Draft legislation was released on 14 March 2012 detailing the reduction in the corporate tax rate for all companies from 30% to 29% for the 2013-14 income year and subsequent income years. The draft legislation provides an earlier start for small business, with the 29% rate applying from 2012-13. A small business is one that [...]
Taxation
Small Business CGT Concessions and Assets Test
If your client is a small business entity and their turnover is less than $2m then you do not need to consider the maximum net asset value test. However if they do not meet the definition of a small business entity then they must satisfy the maximum net asset value test which is currently $6 [...]
2011 Individual Tax Returns
The end of financial year is approaching fast and soon it will be time to start preparing and lodging your clients 2011 tax returns. We discuss some of the areas that are commonly missed and what you need to consider when preparing your clients 2011 tax returns. Rental Properties Depreciation Investors are eligible to obtain [...]
Personal Services Income and Wage for Wife
If your client is a contractor or consultant then you need to be aware of what is called the PSI rules (Personal Services Income rules). These rules are designed to ensure that if your client operates through a partnership, company, trust or other structure and the income derived from that entity relates to the personal [...]
Salary Packaging
The reduction in marginal tax rates and the increase in the threshold for the top marginal tax rate in recent years have impacted on the benefits of salary sacrificing certain items. However, salary packaging can still be tax effective for employees and can be a relatively simple way for employers to help attract and retain [...]
Christmas Parties and the Tax Man
If you’re planning your Christmas budget for your team and your clients there are a couple of things you need to know to keep the Christmas tax scrooge from ruining your Christmas celebrations. We take a look at what you can and can’t deduct and what is and isn’t likely to incur Fringe Benefits Tax [...]
Self Education Expenses
The High Court has released its determination in Commissioner of Taxation v Anstis in regards to deducting self-education expenses against Youth Allowance income. The Court held that the taxpayer’s self-education expenses were incurred in gaining or producing her assessable Youth Allowance income and were deductible even though the taxpayer was not employed in a relevant [...]