News

The same business test to be replaced by a similar business test

The same business test to be replaced by a “similar business” test

March 1, 2019

Among the first batch of tax legislation the government dealt with in the new year was a bill that contained changes to the “same business” test. The same business test is relevant in a number of contexts, but most particularly in determining if a company is eligible to claim deductions for past year losses, current…

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Removing tax deductibility of non compliant payments

Removing tax deductibility of “non-compliant” payments

March 1, 2019

From 1 July 2019, businesses will only be able to claim deductions for payments that are made to workers (employees or contractors) when the employer has complied with the pay- as-you-go (PAYG) withholding and other tax reporting obligations for that payment. If the PAYG withholding rules require a business to withhold an amount from a…

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New consumer rules for GST and online purchases

New “consumer” rules for GST and online purchases

March 1, 2019

Australians have been taking full advantage of the offerings on the digital marketplace with gusto for years now, but it has only been relatively recently that the rules for goods and services tax (GST) have caught up. With the purchase of digital products such as the streaming or downloading of movies, apps, and e-books and…

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Rental travel expenses mostly off the table

Rental travel expenses mostly off the table

March 1, 2019

The ATO recently highlighted significant non-compliance with the rules prohibiting taxpayers claiming travel expenses related to residential rental properties. Late last calendar year, the ATO revealed that it had identified 26,000 taxpayers who had incorrectly claimed deductions for travel to rental properties during tax time 2018, despite recent changes to the law in this area.…

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When valuations of property are important for tax

When valuations of property are important for tax

March 1, 2019

There are times when getting a valuation becomes necessary, especially to estimate the cost of transactions that are not arm’s- length or when no actual cash changes hands. A common example of this is in respect of property, and especially for transactions when a valuation is necessary for tax purposes. For example, let’s say that…

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Tax incentive for angel investors in start ups

Tax incentive for angel investors in start-ups

February 5, 2019

For more than two years now (from 1 July 2016) two key tax incentives have been available for investors considering putting their money behind qualifying start- up businesses — or as the ATO has dubbed them, early stage innovation companies (ESICs). The incentives provide eligible taxpayers who invest in new shares in an ESIC with:…

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Guide to making motor vehicle expense claims

Guide to making motor vehicle expense claims

February 5, 2019

A perennial topic regarding tax deductions is claiming expenses for a car. The following notes summarise the most salient points when it comes to claiming a deduction for motor vehicle expenses. Of course every person’s circumstances may be different, but the following covers most of the relevant information. Key points to keep in mind include:…

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The ATO is looking for personal services income diverted to SMSFs

The ATO is looking for personal services income diverted to SMSFs

February 5, 2019

The ATO has announced that it is reviewing arrangements where members of an SMSF (typically at, or approaching, retirement age) purport to divert income earned from their personal services to their fund, which results in minimising or even avoiding tax altogether on that income. The ATO says these arrangements typically display all or most of…

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For certain travel expense claims the term itinerant needs clarity

For certain travel expense claims, the term “itinerant” needs clarity

February 5, 2019

Being able to make claims for work-related travel expenses is generally an enviable deduction situation, and one that a good many taxpayers would like to achieve — especially given that the status of being deemed an “itinerant” worker brings with it an expectation of a lot of travel kilometres. While itinerant work is generally held…

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Three quarter FBT year compliance check up

Three-quarter FBT year compliance check-up

November 6, 2018

As the FBT year runs from 1 April to 31 March, the months of October to December mark the “third quarter” of the FBT year, and so, as an early fix before year’s end, here is an overview of the FBT elements that can attract the ATO’s attention. This can be a timely period for…

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