Providing morning and afternoon teas and light refreshments to employees (or their “associates”) at the employer’s business premises or worksite is tax-deductible to the employer. The same applies if the business provides such refreshments to visitors. The Australian Taxation Office has ruled that this is not “entertainment”. If the business has no employees (for example,...

Back in the 1980s, people could reduce tax by having their money in bank accounts belonging to their kids. In 1988, the Tax Office intervened for its position by issuing guidance. Thanks to a simple criterion and penal tax rates, parents cannot pass off their money as mere pocket money for the kids in order...

It’s something of a little white lie, isn’t it — the one told to aspiring small business owners and entrepreneurs is that hard work guarantees success. Hard work is vital, but it’s not the only quotient. And while you may be told by starry-eyed blog writers or charismatic motivational speakers that you can’t lose if...

You are allowed to disagree with the Tax Office, if they have disagreed with your self-assessment of your tax position. If you believe your tax assessment is incorrect, the first step is straight forward and pretty informal. You contact us and we start making inquiries. If we still believe the assessment is wrong, or if...

Once we have lodged your 2014-15 tax return and we have forwarded your notice of assessment to you saying that everything is as discussed, you may realise that something has been left out of your tax return or accidentally included an extra deduction. The Australian tax system is based on “self assessment”, which means the...

The small business sector has variously been described as the engine room of the economy as well as the biggest employer in the country – and it’s not hard to see why. Research has indicated that small businesses are responsible for generating millions of jobs, with some estimates that small business jobs account for around...

Thousands of Australians head offshore each year to expand their horizons and a lucky few will fund their adventure by working overseas. Some may live overseas and work for an extended period. There can often be confusion about the tax implications for taxpayers who take advantage of such offshore opportunities. Why is tax residency important?...

With Tax Time 2015 in full swing, the Tax Office has flagged that it will pay particular attention to work-related expenses. It says it’s an area that adds up to about $19.5 billion in tax deductions each year. In previous years, the Tax Office has tended to focus on work-related claims made by particular professions,...

While providing income for retirement is the obvious purpose of a pension paid from a self-managed superannuation fund (SMSF), there are some issues to consider before drawing a pension from your SMSF. Tax rates in accumulation phase vs pension phase The first issue to consider when starting a pension is that returns from your investments...

Under the superannuation rules, there is scope to access some of your retirement savings in your super fund under an arrangement called “transition to retirement” (TTR). Under this arrangement, a super fund member can ease into retirement by reducing their working hours without reducing their income. If you are aged between your relevant “preservation age”...