Travel allowances and the proper use of the exception to substantiate claims

Travel allowances and the proper use of the exception to substantiate claims

A travel allowance is a payment made to employees to cover accommodation, food, drink or incidental expenses they incur when they travel away from their home overnight in the course of their duties. In most circumstances, when claiming other deductions, … Continue reading

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Child death benefit recipients and the transfer balance cap

Child death benefit recipients and the transfer balance cap

The death of a parent is hard on all those involved, however once the grieving has eased, a time comes to address financial matters. One of these issues can be what happens to any superannuation they have left. Making things … Continue reading

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Tax deductions specifically for SMSFs

Tax deductions specifically for SMSFs

One overarching fundamental that SMSF trustees should ideally keep in mind is the sole purpose test — that is, every decision made and action taken is required to be seen as being undertaken for the sole purpose of providing retirement … Continue reading

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Deductions for finance on a rental property

Deductions for finance on a rental property

Interest can be claimed for the cost of funds borrowed to purchase a rental property and to meet maintenance costs or running expenses while the rental property is being let (or is available to be let) under a commercial arrangement … Continue reading

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Life policy bonuses and tax

When a life insurance policy has been held by a taxpayer for 10 years or longer, reversionary bonuses received on that policy are generally tax-free. For policies held for less than 10 years, stipulated amounts are included in the taxpayer’s … Continue reading

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ATO waves a red flag on deductions for holiday rentals

ATO waves a red flag on deductions for holiday rentals

Just when many Australians are considering getting away for a mid-winter break, the ATO is reminding taxpayers that it is paying close attention to rental properties located in popular holiday destinations around Australia. The ATO recently issued a statement saying … Continue reading

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Streaming trust capital gains and franked distributions: An overview

Streaming trust capital gains and franked distributions: An overview

The ATO has stated that a trust’s capital gains and franked distributions can, if not prevented by the trust deed, be streamed to beneficiaries for tax purposes by making these beneficiaries “specifically entitled” (more below) to the amounts. This allows … Continue reading

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Be prepared: What you need to bring to your tax return appointment

Be prepared: What you need to bring to your tax return appointment

If you’re coming in soon to discuss your tax return for yourself or your business, try not to turn up completely empty handed, or at least to turn up prepared with some records or electronic access to them. To “be … Continue reading

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Deduction tip: Can you claim the cost of travelling to this office?

Deduction tip: Can you claim the cost of travelling to this office?

Tax time has arrived, but before you have us lodge your return here is another deduction tip — should your circumstances allow (or file this away for next income year.) The ATO recently issued what it calls a “tax determination” … Continue reading

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Substantiation for mobile, home phone and internet costs

Substantiation for mobile, home phone and internet costs

The ATO has issued guidance on making claims for mobile phone use as well as home phone and internet expenses, and says that if you use any of these for work purposes you should be able to claim a deduction … Continue reading

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