The 2018 financial year will be the first year to be impacted by changes introduced to limit deductions that can be claimed by individual residential property investors. Firstly, travel expenditure (car expenses, airfares and accommodation) incurred inspecting and maintaining a residential rental property are no longer deductible and are not added to the cost baseRead more
In 2012, the ABS estimated the black economy had grown to 1.5% of GDP or $25 billion per year in today’s dollars. While the black economy is a long standing issue, new threats are emerging which have compounded the following problems: Loss of tax revenue. Unfair commercial environment penalising compliant behavior. Exploitation of vulnerable workers.Read more
With state of the art data matching capabilities, the Australian Taxation Office (ATO) is casting a wide net in the 2017 year. Some of the areas that appear to be on the hit list are summarised below: 1. Work Related Expenses Performing analytics the ATO will use various benchmarks to compare taxpayers to other taxpayersRead more
As it stands, small business entities with a turnover of less than $2 million are taxed at a 28.5% rate (as at 1 July 2015). The 2016-17 Budget proposed a further reduction of this tax rate to 27.5% from 1 July 2016, along with a small business eligibility threshold increase to less than $10million (upRead more
A reminder for all employers to be ready for the Government’s SuperStream initiative by 30 June 2016. Under SuperStream, employers will be required to make super contributions on behalf of employees by submitting data and payments electronically in a single transaction. Related party employers are exempt from using the SuperStream process if they are contributingRead more
It has been a little quiet on the tax front in recent months. The following is an update of some of the changes affecting small businesses. Company Tax Rate As from 1 July 2015, the small business company tax rate has been reduced from 30% to 28.5%. In general terms, a small business is definedRead more
The Taxation Office has recently introduced some changes affecting how we (as your tax agent) receive client correspondence for individuals. We are able to view correspondence sent in the previous 60 days online via the Tax Office portal. Any clients that have created a myGov account and linked to the Taxation Office will receive thisRead more
The May 2015 Federal Budget contained a number of announcements involving the taxation of small business. A small business has an individual or aggregated turnover less than $2M. Listed below is a summary of the main changes. Tax Cuts Companies From 1 July 2015, the company tax rate will reduce from 30% to 28.5%. TheRead more
Whilst any potential changes to the GST are extremely politically sensitive, a number of recent economic reports suggest that reforming GST can deliver the following benefits: Tax cuts Improved household incomes Increased income growth Removal of inefficient taxes The reports show that the fear and misconception often associated with GST reform is misplaced. Even anRead more
Employee Share Plans The Government has recently announced that it would be reforming the taxation treatment of Employee Share Plans (ESP’s) in an attempt to encourage entrepreneurship in Australia and support innovative start up companies. Some of the proposed changes to ESP’s include: Employees may opt to be taxed on ‘discounted’ options when exercised, ratherRead more
