ATO when assessing tax payers’ activities use a set of guidelines which are generally in the form of questionnaire worksheets. There are two types of worksheets: a short answer one and a detailed one. The questions are related to the living expenses of the household. The uses of the worksheets include: Review the accuracy and … More 4 uses of ATO worksheets
Gifts provided to employees or associates will be subject to FBT as it constitutes a property fringe benefit. Gifts provided to clients can be deductible under s8-1 ITAA97 as long as its not capital in nature. If a gift is given to a client for personal reasons or is of private or domestic Deduction would … More Four ways gifts can have different tax outcomes
Fuel tax credit rates are indexed twice a year, in February and August, in line with the consumer price index (CPI).If your client claims less than $10,000 in fuel tax credits each year, you can use any of the following simplified methods that best suit their needs. Use the rate that applies at the end … More Fuel Tax Credit Increase
Business Structure Sole trader You can only claim motor vehicle expenses that are part of the everyday running of your business. If the vehicle is used for both private and business purposes, you must exclude any private use. Cents per km method logbook method For all other vehicles, you can’t use the cents per kilometre … More Motor Vehicle claims
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
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
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?
Foreign owners of residential dwellings in Australia are required to pay an annual vacancy fee if their dwelling is not occupied or rented out for more than 183 days (six months) in a year. The vacancy year starts when the owner first held interest in the dwelling and the vacancy fee is paid 30 days after … More Annual fee for foreign residential owners
If a person claimed GST credits for property purchases they now use to make input-taxed supplies, they have to report adjustments for this change in creditable purpose in their activity statement. A person needs to make an increasing adjustment on their BAS if they had purchased a property sell but now are renting it out. … More Change in Creditable purposes
These tax loss deduction denials are specifically targeted towards Business owners. Although they might love the idea of absorbing a business loss as a tax deduction, the ATO can disallow such deductions. One of the criteria is if during the relevant income year the business attempting to make such a claim earned assessable income (or realised … More Tax Loss Deduction Denials
