News And Events

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.

July 2018 Tax Time Newsletter || Tax Workshops, Blockchain and Auditing 10/07/18

Client Tax Newsletter-July-2018

See our newsletter for tips on what to gather for your personal tax return meeting, check that your company is compliant with shareholder loans under Division 7A, and learn about the deductibility of insurance premiums.

Electra’s upcoming Tax Workshops in Sydney and Queensland:

They’re exceptionally good value, running for 2 to 4 hours and tailored to audience interests and questions. Perfect for start-ups and established creatives. Learn how a specialist accountant can make a difference.

Coming up:

Follow Electra on Linkedin and Facebook for future news and events, seminars etc

Electra has been studying Developing Blockchain Strategy at RMIT University this year, to understand blockchain technology and its application to business and industry. When the time comes, we will be equipped to consider the implementation of blockchain in accounting practice and in our clients’ businesses. Electra is closely following this space and speaking with Australian developers of new cryptocurrency business accounting software.

Did you know? – we can now assist with Audit and Assurance Services. So if you need an audit report and verified financials for your grant, not for profit association, business purchase, the bank, an SMSF or for any other reason – please contact us.

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You are welcome to contact us for clarification, or further advice, regarding any of the topics covered in this newsletter.

Thank you for reading and we look forward to hearing from you.

June Tax & Super Newsletter 01/06/18

Tax and Super Newsletter-June-2018

It’s not uncommon for taxpayers to be in dispute with the ATO from time to time, and although the Tax Commissioner may seem invincible, this is not always the case. We look at the best approach to better your outcome. Regarding objections to income tax assessments, see TR 2011/5.

Car claims will be getting the ATO blowtorch treatment this year, especially those 5000 km claims with no valid basis as if it’s a standard deduction (it’s not). We explain how to avoid mistakes. We also discuss work related travel expenses and when you can and can’t claim a deduction for certain trips between home and work.

At some stage, SMSF trustees will need to get their heads around the proportioning rule, so we run over the way this works. When calculating a super benefit, 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 interest.

We explain the building and construction industry Taxable Payments Annual Report, which is soon to be expanded to courier and cleaning services. Although most of our clients operate in the creative sector, some still need to be mindful of this reporting of payments to contractors (e.g.,  for architectural work, set construction). For a full list of occupations and services covered by the Taxable Payments Annual Report, see this page. And for examples of buildings, structures, works, surfaces or sub-surfaces, see this page

We brush up on statute barred debts. When a debt can no longer be legally recovered by creditors there can be various tax implications. We look at the statute of limitations state by state.

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

2018-19 Federal Budget 09/05/18

2018 Federal Budget Newsletter-May-2018

Here it is! What to expect in the coming financial year – personal and business taxes, superannuation, health and aged care, infrastructure and ATO compliance activity.

The $20,000 immediate asset deduction is here to stay for another 12 months. Make sure you get invoices with ABN’s from contractors and withhold tax from wages, or your business won’t be able to claim a deduction. The licensing structures for actors and other high profile individuals need review as they will no longer be able to licence their fame or image to a company or trust.

The Australia Council for the Arts is neglected in this budget. Esther Anatolis from NAVA provides a response to the measures for arts and culture – here.

Please contact us for further information when the dust settles after the 15 May annual tax deadline.