News

Medical expenses: What can you claim?

July 5, 2012

Changes announced in the latest Federal Budget mean that from July 1, 2012, the Net Medical Expenses Tax Offset will have two income-based thresholds, both indexed annually. A lower threshold ($2,060 for 2011-12) applies to individuals with an annual taxable income of less than $84,000 and less than $168,000 for couples and families, and a…

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LAFHA — the new regime

July 5, 2012

Every so often, a person’s career will take them places — but not necessarily in an ‘upwardly mobile’ way. If earning a living means an employee needs to be away from their usual place of residence for an extended period, the government has made available tax concessions generally known as the Living Away From Home…

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Maximise your rental property claims

July 5, 2012

Come tax time, every penny counts – particularly in the case of investors. Owners of rental properties are entitled to tax deductions in connection with their investments but do you know what these deductions are and how you can save yourself from paying more? Read our guide below for a rundown of claimable rental property…

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SMSFs and geared property investment

July 5, 2012

In general terms, there is a prohibition on superannuation funds borrowing money, however an exception to this rule enables self managed superannuation funds (SMSFs) to borrow in order to acquire certain assets. These borrowing arrangements are strictly regulated. When borrowing to acquire an asset, the fund takes out a loan on a ‘limited recourse’ basis,…

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Tax changes from July 1, 2012

July 5, 2012

Business Company tax loss carry-back scheme which allows companies to carry-back tax losses of up to $1 million to offset previous profits and provide a refund of tax previously paid. Immediate write-off of the first $5,000 of a new or used motor vehicle and each eligible business asset that costs less than $6,500 for small…

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New contractor tax reporting requirements

June 21, 2012

A change to the reporting requirements for businesses in the building and construction sector is about to become a reality from July 1, 2012. The new ‘Taxable Payments Report’ will require operators to report on certain payments made to contractors. The Tax Office says data from the Taxable Payments Report will improve compliance and detect…

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Streaming classes of trust income

June 21, 2012

Various aspects of the tax law relating to trusts have been the subject of long-term uncertainty. Some clarification was provided in the 2010 year High Court decision in the Bamford case, however the Tax Office indicated that the judgement of the court raised further issues, which it outlined in a Decision Impact Statement. Background: Bamford…

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End-of-year tax tactics for your business

June 21, 2012

There are legitimate ways to go about minimising your business’s tax liability, and some simple tactics to achieve this. These may not suit every business, so check with your tax professional to ensure they are applicable. As plans of action invariably take a while to put in place, some of the strategies may be too…

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End-of-year super superannuation strategy checklist

June 21, 2012

Get your superannuation into its best tax position, for this year-end and into 2012-13 and beyond. Consult your tax agent on which strategies suit you best. Maximise after-tax contributions Double-check your non-concessional (after-tax) contribution figures to make sure contributions are made up to the allowable cap before the end of the 2011-12 financial year. Generally,…

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SMSFs: Travel – and keep your fund compliant

June 21, 2012

Are you a travel aficionado? Nothing unlawful about that, except there may be negative consequences if you are a trustee in a self managed superannuation fund (SMSF). If a trustee relocates overseas for an extended period, the residency status of an SMSF, its compliance and its ability to receive tax concessions may be affected. Trustees…

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