Category Archives: Income Tax

Seeking professional advice when starting a business

From 1 July 2015, the professional expenses associated with starting a new business, such as legal and accounting fees, are deductible in the year those expenses are incurred rather than deducted over a five-year period as was the case in … Continue reading

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On the ATO’s radar: Trusts distributing to tax exempt beneficiaries

The Australian Taxation Office has advised of its intention to conduct a review to assess whether trusts are compliant with the anti-avoidance rules when distributing trust income to tax exempt beneficiaries. These rules aim at preventing trustees from using tax-exempt bodies to … Continue reading

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Screws tighten on professional firms

In late June 2015 the ATO released a document setting out its final guidelines on how the business income of principals in professional firms should be taxed. The guidelines restrict the ability of practitioners in professional firms (lawyers, architects, doctors, … Continue reading

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Time to review salary packaging

The recent 2% Federal Deficit Levy has paved the way for a further increase in the rate of Fringe Benefits Tax from 47% to 49% from 1st April 2015. As a result, the “gross up” rates will increase as follows: … Continue reading

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Federal Budget 2015.

The Abbott government handed down its budget for 2015-16 last night Many key Budget announcements that comprised the Government’s small business package were announced (or “leaked!”) pre-Budget and confirmed in the Budget papers. These include: Accelerated depreciation across multiple areas … Continue reading

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New FBT gross-up and tax rate effective 1/4/2014

As announced some time ago, the rate of Medicare Levy will increase from 1.5% to 2% effective from 1st July 2014 in order to help fund the National Disability Insurance Scheme. One implication of this is the increase in both … Continue reading

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Proposed Self Education Cap Deferred 12 months

The recent Economic Statement from the Federal Government announced the deferral of the start date of the self-education expenses cap by 12 months to 1 July 2015, so as to allow further consultation. In a media release on 13th April … Continue reading

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Superannuation for employees increase to 9.25% from 1 July 2013

The minimum rate for superannuation guarantee contributions increases from 9% to 9.25%. The rate will continue to increase steadily until it reaches 12% from 1 July 2019 onwards.

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FBT and cars – Driving you crazy

In mid-July, the Government sparked a frenzy when it announced plans to remove the statutory formula method for salary sacrificed and employer provided vehicles. The announcement has meant that most businesses, and as it turns out Governments, have postponed entering … Continue reading

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Increased Concessional Super Contributions and Tax Bills passed

Last week saw a number of Bills pass through the Senate in a last ditch effort, in what was Parliament’s last sitting before the federal election. One of the Bills that was passed and now awaits royal assent, is the … Continue reading

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