The Coalition has stood by its promise to repeal the mining tax, but an unexpected part of this process is a much-earlier repeal of the business deductions that are tied in with it. Capital allowance concessions, specifically the $6,500 instant asset write-off and $5,000 immediate vehicle deduction, are to be wound back to previous levels from next January, not next July (which is the date of effect for the mining tax repeal).
With the bushfire season looming, we run over the tax implications of natural disasters, and what you can do to be better prepared should essential documents and records be destroyed. We also take a look at estimates for how much a person should have put aside before considering establishing an SMSF, the circumstances where borrowing costs and loan interest can be claimed as tax deductions, and sketch out the new rules for dealing with excess superannuation contributions.
Download Link:December 2013 Tax and Super News
With Christmas time fast approaching, planning for your end-of-year celebrations has probably started in earnest — but with your party plan, don’t forget to factor in the fringe benefits tax implications.
And with the bushfire season getting an early start, we thought it relevant to survey the tax treatment afforded to volunteers regarding both payments received and expenses incurred.
We also list the top 10 compliance mistakes the Tax Office has noted being made by SMSFs, tips to avoid some common errors with fuel tax credits, and sound a warning about using carry-forward tax losses. Also covered this month is a taxpayer’s best course of action should the Tax Office make a wrong call on your tax assessment, and we take a brief overview of trusts to see if they are a structure that could be of use to your circumstances.
Download Link: November 2013 Tax and Super News
With the Federal Election now decided, taxpayers should be prepared for several legislative changes regarding tax and superannuation in the near future. Although specific details are yet to be filled in, there are several known policies and announced plans that the Coalition outlined in the run-up to election day. We run through the likely reforms to expect in the tax and super landscape.
While it is not impossible to claim the cost of travelling from home to workplace, the rules and regulations for doing so can be a veritable minefield – so some considered guidance is a must. Another area through which certain taxpayers will need to tread carefully is regarding the CGT 50% discount – especially as there has been a change to the rules for foreign and temporary residents.
Also in this issue of our newsletter, we look at the tax deductions that are available to footy players, and the effective use of death benefit nominations for estate planning within an SMSF.
Download Link: October 2013 Tax and Super News
When running a small business, tax is one of the major concerns and getting it right can help you effectively manage this obligation. But as Tax Office research shows, many small businesses are incorrectly applying certain eligibility tests for small business CGT concessions. These concessions often relate to the sale of a business and the culmination of a lifetime of work. The last thing a business owner would want is to get these claims wrong! We run through some common pitfalls to watch out for in this area.
The last federal budget combined several dependency tax offsets into one single consolidated tax offset, with eligibility and income requirements to be met, which we explain. We also look at accessing retirement savings from your SMSF, profile the rash of tax scams currently doing the rounds, and also look at the most recent developments to the standardisation of reporting processes for business, and how this could ease your business¹s red tape burden.
Download Link: September 2013 Tax and Super News
The Tax Office has made it clear that it intends to target certain industries, specific tax claims and other areas that it views as having become problematic in its scrutiny of this year’s tax returns. We look at the key targets outlined for special attention.
The Tax Office has also revised the private heath insurance rebate, with changes made to the relevant section of the 2012-13 tax return form that affected taxpayers will need to know. And several changes have also been made to the superannuation landscape from July 1 this year — but also many proposals that didn’t get up. We run over the current state of play in superannuation (including moves on the SMSF front).
This month’s newsletter also brings some good news. The loss carry-back tax break for businesses has finally been passed into law, so ask us if your business can finally take advantage of this newest tax break. And an international charitable giving index has deemed Australia to be the most generous nation on the planet (although Tax Office data shows that our wealthier citizens have dropped the ball a little on this issue).
Download Link: August 2013 Tax and Super News
The new financial year is finally upon us, as we bring you news of a few important changes. If you are a trustee in a self-managed superannuation fund (SMSF), you’ll be pleased to know that the ban on in-specie contributions has now been lifted. On the flipside however, the ATO issued a taxpayer alert on SMSF property investments – highlighting the need for SMSF trustees to steer clear from common mistakes, five of which we outline in this month’s newsletter.
You would have heard about the 0.5% increase to the Medicare Levy, but what many may not realise is how this affects other tax rates. We run through which tax rates are affected and how.
We also review the expenses you can claim as deductions if you work from home and some common myths about employees and contractors, as well as answer the perennial question: can paying for insurance ever be tax deductible? Last but not least, this month’s client newsletter contains an important reminder for closely held and family trust beneficiaries.
Download Link: July 2013 Tax and Super News