Extra 44,000 taxpayers hit with Div 293 super tax

(01/02/2019) Individuals with income and super contributions above $250,000 are subject to an additional 15% Div 293 tax on their “low tax contributions” (ie concessional contributions). Concessional contributions include all employer contributions, such as the 9.5% super guarantee and salary sacrifice contributions, and personal contributions for which a deduction has been claimed. As a result […]

How does listing my home on Airbnb affect my tax?

(08/03/2019) Millions of Australians are now using the “sharing” economy to earn some extra money on the side. Thanks to smartphones and user-friendly apps, people can easily access sharing services like ride sharing, accommodation sharing and pet minding. The government is concerned that some Australians who receive income from sharing platforms may not be paying […]

Government extends the instant asset write-off

(22/02/2019) The extension of the instant asset write-off for a further year is great news for small businesses who may be planning to purchase assets for use in their business in the near future. The key is for businesses to ensure the asset will be used in their business (or ready to use) in the […]

LRBA changes may hinder SMSF gearing

(18/01/2019) Many SMSFs have used a “limited recourse borrowing arrangement” (LRBA) as part of a gearing strategy to build members’ retirement savings, allowing the funds to borrow to buy high-value growth assets, typically real estate. However, proposed new laws that seek to count a portion of an SMSF’s loan balance towards some members’ own “total […]

Three common CGT obstacles for homeowners

(22/03/2019) Many homeowners are not aware that the “main residence” rules exempting the family home from capital gains tax (CGT) are in fact quite complex and contain many traps. Here we highlight three common scenarios in which a homeowner may face some CGT liability when it is time to sell. 1.Using your home to generate […]

Greater flexibility for accessing company losses

(15/02/2019) The government plans to give companies greater access to prior year tax losses in a bid to stimulate business innovation. A new alternative to the “same business test” – the “similar business test” – will make it easier for companies that have experienced a significant change in ownership or control to carry forward their […]

Deemed dividend rules: new 10-year loan model

(18/01/2019) The government is simplifying the Division 7A rules that govern deemed dividends, proposing a new 10-year loan model for compliant loans to start 1 July 2019. Significantly, companies with existing loans would be forced to transition to the new model, which also includes a considerably higher benchmark interest rate. Division 7A is a long-standing […]

New “work test” exemption for recent retirees

(11/01/2019) The government has created a new opportunity for some recent retirees to make additional superannuation contributions. From 1 July 2019, a 12-month exemption from the “work test” for newly retired individuals aged between 65 and 74 years with a total superannuation balance below $300,000 means many older Australians will now have an extra year […]

Dealing with an excess super contributions determination

(14/12/2018) The ATO has begun issuing determinations for individuals who exceeded their concessional super contributions cap in 2017-18. Concessional contributions include all employer contributions, such as the 9.5% superannuation guarantee and salary sacrifice contributions, and personal contributions for which a deduction has been claimed. A higher volume of excess concessional contributions (ECC) determinations will be […]

ATO impersonation scams on the rise

(01/03/2019) The ATO has recently warned taxpayers to be alert to malicious scammers who are using increasingly sophisticated methods and technology to impersonate the ATO. A new tactic on the rise involves “spoofing”, whereby scammers mimic a legitimate ATO phone number visible on caller ID to call or send SMS messages to taxpayers, or mimic […]