Changes to Payroll Tax from 1 January 2019
From 1 January 2019, businesses with annual taxable Australia wide wages of up to $1.5 million are not required to pay payroll tax, and the payroll tax rate for taxable wages between $1.5 million and $1.7 million will be entitled to a reduced payroll tax rate. For businesses grouped for payroll tax, the $1.5 million […]
ATO target FBT on luxury cars in businesses
We are seeing increased audit activity in regards to the Fringe Benefits Tax treatment of luxury cars held in entities. The ATO has a national special task force accessing registration records of entities to seek out those holding luxury cars. We have been advised by the ATO that entities with one or more high value vehicles are […]
Are You Providing Fringe Benefits?
Written by Sarah Riccio: What is a Fringe Benefit A fringe benefit is a ‘payment’ to an employee provided in a different form to salary or wages. For example, a fringe benefit may be provided when an employer: allows an employee to use a work car for private purposes pays an employee’s gym […]
Common Errors in the Preparation of Business Activity Statements
Written by Robert Lennox: The end of September brings us to the end of the first quarter of the current financial year. Many of us will be preparing & lodging various activity statements. We wanted to take the opportunity to give everyone a reminder about some common mistakes that can be made when preparing business […]
Motor Vehicle Thresholds and Deductions for 2017-2018
Written by Nick Fedele: In general, the running costs incurred for a motor vehicle are deductible in the proportion that it is used for work and business. Examples of costs that are deductible include fuel, maintenance, registration and insurance, and depreciation. Depreciation is deducted using the diminishing value method at a rate of 25% of […]
Making a Payment Plan with the Australian Taxation Office
Written by Adam Taylor: There may be times when cash flow is tight and paying your tax bills on time may be difficult. In times like these, a payment plan with the Australian Taxation Office (ATO) to pay your debt over instalments may be an option. A payment plan can be set up online via […]
Why the Balance Sheet is Important to your Business
Written by Sarah Riccio: Most small business owners tend to look at the Profit and Loss Statement for financial data about their business but when it comes to the balance sheet, they do not understand its importance and that it contains data that is not obvious in other financial reports. What is a balance sheet? […]
The Tax Implications of the Sharing Economy
Written by Nick Fedele: Are you thinking of renting a room in your home through Airbnb or becoming an Uber driver to earn additional income? If you are, then you will be entering into the sharing economy and you will need to be aware of the different tax implications. The following explores the implications for […]
Taxing Foreign Income in the Hands of an Australian Resident
Written by Emily Baulderstone: Under Australian Tax Law, income derived by an individual who is considered to be an Australian resident for tax purposes is subject to income tax whether this income was derived from an Australian or Foreign source. Determining if you are an Australian resident for tax purposes can be a difficult issue […]
Depreciation game changes for residential investment properties
Last week marked the biggest change to depreciation legislation in 15 years. As part of the government’s efforts to claw back negative gearing parliament passed the Treasury Laws Amendment (Housing Tax Integrity bill) into legislation. This legislation means that you can no longer claim income tax depreciation for plant and equipment assets in second-hand properties […]