In February, the Commissioner released Taxpayer Alert TA 2023/1: Interposition of a holding company to access company profits tax-free. In the Alert, the Commissioner says the ATO is currently reviewing arrangements where an individual accesses the profits of a private company in a tax-free form (that is, without an additional tax liability for the individual)...

The ATO is encouraging accountants to educate clients around varying PAYG instalments – this can potentially assist cashflow. To recap, PAYG (pay-as-you-go) instalments allow business taxpayers to make regular prepayments towards the tax on their business and investment income. This is in contrast to salary and wage earners who already make prepayments by having tax...

Last year 9,700 individuals applied for compassionate release of super for dental treatment expenses, and 82% were approved. Out of those approved, 9% were for a dependent child’s dental treatment, which could include braces. What is the pathway for access? While normally superannuation must be preserved for retirement, there are limited  exceptions. One of these...

It’s been a particularly difficult 12 months for investors. On the superannuation front, we now have two major reports assessing how super accounts fared in the  2022 calendar year. Super­Ratings issued its average balanced return recently and found it was minus 4.8%. Late last year, ChantWest undertook a similar exercise – reporting a figure of...

On 20 February 2023, Treasury released a consultation paper on legislating the purpose of superannuation. This is an idea that has been around since 2016 when the former Coalition government contemplated doing the same thing. The government says that legislating an objective of superannuation will provide stability and confidence to policy makers, regulators, industry, and...

With the end of the FBT year approaching, are your car logbooks in order? The operating cost method is used by many employers to calculate their car FBT liability. This method is particularly effective where the business use of the vehicle is high. Keeping a logbook is essential to use the operating cost method. Employees...

Are you one of the five million Australians who claim work from home deductions? If so, stricter record-keeping rules may now apply. For this financial year and moving forward, there are now only two methods to calculate your work from home claim: Revised fixed rate method (with new rules applying) Actual costs method (unchanged). The...

Access our Wallace Partners Client Information Newsletter March 2023 below: Wallace Partners CIN March 2023

What is a recontribution strategy? The objective of the recontribution strategy is to reduce the taxable component of an individual’s superannuation account and to increase the tax-free component, which may lead to better estate planning outcomes. To achieve this, the recontribution strategy allows individuals who have met a full condition of release (such as the retirement or reaching age...

The ATO has reminded taxpayers around their sharing economy tax obligations when providing accommodation. The sharing economy provides a great opportunity for individuals with spare rooms or spare entire properties to rent out space and earn rental income using facilitators such as Airbnb. Indeed, approximately 2.1 million individuals reported rental income of $42 billion in the...