The facts about bad debt deductions

A debt to a business that is unpaid and deemed to be a “bad” debt can be an allowable deduction as long as it was included as assessable income in the present or even a previous income year, and that it is written off as “uncollectable” in the same year that a deduction is claimed. […]

Luxury car tax explained

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 do I need to know about the luxury car tax? The luxury car […]

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 […]

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 […]

General facts about winding up your business

There are times where business owners, whether voluntarily or involuntarily, may need to wind up their business. It is generally less complicated to wind up the business of a sole trader (who has declared “bankruptcy”) than to wind up a business run through other structures. For companies, the terms typically used would be to “go […]

Choosing the Right Business Structure

Start up businesses need to make one important decision from the outset – what type of business set-up will suit your enterprise best? And which structure will be best for the future? You’ve got a choice of four basic business structures – sole trader, partnership, company or trust. Of course, there are also more sophisticated […]

$20,000 write off is only available for small business, unless…

Everyone assumes that the $20,000 instant asset write-off is exclusive to eligible small businesses. However there is a hidden gem buried within the small business simplified depreciation provisions that in some circumstances can widen the application of this valuable deduction. It is possible, under certain conditions, for individuals such as employees to be able to […]

Borrowed money to pay a business tax debt? Is the interest deductible?

It was about 1990 when the ATO was asked about the tax deductibility of interest on a loan a business may have taken out to repay a tax debt. It was the third time, according to ATO records, that the matter was raised. Of the two previous requests for clarification, one was made as far […]

Save health (and tax) with a salary-sacrificed e-bike

Salary sacrificing a “company car” is a pretty popular option offered to employees. However, you may not be aware that there is also a tax and health incentive with another particular set of wheels. Why don’t you consider channelling your inner “mamil” (middle aged men in lycra) and package up an electrically assisted bicycle (e-bike) […]

Taken stock for private use? Values to use for 2014-15

The Tax Office issues guidance every year for business owners on the value it will accept as estimates of the value of goods taken from trading stock for private use by taxpayers in certain industries. The table below should be used to work out these values for the 2014-15 income year. The basis for determining […]