your tax return.
Refinancing loan interest may be deductible to a partnership
A general law partnership is formed when two or more people (and up to, but no more than, 20 people) go into business together. Partnerships are generally set up so that all partners are equally responsible for the management of the business, but each also has liability for the debts that business may incur.
Managing your superannuation transfer balance account
Most people think of retirement as a time to put your feet up and relax, but it can also be a time when pre-retirees and retirees alike actually need to flex the grey matter.
When it comes to real estate and CGT, look at timing
When you sell or otherwise dispose of real estate, the time of the event (when you make a capital gain or loss) is usually when one of the following occurs:
New insolvency reforms to support small business
The Australian Government has made changes to the ATO’s insolvency framework to help more small businesses restructure and survive the economic impact of COVID-19.
APRA annual report on superannuation
The latest annual statistical report from APRA has been released, covering the 2020 income year but only made public at the end of January 2021.
New Director Identification Number regime may be just around the corner.
The Director Identification Number (DIN) regime may have been lost in many business owners’ peripheral vision, or even dropped off the radar completely, as it has been on the horizon for some time.
Used goods for private use? Here's the latest values.
This common practice can occur in businesses such as butchers, bakers, corner stores, cafes and more.
Unexpected lump sum payment in arrears? There’s a tax offset for that!
A lump sum payment in arrears is a payment you may receive that relates to earlier income years.
A hand up for small businesses on cash flow.
The ATO has produced a “Cash Flow Coaching Kit”, which is a free resource and designed as a value-add advisory tool for small business owners.
Vehicle benefit FBT treatment changes under COVID-19.
The special circumstances that coronavirus has thrown our way looks like having some very practical outcomes on certain areas of fringe benefits tax.
Update your ABN ... or miss out!
Government agencies regularly access data contained in the ABN registration, and where this is not up-to-date the taxpayer may be missing out on stimulus measures, grants, and other government support.
Natural disasters and help with your tax
Now that we are into bushfire season, and with flooding events having already occurred, it is perhaps timely to be reminded that as well as the more obvious immediate devastation inflicted on people’s property.
Getting a tax valuation from the ATO
Not every individual situation fits neatly with the tax laws as they stand — sometimes a taxable item’s known value (and therefore the tax that applies to it) may need to be determined.
Single touch payroll: When your reporting can cease
A business may no longer be required to lodge single touch payroll (STP) reports for a number of reasons.
JobMaker hiring credit: What you need to know
The JobMaker Hiring Credit scheme was passed into law in mid-November 2020.
What is a recipient created tax invoice?
Tax invoices are an essential element of Australia’s taxation system
Claiming interest expenses for rental properties
Interest is a common deduction claimed by taxpayers.
Calling time out on your business?
Calling time out on your business? Some essentials you’ll need to know
A run-down of the new loss carry back measure
The last Federal Budget carried with it a number of tax changes.
JobKeeper extension’s alternative turnover tests
The extension of the JobKeeper scheme is now based on current GST turnover, not projected turnover. The basic test compares year-on year turnover. If there were events or circumstances outside the usual business settings that resulted in your relevant comparison period in 2019 (September or December 2019 quarter) not being appropriate, then an alternative test may apply.
Rounding of GST where fractions of a cent result
The ATO has devised special rounding conventions where an amount of GST includes a fraction of a cent. Although it labels these conventions “rules”
The investment option that can hide unexpected GST
New residential property is a popular investment for many, and can be especially so for self-managed superannuation funds, however the ATO is concerned that not every investor in residential property is fully aware that it is an option that may bring with it unexpected GST obligations.
ATO’s cyber safety checklist
Scammers never seem to rest, with even the latest JobKeeper iteration coming in for some scam treatment.
What the “full expensing” write-off deduction means for business
The Federal Budget measure of allowing businesses to fully write-off eligible assets is a boon to Australian businesses, even though the measure is temporary.
Lodgement Rates and Thresholds 2020/21 Budget Changes
Please find for your reference a link to comprehensive tax rates and thresholds, updated to reflect changes announced in the 2020/21 Federal Budget.
Road to recovery - Budget 2020 - 21
The information contained herein is provided on the understanding that it neither represents nor is intended to be advice or that the authors or distributor is engaged in rendering legal or professional advice. Whilst every care has been taken in its preparation no person should act specifically on the basis of the material contained herein. If assistance is required, professional advice should be obtained.
SMSF regulations to allow six members under new legislation
A bill has been introduced into Parliament that partially implements a measure to allow an increase in the maximum number of allowable members in self-managed superannuation funds and small APRA funds from four to six.
Electronic execution of documents during COVID-19
The COVID-19 pandemic has prompted state and territory governments to temporarily ease the manner in which documents are executed.
Fears of Div 7A danger from COVID-relaxed loan repayments unfounded
The ATO has clarified its position regarding loans, and the repayments of loans that may have been put on hold for the period that COVID-19 has a grip on the economy and our lives.
New data matching programs initiated by the Federal Government
Over the first quarter of this financial year, the government has initiated two new data matching programs, using data that the ATO holds.
JobKeeper rules, conditions and payment rates have changed
Legislation has been put in place to extend the JobKeeper scheme beyond its original sunset date, although the rates of payment and certain other details have been altered.
JobKeeper from 28 September 2020
The JobKeeper 2.0 Guide contained herein is provided on the understanding that it neither represents nor is intended to be advice or that the authors or distributor is engaged in rendering legal or professional advice.
COVID-19 and SMSF rental relief
The Federal Government announced a six-month moratorium on evictions of commercial and residential tenants during the COVID-19 health pandemic
Where you stand with vehicles and the boosted instant asset write off
The extension of the instant asset write-off from $30,000 to $150,000 until 31 December 2020
COVID-19 and trust liquidity issues
The ATO has highlighted the fact that due to COVID-19, a trustee may experience liquidity issues that may affect a trust’s ability to satisfy a beneficiary’s entitlement. This may happen where financial institutions impose restrictions that affect the way a trustee can deal with its assets.
COVID-19 payments and some issues for companies and trusts
With many having received cash flow boost and JobKeeper payments, there can arise some unique issues where these amounts are received within a trust or company.
JobKeeper Changes
Announcement: The Government has extended the JobKeeper Payment scheme, changes from 14 August 2020.
Claiming a deduction for transport expenses when carrying bulky equipment
As a general rule, expenses relating to travel between home and work (and vice versa) are non-deductible. A number of exceptions to this principle exist, including for situations that require bulky equipment be transported to and from work.
Rental property: Tax approach adjusts for COVID-19
The COVID-19 pandemic has placed property owners, and tenants in many cases, in unfamiliar territory.
Has your super fund got you covered for insurance?
Has your super fund got you covered for insurance? With COVID-19, maybe not.
The JobKeeper scheme gets an update, plus an extension
The JobKeeper payment, which was originally due to end after 27 September, will now continue to be available to eligible businesses (including the self-employed) until 28 March 2021.
JobSeeker 2.0 and other income support
The Coronavirus supplement will continue, albeit on a reduced rate of $250 per fortnight (from $550), from 25 September until 31 December 2020 for eligible individuals
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