SMSF auditors are the last link in a long superannuation chain before the annual return gets lodged. And when things go wrong, SMSF auditors can often be an easy target to blame. But not everything is as simple as it seems because it’s the auditing standards and SIS legislation that dictate the extent of the […]
There are two categories of companies when it comes to the corporate tax rate. The two categories are determined by turnover and business activity. The rate of 27.5% applies to corporate tax entities known as “base rate entities”. What is a base rate entity? Put simply, it is a company which carries on a business and […]
If you’re thinking about purchasing some new equipment for your business, it may make sense to bring forward that purchase in order to take advantage of the “instant asset write-off” available until 30 June 2020. The write-off allows small and medium businesses (with turnover up to $50 million) to claim a full deduction for any depreciating […]
Every tax time, the ATO focuses on certain hotspots where taxpayers are prone — either accidentally or deliberately — to make errors. These are the areas it will concentrate its audit firepower on, and for those who have made claims in areas which the ATO will be targeting, they can be a wake-up call both to ensure […]
The Government’s income tax cuts have been passed by the Senate. It is the second major tax cut in two years. This is what that means for you. This year: Modest cuts for most Australians Modest tax cuts are available to millions of Australians almost immediately. People earning between about $21,000 and up to $126,000 in […]
PRE-1 JULY 2019 TO-DO LIST Make trust resolutions Document the streaming of trust capital gains and franked dividends Review private company loans Consider deferring certain income, and bringing forward certain deductible expenses Write-off bad debts Pay employee bonuses and employee superannuation entitlements RECORD-KEEPING TIPS Record cash income and expenses Account for personal drawings Record goods […]
RENTAL PROPERTIES The ATO has received a large boost in funding to close the $8.7 billion individuals tax gap. Part of its focus is to ensure taxpayers are returning all rental income as well as claiming only the rental property expenses to which they are entitled. Some of this additional funding will go to improving […]
CLAIM WORK-RELATED DEDUCTIONS Claiming all work-related deduction entitlements may save considerable income tax. Typical work-related expenses include employment-related mobile phone, internet usage, computer repairs, union fees and professional subscriptions that the employee paid themselves and for which they were not reimbursed. Be aware that the ATO has received a large boost in funding that enables […]
Vehicle-related expenses and even the make and model of the car you drive can attract extra scrutiny from the ATO, an accountant has warned, citing the example of a manufacturing business. Speaking on the podcast of sister publication, My Business, Alexander Laureti of LMS Advisory revealed that a manufacturing business had its fringe benefits tax […]
In all the hoopla over the US corporate tax cuts, introduced late in 2017, a change to the way the US Treasury views income earned offshore went almost unnoticed in the world of private clients. But for American citizens operating businesses in Australia, or Australian companies with a large individual US shareholder, the bite is […]