Tax Time: Unexpected first-time debts For the first time, many Australians are finding themselves in a position where they are being told they owe the ATO money after completing their tax return this year. A significant number of taxpayers in this position are those that are still paying off their HECS/HELP debts – many of...

Super withdrawal options For individuals who have retired and met a condition of release, or who have turned 65 and are still working, you can receive your superannuation as a super income stream, as a lump sum, or a combination of both. This third option is quite popular for those who have yet to pay...

R&D reminder The ATO has issued a reminder for companies wishing to claim a tax offset for their R&D (research and development) activities. The reminder was issued in the context of the ATO’s success in the Federal Court decision T.D.S. Biz Pty Ltd v FCT[1]. By way of background, the research and development tax incentive (R&DTI) helps companies...

SMSFs and higher interest rates SMSF trustees with limited recourse borrowing arrangements (LRBAs) are now feeling the impact of 10 interest rate rises since May 2022 in one hit, from July 2023. SMSF trustees relying on the ATO’s safe harbour terms to ensure that an LRBA remains, at all times, at arm’s length will face...

Gifting to employees Some employers, especially at Christmas time or for birthdays, give small gifts to their employees or the employee’s associates  (i.e. spouses). These gifts typically take the form of bottles of wine, movie tickets, gift vouchers etc. The tax treatment of these gifts from an employer standpoint, depends upon a range of factors...

The recent ATO crackdown on trusts will no doubt have some business owners (and even some advisors) asking themselves the question: Is this structure for business purposes still worth it? To recap, trust distributions have been under the ATO microscope in recent years. The latest ATO crackdown was in February 2022 when it updated its...

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

The ATO has issued a new Taxpayer Alert around SMSFs engaging in property developments. Developments can be very lucrative given how much property prices have appreciated in Australia over the past decade or two. For background, while it is permissible for SMSFs to engage in property development, it is subject to a number of stringent...

The recently announced Small Business energy incentive is now open for business! The Energy Incentive will help up to 3.8 million small‑ and medium‑sized businesses save energy and save on their energy bills. The incentive is delivered by way of a bonus tax deduction which will provide businesses with annual turnover of less than $50 million an...

The ATO has just announced that the cents per kilometre rate has increased to 85 cents per kilometre for 2023/24. To recap, there are two methods to claim work-related car expenses as follows: Cents per kilometre method This method is easier for record keeping, involves a more simple calculation, and is generally suited to those...