Large rental repairs determined not deductible

Large rental repairs determined not deductible When an investor commences earning assessable income for a rental property, there will inevitably be repair costs associated with the investment. The term “repairs” is not defined in ITAA 1997 (nor in ITAA 1936) and therefore has its ordinary meaning. This approach is also taken by the Commissioner of […]

Non-commercial losses

 Non-commercial losses at the Commissioner’s discretion Division 35 of ITAA 1997 deals with the non-commercial loss provisions for an individual or partnership in a tax year. Under the Act, an individual can offset their business or partnership loss if it is deemed to be a commercial loss.    For a loss to be a commercial […]

Increased scrutiny for cash businesses

Increased scrutiny for cash businesses The ATO has recently stated that they will be undertaking increased scrutiny for businesses that are “cash only”. This scrutiny may include unannounced visits from field officers. The best course of action to stay clear of the ATO is to stay within the acceptable small business benchmarks. If a business […]

Main residence exemption for deceased estates

Extending the two year main residence exemption When Tax Laws Amendment (2011 Measures No 9) Bill 2011 was given royal assent on 21 March 2012, it allowed certain discretions to the Commissioner of Taxation. One such discretion under ITAA 1997 s 118-195 allowed an extension of time for capital gains tax exemption for a dwellings […]

Transfer pricing record-keeping

Transfer pricing record-keeping made simple Companies, trusts and partnerships can simplify their transfer pricing record-keeping requirements if any of following options applies: Small taxpayers with turnover under $25m for the year for their “Australian economic group” (see below) Materiality. Total international related-party dealings represent not more than 2.5% of the total turnover for the Australian […]