As you will be aware the requirements of the Income Tax Assessment Act are strict, this memo is a formal reminder of the general provisions that apply to individuals and any related entities, consistent with prior years. Self-assessment Under the current “self-assessment” system, income tax returns are not necessarily subjected to technical scrutiny either before…
Putting your money into bricks and mortar has been a traditional stalwart of investing for generations of Australians, and continues to be viewed as a solid place to park spare cash and build wealth in the long term. For many years a lot of us seem to have heeded the quote attributed to Mark Twain:…
Anyone with a concern that their circumstances may put them in an unusual position tax-wise, or that a particular financial arrangement doesn’t fit any known approach for tax purposes, or who simply wants to minimise the risk of an unanticipated tax outcome, can apply for a ‘private ruling’ from the Tax Office. Asking for a…
Can salary sacrifice work for your staff? Salary sacrifice can be a great way for your employees to get a part of their remuneration in a form other than cash, where they agree to take part of their wage as a benefit of some kind, equal in value to the salary it is exchanged for.…
In a surprise – but welcome – move in the 2015 Federal Budget, the Government announced a small business tax discount. The Government said that, with effect from 1 July 2015, individual taxpayers with business income from an unincorporated business that has an aggregated annual turnover of less than $2 million will be eligible for…
In an unprecedented first for small business tax compliance, the Tax Office has revealed it will chase up incorrectly disclosed income and match it to credit card and debit card records throughout the 2014-15 financial year. As part of the blitz, the Tax Office will ask major Australian financial institutions for the online purchase details…
It’s little wonder the phrase ‘bracket creep’ summons up images of spiders and other nightmarish creepy-crawlies. While it’s not a bad thing to earn more money, get a raise, or have your salary adjusted with inflation, unwittingly jumping into a higher tax bracket can negate any fiscal gains you make from the added income. The…
In the 2015-16 Federal Budget, the government announced that it will change the tax residency rules for most people who are temporarily in Australia for a working holiday. These people will be treated as non-residents for tax purposes, regardless of how long they are here. They will not be able to access the tax-free threshold…
The following Frequently Asked Questions relate to the Accountants’ Exemption. What is the latest? The Institute in conjunction with CPA Australia, released the first of a range of resources to assist members in considering their options for when the ‘accountants’ exemption’ is removed from 1 July 2016. The Information guide: Accountants’ exemption reform has been…
Rules of thumb are sometimes handy, but no-one expects them to be accurate, and such rough standards naturally infer variability. One rule of thumb that has circulated in SMSF circles for years is that the bare minimum required to be able to cost-effectively run a fund is around $200,000. More than a guesstimation, the “bare…