Top 10 tips for rental property owners to avoid common tax mistakes

Here is a list of tips from the Australian Taxation Office (ATO) that should help rental property owners avoid what it has found are the 10 most common tax errors made by rental property investors.

1. Claiming the right portion of expenses

The ATO is adamant that you can’t claim deductions for rental property expenses when family or friends stay free of charge, or for periods when you use the property for your own purposes. Also, if the property

December 22nd, 2017|Categories: Make Money|

Are business problems really just people problems in disguise?

Cameron-Patterson-Co-Business-Accountant-Problem Child


Almost any business owner or manager you talk to will say that people issues are among the biggest challenges in running a business.

The author Patrick Lencioni has written a number of books about the dynamics of work teams.

I find three of these books in particular provide a useful way of looking at how people work together.

These titles, in the order of my discovering them, are:

November 30th, 2017|Categories: Good Business|

Is that a travel allowance or LAFHA?

Cameron Patterson & Co Business Accountant - Work Travel

Travel allowances are paid to employees where in some cases the period away from home is less than 21 days, and in others, more than 21 days.

Typically employees are:

  • paid standard travel allowance for accommodation and food
  • working at the one location
  • visiting home on weekends
  • staying in accommodation provided by the supplier (which may be available for use by other customers when the employee is not there).

Some employees

November 18th, 2017|Categories: Save Tax|

Rental property owners to lose travel deduction

Cameron Patterson & Co Business Accountant - Road Closed

New legislation recently tabled in Canberra puts a rental property measure first announced with the last Federal Budget closer to reality. The “housing tax integrity” bill solidifies the government’s intention to deny all travel deductions relating to inspecting, maintaining, or collecting rent for a residential investment property.

Once enacted the measure will apply from July 1, 2017, so will affect returns for the current financial year.

The new measure will mean that travel

November 14th, 2017|Categories: Save Tax|

Taxation of foreign income derived by Australian residents

Cameron Patterson & Co Business Accountant - Three wall clocks on different time zones

Under Australia’s taxation regime, resident taxpayers are subject to income tax on both income derived in Australia and on foreign sourced income. As a general rule, where foreign income is derived by an Australian resident, the gross amount (including any foreign tax paid on the income) must be included as assessable income.

A foreign income tax offset is allowed (up to a limit) for any tax

November 7th, 2017|Categories: Make Money|

Tax and Christmas party planning



Cameron Patterson & Co Business Accountant - Santa Claus goes surfing

Christmas will be here before we know it, with smarter business owners already planning their end-of-year festivities. Celebrating the season can be team-building or just a bit of fun, but the well-prepared business owner will also know that a little tax planning can help make sure there’s no unforeseen tax problems.

The three benefits typically provided include:

  • Christmas parties for employees (and perhaps their family members, and even clients)
October 31st, 2017|Categories: Save Tax|

Small business car parking FBT exemption

A business becomes liable for fringe benefits tax where it provides car parking benefits in the form of a car parking facility for more than four hours on its premises to its employees, and the relevant car parking facility is situated within one kilometre of a commercial car park where the minimum all day cost is more than the current parking fringe benefit threshold ($8.66 a day for the 2017-18 FBT year).

Note that

September 30th, 2017|Categories: Save Tax|

Considering ride-sharing for income? Tips and traps

Have you or someone you know considered taking up ride-sharing (also called ride-sourcing) to earn extra income, or even as an alternative form of employment? When providing ride-sharing services through Uber or GoCatch and other facilitators for a fare, there are things you will need to know, and traps you need to be aware of.

The first issue to make plain however depends on if you have already started offering ride-share services without considering the

September 30th, 2017|Categories: Save Tax|

Immediate tax deductions for start-up costs

Historically, taxpayers may have been able to claim a deduction for the costs associated with setting up a business or raising finance, including the costs incurred in:

  • establishing a company or other business structure
  • converting a business structure to a different structure
  • raising equity for the business
  • defending it against a takeover
  • unsuccessfully attempting a takeover
September 30th, 2017|Categories: Save Tax|

Beware of Division 293 shock

Division 293 shock

If your remuneration, including reportable fringe benefits and salary sacrificed superannuation contributions is in excess of $250,000 per annum, you may have an additional tax liability over and above the normal income tax payable on such earnings. Now that would be a fairly substantial salary package,  so it may seem like a good problem to have, but then again no-one likes an unexpected demand from the taxman.

It all started about five years ago

September 30th, 2017|Categories: Save Tax|