The end of the financial year is nearly upon us meaning it’s tax time once again. In order to help you prepare for the new financial year, we have put together 25 tax tips to consider before June 30 2016. Our tax tips have something for everyone; so if you’re looking for small business tax… Read more »
Recently the ATO increased focus on rental property deductions. You can claim expenses relating to your rental property but allowable deductions cannot be claimed in relation to a rental property unless the property is held for rental (genuinely available for rent) or actually rented to tenants. Furthermore, co-owners must divide the income and expenses of… Read more »
A business’ liability for payroll tax is outlined in the Payroll Tax Act 2007 (NSW). As it is a state tax it is regulated and collected by the NSW Office of State Revenue (OSR) and not the Australian Tax Office (ATO). Payroll Tax threshold Payroll tax is applied to a business’ New South Wales (NSW)… Read more »
Division 7A is an integrity measure aimed at preventing private companies from making tax-free distributions of profits to shareholders (or their associates). In case where the Division 7A has been breached, the improperly distributed profit is deemed to be assessable dividends in the hands of a taxpayer. Furthermore, no franking credits are allowed in relation to… Read more »
The CGT Small business concessions may reduce or eliminate a taxable capital gain a taxpayer makes when a CGT event happens in relation to a CGT asset.
As part of the 2014-15 Federal budget the Government announced that it will impose a Temporary Budget Repair levy of 2% on that part of a person’s taxable income which exceeds $180,000. The legislation for this has passed Parliament and the levy now applies to the 2014-15, 2015-16 and 2016-17 financial years.
Generally, you can claim a deduction for most expenses you incur in running your business as long as they are directly related to earning your assessable income. Working or operating expenses (for example, advertising or accounting fees and wages) can be claimed in the year you incur them. However, capital expenses (such as buying plant… Read more »
Generally, when a taxpayer makes a donation (cash or property) to a charity or other deductible gift recipient (DGR) they could claim a deduction. However, if it is a testamentary gift, the deceased estate cannot claim a deduction. Therefore, if you consider making a donation to a charity, it is better done during your lifetime.
During challenging economic times some businesses face a situation when they are unable to meet their financial obligations as they fall due. Whenever a debt is forgiven, assigned or otherwise dealt with the taxpayer should consider the application of the Commercial Debt Forgiveness (CDF) rules.
It is an exciting time when new workers join your business. Meanwhile, it is crucial to determine if they are an employee or contractor before entering into an agreement or contract. Your business will need to keep records to support your decision on whether your worker is an employee or contractor and the factors you… Read more »