If an employee or investor uses their home office for work or investment-related purposes, they can claim 67 cents per hour under the fixed rate method. The 67 cents per hour covers energy expenses (electricity and gas), phone usage (mobile and home), internet, stationery, and computer consumables. No additional deductions are allowed for costs covered…
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Small businesses can receive a bonus 20% deduction on eligible expenditure supporting digital adoption. Eligible expenditure includes: digital enabling items, such as hardware, software, systems and services that form and facilitate the use of computer networks. digital media and marketing. e-commerce. The tax incentives apply to expenditure incurred from 29 March 2022 until 30 June 2023…
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The Treasury Laws Amendment (Electric Car Discount) Bill 2022 proposes to remove Fringe Benefits Tax (FBT) on eligible cars provided by employers to current employees for private use. The exemption applies under the following circumstances: To eligible electric vehicles first held and used after 1st July 2022. To cars with a purchase price below $84,916…
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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 in the form of payments, loans and debts forgiven. These rules only apply where the companies have retained profits. Under Division 7A shareholders or associates who receive payments or loans from…
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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 office. This can be calculated on a cents per km basis. Out of pocket transport costs incurred, such as airfare or taxi fare. Accommodation and meals incurred visiting their tax agent. (This…
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Business entity changes involve transferring a business from its current structure to a more advantageous structure. The most common reasons for business restructure are: Change in ownership: If an existing business is acquired (say a company), then the business structure may be changed (to a trust). Change in management: Taking on a business partner would involve…
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On 11 May 2021, as part of the 2021–22 federal Budget, the Australian Government announced it will extend the loss carry back measure. Companies can carry back losses from 2020, 2021 & 2022 income years to offset previously taxed profits made in or after the 2019 income year. This allows companies to generate a refundable…
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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…
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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…
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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…
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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"
- Bono: U2