2023-24 Federal Budget Summary
Modest but meaningful A range of measures provide cost-of-living relief to individuals such as increased and expanded JobSeeker payments and better access to affordable housing. As part of the measures introduced for small business, a temporary $20,000 threshold for the small business instant asset write-off will apply for one year, following the end of the […]
Electric vehicle home charging rates: cents per km
Draft Guidelines on Calculating Electric Vehicle Charging Costs Released by ATO Recordkeeping Requirements and Application of the EV Home Charging Rate for FBT and Income Tax Purposes The ATO recently released draft guidelines setting out a methodology for calculating the cost of electricity when an electric vehicle (‘EV’) is charged at an employee’s or individual’s […]
Banking business income to a private account
Recordkeeping and monitoring business cash flow The ATO has stated that it has “no concerns” with business owners banking their business takings or other sales in private accounts, but that this may become an issue when this income isn’t reported. Therefore, the ATO notes that a good way to avoid this problem is to establish […]
Discretionary trusts and corporate beneficiaries
Tax treatment of deemed dividends When a trustee of a trust makes a decision to create an entitlement to income of the trust in favour of a corporate beneficiary (i.e., a privately held company), certain steps need to be taken to ensure that if the entitlement to the distribution remains unpaid (that is, no cash […]
Rental property income and deductions focus
Tax time focus on rental property income and deductions The ATO is focusing on four major concerns this tax season when it comes to rental properties. Concern 1: Include all rental income When preparing tax returns, make sure all rental income is included, such as from short-term rental arrangements, renting part of a home, and […]
ATO small business focus
ATO’s small business focus for 2022 income year The ATO announced that it will be focussing on the following matters for small business tax returns for the 2021/22 year: Deductions that are private in nature and not related to business income, as well as overclaiming of business expenses (especially for taxpayers running a home-based business). […]
Decision in disclaiming interest in trust distribution
High Court rejects attempt to disclaim interest in trust distribution The High Court has rejected a taxpayer’s attempt to disclaim an interest in trust income that arose as a result of a default beneficiary clause being triggered. This decision is significant, because it backs the proposition that disclaimers of trust income cannot be effective if […]
2021/22 Individual Tax Return Checklist
Tax saving strategies prior to 1 July 2022 Your Checklist Claims for deductions Receipts for deductions Car claims and log books Please review the information below and contact our office if you need assistance. A strategy often used to reduce taxable income (and, in turn, tax payable) in an income year is to bring forward […]
2021/22 Year-end Checklist for Business
Small Business Entities Tax Checklist Traditionally, year-end tax planning for profitable small businesses is based around accelerating deductions and deferring income. Small Business Entities (‘SBEs’) – i.e. those with an aggregated turnover of less than $10 million – often have greater tax planning opportunities compared to other businesses, due to certain concessions generally only applying […]
Reminder of March 2022 Quarter SG
Reminder of March 2022 Quarter Superannuation Guarantee Employers are reminded that their SG obligation for the 1 January 2022 to 31 March 2022 quarter is due by 28 April 2022. An advance warning is also provided to employers that the compulsory 10% SG rate is going to increase to 10.5% from the period 1 July […]
