SMSF trustees must watch their related party expenses

(08/03/2019) Among the key investment rules that SMSF trustees must be familiar with are the laws restricting “non-arm’s length” dealings. In essence, SMSFs are prohibited from dealing with a related party of the fund on uncommercial terms and, where these terms are too favourable to the SMSF, hefty tax penalties can apply. Proposed laws before […]

Bad trustee behaviour can lead to disqualification

(01/03/2019) For many Australians, the control and flexibility offered by an SMSF makes this an attractive option for managing their superannuation. However, being an SMSF trustee carries significant responsibilities. In a case last year (Hart and Commissioner of Taxation), the Administrative Appeals Tribunal underlined the consequences that can flow when SMSF trustees do not take […]

ATO benchmarks – a handy business check-up

(29/03/2019) The ATO’s business benchmark data is a useful tool for smart business owners. Learn how you can access these benchmarks to judge your business’ performance against industry standards, identify your ATO audit risk and other tax compliance issues, and prompt new thinking about ways to improve your profit margins. This data is available for […]

Are you declaring personal use of business trading stock?

(15/03/2019) Have you ever taken home an item of your business’ trading stock for your own personal use, or use by your family members? This is common in many businesses such as bakeries, butchers and cafés, but it does have some tax consequences. “Trading stock” means anything that you hold in the business for the […]

Catching up on superannuation contributions

(15/02/2019) Individuals with a total superannuation balance below $500,000 are now able to “carry forward” their unused concessional contributions (CC) cap space over five years to catch up on contributions when they have the capacity to do so. Usually, an individual’s CCs, eg superannuation guarantee contributions, are capped at $25,000 per financial year, and exceeding […]

Downsizer superannuation contributions

(08/02/2019) In an effort to reduce pressure on housing affordability, the government wants to encourage older Australians to sell their home in order to improve housing stock. To achieve this, the government has introduced a new opportunity for older Australians to contribute some of the proceeds from the sale of their home into superannuation. Under […]

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 […]