Q: Who is Assessable on Interest Income?

A: THOSE WHO “BENEFIT” It is a fairly well-established and welcome act for an aunt or uncle or of course a parent to start a savings account for a new addition to the family. It is not so common however, to factor in the taxation obligations that may arise from this generosity. A young child [Read more…]

The Transitional CGT Relief Measure and Your SMSF

Transitional capital gains tax (CGT) relief is temporary relief available to all complying superannuation funds, not just SMSFs, for certain CGT assets that would otherwise give rise to a taxable capital gain through the necessary efforts to comply with the new transfer balance cap and new conditions to be applied to transition to retirement income [Read more…]

What is a Tax Loss and How Can it be Turned to Good Use?

You generally make a tax loss when the total deductions that can be claimed for a financial year exceed the total of assessable and net exempt income for the year. If you operate a business that makes a loss you can generally carry forward that loss and claim a deduction for it in a future [Read more…]

End-of-Year Tax Planning Tips For Business

The general rule is that you can claim deductions for expenses your business incurs in its task of generating assessable income. Many of these deductions are obvious — rent, materials, supplies and so on — but there are also some less obvious options left available just before the end of the income year, should your circumstances [Read more…]

Using The Equity In Your Home To Purchase An Investment Property

If you are already repaying your own home or another investment property, you may be able to use the equity you have built up to purchase an additional property. Let’s use an example to explain this process. Your lender is going to require that the loan amount is less than 80% of the value of [Read more…]

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…]