Archives for 2016

Christmas Party Decision Tree

This flowchart will help businesses work out the general tax implications of the year-end Christmas party.   Minor benefit exemption must be less than $300 per benefit, provided on an Irregular and infrequent basis, and satisfy other relevant conditions. Income  tax  treatment  for  entertainment  expenses  determined under tax law.  An associate of  an employee is  [Read more…]

Extend the festive cheer (but in a tax efficient way)

The festive season is here again. As with other years it is always brimming with the spirit of giving. The list of practical ways in which Australians spread goodwill is as endless as a Christmas wreath. The ATO also gets into the spirit of the season, but of course feels required to set some limits. When [Read more…]

SMSFs need to prepare for the new transfer balance cap

Recent legislation introduced several superannuation rule changes. Among them is a new “transfer balance account”, which each recipient of a superannuation pension will be required to have. In other words, individuals receiving superannuation income  stream benefits will need to keep such a transfer balance account. The use of “accounts” for tax law purposes is not new. [Read more…]

Shopping for a luxury car? Beware of the luxury car tax.

You can judge whether a car is luxury or not, according to the government, if it costs more than $64,132 for 2016-17. It’s not an over-the-top price tag if you’re considering true luxury, but it’s enough to cop an extra tax. WHAT YOU NEED TO KNOW The luxury car tax (LCT) kicks in after that threshold [Read more…]

Does your SMSF need a valuation?

The rules around the valuation of assets held under an SMSF have seen a lot of changes over  the years. The requirement  to  consider valuing SMSF assets at market value when preparing the annual financial statements of the fund was one of the most significant and controversial of these changes. The use of market value accounting for [Read more…]

Home Office Deductions: What substantiations will the ATO accept?

Home office expense claims are subject to  the same general substantiation requirements  as  other deductions — that is, it is a requirement that records should be kept for at least five  years. But in practice, full compliance with the substantiation rules may be difficult. It may be simple to keep a receipt for a printer purchased for [Read more…]

Getting a tax valuation from the ATO

We all know that the ATO is the guardian of the tax laws, administers tax regulations and can provide advice and guidance on how they apply. But not every personal situation fits neatly with the tax laws as they stand. Sometimes, an individual may need help understanding and meeting their tax obligations. In such circumstances, [Read more…]

SMSF compliance for 2016 – 2017

The ATO has announced the approach it intends to take over 2016-17 with regard to SMSF compliance. It says trustees will see some key shifts in the ATO’s emphasis, both in terms of the activities it undertakes and the levels of enforcement action it applies. The ATO says its key focus areas will be: to [Read more…]

5 tips to get home office deductions right

You might be sick of the daily commute, or want more flexibility of hours — or it could be that you have a talent or skill and feel sure that this can translate into a fulfilling career in your own business. Or it could just be that the idea of working from home seems to [Read more…]

Don’t let a tax debt put you in a spin

Whether you’re running a business or are just an individual trying to make ends meet, there is nothing worse than finding yourself in a situation where you have a tax debt owing to the ATO, which most likely will also be accruing a general interest charge and perhaps even a shortfall interest charge. The Australian [Read more…]