The end of the financial year is in sight, but businesses shouldn’t assume their 2016-17 tax outcome is set in concrete just yet — there are still some legitimate tax planning strategies that can help us help you not pay a cent more tax than you have to.
We also look at how to make good use of a tax loss, and discuss interest income and who is deemed to be assessable. Importantly for SMSF trustees, we also run over the newly minted transitional CGT relief measure that can apply when trustees comply to the new balance cap.
Download Link: June 2017 Tax and Super News
May Federal Budget 2017
The budget announcements contain a suite of tax and superannuation measures aimed at increasing housing stock and improving housing 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 tax breaks enjoyed by investors.
Last year, many individual taxpayers received small “cake and coffee” tax cuts (so called because they averaged around $6) which were touted as an important first step to addressing bracket creep; but one year later, the government announces that the Medicare Levy will increase by 0.5% to 2.5%, which will surely eat into those tax cuts (for those lucky enough to have received them).
Last year’s budget was one for small businesses. This year, the small gift is a one year extension of the $20,000 instant asset write-off for 2017-18. Unfortunately, the government will tighten access to the small business CGT concessions.
Download Link: May Budget 2017 Tax and Super News
There can be capital gains conundrums when sub-dividing the family property, so we run through the typical scenarios to dissect the likely tax outcomes. And another perennial head-scratcher is the deductibility of the interest payable on borrowed funds.
A GST exemption is available when a “going concern” business is involved, so we look at the conditions that must be met. And while the recent tax cut for some companies is welcome, thought needs to be given to the change in tax rates when dealing with dividend credits.
Download Link: May 2017 Tax and Super News
There’s nothing wrong with sourcing certain business assets through peer-to-peer websites like Gumtree or even a Facebook group. It’s when it comes to substantiating a tax claim that these sorts of transactions can end up being difficult.
The ATO’s rules regarding deductions claimed for work clothing, or for laundering clothes, are fairly straight-forward, but there are a few grey areas that crop up now and then.
We cast an eye over how simplified depreciation works for small business pools, and also look at the new “total superannuation balance” and what it means for your fund.
Download Link: April 2017 Tax and Super News
FBT and the provision of cars to employees continues to cause potholes in the road to smooth tax compliance for businesses. We run over the usual FBT return problem areas. Also, as the “sharing economy” is becoming more prevalent, the ATO has found it necessary to issue some guidance.
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.
We also look at tax and dividend income, and run over the options for salary sacrifice arrangements.
Download Link: March 2017 Tax and Super News
There is a particular speed hump to negotiate when chasing one of the valuable small business CGT concessions, and that is if the asset involved is “active” as opposed to “passive”. We explain the difference.
There are certain steps to take when tying up the loose ends when looking after a deceased estate, so we provide a 7 point checklist to help. We look at the pros and cons of electing to be a family trust, and also run over important changes regarding the assets test for pensioners.
Download Link: February 2017 Tax and Super News