Category: Taxation
e-bikes, FBT, and salary sacrificing – April 2020
Entering into a remuneration package to secure a vehicle through a salary sacrifice arrangement is a popular option offered to employees. However the ATO has issued a ruling on another particular set of wheels that opens up both a tax and health incentive. ATO guidance covering the use of an electric bicycle (e-bike*) by an...
More banking royal commission reforms become law – March 2020 Bonus Article
Legal changes just passed by Parliament require mortgage brokers to act in the best interests of consumers when providing consumer credit assistance or face much stronger penalties. These changes also reform mortgage broker remuneration by requiring the value of upfront commissions to be linked to the amount drawn down by borrowers instead of the loan...
GST obligations now come under the director penalty regime – March 2020 Bonus Article
The Treasury Laws Amendment (Combating Illegal Phoenixing) Bill 2019 received assent on 17 February 2020. The legislation includes a range of measures targeting illegal phoenixing including penalties for directors related to GST liabilities (making directors personally liable for unpaid GST if the unpaid liability is not paid within 21 days of a director penalty notice...
Selling taxable Australian property? You may need a clearance certificate from the ATO – March 2020
If an Australian resident is considering selling property, they should apply for an ATO clearance certificate. If a property vendor does not apply for a clearance certificate and present it to the purchaser, the purchaser is required to withhold 12.5% of the purchase price for CGT purposes on properties that have a market value of...
Damage or destruction of a rental property – March 2020
What happens if your property is damaged from the results of a natural disaster, or by tenants? Such a situation can affect the types of expenses you claim and the income you need to declare for your rental property. Declaring income If you receive a payout for damage to your rental property as a result...
ATO dusts off the “lifestyle asset” microscope – March 2020
If you own a marine vessel, perhaps a thoroughbred horse or two, have a piece of fine art hanging on a wall, high value motor vehicles in the garage or an aircraft in the shed, it could be time to make sure your tax affairs are in order. The ATO announced in the latter part...
Bonus Article, Reconstructing tax records after a natural disaster
The ATO says it can help if you have lost tax records due to a natural disaster such as a bushfire. It says it can achieve this by providing on-site visits to help you reconstruct lost or destroyed tax records and/or assistance to work out reasonable estimates if records cannot be reconstructed. The ATO may...
Bonus Article, Car parking fringe benefits and arm’s length valuation
The ATO has announced that from February it is intending to contact a selection of business taxpayers that provide car parking benefits to their employees, and that use the market value method to arrive at a taxable value, to ensure these values have been calculated correctly. There are five ways that an employer can calculate...
What you need to know about the First Home Super Saver scheme
The First Home Super Saver (FHSS) scheme was introduced a couple of years ago with an aim to reduce pressure on housing affordability. The scheme allows eligible taxpayers to save money for their first home inside the superannuation system. The government says this concessionally taxed environment will help first home buyers save faster. How it...
Trust distributions from a discretionary trust
Distributions from trusts and the taxation of those distributions is complex. This is an attempt to simplify the topic. The purpose of a trust is to separate the legal and beneficial ownership of assets. The legal ownership of the asset rests with the trustee. The beneficiaries benefit from the income that flows from the assets....