Category: General

The ATO is currently targeting work related expenses by taking a closer look at unusual deductions and claims that are higher than expected. The Tax Office will be looking for expense claims that are much higher than others who are in the same occupation and will be contacting employers to validate these claims. When claiming…

This year’s Federal Budget saw a raft of changes to superannuation with introduced measures intended to improve the sustainability and integrity of Australia’s superannuation system. The following measures were announced, including: Introducing a $1.6m transfer balance cap There will be a $1.6 million superannuation transfer balance cap on the total amount of super that individuals…

The ATO has extended its 30 June 2016 deadline to 31 January 2017 for SMSF trustees to review limited recourse borrowing arrangements (LRBA) for non-arm’s length income. The Tax Office issued the Practical Compliance Guide 2016/5 in April to provide guidance for SMSF trustees to ensure LRBA arrangements are on terms that are consistent with…

Self-managed super funds (SMSF) have until 30 June 2016 to conform to the ATO’s new rules on related party loans. A guidance paper released by the Tax Office stated that related-party loans e.g. family trusts or private companies to SMSFs now must be at interest rates of 7.75 per cent for shares and 5.75 per…

The ATO has begun issuing letters to rental property owners in popular holiday locations whose rental income was lower than expected. In the lead up to the end of financial year, rental property owners are being reminded by the Tax Office to only claim deductions for the periods when their property was rented or genuinely…

Now is the time for property investors to take advantage of the tax strategies available to them. Travel The cost of travel to inspect or maintain rental properties or to collect rent is an allowable deduction. Travel expenses can be claimed for preparing the property for new tenants (except for the first tenants),inspecting the property…

The ATO is targeting those who rent out their property for a few weeks during the year but claim a full year’s worth of tax deductions. The tax office will be paying close attention to rental property owners, especially those who own a holiday home, who incorrectly claim for initial repairs to recently acquired rental…

It is never too early to focus on your tax planning in order to minimise tax, reduce risk and be prepared financially. Effective tax planning is something that should be considered year round and making it a priority can result in you paying less tax liability. Preparing and updating a forecast of income and outgoings…

If your negatively geared property is beginning to create some serious cash flow problems, there is a way you can access the large tax breaks it provides before the end of the financial year. Specifically structuring an investment property to take advantage of negative gearing is a popular strategy for investors wanting to achieve significant…

Savvy Australian property investors can save a large amount on their tax bill by deducting associated expenses. Negative gearing allows property investors to claim any shortfall between their income and expenditure on an investment property as a deduction against their total taxable income. Most property investors are aware of the usual expenditure deductions that they…