Every now and then you might read or hear about a “taxpayer alert” being issued. These are the Tax Office’s “early warning” signals to the public about a certain area of concern – it could be about fraudulent schemes, or dodgy investments, or perhaps about a tax minimisation tactic that the Tax Office has been...

Small business owners should write in their diaries that from April 1, 2015, the rate of fringe benefits tax (FBT) will increase from 47% to 49%. It is planned to return to its present rate two years later. The rise is mostly due to the 2% Temporary Budget Repair Levy, and is designed to prevent...

The Tax Office has formed views about disclosing income and claiming deductions where non-economic rental arrangements — that is, “mates rates” — occur involving the use of holiday homes.  A similar approach is adopted for arrangements you may make with family members involving residential property. The following is a summary of the Tax Office’s view...

Taking out a loan to raise money for an investment is a well-used tactic for many Australians. In fact, borrowing to buy big ticket items is part of financial reality – for example, how many of us could afford to buy a house out of our own pocket? Borrowing funds will increase the amount you...

Australians have a long history when it comes to age pension schemes. The first national pension scheme in Australia was formed in 1909 and provided the grand sum of £1 per fortnight for men over the age of 65. As life expectancy for males at the time was around 55 years, most men did not...

Throughout history tax has been used to raise revenue, bring about social change, and strengthen governments. It has also made entire societies live quirky lifestyles in order to pay as little as possible. As long as tax has existed, citizens of the world have paid a host of weird and wonderful dues. Here are some...

1 Cash bonuses Please circle Has the business paid employees with cash bonuses as a year-end reward? If yes, has the employer considered the following: Timing: Whether the amount would be paid in December or in the new year?  Should it be provided for in the accounts at month-end? PAYG withholding: Has the appropriate amount...

The treatment of excess superannuation contributions has been a contentious issue for some years, with many people falling victim to the punishing excess contributions tax through inadvertently going over the limits. The reasons this can happen include an employer making contributions that may fall within a different financial year, expense reimbursement or debt forgiveness which...

With information sharing occurring more than ever these days, not only between the Tax Office and other government departments but also banks, financial institutions, online auction sites such as eBay and more, being targeted for a tax audit is a very real possibility. Each year the Tax Office writes to tens of thousands of individuals...

The majority of people who set up their own SMSF say that “control” is a big reason for doing it. There is flexibility and benefits in running your own superannuation fund, but it is also a big responsibility to make sure your fund grows and provides for your retirement. Preparing an “investment strategy” is one...