News

Duties and taxes when you buy online from overseas

Duties and taxes when you buy online from overseas

April 6, 2018

Items that you buy over the internet from an overseas source are generally required to abide by the same rules and screening processes that apply to any other “import”. Also the usual duties or taxes should apply. Customs duties are regulated by the Department of Home Affairs (a recently formed body from December 2017, which…

Read more
Beware of who you share your benefits with

Beware of who you share your benefits with

March 2, 2018

Where some businesses have tripped up in the past is where the source of benefits provided is not clear cut — that is, where non-cash components of remuneration are sourced not directly from an employer, but from an associate, a related company or from a third-party provider. For fringe benefits tax (FBT) to apply, the…

Read more
Expanding the empire

Expanding the empire (and retaining the CGT main residence exemption)

February 2, 2018

A question that surfaces now and then in regard to capital gains is whether the main residence exemption extends to additional land acquired after the time of acquisition of the residence. The short answer is yes — provided that certain requirements are met. It should also be noted that where the exemption applies upon satisfaction…

Read more
Fringe benefits tax

ATO spells out its big FBT concerns

February 2, 2018

March 31 and the end of the FBT year is around the corner, so to help taxpayers get things right, the ATO has made public the fringe benefits tax issues that attract its attention. Broadly (not just in relation to FBT), the ATO says the following behaviours and characteristics tend to raise a red flag:…

Read more
The ins and outs of “entertainment” business deductions

The ins and outs of “entertainment” business deductions

December 5, 2017

As a tax concept, “entertainment” can be relevant not only to fringe benefits tax (FBT), but also to income tax and even goods and services tax (GST). For a business, whether a business expense is “entertainment” will generally also determine whether the cost is deductible. If the expenditure can be shown to be directly connected…

Read more
Stay alert for scams & fraud

Stay alert for scams & fraud

December 5, 2017

The Australian Taxation Office (ATO) is committed to educating taxpayers on how to protect themselves against tax scams and identity theft. It says that up to the end of last financial year, $2.7 million was handed over to fraudsters, with about 2,500 individuals providing some sort of personal information to scammers, including tax file numbers.…

Read more
Understanding novated leases, FBT and claims for work-related car expenses

Understanding novated leases, FBT and claims for work-related car expenses

December 5, 2017

Anovated lease is a popular way for employers to reward and incentivise their staff. Through a salary sacrifice arrangement that includes a novated lease, employees are provided with a vehicle and can also reduce their personal tax liability. However, employees should understand how fringe benefits tax (FBT) might apply to their arrangement and what they…

Read more
Tax and Christmas party planning

Tax and Christmas party planning

November 2, 2017

Christmas will be here before we know it, and the well-prepared business owner knows that a little tax planning can help make sure there’s no unforeseen tax problems. The three benefits typically provided include: Christmas parties for employees (and perhaps their family members, and even clients) gifts to employees, their family members and clients, and…

Read more

Considering ride-sharing for income? Tips and traps

October 12, 2017

Have you or someone you know considered taking up ride-sharing (also called ride-sourcing) to earn extra income, or even as an alternative form of employment? When providing ride-sharing services through Uber or GoCatch and other facilitators for a fare, there are things you need to know, and traps you need to be aware of. The…

Read more

High income earners: Beware Division 293!

October 12, 2017

If your remuneration, including reportable fringe benefits and salary sacrificed superannuation contributions is in excess of $250,000 pa, you may have an additional tax liability over and above the normal income tax payable on such earnings. Now that would be a fairly substantial salary package, so it may seem like a good problem to have,…

Read more