It is good practice to review the prior year’s tax returns of all new clients to see whether any allowable deductions have been omitted from the return. If allowable deductions have been omitted (and can be substantiated) and the time limits on income tax amendments are met, the prior year’s returns can be amended. The…
Benefits provided to employees of religious institutions in respect of pastoral duties or other duties or activities directly related to the practice, study, teaching or propagation of religious beliefs is exempt from FBT. The FBT exemption applies where: A religious practitioner is an employee of a registered religious institution. A benefit is provided to the…
Employee meal costs, like lunch during a normal work day, are normally private non- deductible expenses. But an employer can provide the following meals to employees, claim a tax deduction for the expenses, and pay no fringe benefits tax: • Tea, coffee and cakes provided on business premises for employees and customers. • Sandwiches, muffins,…
Tax Planning Strategy 193 involves using your SMSF to purchase a farm (or hobby farm) and then leasing it back to the taxpayer (or associated entity) to operate a farming business. This strategy has the following attractions: Ability to combine the superannuation fund balances of up to 4 family members to purchase the farm.…
Rebatable employers are entitled to a FBT rebate equal to a percentage of the gross FBT payable, subject to a capping threshold. Organisations that may qualify for the FBT rebate include: Registered Charities who are endorsed as a charitable institution for these purposes Certain educational, scientific or public educational institutions Trade unions and employer…
This strategy involves transferring the life interest in business real property into a SMSF (instead of transferring the whole interest in the real property). The SMSF becomes the ‘life tenant’ with the ‘life in being’ based on the life expectancy of a member of the fund. The life tenant will become the registered proprietor of…
Small businesses buying art prior to 30th June 2017 with a purchase cost of less than $20,000 (excluding GST) are entitled to a full tax deduction. The art can be enjoyed at the small businesses office, warehouse, farm, or home office. There are no restrictions on the type of art or the number of pieces…
Tax planning strategy 180 The superannuation proceeds trust strategy involves creating a special type of testamentary trust under a will that is only funded by the deceased’s superannuation death benefits. The beneficiaries are limited to only the deceased’s tax dependents (i.e. spouse and children under 18). The advantage of this strategy is that as all…
Tax planning strategy 176 From 1st July 2018 fund members with a fund balance of less than $500,000 will be able to make additional catch-up super contributions. The catch-up super contributions can be either personal or salary sacrifice and can only be made from unused super contribution caps accruing from 1st July 2018. As the…
Tax planning strategy 165 Subscriptions, joining fees, levies and contributions paid to professional associations may be deductible under s 8-1 and/or s 25-55. Payments to trade and professional associations may be in the form of joining fees, periodic subscriptions or levies and other contributions. Deductions for periodic subscriptions are available under s 8-1 where it…
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"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"
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