ATO focusing in on investment strategies

The ATO is focusing in on investment strategies.  Last September they wrote to, and scared the life out of, 17,700 self managed super fund (SMSF) trustees.  Last week they released their guidelines.  We will explain their approach and demands as we study these guidelines. We will also be in discussion with our SMSF auditor. We

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Reducing tax on the former home

An often over looked way to reduce the tax paid on the sale of a former home is to use the six year absence rule. The net rent you receive is assessable (or deductible if negatively geared) but the gain itself can be disregarded. However, you must take care when choosing to use this method

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Maximise your health insurance entitlements

The end of the year is fast approaching.  So amongst your festivity planning, make sure you maximise your health insurance entitlements. Health funds re-set their limits for extras come January.  If you have an unused cap for things such as dental, physios and the like, you may wish to use up your health insurance entitlements

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Don’t forget to register for GST!

Don’t forget to register for GST!  If you don’t it could be costly. The GST registration threshold for businesses that are not non-profits and taxis is $75,000.  If your annual turnover exceeds $75,000 and you are not registered, then the ATO will demand you pay them 1/11th of your turnover. It can prove rather costly!

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How can I claim car travel?

In order to claim car travel in your personal Tax Return:- You must own the car. You must have undertaken a trip for either your business or your employer. You can claim under two methods:- Log book, or Cents per kilometre Tip You can use a log book kept for three months in the current

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When can I claim a bad debt as a tax deduction?

When can I claim a bad debt as a tax deduction?  You have to satisfy a few conditions:- There must have been an enforceable sale. All reasonable attempts have been made to collect it. The decision to write off it off is evidenced in writing. The customer hasn’t already gone into liquidation or you haven’

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Charging credit card fees

Just a warning on charging credit card fees on the back of the ACCC fining Europcar $350,000. A business can on-charge the credit card fee that they are charged.  But no more.   Eurpocar made the mistake of continuing to charge 1.43% despite the fact that the rate they incurred changed over time.  Their rate also

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STP and super payments

The roll-out of Single Touch Payroll (STP) has proved to be an interesting process!  For some, it just meant clicking another button or two within their payroll program. For others it meant changing the whole way they processed their payroll. It has also uncovered some interesting practices. We have been somewhat surprised to find that

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WorkCover remuneration certification

It may be time to complete your 2019 WorkCover remuneration certification. Large employers are required to submit early. Other employers have delayed lodgement dates. That said, it still may be in your interest to lodge soon.  This is particularly the case if your remuneration will be significantly less in 2019/20 than for 2018/19. You will

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Other STP tasks

Single Touch Payroll (STP) started for all non-large businesses two weeks ago.  So all business should by now be reporting wages at the time of payment. For some this has meant using a payroll software program for the first time.  This was the perfect opportunity to ensure that all other HR employment requirements had been

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