Blog
Minors and tax
Everyone who earns an income needs to pay tax, even teenagers – whether delivering papers, pizzas or working at the local supermarket. For minors (people under the age of 18) there are special tax rates that apply to any eligible income you earn. “Eligible” income includes any money you receive that you have not earned...
Financial advice: What’s deductible, what’s not
The cherry on top of your sensible decision to obtain quality tax planning or investment advice is to find that some of the costs involved are tax deductible. But while the tax law allows specific deductions for certain expenditures regarding your tax affairs, not all costs involved with seeking investment advice are deductible. Working out...
Common errors of new rental property owners
Putting your money into bricks and mortar has been a traditional stalwart of investing for generations of Australians. It continues to be viewed as a solid place to park spare cash and build wealth in the long term. For many years a lot of us seem to have heeded the quote attributed to Mark Twain:...
SMSFs: Note that trauma insurance is not allowed after July 1, 2014
From July 1, 2014, a self-managed superannuation fund (SMSF) can only provide an insured benefit for a member for an event that is consistent with one of the below conditions of release of a member’s superannuation benefits: death terminal medical condition permanent incapacity (causing the member to permanently cease working), or temporary incapacity (causing the...
What powers does the taxman have to access your information?
When it comes to collecting tax money owing, the Tax Office has considerable legal powers at its disposal. This isn’t all that surprising, given that government coffers would be empty were it not for the activities of its principal revenue collection agency. But just how far can the Tax Office go in its efforts to...
Did you know… The ATO wants your personal contact details
The Individual tax return 2014 for tax agents includes additional fields asking us to provide your email address and mobile phone number. The Tax Office states that this will enable it to directly contact you with any queries about your tax and superannuation affairs. Note however these fields are not mandatory, and can be left...
SMSF compliance regime for the upcoming year
This year, the Tax Office will be turning its attention to the following emerging risks within the self-managed superannuation fund (SMSF) sector. Ensure you do not partake in any of the practices below or risk being caught in the Tax Office’s net. Dividend washing Dividend washing is a share trading strategy that enables a taxpayer...
Help the Tax Office grow its small business expertise
The Tax Office has invited Australia’s small business owners to apply to join its new small business consultation panel. This has been built with an aim to help cut the red tape small businesses are saddled with and boost its efficacy when dealing with small business owners. The Tax Office is looking for small business...
Your online selling data is being collected, and sorted
The growth of online services where one can buy and sell goods has been unstoppable, such is the ease and convenience of both searching and bidding for trash and treasure alike. But with all this commercial activity taking place in cyberspace, the Tax Office is obviously concerned that participants are not meeting their tax liabilities...
An unforeseen fringe benefit (and the tax consequences)
John is an executive sales manager for Fine Foods Pty Ltd, which owns a number of food brands including pre-packaged meals, canned goods and some beverages. During the year, John attended the following events on behalf of, and provided by, Fine Foods. 1. A golf day including a round of golf (and equipment hire) at...