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…
Read More »
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,…
Read More »
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.…
Read More »
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…
Read More »
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…
Read More »
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…
Read More »
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…
Read More »
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…
Read More »
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…
Read More »
Tax planning strategy 186 A holding company is a parent corporation that owns enough voting shares in another company to control its policies and management. A holding company exists for the sole purpose of controlling one or several other companies. Holding companies also exist for the purpose of owning property such as real estate, patents,…
Read More »Similar posts you may like
- Tax Savings Strategy 219 | Avoid the Luxury Car Tax
The luxury car tax (LCT) is a tax on cars with a GST inclusive value above the LCT threshold ($66,331 as at 2018/19). LCT Read more
- Eliminate Division 7A problems
Division 7A is an ATO integrity measure to ensure that private companies don't make tax free distributions of profits to shareholders or shareholders' associates Read more
- Tax Planning Strategy 162 | Endorsement Income
Most forms of income earned by professional sportspeople is personal services income (PSI) and is assessed to the sportsperson individually. This includes salary, competition Read more
- Tax Savings Strategy 198 | Health Coaching, Lifestyle & Weight Loss
Work-related counselling provided to employees (and their associates) in order to improve or maintain their efficiency at work or prepare them for retirement will 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