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A summary of all business tax changes this year

Employers & business Superannuation guarantee increases to 11% from 10.5% National and Award minimum wage increases take effect. The minimum salary that must be paid to a sponsored employee - the Temporary Skilled Migration…
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Why is my tax refund so small this year?

The tax refund many Australians expect has dramatically reduced. We show you why. There is a psychology to tax refunds that successive Governments have been reticent to tamper with. As a nation, Australia relies heavily on personal and…

Small land subdivision makes for big tax costs

You’ve got a block of land that’s perfect for a subdivision. The details have all been worked out with Council, the builders, and the bank. But, one important aspect has been left out; the tax implications. Many small-scale developers…
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Rental Property Reporting Blitz

The Australian Taxation Office (ATO) has launched a full-on assault on rental property owners who incorrectly report income and expenses. The ATO’s assessment, based on previous data matching programs, is that there is a tax gap of…
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Tax obligations for online content creators

The explosion of OnlyFans, YouTubers, TikTokers and others all offer an opportunity for ‘content creators’ to profit from the audiences they generate. But now the Tax Office has given notice to the booming industry. Back in October…
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$3 million+ Super balance nest eggs will get their tax doubled

The Government has announced that from 2025‑26, the 15% concessional tax rate applied to future earnings for superannuation balances above $3 million will increase to 30%. In a very quick turnaround from announcement to draft legislation,…
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$20k Small Business Energy Incentive

In a pre-Budget announcement, the Government has committed to a Small Business Energy Incentive Scheme that offers a bonus tax deduction of up to $20,000. The Small Business Energy Incentive encourages small and medium businesses with…
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Instant Asset Write Offs (IAWO) capped to $20k again

From 1 July 2023 until 30 June 2024, the Government will change the instant asset write-off threshold to $20,000. Previously, 'small' businesses under a turnover of $500 million, could immediately deduct assets acquired from 6 October 2020…
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Slower asset write offs, some tweaks & changes to tax, and more money for ATO compliance!

Last year we had a double deal of government budgets, and without even coming full circle yet, it's time for this year's budget. https://vimeo.com/825343630   Businesses have limitations and compliance warnings to be aware of,…
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Why your tax return will be $1500 worse this year

For the past couple of years, you may have gotten used to your tax either costing less than you remember, or your refund being more generous. More money for you to spend on necessities, or an extra treat for the holidays. But that won't…

ChatGPT versus accountant: Showdown

It feels like AI truly are taking everything over. So, without exercising too much paranoia, we wanted to test the mettle of this latest innovation to take the world by storm, ChatGPT. Will it work with the Australian tax system, making…
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What Work from Home deductions apply for me?

The Australian Taxation Office (ATO) has updated its approach to how you claim expenses for working from home. The ATO has ‘refreshed’ the way you can claim deductions for the costs you incur when you work from home. From 1 July 2022…
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FBT in 2023

Fringe benefits tax (FBT) is one of Australia’s most disliked taxes because it’s cumbersome and generates a lot of paperwork. A fringe benefit is a ‘payment’ to an employee or an associate (an associate is someone related to…
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Queensland backs down on Australia wide land tax

The Queensland Government has backed away from an amendment that would have seen the land tax rate for investment property in Queensland assessed on the value of the investor’s Australia wide land holdings from 1 July 2023, not just the…
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To cut or not to cut? Stage three personal tax cuts

In September, amid a climate of startling interest rates, UK Chancellor Kwasi Kwarteng announced a series of tax cuts, including the reduction of the top personal income tax rate that applies to those earning more than £150,000 from 45%…
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Can I claim my crypto losses?

The ATO has released updated information on claiming cryptocurrency losses and gains in your tax return. The first point to understand is that gains and losses from crypto are only reported in your tax return when you dispose of it -…
electric car FBT

Who can get the new electric car tax concession?

New legislation before Parliament, if enacted, will make zero or low emission vehicles FBT-free. We explore who can access the concession and how. FBT free electric cars Electric vehicles (EV) represent just under 2% of the new car market…

Do you pay tax when you sell your home?

Everyone knows you don’t pay tax on your family home when you sell it…right? We take a closer look at the main residence exemption that excludes your home from capital gains tax and the triggers that reduce or exclude that exemption. Capital…

What is the ATO looking for this tax time?

With tax season almost upon us the Australian Taxation Office (ATO) has revealed its four areas of focus this tax season. Record-keeping Work-related expenses Rental property income and deductions, and Capital gains from crypto…

What is Audit Insurance?

