News

Your claim for a business tax loss can be denied

Your claim for a business tax loss can be denied

August 2, 2018

Business owners are naturally keen to be able to absorb a business loss as a tax deduction, but it also pays to not stray too far from the generally accepted rules regarding tax losses — there are circumstances where the ATO is legitimately able to deny such claims. The ATO has the discretion to disallow…

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Retired and asset rich but cash poor? The pension loans scheme may help

Retired and asset rich but cash poor? The pension loans scheme may help

July 19, 2018

To help pensioners who are rich in assets but poor in income, the  government launched a version of a commercially available  inancial product, the reverse mortgage. The government’s answer for pensioners who find themselves in the above situation is its pension loans scheme (PLS), whereby a pensioner can apply for a nontaxable loan using some form…

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Tips for your tax return

Tips for your tax return

July 19, 2018

Before we sit down with you to go over your tax return, certain information will be needed. Of course these days pre-filling takes care of a lot of the “paperwork”, and if you wait until late-July or mid-August the ATO’s systems will most likely be able to provide most of the information from employers, banks,…

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Interest deductibility after income-producing activity ceases

Interest deductibility after income-producing activity ceases

May 4, 2018

An issue that sometimes arises for business owners is whether interest expenses incurred on borrowed funds used in a business remain deductible after the business’s income earning activities have ceased. As a general rule, in order for interest expenses to be deductible in the relevant income year, a taxpayer is generally required to demonstrate that…

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Taxation of foreign income derived by Australian residents

Taxation of foreign income derived by Australian residents

November 2, 2017

Under Australia’s taxation regime, resident taxpayers are subject to income tax on both income derived in Australia and on foreign sourced income. As a general rule, where foreign income is derived by an Australian resident, the gross amount (including any foreign tax paid on the income) must be included as assessable income. A foreign income…

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Is that a travel allowance or LAFHA?

November 2, 2017

Travel allowances are paid to employees where in some cases the period away from home is less than 21 days, and in others, more than 21 days. With travel allowances, typically employees are: paid standard travel allowance for accommodation and food work at the one location visit home on weekends stay in accommodation provided by…

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Can you claim a deduction for home to work travel?

October 3, 2013

Did you know that you may be entitled to claim some of the expenses you outlay while travelling between your home and your regular workplace, or even to your alternative workplace? While claiming such work travel tax deductions are certainly possible, such claims can be a minefield that needs to be navigated very carefully so…

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How a mortgage offset account works

August 6, 2013

“Mortgage offset account”, “offset home loan”, “interest offset account” or simply “offset account” — they are all interchangeable labels for the same financial product provided by banks. It is essentially a savings account that is linked to a loan account. An offset facility contains two bank accounts: (1) a transaction account (meaning you have access…

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