News

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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How much do we need to retire

How much do we need to retire?

November 6, 2018

The question of how much a person needs to have saved before confidently launching into their retirement years very much requires an individual answer. Each one of us lucky enough to reach the brink of those golden years will feel a lot better doing so with some assurance that we’ve squirrelled enough away to be…

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The work Christmas party

The work Christmas party

November 6, 2018

It’s not quite Christmas time yet, but most businesses will be in the process of thinking ahead to the yuletide festivities, if not already into well-advanced planning. One of the perennial questions is if and how fringe benefits tax applies to these activities. There is no separate fringe benefits tax (FBT) category for Christmas parties…

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Renting out part or all of your home

Renting out part or all of your home

November 6, 2018

If you rent out part or all of your home, the rent money you receive is generally regarded as assessable income. This means: you must declare your rental income in your income tax return, and you can claim deductions for the associated expenses you may not be entitled to the full main residence exemption from…

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Carrying on a business through your SMSF

Carrying on a business through your SMSF

November 6, 2018

Under the regulations, self-managed super funds (SMSFs) are not prohibited from carrying on a business, however the business must be: allowed under the SMSF’s trust deed, and operated for the sole purpose of providing retirement benefits for fund members. Note however that the rules governing SMSFs prohibit or limit some activities available to other businesses,…

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Crowdfunding and tax

Crowdfunding and tax

October 4, 2018

Not so many years ago, the concept of raising funds via crowdfunding would more likely be seen as a way to fund community-based, local-issue or help your neighbor initiatives. But increasingly these days crowdfunding is viewed as a viable source of seed capital, and is no longer regarded as the shy little sister of venture capitalism.…

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