With the imminent arrival of the new financial year, there are usually a few small changes in the tax system to get used to, but this year is an exception. We sketch out the post-July 1 tax and super landscape, but also list the government announcements from the Federal Budget that may also prompt a strategic re-think, should the proposals make it through Parliament.
The “debt tax” (Temporary Budget Deficit Levy) which was announced in the recent Federal Budget is not just a concern for anyone earning more than $180,000. There are also some flow-on effects for businesses due to the resulting increase in the top marginal tax rate, which is used to calculate a number of other taxes.
We also cover some tactical end-of-year deductions for businesses, as well as year-end tax tips for individuals, and have (relatively) good news for business owners who have been left in limbo over the possible changes to the instant asset write-off provisions.
Download Link: June 2014 Tax and Super News
May Federal Budget 2014
The Federal Budget handed down on Tuesday evening of May 13 seemed to re-emphasise Treasurer Joe Hockey’s narrative pursued in the lead-up to budget night – that tough decisions would have to be made, and that due to the state of the economy we would all be expected to do some of the “heavy lifting”.
The major tax announcement was the introduction of a debt reduction tax on incomes over $180,000, although given the forecast contribution to reduce the nation’s debt it was surprising that the government was willing to risk an unfavourable electoral response. Many of the announcements also backed up the government’s claim that the “age of entitlement” is over.
There are many other budget initiatives that will have relevance to a wide variety of our clients, depending on your circumstances. As always, please feel free to talk to our office for further details and information.
Download Link: May Federal Budget 2014 Tax and Super News
Recent changes have been made to some social service, family benefit and other entitlements, which we run through and explain. There are also changes looming for superannuation contribution caps (the good news here is that they are increasing).
And did you know that the basis to determine the costs of aged care accommodation is being given a shake-up? Read our summary of the impending transition from income tested cost determination to one that includes asset holdings, and what this change entails going forward.
We also touch upon the tax implications of marriage (including the implications of the main residence exemption for CGT and treatment of interest income from joint bank accounts). And if you are considering winding up your SMSF, we also spell out the steps necessary to make that happen.
Download Link: May 2014 Tax and Super News
While most people know that the fees for preparing and lodging tax returns are deductible, far fewer are aware that the specific regulations operating in this area of tax law also allow for extra deductions to be claimed in certain circumstances.
While the repeal of the mining tax (the Minerals Resource Rent Tax) is yet to pass the Senate, there are some perhaps surprising negative implications for small businesses regarding asset write-offs and depreciation. We run over the details.
We also warn of the fast-approaching deadline to apply for the R&D Tax Incentive, provide an overview of what it takes to set up your own SMSF, and look at the different investment asset classes and the tax implications of each.
Download Link: April 2014 Tax and Super News
Selling a property will typically see things like stamp duty, land tax and other considerations ticked off the “to do” list, but there are some instances where GST will also have to be factored in. We run through the scenarios where this will arise.
Work-related deductions are the most common claimed, and the most popular of these are car expense claims. However as this is an area of tax law that is very regulated, good guidance is essential to stay on the right side of the taxman.
We also cast an eye over the changing FBT landscape, examine the outcome of a court case that could have far reaching implications for any business’s GST position, and find that there are some instances where a partnership can claim the interest on a loan. And finally we run through the new penalty regime for SMSFs that’s set to bite from July 1 this year.
[sociallocker id=”11317″]Download Link: March 2014 Tax and Super News[/sociallocker]
If you have private health insurance, the amount of rebate you are entitled to depends on a multiple of considerations – your annual income, your age and how many dependent children you may or may not have. A range of questions can arise, which we clarify.
Your golden years can be given an extra glow by qualifying for the Senior Australians and Pensioners Tax Offset (SAPTO). We explain what this is and how you can claim it. And if you are a member of an SMSF, and are wise enough to use our services to help run it, we provide some timely tips in the run up to the annual return deadline.
The new National Disability Insurance Scheme can have both income tax and GST implications, depending if you provide support to participants of the scheme or receive support yourself. We run through the relevant tax treatments.
Download Link: February 2014 Tax and Super News