Blog
More taxpayers can access the benefits of being an 'SBE'
Recent changes to the law have expanded the eligibility criteria for a taxpayer to be considered a ‘Small Business Entity’ (or ‘SBE’), meaning more businesses will be able to utilise the tax concessions that are only available to SBEs. Broadly speaking, for the year ending 30 June 2017, a business ..
2017/18 Federal Budget
The Government handed down the 2017/18 Federal Budget on Tuesday 9th May 2017. The Budget proposes several changes in the following areas; Personal Income Tax Measures Limiting plant and equipment depreciation deductions to outlays actually incurred by investors – for residential investmen ..
Changes to the franking of dividends
Prior to this income year, companies that paid tax on their taxable income at 28.5% could still pass on franking credits to their shareholders at a rate of 30%, subject to there being available franking credits. However, with effect from 1 July 2016 (i.e., this income year), the maximum fr ..
Increase to SBE Turnover Threshold
As was previously announced, the Small Business Entity (‘SBE’) definition has changed with respect to the turnover eligibility requirement. The aggregated turnover threshold has increased from $2 million to $10 million with effect from 1 July 2016 (i.e., the current, 2017, income year). ..
Super changes may require action by 30 June 2017
Due to the introduction of the new 'transfer balance cap' from 1 July 2017, super fund members with pension balances (in 'retirement phase') exceeding $1.6 million will need to partially commute one or more of their pensions to avoid the imposition of excess transfer balance tax. In addit ..
Tax officers "hit the streets" to "help small businesses"
The ATO is visiting more than 400 businesses across Perth and Canberra this month as part of a campaign to "help small businesses stay on top of their tax affairs". Assistant Commissioner Tom Wheeler said: “Our officers will be visiting restaurants and cafés, hair and beauty and other sma ..
Reduction in FBT rate from 1 April 2017
In conjunction with the introduction of the temporary budget repair levy (of 2%, payable by high income earners), the FBT rate was also increased from 47% to 49% for the 2016 and 2017 FBT years. However, the FBT rate will revert back to 47% from 1 April 2017. This means there will be a dis ..
No overtime meal allowance, no overtime meal deduction
An employee construction project manager/supervisor was denied deductions for overtime meal expenses, as he was not paid an overtime meal allowance under an industrial agreement (award). The taxpayer often worked at nights and on weekends during the relevant income years, and so additiona ..
Diverting personal services income to SMSFs
The ATO is currently reviewing arrangements where individuals (at, or approaching, retirement age) purport to divert their personal services income to an SMSF, so that the income is taxed concessionally (or exempt from tax) in the fund, rather than being subject to tax at the individual’s margin ..
Making 'intangible' capital improvements to pre-CGT assets
The ATO has confirmed that, if intangible capital improvements are made to a pre-CGT asset, they can be a 'separate CGT asset' from that pre-CGT asset if the relevant requirements are satisfied. The result of this is that, while the disposal of the pre-CGT asset itself will be exempt from CGT, ..
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