News And Events

September 2017 Newsletter – Tax and Super 02/09/17

Please download our newsletter – click here: EFA Tax and Super Newsletter-September-2017

If you’re intending to leave Australia long term (or permanently), you may be able to lodge your tax return before 30 June 2018.

The small business CGT concessions can be extremely valuable, but sometimes the complexity of the details can be confusing. We clear up some of the more obscure factors.

The rules around LRBAs for SMSF trustees have been fiddled with again, and necessitate (again) a look at the fine print. There is also a new statistical report on SMSFs that trustees should be glad to read.

Also dealt with are the differences between investment returns being on revenue or capital account, and what to do if you need to lodge your next tax return early.

Please contact us for clarification, or further advice, regarding any of the topics covered in this newsletter.

 

Notes:

For the new rules on transfer balance credit and LRBAs, see this link. The ATO view on excluded assets for small business maximum net asset value test can be found in ID 2001/37. And for the revenue versus capital for investment returns article, to clear up whether profits from isolated transactions are on revenue account, see TR 92/3.

AUGUST 2017 NEWSLETTER – TAX & SUPER 07/08/17

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EFA Tax and Super Newsletter-August-2017

Travel Allowances (Per Diems) – It can be handy to to claim a ‘no receipts’ deduction against a travel allowance you received as an employee. The ATO has seen fit to make an exception to substantiate these claims in many circumstances. However, this exception comes with a warning — get it right and be able to explain it, or show your receipts. We run over the particulars.

Did you know that there are deductions that are specific to SMSFs? We summarise the types of expenses typically claimed by a fund and explain the conditions for deductibility.

We also look at deductions available for financing rental properties, the interaction between the new super transfer balance cap and child recipients of death benefits, and a tax break available for life policy bonuses held for a certain time.

Please contact us for clarification, or further advice, regarding any of the topics covered in this newsletter.

 

Notes:

For the life policy bonus ruling IT 2346, see this link and this interpretative decision. For the ruling on the specific deductions available to SMSFs, see this ATO webpage.

For more details about the deductibility of interest on money drawn down under a line of credit or redraw facilities, and the apportionment of interest where sub accounts are used for mixed purpose loans, see TR 2000/2.

For the taxation consequences for taxpayers entering into certain linked or split loan facilities, see TR 98/22. For the case law interpretation that influenced the final outcome regarding a split loan facility, see here. See also TD 2012/1 for the Commissioner’s view on the application of Part IVA to “investment loan repayment arrangements”. For loan offset arrangements, see this tax ruling.

For information on if a benefit received from a “mortgage offset facility” is included in assessable income, see the ATO’s private binding ruling 50720. For rulings that interest on a loan account will be fully deductible even if funds are re-directed to a non-income producing purpose, see private binding ruling 80150. Also for the above, see private binding ruling 19859 here.

July 2017 Newsletter – It’s Tax Time 04/07/17

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EFA Tax Time Newsletter-July-2017

If you’re planning to make an appointment to complete your tax return, we’ve made a general checklist of things to start gathering.

By the way, you might also be able to claim some or all of the costs for travelling to see us – either in Sydney or at our Queensland office (which just happens to be at a beautiful holiday beach location) — we explain how.

The ATO is scrutinising incorrect deductions that many taxpayers try to claim for holiday rental properties, so we take a look at the issues that have been grinding the taxman’s gears.

Mobile, home phone and internet costs may be claimed under some circumstances, so we run over the substantiation that the ATO will accept to successfully make these deductions.

We also present an overview of streaming trust capital gains and franked distributions.

Please contact us for clarification, or further advice, regarding any of the topics covered in this newsletter.

June 2017 Tax and Super Newsletter EOFY 06/06/17

Click below to view our End of Financial Year newsletter to help you plan for year end tax matters:

EFA Tax and Super Newsletter-June-2017-EOFY

The end of the financial year is in sight, but businesses shouldn’t assume their 2016-17 tax outcome is set in concrete just yet — there are still some legitimate tax planning strategies that can help us help you not pay a cent more tax than you have to.

We also look at how to make good use of a tax loss, and discuss interest income and who is deemed to be assessable. Importantly for SMSF trustees, we also run over the newly minted transitional CGT relief measure that can apply when trustees comply to the new balance cap.

Please contact us for clarification, or further advice, regarding any of the topics covered in this newsletter.

We’re holding  Tax Time Seminars for our sole trader and freelancer clients in late June, at our new Pyrmont location. Contact us if you’d like to book a seat.

2017-18 Federal Budget – Client Newsletter 13/05/17

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The budget announcements contain a suite of tax and superannuation measures aimed at increasing housing stock and improving housing affordability. While the government has avoided the political and social hot potato of negative gearing, it has taken some steps to restrict the travel expense and depreciation tax breaks enjoyed by investors.

Last year, many individual taxpayers received small “cake and coffee” tax cuts (so called because they averaged around $6) which were touted as an important first step to addressing bracket creep; but one year later, the government announces that the Medicare Levy will increase by 0.5% to 2.5%, which will surely eat into those tax cuts (for those lucky enough to have received them).

Last year’s budget was one for small businesses. This year, the small gift is a one year extension of the $20,000 instant asset write-off for 2017-18. Unfortunately, the government will tighten access to the small business CGT concessions.

Please contact us for clarification, or further advice, regarding any of the topics covered in this newsletter.
 

May 2017 Tax Newsletter 08/05/17

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EFA Tax Newsletter-May-2017

There can be capital gains conundrums when sub-dividing the family property, so we run through the typical scenarios to dissect the likely tax outcomes.

Another perennial head-scratcher is the deductibility of the interest payable on borrowed funds.

A GST exemption is available when a “going concern” business is involved, so we look at the conditions that must be met.

While the recent tax cut for some companies is welcome, thought needs to be given to the change in tax rates when dealing with dividend credits.

Please contact us for clarification, or further advice, regarding any of the topics covered in this newsletter.