Overnight travel expenses involve being away from home for at least one night for work or business purposes. Business or work travel is in contrast with other types of private travel such as for leisure purposes or regularly commuting between one's home and workplace. Reasons for work or business trips include servicing customers, working at…
Read More »
Fitness expenses will be deductible if employees need an abnormal level of fitness to perform their job. Typically, this applies to only professional sportspeople, physical training instructors with the Defence Force & Police Force, firefighters, and special forces personal. Implementation Process: 1. Determine whether the employee requires above normal (extreme) levels of fitness to perform…
Read More »
Handbags, briefcases and satchels purchased to carry items for work purposes (such as laptops, tablets, work papers or diaries) may be deductible. The deductibility of the bag will depend on: Cost – It's easier to justify to the ATO that a $300 bag is for work purposes than a $10,000 Prada bag. Type – Large bags…
Read More »
Co-existing work locations travel involves travel which can be attributed to the employee having to work in more than one location. This is the case where: The travel is directly between work locations, or between home and an alternative work location, and It is reasonable to conclude that the travel is undertaken in performing the…
Read More »
Where an employee undertakes 'special demands' travel between home and a regular work location, the trip will be deductible work-related travel where being conducted in performing the employee's work activities. Travel will be part of an employees work activities where: The work activities require the employee to undertake the trip. The employee is paid, directly…
Read More »
Home-based businesses are small businesses that operate from the owners home. The attractions of starting and running a business from home include: Tax savings from making some of the home occupancies costs tax-deductible. Reduction in overhead costs. More work time as no time is lost commuting in traffic. It improves work/life balance. A home-based…
Read More »
Personal services income (PSI) is income produced mainly from an individual’s skills or efforts. It’s income that has the characteristics of employment income. For PSI income, the only deductions allowed against that income are expenses an employee would be entitled to deduct. If the personal services business (PSB) tests are passed, then taxpayers gain the…
Read More »
Holiday working spaces are work spaces in holiday destinations. The working spaces can be located literally anywhere in the world; including your favourite beach, forest, or snow holiday distination. Employees can work from the working spaces for a week, month or six months at a time. The work spaces can be hired by the day,…
Read More »
From 1st July 2017, the amount of capital that a member can have in the tax-free retirement (pension phase), is limited to $1.6 million. This means the pension earnings exemption only applies on $1.6 million of the member’s superannuation balance, and the earnings on the excess superannuation balance is subject to the normal 15% tax.…
Read More »
This tax strategy only applies to overseas employees working in Australia, and Australian residents working overseas. Under the FBT legislation the taxable value of holiday travel costs (flights, accommodation and meals) provided to these employees (and their families) are reduced by 50% if they travel back to either: the town where they lived before being…
Read More »Similar posts you may like
- Tax Savings Strategy 222 | Christmas Party
Holding a Christmas party on business premises during work hours is the most tax effective option for businesses. The cost of a light meal Read more
- Tax Planning Strategy 86 | Employee Meals on Business Premises
Employee meal costs, like lunch during a normal work day, are normally private non- deductible expenses. But an employer can provide the following meals Read more
- Fully maintained associate lease
A fully maintained associate lease is an agreement where an associate of the employee (typically spouse or partner), leases a fully maintained car to Read more
- Can I deduct the cost of travelling to see my tax agent?
A taxpayer can claim a deduction for the cost of travel to obtain tax advice. This travel includes: Using a taxpayer's vehicle to visit their accountant's Read more
"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"
- Bono: U2