As part of our products and services, we offer Audit Insurance to all of our clients (both business and individual). We partner with Accountancy Insurance for this product as they seem to have the most well rounded and competitive policy.…

The 120% deduction for skills training and technology costs

It’s a great headline isn’t it? Spend $100 and get a $120 tax deduction. Days after the Federal Budget announcement that businesses will be able to claim a 120% deduction for expenditure on training and technology costs, we started receiving…
gym membership tax deductible

Can I claim a tax deduction for my gym membership?

There are lots of reasons to keep fit but very few of them have to do with how we earn our income. As a result, a tax deduction for a gym membership isn’t available to most people. And yes, the Tax Office has heard all the arguments before... 'Keeping…
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Selling an investment property?

When you sell an investment property, you may make either a capital gain or a capital loss. A capital gain or loss is the difference between what it cost you to obtain and improve the property (the cost base) and the amount you receive when…
Are RAT tests tax deductible
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Are RAT tests tax deductible?

Are Rapid Antigen Tests (RAT) tax deductible? Well, a recent announcement from the government says yes. Let's go through it all. The government announced on 7 February 2022 that they will ensure COVID-19 testing expenses are tax…
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Tax implications of cryptocurrency

With cryptocurrencies gaining notoriety, many people are unclear on how or when they can be taxed. Despite widespread belief to the contrary, you can be taxed on gains made as a result of obtaining or using cryptocurrency. If you’ve made a…

2021 Tax Preparations for Individuals

Tax time is here. We have put together a list of Q&A's for how things will work this year, so you can get organised. Covid is obviously throwing a spanner in to the works, but right now we are planning to do In-person appointments in our…

Am I taxed on an insurance payout?

Australia has had its fair share of disasters over the last few years – drought, bushfires and floods – that have ramped up the volume of insurance claims. Most people would assume that if and when they need to claim on their insurance,…

Work from home expenses under scrutiny

If you worked from home during lockdown and spent money on work related items that were not reimbursed by your business, you might be able to claim some of these expenses as a deduction – but not everything you purchase can be claimed. The…
where is my group certificate

Reminder about your group certificate

As tax time for individuals comes closer, we’d like to remind you that most employers won’t be handing out what is commonly called a Group Certificate or also referred to as PAYG Payment summaries. These are now known as Income statements…
March business tax update
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Tax updates: March 2021

Individuals and small business owners who have taken advantage of the government’s COVID-19 support programs will find themselves increasingly under the tax man’s microscope in coming months. This is just one of the key developments occurring…
tax from your couch

Tax From Your Couch details

After huge success from previous years, Tax from your couch is here to stay! Tax from your couch   The process: First, get in touch. Email us when you are ready to begin, (or if you have received an email to us, click the link when…

December tax updates

Although individuals and small business owners are now enjoying welcome tax relief in the wake of some valuable tax changes, there is more on the horizon as the government seeks to reboot the Australian economy. Here’s a quick roundup of…

Tax-effective ways to boost your super

After a year when the average superannuation balance fell slightly or, at best, moved sideways, the summer holidays could be a good opportunity to think about ways to rebuild your savings while being mindful of tax. With the Reserve Bank…
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Tax deductions for investing in your business

Stimulating investment is high on the Government’s agenda. To encourage spending, the 2020-21 Budget introduced a measure that allows businesses with turnover under $5bn* to immediately deduct the cost of new depreciable assets and the…
CGT on inheritance

Understanding CGT when you inherit

Receiving an inheritance is always welcome, but people often forget the tax man will take a keen interest in their good fortune. When ownership of an asset is transferred, it triggers a capital gain or loss with potential tax implications.…
tax from your couch

Tax Returns

Now that we have used Tax from Your Couch for two Individual Tax seasons, we can confirm that this way of doing tax returns is a permanent feature of Optimised Accounting. Tax from your couch   The process: First, get in touch.…

Family trusts under ATO scrutiny

Family trusts have stood the test of time as a means of protecting family and business wealth, and managing the distribution of trust income in a tax-effective way. But the misuse of these tax benefits by a small minority periodically puts trusts…
australia tax changes 2020
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What’s changing on 1st July 2020?

  Company tax rate reduces to 26% for base rate entities Cents per km rate for work-related car expenses increase to 72 cents Expected reforms to allow 66 and 67 years olds to make voluntary superannuation contributions without…
working from home

Calculating your working from home deductions

With many people now working from home because of COVID-19, some of the expenses your employer normally pays – such as electricity, heating and cooling – are now coming out of your wallet. Although some employers may provide a daily…

Guest post: Depreciation on investment properties

We have a guest post from our friends over at Capital Claims Tax Depreciation. How claiming for depreciation boosts cash flow Right now cash flow is front of mind for so many landlords.  With the economy hurting, maximising cash flow from…
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CGT and the family home: expats and foreigners excluded from tax exemption

