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Super strategies will soon need to factor in new transfer balance caps

When the legislation to limit the amount that can be transferred into a pension account took effect on 1 January 2017, there was always written into those rules a requirement for the transfer balance cap (TBC) to eventually be indexed.

The legislation, the Treasury Laws Amendment (Fair and Sustainable Superannuation) Act 2016, provides that the general TBC is to be indexed in increments of $100,000 if the indexation rate reaches a prescribed figure (and this is calculated using a formula set out in the legislation).

The

December 11th, 2019|Categories: Make Money|

CGT concessions: Does your business qualify?

Wondering if you’re eligible to claim the CGT concessions can be settled by answering a few basic questions.

 

In addition to the capital gains tax (CGT) exemptions and rollovers available more widely, there are four additional concessions that allow a small business to disregard or defer some or all of a capital gain from an active asset used in the business:

  • 50% active asset reduction – where you can reduce the capital gain on an active asset by
December 11th, 2019|Categories: Make Money|

If you’re in business, you need to know about PPSR

There is a simple step that many businesses can take to better manage the risk that can attach to certain assets

 

Not so many years ago, a new scheme was introduced, which also established a national register, that could affect anyone who answers “yes” to any of the following scenarios — are you in business, and do you:

  • sell goods on retention of title terms?
  • hire, rent or lease out goods?
  • buy or sell valuable second-hand
December 11th, 2019|Categories: Make Money|

E-invoicing is on its way

Along with a more automated exchange and processing of invoices, e-invoicing also promises reduced payment times and better cash flow

 

The headline above may give the impression that electronic invoices are a futuristic concept, but of course even today there is a version of e-invoices — think PDFs and other electronic documents that can contain the information that a standard tax invoice is required to display.

 

What is it?

But what the ATO is working towards, and what it means

December 11th, 2019|Categories: Make Money|

SMSF event-based reporting: What needs to be reported, what doesn’t

Since event-based reporting started for SMSFs from 1 July 2018, the ATO says that for the larger part, SMSF trustees have mostly adjusted to the new requirements.

 

Now that an entire income year under the transfer balance account report (TBAR) regime has been completed, some teething problems have emerged. A big one for the ATO has been the high number of commutation authorities that have been unnecessarily issued. The ATO says more than 50% of these were revoked due to it consequently receiving amended

October 9th, 2019|Categories: Make Money|

Amendments to FBT definition of “taxi” imminent

Treasury has just released some miscellaneous amendments that include a redefinition of the word “taxi” in regard to certain tax arrangements. An exposure draft addresses the ongoing problem for taxpayers around the definition of taxi for FBT purposes (see the second link on this Treasury webpage, “Miscellaneous Amendments Bill Explanatory Memorandum”, and scroll to page 19).

 

The bill, under Part 2 “Amendments commencing first day of the next quarter” has been drafted with the stated

October 9th, 2019|Categories: Make Money|

An FBT reporting exclusion for personal security concerns

The ATO has plans in place that it can put into operation to relieve certain employers from reporting all the fringe benefits they provide to staff. The measure however is only triggered where it can be shown that employees’ personal safety is at risk or under threat.

 

Note that the term “security concerns” in relation to the personal security of an employee also takes in associates of that employee (for example, a relative). Such concerns may arise from

October 9th, 2019|Categories: Make Money|

Fictions (and facts) about work expense deductions

There can be varied sources for some of the myths about tax deductions —pub-talk, BBQ-banter, hairdresser-homilies, what-your-taxi-driver-just-heard and many others. We sort out fact from fiction.

 

This year’s tax time saw media reports about various outlandish tax claims — for example the ATO being faced with claims for dental expenses, gambling losses, Lego sets, sunscreen (and an umbrella) for cigarette breaks, and even the cost of a wedding reception (all rejected, by the way).

 

How certain myths are started

October 9th, 2019|Categories: Make Money|

ATO takes aim at ‘you-scratch-my-back’ auditing arrangements

It has long been an accepted standard that the auditor of an SMSF needs to be independent of that fund, and be a third party entity to the SMSF. This requirement is written into the legislation.

There have of course been breaches of this requirement, and instances where auditors and/or fund trustees have suffered administrative penalties or even disqualification for non-compliance in this area.

The more blatant breaches of the requirement to use a third party auditor involve someone

October 2nd, 2019|Categories: Make Money|

Rental property owners: Top 10 tips to avoid common tax mistakes

The ATO is reminding rental property owners that each year it sees some fairly common mistakes being made with tax claims, and the outcomes that result, in regard to investment properties. It has therefore released a list of the top 10 stumbles, and how best to avoid them.

 

  1. Apportioning expenses and income for co-owned properties

    If you own a rental property with someone else, you must declare rental income and claim expenses according to your legal ownership

September 18th, 2019|Categories: Make Money|