Tax Update – December 2018

Merry Christmas to Everybody! Christmas is only two weeks away and it is that time of the year to understand how Christmas parties may affect your business’ tax obligations. Fringe benefit tax may arise when a business provides benefits to its employees, however there’s a catch, if the benefits provided falls within the exemptions below, […]

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Tax Update – November

Division 7A Changes Details on the changes to Division 7A (loans to shareholders) has been announced through a consultation paper released by the Treasury and are to apply from 1 July 2019, the key points are as follows: A single 10 year loan will replace the current 7 year and 25 year loans, paid in […]

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Tax Planning for the year ended 2018

As the financial year end approaches, it is time to start considering what actions can be implemented to reduce income tax. Small Businesses Reduce Income Deferring income to next financial year (receiving income after Financial Year 18 ends for cash basis businesses; or invoicing customers after Financial Year 18 ends for accrual basis businesses) Increase […]

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Tax Update – March

GST Withholding on Residential Properties From 1 July 2018, purchasers of new residential premises or residential subdivisions will need to withhold GST on the purchase price from the vendor, and remits GST directly to the ATO. This is an attempt for the ATO to prevent tax evasion from property developers that dissolve their business and […]

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Tax Update – February

Tax Treatment of Bitcoin With the recent fluctuations of cryptocurrencies, it is vital to understand the tax treatment of cryptocurrency (especially bitcoins!) gains and losses, and it depends on the intention of the purchase. For example, if the: Intention is to use it to buy goods and services for personal consumption – profit will be […]

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Tax Update – December

Christmas Party Planning Christmas parties in general are categorised under ‘meal entertainment’ and FBT liabilities will arise for the employers, however there are some exceptions to this ruling. There are some cases where providing food or drinks will not be recognised as meal entertainment, for example when the employer provides food and drinks on a […]

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Tax Update – October

Vacancy levy on foreigners who owns residential properties A vacancy levy has been introduced, effective from 9 May 2017, to target foreigners who owns residential properties but were not rented out or available for rental in the market for more than 6 months in a calendar year.   ATO targeting ‘Cash Only’ businesses   The […]

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Tax Update – August

Foreign Resident Capital Gain Withholding For properties purchased, not settled, after 1st July 2017 that have a contract price of over $750,000 (previously $2,000,000) will be subject to Foreign Resident Capital Gain Withholding (FRCGW). Purchasers of any properties, whether it be residential or commercial, will have to withhold 12.5% (previously 10%) of the property price […]

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New contravention penalties for SMSF Trustees

From ATO: Be prepared for new penalty powers On 14 December 2013 the government announced that it will proceed with law changes that give the ATO greater powers in dealing with SMSF trustees who breach super law. It is proposed that these new powers will apply to contraventions occurring from 1 July 2014 and cover: […]

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Australia’s building industry has contracted further with a sharp fall in new orders as the investment phase of the mining boom fades.

Reported by AAP (via Ninemsn.com.au) Friday, March 7, 2014 The contraction in the building sector deepened in February, according to the Australian Industry Group’s Performance of Construction index which fell by 4.0 points to 44.2. A reading below 50 points shows the sector is contracting; the lower the number the faster the contraction. A ready […]

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