It is well documented that saving for your first property is challenging. From 1 July 2018, the First Home Savers Scheme will enable first-home buyers to save for a deposit inside their superannuation account, attracting the tax incentives and some of the earnings benefits of superannuation.
The ATO has been active in data collection and data matching activities targeting areas of high non-compliance and high-risk revenue areas using industry comparisons or analysis of data on tax returns. If taxpayers are found to have understated their assessable income or overstated their deductions, penalties are imposed.
An executor is an individual named in a Will to carry out the wishes of a person after they pass. It is important to choose the right executor as they are required to perform many important tasks, either themselves or by engaging professionals with the relevant expertise (e.g. solicitors, accountants etc.).
For retirees and pre-retirees, the government recently announced changes to superannuation allowing you to downsize your home and contribute part of the proceeds from the sale into your superannuation fund.
Payroll tax is applied to a business’s New South Wales (NSW) taxable wages that exceed the payroll tax threshold. The payroll tax threshold for 2018 financial year is $750,000. An employer is required to pay 5.45% payroll tax on taxable wages above this threshold.
Accessing Superannuation To access your superannuation, prior to retirement, under the ATO’s financial hardship provisions you must satisfy the following conditions; 1. you cannot meet your day to day family living expenses, and 2. you have been receiving government income support for the past 26 weeks, and 3. you must be receiving government income support… Read more »
Stamp Duty Surcharge The 2016 NSW Budget introduced a surcharge purchaser duty (stamp duty) on the purchase of residential real estate by foreign persons from 21 June 2016. The surcharge is in addition to the stamp duty payable on the purchase of residential property. As a result of the 2017 Budget, the stamp duty surcharge… Read more »
Using Testamentary Trusts Estate planning allows testators to exercise a higher level of control over the distribution and management of their wealth to beneficiaries. Testamentary trusts are an effective estate planning tool because of their ability to protect assets and minimise tax consequences.
A travel allowance is a payment made to an employee to cover accommodation, food, drink or incidental expenses they incur when they travel away from their home overnight in the course of their duties. Generally, allowances folded into an employee’s salary or wages are taxed as salary and wages and tax has to be withheld,… Read more »
The ATO has released various taxpayer alerts this year in relation to arrangements that seek to exploit the Research and Development (“R&D”) tax incentive. The ATO is closely reviewing such arrangements to disallow incorrect R&D claims relating to expenditure or arrangements in construction, ordinary business, agricultural and software activities.