With the rate for FBT set to go above the highest marginal rate from next April, business owners may want to review remuneration packages to ensure arrangements are still beneficial – for both employers and their employees.
When family or friends pay nominal amounts to use your holiday house, is this income assessable? We run over the tax implications of asking for “mates rates”. Another common tax issue with regards to property is negative gearing, so we look at the basics and the strategy’s pros and cons.
Given the legislative wranglings coming out of Canberra, especially when it comes to welfare issues, we thought it prudent to give the once-over to the Age Pension, and run over its make-up, eligibility criteria and payment rates. We also provide a Christmas year-end checklist that will guide your business from a tax consequence point of view when planning your end-of-year activities.
Download Link: December 2014 Tax and Super News
An allowance for necessary travel made by employees is written into the tax law, which we run an eye over in this issue. But as there are two concessions for travel – the “living away from home” and the “travel” allowances – frequently both employers and employees confuse which is applicable. We spell out the differences.
If you are sick of your business’s high electricity bills, and have thought of the option of solar panels, you may also be able to take comfort from not only reduced energy bills but helpful tax outcomes for your operating expenditure.
We also examine the web-based accommodation networking service Airbnb, which from a tax treatment point of view is one out of the box as there is no specific legislation that exactly covers the Arbnb business model. There is also a warning about a renewed Tax Office focus on income splitting within professional firms, and a timely reminder about a looming deadline for an amnesty on disclosing certain assets.
Download Link: November 2014 Tax and Super News
If you are about to set up a website for your business, or are making changes to an existing website, some of the costs incurred from doing so may be available to either write off immediately or depreciate over a number of years. How these expenses are treated for tax purposes depends on certain factors. We run over the ins and outs of website expenditure claims to help you get your claim right.
The living away from home allowance can help many workers who are required to move away to secure employment. We look at the details of this fringe benefit. Also the categorisation of profits as either revenue or capital using trusts (and the subsequent tax treatment) is ruffling feathers again within property development circles. We look at a Tax Office pronouncement on the issue, and what it means for your tax outcome.
We also flag changes to the eligibility criteria for the Seniors Health Card, finally have some firm dates for the repeal of certain small business tax concessions (some have been backdated), and spell out some tips to ensure prompt payment of your invoices.
Download Link: October 2014 Tax and Super New
Packaging a vehicle into a remuneration arrangement via a novated lease is a popular salary option – we run over the details of how this is achieved and the outcomes for both employer and employee.
The tax concessions that have been made available to small businesses can be a valuable boost to the bottom line for many players in the “engine room” of the economy. We look at what’s available, but also underline the more common mistakes that businesses make when claiming the CGT concessions.
We also see how the Small Taxation Claims Tribunal can help you with your more minor tax disputes, how to turn tax into super by using salary sacrifice, and uncover the scenarios that could trigger some otherwise unforeseen FBT liabilities.
Download Link: September 2014 Tax and Super News
A vindication for your making the sensible decision to seek out professional advice can be to find that the costs of doing so are deemed tax deductible. While the deduction rules for professional consultation on tax affairs are typically straightforward, when it comes to investment advice there are certain differences in regulations you should be aware of. We have also uncovered a possible tax deduction where tax advice is provided by a financial planner. This is due to a recent law change to the Tax Agents Services Regime.
We look at what the Tax Office says are common tax deduction errors made by rookie property investors, spell out the Tax Office’s powers under the law when it comes to accessing to your information, and run through the areas coming under its scrutiny for SMSF compliance issues in the year ahead.
On a positive note, the Tax Office is also seeking input from savvy small business owners to help it build its small business expertise. You can apply to join its consultation panel and even be paid for your efforts if successful.
Download Link: August 2014 Tax and Super News
Many of you will have at least heard of Bitcoin, and some may have even used the new digital currency. Bitcoin looks set to revolutionise monetary transactions, and perhaps sooner than many imagine. The virtual currency even has the attention of the Tax Office. We examine the ramifications, and the pros and cons, of Bitcoin prior to the release of official guidance from the Tax Office, which is due out soon. Visit to http://www.exhchange24x7.com/ to earn more about bitcoin trading exchange.
It’s an unfortunate but likely reality that many of us will have some sort of dealings with a deceased estate. Having an idea of what to expect from a tax perspective can go a long way to easing this heavy burden and ensuring your loved one passes on their assets in accordance with their wishes in a fair and equitable manner.
Other highlights in this edition are a look at the “taxable payments annual report” for businesses in the building sector, which is due this month, and the winding back of the net medical expenses tax offset. Finally we include a reminder to SMSF trustees about the new penalty regime that is now in force.
Download Link: July 2014 Tax and Super