Archives for May 2017

Business Costs and Deductibility of Interest Expenses

If a business racks up an interest bill from borrowing funds to pay for the expenses of running the business, or to acquire other income-producing assets or investments, this expense is generally allowed as a tax deduction for the relevant year. For business taxpayers under the accruals accounting method, a claim can be made for the calculated interest liability [Read more…]

Federal Budget 2017 – 2018

Federal Budget Summary The Budget announcements contain a suite of tax and superannuation measures aimed at increasing housing stock and improving house affordability. While the government has not gone close to clamping down on the political and social hot potato of negative gearing, it has taken some steps to restrict the travel expense and depreciation [Read more…]

Company Tax Franking Implications

The recent cut to the tax rate for incorporated businesses that turnover less than S50 million a year, while generally welcomed, can bring with it some important considerations when it comes to distributing franked dividends. The rate change 1o 27.5% is to be staggered, starting with companies that turnover up to $10 million a year, with retrospective effect from July [Read more…]

Are Personal Carer Travel Costs Claimable? It Depends …

A recent Administrative Appeals Tribunal decision has ramifications for taxpayers with disabilities, and who are in need of a personal carer.  The decision centres around what is or is not acceptable as a tax deduction in relation to the costs that arise with regard to that carer under certain conditions. The circumstances of the taxpayer concerned in the case are particularly relevant, [Read more…]

Selling up your Business? Don’t Forget the “Going Concern” GST Exemption

The concept of a “going concern” exemption for the purposes of the goods and services tax (GST) can still cause confusion when businesses are sold. The sale of a business may be GST exempt if the enterprise is deemed to be a “going concern” — which refers to an enterprise’s ability to continue trading. The ATO (and the GST legislation itself [Read more…]

The CGT Implications of Subdividing and Building on the Family Property

Given the state of the property market in Australia these days, a not-uncommon situation can arise where a residential propefty owner seeks to demolish and subdivide the block containing the family home and build residential units. lf you have the available land of course, the above is a solid strategy. However it can cause headaches from a tax perspective — and in [Read more…]

Steps to Successful Property Investment

Property has been considered a popular path to wealth for Australians for many years. It has the potential to generate capital growth (an increase in the value of your asset) as well as rental income. There are also tax advantages associated with negative gearing. However, when buying an investment property, it is wise to remember that you are making [Read more…]