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Parliament House Canberra Federal Budget 2018

Federal Budget 2018

May 10, 2018

The item that may receive the most analysis from the whole of this year’s federal budget will be the increase of the 32.5% tax bracket, and an expansion of the Low Income Tax Offset. A win for small businesses in this year’s budget sees the retention of the $20,000 instant asset write-off for another 12…

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Franchise businesses and tax

Franchise businesses and tax

May 4, 2018

The Australian Competition & Consumer Commission (ACCC) is the government body responsible for enforcing the Franchising Code of Conduct, and if you or someone you know are considering entering into a franchise arrangement, this will probably be a good starting point to get an idea of what to expect. The code imposes strict obligations on…

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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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Superannuation contributions “work test” for over 65s

Superannuation contributions “work test” for over 65s

May 4, 2018

Whether or not the trustee of a complying superannuation fund can accept member contributions for those aged between 65 and 75 depends on the member satisfying a “work test”. The work test requires a member to have been gainfully employed for at least 40 hours in a period of not more than 30 consecutive days…

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2-minute quiz: Business deductions

2-minute quiz: Business deductions

May 4, 2018

How well do you know your business deductions? Try these questions to find out! Answers below. Question 1 A company’s financial accounts show the following information in relation to its bad debts and doubtful debts for the year: Closing balance for doubtful debts from the previous year: $172,000 Doubtful debts provided for (but not written…

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Look before you leap with testamentary trusts

Look before you leap with testamentary trusts

May 4, 2018

A testamentary trust works in tandem with a will, and is similar to a discretionary trust, with the major difference being it only takes effect upon the death of the person who made the will. The trust can be funded by some or by all of your assets, and by payments derived as a consequence…

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Bitcoin: Its place in your wallet or SMSF portfolio

Bitcoin: Its place in your wallet or SMSF portfolio

April 6, 2018

While bitcoin may be the most well-known cryptocurrency, there are nearly 1,500 in existence. In its simplest form, a cryptocurrency is a “peer-to-peer electronic cash system”, which means that the currency is not in a physical form like cash but sits in an electronic register. What makes bitcoin work, where previous attempts at electronic cash…

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SMSF commutation requests: How to get the green light from the ATO

SMSF commutation requests: How to get the green light from the ATO

April 6, 2018

The ATO has issued guidance on its approach to commutation requests, which is an essential piece of information for SMSF trustees because it explains which commutation requests will not be subject to an ATO review. With recently introduced superannuation rules now in effect (from 1 July 2017), superannuation members with income streams that are valued…

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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…

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Dealing with tax and renting via Airbnb

Dealing with tax and renting via Airbnb

April 6, 2018

Airbnb is one of many examples of the “sharing economy” — connecting buyers (users) and sellers (providers) through a facilitator that usually operates an app or a website. Airbnb acts as this facilitator by allowing individuals, referred to as “hosts”, to rent out a room of their house or their whole house for a short-…

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