News And Events

Dec 2018 Client Newsletter || Business Partner Agreements. Investing. ATO Alerts. Compensation Payments. 06/12/18

Click here to view – Client Tax and Business Newsletter-Dec-2018

We close Saturday 22 December and open Thursday 3 January.  Over the holiday break, halfway through the financial year, many business owners and investors review their positions. Now is a good time to read these articles and book a meeting in January with Electra for further planning advice.

 

Business partner agreements. A formal agreement can set the ground rules and prevent owners from turning on one another if things don’t go as well as planned. Whether it’s a partnership agreement, shareholder agreements’ or unitholders’ agreement – we explain what can go wrong if you don’t have one, and the steps for drafting your agreement.

The ATO’s use of “taxpayer alerts”. This is how the ATO warns taxpayers about emerging issues of concern in tax planning. We explain the implications of your affairs being the subject matter of one.

Investment tax issues. We run through the types of investment earnings that are ordinary income and those that are capital in nature; as well as losses, foreign tax issues, GST, substantiation and a few tax risk areas that you should be aware of when planning your investment portfolio.

Compensation for financial wrong-doings, such as has been uncovered by the Royal Commission, may still attract tax. If you’ve received inappropriate financial advice and are compensated for your losses, read this article before doing your tax return.

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Please contact us for clarification, or further advice, regarding any of the topics covered in this newsletter. Or book a consultation here.

Nov 2018 Tax & Super Newsletter || Renting out your home, FBT compliance check-up, Retirement savings, Christmas parties, Business with an SMSF 14/11/18

View here: Client Tax and Super Newsletter-Nov-2018

It’s nowhere near the end of the Fringe Benefits Tax (FBT) year, but a third quarter check-up can give you the opportunity to clear up any compliance issues.

And it’s a perennial question — how much do you need to retire? We look at the latest estimates.

Santa’s probably dusting of the sleigh, so why not plan ahead for the Christmas party. We have some pointers to help keep the FBT Grinch away.

There’s also information on tax when renting out part of your home, and we take a look at running a business out of your SMSF.

Please contact us if you have any questions around these topics in relation to your own affairs.

Oct 2018 Tax Newsletter || Crowdfunding, Private Rulings, Tax Return Mistakes, Personal Services Income 03/10/18

View here: EFA Client Tax Newsletter-Oct-2018

Crowdfunding is a relatively modern phenomenon, and is increasingly being viewed as a viable source of seed capital. But when serious revenue is being raised, tax is something that must be considered.  We deal with some of the grey areas.

If you have already lodged your income tax return but then realise you left something out, don’t panic. We can help you lodge an amendment with the ATO to make things right.

In this issue we also look at the place private rulings can have in managing more complex tax affairs. Getting a decision from the ATO to ‘test drive’ a tax arrangement is sometimes a good idea.

We also examine the ins and outs of personal services income (PSI). Professional people who set up a company or trust to run their business should check whether the PSI rules restrict their tax options.

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

Sep 2018 Tax & Super Newsletter || Super contributions, GST apportionment, business assets change in use, stockmarket investing and tax, new LRBA rules for SMSFs 03/09/18

Client Tax and Super Newsletter-Sep-2018

Both self-employed and employed Australians can now consider tax incentives to be better able to save for retirement. In the SMSF arena, another change to the superannuation rules could lessen the appeal of borrowing to invest.

Our broad overview of tax and the stock market is worth reading if you’re looking into shares. This article  should also be of interest to cryptocurrency traders.

We look at a convenient GST apportioning option to cover private use. On the matter of GST, we consider the compliance steps that may need to be taken should the “use” of an asset change.

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

References:

The legislation for GST annual private apportionment can be found here (subsection 131-5). For changes to the LRBA rules, see this Bill.

2018-19 Tax Rates and Thresholds Guide 21/08/18

Tax rates and thresholds guide August 2018

To save you having to laboriously search for the right tax rate of relevant threshold, the essential information is right here in one place, covering the 2017-18 and 2018-19 tax years.

This guide includes tax rates, offset limits and benchmarks, rebate levels, allowances, and essential super as well as FBT rates and thresholds (including current gross-up factors) and student loan repayment rates.

August 2018 Tax & Super Newsletter || Education expenses, GST amendments, tricky business losses, SMSF trustee disputes 08/08/18

Client Tax Newsletter-August-2018

They say that education comes with a cost, however ignorance can cost you more. Self education is certainly worthwhile considering, especially as there can be tax breaks for the right sort of training.

We explain how to catch up on GST credits that have slipped through the cracks. Know the time limits for BAS revisions if you want to to claim lost GST paid.

Did you now about the exclusion clause the ATO has up its sleeve to deny a claim for a business loss?  So if you are thinking about shifting some taxable profit over to your company to absorb a prior year loss, your plan could be foiled by Division 175.

SMSF trustees are generally family or friends, but that doesn’t mean there won’t be arguments along the way to greater wealth, so we take a look at how to best settle disputes. Another prompt for dispute is between deceased estate beneficiaries if a will doesn’t satisfy expectations, so we examine how this can (sometimes) be rectified.

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

 

References:

For the circumstances in which self-education expenses are allowable as deductions to individuals under ITAA36 and ITAA97, see TR 98/9. For travel accommodation and meals, see TR 92/8. The court case mentioned by way of denying travel claims for self-education is Roads and Traffic Authority of NSW v FC of T 93 ATC 4508. See the ATO’s interpretative decision on this case here.

Varying a will through a deed of arrangement is generally CGT free where the requirements of Division 128 is satisfied. See section 128.20. Further guidance is found in TR 2006/14.

For ATO denial of a business tax loss deduction, see more details in ID 2010/48. As well as the general rules on loss deductions, consult the rules applying to company losses in Division 175. Also, here is an explanation of net exempt income.

For the new low and middle income tax offset (LMITO), see page 15 of the PDF explanatory memorandum of the act.