Regularly I am asked the question “Should we as a family pool our superannuation resources and establish a Self Managed Superannuation Fund (SMSF)”? A SMSF commonly has one or two members but it is permitted to have up to four members. So, if you are a husband and wife with two children should you permit… Read more »
In Australia, the transfer pricing regime puts a significant burden on the entity to ensure that related party pricing is arm’s length and supported by appropriate documentation. If the amounts for the transactions do not comply with the arm’s length principle then this can result in higher tax penalties in the event on an ATO… Read more »
Further to removing the deductibility of travel expenses in relation to rental properties in the 2017-18 Federal Budget, the Commissioner has issued Draft Tax Ruling TR 2017/D6 which sets out the general principles for determining whether an employee can deduct travel expenses.
The ACCC has issued a warning to businesses charging excessive credit card fees. One large merchant has already been issued with four infringement notices and has paid $43,200 in penalties. The new rules, which came into effect from 1 September 2017, prevent merchants from charging more than the true cost of the transaction. As a… Read more »
There is an upward trend of Australians making generous charitable gifts in their wills. However, there is a lack of awareness that gifts or donations made in wills to charities that classify as deductible gift recipients (DGRs), are not tax deductible. Therefore, where a will-maker intends to make significant donations it is imperative that they… Read more »
From the 2017 income year, the small business company tax rate has been reduced to 27.5%. Currently you are a small business entity if you are a sole trader, partnership, company or trust that: is carrying on a business for all or part of the income year, and has an aggregated turnover less than $10 million (the… Read more »
What effect does rising interest rates have on your investment in bonds? The Shadow Reserve Bank board member, Paul Bloxham, who is also HSBC’s Australian Chief Economist, was quoted in October as saying “What is becoming increasingly clear this month is that the Shadow Board thinks that the next move for interest rates is likely… Read more »
It is not uncommon for taxpayers to owe tens of thousands in tax debt to the ATO as a result of extenuating factors beyond their control. Where primary tax is not paid on time the ATO imposes interest and penalties which can make an already large tax debt more difficult to repay.
The Australian tax year is based on the financial (or income) year, i.e. from 01 July to 30 June of the next year. All Australian tax residents must lodge a tax return each year unless one of the exemptions applies. Individual taxpayers have from 1 July to 31 October to lodge their tax return for the previous… Read more »
With the residential property market going gang busters many investors are now turning their attention to alternative property investments such as commercial or industrial property. Commercial and industrial property are considered to offer a better yield, or net rental return which is attractive to investors seeking income, such as retirees. There are essentially three ways… Read more »