Last-minute tax planning tactics
This financial year is almost over, but there are still effective strategies you may be able to employ to make sure you pay the right amount of tax for the 2019-20 year and maximise any refund entitlement. This is still, if not more so, the case in the current...
Employment Law and JobKeeper Payment – Q&A
What are the remedies for an employer where the employee unwilling to work additional hours equivalent to the $1,500 per JobKeeper fortnight?The employer can request that the employee work additional hours but cannot enforce it. Additionally, the employer has all the...
Tax Treatment for Employee Travel Allowances
To compensate for travel expenses when employees sleep away from home for work purposes, an allowance is often paid by their employer to cover meal, accomodation, and incidental expenses. It is important to distinguish if this allowance constitutes a travel allowance...
7 Alternative tests for JobKeeper payment
An alternative decline in turnover test for the JobKeeper payment scheme has now been registered by the ATO. The legislative instrument, Coronavirus Economic Response Package (Payments and Benefits) Alternative Decline in Turnover Test Rules 2020, says the...
Early Release of Super – COVID-19
As a part of the safety net stimulus packages, the government announced that individuals that are adversely effected by coronavirus (COVID-19) can look to an early release of their Superannuation and may be able to access up to $10,000 of their super before 30...
JobKeeper Payment – No employees? no problem!
The ATO has put out guidance on how sole traders and some other entities such as partnerships, trusts or companies may be entitled to the JobKeeper payment scheme. Entitlement may be possible for an “eligible business participant” (more below), according to the ATO....
$66.1bn Stimulus package: what you need to know
The Government yesterday released a second, far reaching $66.1 bn stimulus package that boosts income support payments, introduces targeted changes to the superannuation rules, provides cash flow support of up to $100,000 for small business employers, and relaxes...
Simple explanation of a discretionary trust
The purpose of a trust is to separate the legal and beneficial ownership of assets. The legal ownership of the asset rests with the trustee. The beneficiaries benefit from the income that flows from the assets. A trust is not a legal entity. It is best described as a...
Claiming travel expenses? Here is the latest ATO’s view.
A draft ruling has been issued (TR 2019/D7) that is yet to pass Parliament, which sets out when an employee can deduct transport expenses under section 8-1. This includes the cost of travel by airline, train, taxi, car, bus, boat or other vehicle. It is generally the...
The secret life of TFNs
Tax file numbers (TFNs) are so much an everyday element when dealing with tax and the ATO that many practitioners and ordinary self-preparers won’t give it a second thought when tax return software responds with an “invalid” when a TFN is entered. The common thought...
Final guidance on operation of new base rate entity test
Law Companion Ruling LCR 2019/5 deals with the passive income threshold and other issues within the Treasury Laws Amendment (Enterprise Tax Plan Base Rate Entities) Act 2018 that limits access to the lower corporate tax rate. From the 2017-18...
Fleet “safe harbour” approach for car fringe benefits
The ATO, after consultation and collaboration with business taxpayers and industry representatives, has developed what it calls a “safe harbour” mechanism for calculating car fringe benefits under the operating cost method. In ATO parlance, a safe harbour is a...
Gifts, and their outcomes for FBT
Gifts provided to employees or their associates — that gold, frankincense and myrrh you picked up at the Black Friday sales — will typically constitute a property fringe benefit and therefore are subject to FBT unless the minor benefit exemption applies. Gifts, and...
UK holiday worker Catherine Addy faces Full Federal Court appeal
The ATO has appealed to the Full Federal Court against the decision in the matter of Addy v Commissioner of Taxation [2019] FCA 1768. This is the case that found that a taxpayer was not subject to the “backpackers tax” basically due to the operation of an article...
Deduction of labour costs related to creation of capital assets
The ATO has released TR 2019/D6, which provides the ATO’s preliminary view on the application of para 8-1(2)(a) of the ITAA 1997 to labour costs related to the construction or creation of capital assets. This draft ruling applies to taxpayers incurring labour...
Legal Expenses – Tax Deductible or Not?
What types of legal expenses are tax deductible? When a legal expense is incurred in relation to the operation of a business to produce assessable income, it is generally allowable as a deduction. Exceptions are when the legal fee is capital, domestic or private in...
ATO Target Employers for Unpaid Super
The ATO’s Deputy Commissioner, Superannuation and Employer Obligations, James O’Halloran, has announced in a speech to the Australian Institute of Superannuation Trustees (AIST) that with the ATO’s new STP-enabled “unprecedented level of visibility” of...
Top 10 tips for Rental Property Owners
The ATO is reminding rental property owners that each year it sees some fairly common mistakes being made with tax claims made, and the outcomes that result, in regard to investment properties. It has therefore released a list of the top 10 stumbles, and how best to...
CONTACT US
PO Box 21562, World Square NSW 2002
Mobile: 0431 658 603
Email: info@wladvisory.com.au
Website: www.wladvisory.com.au