Late last year, legislative changes were made that exclude non-residents from accessing the main residence exemption. The retrospective changes directly impact foreigners and expats whose main residence is in Australia or overseas. We explore…
ATO targeting in 2020

ATO targets lifestyle assets

The ATO has requested insurance policy information from 30 insurers for lifestyle assets such as yachts, thoroughbred horses, and fine arts. The review, expected to impact 350,000 taxpayers, reaches from the 2015-16 to 2019-20 financial…
bushfire relief from ATO

Bushfire relief from the ATO

Ten million hectares, lives lost, wildlife on the brink, billions in lost revenue and clean-up costs. For many, returning life to normal is a long way off this summer. Among all the generosity from Australians, celebrities and businesses,…
what do i record in a logbook
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Logbooks: what you need to do

Using your car for work purposes? We explain what what you need to record, what you can claim and for how long. What to record in your logbook Your logbook for each car that you wish to claim must contain: when the logbook period…
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Tax concessions: helping small businesses

Running a business keeps you pretty busy, so it’s easy to overlook the help that’s available. Many small businesses don’t realise the government offers a range of valuable concessions that can make a real difference to their annual tax…
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Christmas is coming – avoid being stung by FBT

As the festive season fast approaches, it’s time to start thinking about and planning for the break. If possible, we want to avoid paying more tax in the form of FBT this Christmas time. Because really, who wants to pay an additional tax? (not us!) We’ll show you how.

Vacant land deduction changes

Legislation that passed through Parliament last month prevents taxpayers from claiming a deduction for expenses incurred for holding vacant land. The amendments are not only retrospective but go beyond purely vacant land. Previously,…
ATO is cracking down on bitcoin
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How the ATO is cracking down on bitcoin

After years of puzzling over how to deal with cryptocurrencies, the world’s governments – and their tax authorities – are finally getting serious about regulation. In an effort to crack down on tax evasion and other criminal activities,…

Positives and negatives of gearing

Negatively gearing an investment property is viewed by many Australians as a tax effective way to get ahead. According to Treasury, more than 1.9 million people earned rental income in 2012-13 and of those about 1.3 million reported a…
rental property tax expenses

Rental property expenses: what you can and can’t claim

It’s not uncommon for landlords to be confused about what they can and can’t claim for their rental properties.  In general, deductions can only be claimed if they were incurred in the period that you rented the property or during…
small business tax gap
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The small biz tax gap

Last month, the ATO released statistics showing small business is responsible for 12.5% ($11.1 billion) of the total estimated ‘tax gap’. These new figures give visibility to tax compliance issues within the small business sector…
International travel
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Travel for work – what can I claim?

This is a question that we get quite often. Everyone likes to hope that they can go overseas and claim it as a business expense. But can you? The short answer is sometimes, yes. But often not the entire trip. Firstly there needs to…
Lego tax deduction fail

Weirdest tax deductions revealed

Would you claim the Lego you bought for your kids throughout the year as a tax deduction? One taxpayer did and it made the Australian Taxation Office’s 2018-19 list of most unusual claims. The Lego was not the only claim for money spent…
Uber taxi FBT ruling
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FBT and Uber style ride sharing

When an employee uses a taxi service for travel to or from work or if the employee is sick, it is generally exempt from Fringe Benefits Tax (FBT) under the FBT taxi travel exemption. The question is, what about Uber and other ride sharing services,…
wheres my $1080?

Confusion over personal income tax changes – what are you really entitled to?

In early July all three stages of the Government’s personal income tax plan passed through Parliament and are now law. The amendments to the legislation are as follows: The income tax rate thresholds to be progressively increased in the…
Rental Investment

Own an investment property?

Get ready for tax time Tax time has arrived, and we have put together some practical information to help rental property owners prepare and lodge your tax return this year. There are helpful resources available for rental property…
1 July changes from the ATO
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1st July changes: what you need to know

As of 1st July 2019 there were some changes that came into affect. This includes: Insurance inside Superannuation funds We let you know the tax tip-offs from the ATO Laundry expenses are going to be reviewed Who owns the assets…
tax from your couch

Tax from your couch 2019

Life is busy – we not only get it, but this year we are actually embracing it by making a way to do your tax without actually coming in. This year we have introduced a new way of doing tax. From your couch. Yep you heard that right. It's…
30 days of june tax tips

June tax tips

Throughout June we will be sharing some tax tips for businesses this coming tax time. These will be short and sweet and we hope you will learn something for this upcoming tax season. 1. Working from home  If you don’t have a dedicated…

What are PAYG Instalments?

PAYG Instalments, something that alot of our clients get confused about. Pay as you go instalments (PAYG) get issued by the ATO, and you get sent a welcome or adjusted letter. But do you understand it? Shaun Farrugia explains all you need…