Category: Taxation
2 minute quiz: Partnerships
How well do you understand the taxation of partnerships? Try these questions to find out Question 1 Which of the following is the definition of a tax law partnership? An association of persons (other than a company or a limited partnership) carrying on a business in common with a view to profit An association of...
The pension loans scheme
To help pensioners who are asset rich but income poor, the government launched a version of a commercially available financial product, the reverse mortgage. The government’s answer is its pension loans scheme (PLS), whereby a pensioner can apply for a non-taxable loan using some form of real property as security. The PLS does not provide...
Bonus Article, Home to work travel claims? Generally not, but sometimes…
As a general rule, travel from your home to your workplace is not allowed as a deduction because it constitutes a “private expense”. There are however specific situations where this rule may not apply, and there can be circumstances where you may be entitled to claim some of the travel expenses between your home and your...
Bonus Article, Your car expenses claims to get the blowtorch treatment this tax time
Assistant Commissioner Kath Anderson has announced that the ATO is particularly concerned about taxpayers either making mistakes or deliberately lodging false claims in relation to work-related car expenses over tax time 2018. “Last year around 3.5 million people made a work-related car expense claims, and together they totalled about $8.8 billion,” Anderson says. “Now that’s a lot...
Builders, Get your taxable payments report ready before August 28
Businesses in the building and construction industry, take note – the deadline is August 28, 2018 to report the total payments you made to each contractor you enlisted the services of in 2017-18. You will need to report these payments to the ATO on the Taxable payments annual report. The taxable payments reporting system was...
The proportioning rule and your SMSF
When calculating a super benefit, it is necessary to identify and determine the value of the various components that make up the benefit. The law around superannuation dictates that the tax-free component and taxable components of a member’s payment must be paid in the same proportion as the tax-free and taxable components of the member’s...
Unpacking statute-barred debts
Various tax implications can arise when a debt becomes statute-barred. So what is statute barring and when can it be a problem? In simple terms, a debt is statute-barred when it has reached a statutory limitation period where it can no longer be legally recovered by creditors. Specifically, each state and territory in Australia contains...
Managing tax disputes can be like wrestling with a superhero
It is sometimes said that a superhero like the DC Comics character Superman can be an uninteresting character because he is, for all practical purposes, indestructible. Critics have said the knowledge that he will most likely win can make Superman’s adventures monotonous. A similar accusation could be levelled at the Federal Commissioner of Taxation (the...
Action Required for Discretionary Trusts: Resolution to Distribute Income due 30 June 2018
Click here to access instructions and checklist : Resolution-to-distribute-income-trust-minute checklist – 2018 Action Required for Discretionary Trusts: Resolution to Distribute Income We are reminding you that the Trustee(s) for discretionary trusts must resolve to distribute the income of the trust no later than the 30th June, 2018. The resolution formally documents in writing the decision...
How testamentary trusts work
A testamentary trust works in tandem with a will, and is similar to a discretionary trust, with the major difference being it only takes effect upon the death of the person who made the will. The trust can be funded by some or by all of your assets, and by payments derived as a consequence...