R & D Tax Incentives

An eligible R&D entity must undertake at least one core activity. Excluded activities include market research, exploring for minerals or petroleum, management studies and research in social sciences and humanities, among other things. The benefit received for incurring eligible expenditure on R&D activities depends on the aggregated turnover of the R&D entity. Entities with an … More R & D Tax Incentives

Compensation by financial institution and tax

The ATO says that taxpayers will need to consider certain tax consequences if they have personally received compensation from a financial institution because they: received advice from the institution that was found to be inappropriate, or paid for advice that they did not receive. The tax treatment of the compensation depends on what the compensation … More Compensation by financial institution and tax

Can the interest from borrowed money be tax deductible?

The ATO has stated there is some practical difficulty in denying such deductions as paying a tax debt is not capital in nature nor was used to gain exempt income. This is what the regulation says: Subsection 51(1) of ITAA36 provides that: “All losses and outgoings to the extent to which they are incurred in … More Can the interest from borrowed money be tax deductible?

I want to claim travel expense deduction but what is travel allowances? 

Travel these days are so much easier and frequent for work and business related purpose. A travel allowance is payment to employee to cover for food, drink, accommodation or incidental expenses while they travel away from their home overnight or longer to do their work. In most situations of claiming other deductions, a taxpayer will … More I want to claim travel expense deduction but what is travel allowances? 

Property inspection travel deductions

Recently there were some changes made to deductions of travel expenses available to landlords when making inspections of the property. The ATO website states from 1 July 2017, travel expenses related to residential investment property is not deductible. In a recent Tax Wrap podcast there was a question raised regarding a man attending a Annual … More Property inspection travel deductions

Tax incentives for investors in start-ups

Eligible investors who buy shares at an early stage of a start up company is entitled to carry-forward tax offset of 20% of the qualifying investments they have made. There are different caps for sophisticated investors and non sophisticated investors. There is Capital Gains Tax relief also available. There are some criteria to qualify as … More Tax incentives for investors in start-ups