News

work related travel and living away from home 2

How to treat work-related travel and living away from home costs

September 3, 2021

The ATO has released new guidance to help clarify the tax treatment of costs and allowances incurred when an employee travels – or spends time living away from home – for work. Certain conditions need to be met to ensure an allowance can be considered a travel allowance: None of the individual absences from the…

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SMSFs property development 2

SMSFs & property development – Emerging risks

September 3, 2021

There has been an increase in the number of SMSFs entering into arrangements where real property is purchased and developed to subsequently be sold or rented out. Such investments can help the fund build up its wealth more quickly than other forms, and from a tax standpoint, any rent or eventual capital gain may enjoy…

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Stapling super Reducing multiple accounts for employees

Claiming GST credits for employee reimbursements

September 3, 2021

If you are an employer registered for goods and services tax (GST), you may be entitled to claim GST credits for payments you make to reimburse employees (including company directors) or partners in a partnership for certain work-related expenses. If you are running a business, you will be entitled to a GST credit for an…

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Buying a new home before selling the old one

Buying a new home before selling the old one: The ins and outs

September 3, 2021

Sometimes an individual or couple decide to buy a new home before selling their existing one. In such cases, a concession exists that allows for both houses to be treated as a main residence for up to six months – but only if certain conditions are met. Section 118-140 of the Income Tax Assessment Act…

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Trust distributions to non‐residents

Trust distributions to non‐residents

September 3, 2021

When an Australian trust makes a distribution to a non-resident beneficiary, it is often the case that the Australian trust is required to pay tax on the distribution. The trustee’s payment of tax on trust distributions to non-resident beneficiaries of an Australian trust is a tax collection security measure. It is a type of withholding…

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Claiming GST credits for employee reimbursements

Stapling super: Reducing multiple accounts for employees

September 3, 2021

New legislation will ensure that when an employee moves jobs, the super fund they used with their former employer will be ‘stapled’ and will automatically follow them. Under current rules, if an employee changes jobs multiple times over their working life and does not nominate a superannuation fund to their employer, they could end up…

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Walking dogs

What the new Your Future, Your Super means for you

August 10, 2021

Recent legislative reforms to the superannuation arena are set to change the retirement savings landscape for many Australians. The Federal Government says the Your Future, Your Super reforms will help ensure superannuation works in the best financial interests of all Australians by removing unnecessary waste, increasing accountability and transparency, and providing more flexibility for families…

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Architect rule and paper

Capital works deductions for rental property

August 10, 2021

Rental property investors can claim capital works deductions for construction costs for a rental property, however there are limits imposed in relation to the dates such works were completed. The deductions are only available on residential properties built after 17 July 1985. Generally, up to 15 September 1987 the rate is 4% a year (over…

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family in bed with iphone

Trust losses: Keeping them in the family

August 10, 2021

Who can (and can’t) be part a family group for the purpose of making a family trust election (FTE)? As you can see by the diagram on this page, the ‘family group’ is dependent on the choice of the ‘test individual’. Once that person is chosen, the family group includes the person’s spouse, plus any…

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Lights and pipes

Trust distributions from a discretionary trust

August 10, 2021

The purpose of a trust is to separate the legal and beneficial ownership of assets. The legal ownership of the asset rests with the trustee. The beneficiaries benefit from the income that flows from the assets. A trust is not a legal entity. It is best described as a legal “relationship” that is controlled by…

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