Archives for March 2017

SMSFs And The In-House Asset Rules Explained

A not-uncommon conundrum for many SMSF trustees is what to do when the fund is found to have breached the in-house asset rules. There are also some common misconceptions about these regulations that keep resurfacing. WHAT DOES THE ATO SAY IN RELATION TO THE IN-HOUSE ASSET RULES? Recent ATO statistics on the SMSF sector show [Read more…]

FBT And Cars: A Perennial Head-Scratcher

The provision of cars by employers to employees remains an issue that continues to create confusion for some business taxpayers. A not-uncommon situation is where the employer fails to identify that a car fringe benefit has been provided. This is typically found in family companies or trusts where a car bought by the business is [Read more…]

Share Dividend Income and Franking Credits

Mum and dad investors in receipt of dividends from their share portfolio often benefit from investing in blue chip shares because they usually have franking credits attached. As a general rule, an Australian resident shareholder is assessed for tax on dividends received plus any franking credits attached to those dividends. The shareholder is assessed on [Read more…]

Can Salary Sacrifice Work For You?

Salary sacrifice (or salary packaging) is where you agree to take part of your wage as a benefit of some kind, equal in value to the salary it is exchanged for. The upside in you doing this is that your income tax is then based only on the reduced amount of salary that results. If your [Read more…]

Are you a PO or a PP?

Where are we going? If you decide to go on a week’s holiday you wouldn’t normally just jump in the car and take off, would you? You would need to consider many things before leaving: Where do you want to go? Where to stay? Availability of accommodation? What to take with you? How much money [Read more…]

Tax and the Sharing Economy

The concept of a “sharing economy” has been around for long enough now to have had a very real impact on how we transact with each other. What is the sharing economy? Think Airbnb … think Uber. By now, most people will have realised that the “sharing” part of the concept does not refer to [Read more…]