Employer provided taxi travel that is a single trip beginning or ending at the employer’s place of work will be tax deductible to the employer and an FBT exempt benefit to the employee. This enables an employer to provide an employee with a single taxi trip to the office everyday, and then another single trip…
Read More »
This strategy involves purchasing a corporate box sponsorship package for the AFL Football, rugby, horse racing, speedway, etc. For fixed price sponsorship packages the business will normally pay one fixed price for the following benefits: Signage and advertising rights (This promotes the business’s name at the ground, on signage, on uniforms, on web sites and…
Read More »
This strategy makes private pet ownership costs tax deductible (under certain circumstances). Having pets in the workplace involves the employer acquiring pets for the workplace (whether an office, factory or warehouse). The pets could be the standard, cat, dog, fish, ferret, bird, snake, or any other pet really. The business benefits of pets in the…
Read More »
Pooled development funds (PDFs) are eligible investment companies that are registered under the Pooled Development Funds Act 1992 (PDF Act) and which provide equity capital to Australian small and medium sized companies. The taxable income of a PDF that is comprised of capital gains and assessable income from, or from the disposal of, SME investments…
Read More »
The Junior Mineral Exploration Tax Credit (JMETC) encourages non-mining investors to invest in exploration companies and help fund their exploration activity. The JMETC allows mining companies undertaking exploration to renounce their deductions for exploration, and pass the benefits of those deductions onto shareholders. The shareholders can then use the credits to reduce their tax payable…
Read More »
An associate lease is an agreement where an associate of the employee (typically spouse or partner), leases an existing or replacement car to the employee’s employer. The employer then provides the car to the employee via a pre-tax salary sacrifice arrangement. I.e. The employee pays for most of the vehicle’s operating costs from their pre-tax…
Read More »
From 1st July 2015 eligible start-up costs can be fully deducted in the year they were incurred if they relate to setting up a proposed small business and meet one or more of the following: Incurred in obtaining advice or services (from lawyers, accountants or business advisors) relating to the proposed structure or the proposed…
Read More »
The tax incentives for Early Stage Venture Capital Limited Partnerships (ESVCLP) apply from 1st July 2016 and provides partners with a 10% non-refundable tax offset on capital invested during the year. The maximum fund size for ESVCLPs is $200m and ESVCLPs are no longer required to divest a company when its value exceeds $250m. Entities…
Read More »
This strategy involves a discretionary trust making pre-tax trust distributions to a tax-exempt beneficiary. If the beneficiary is tax exempt (a not-for-profit organization or church) then there will be no income tax paid on that income by the beneficiary. The beneficiary does not need to be able to receive tax deductible donations (i.e. be a…
Read More »
Changing from employee to contractor (business) has the benefit of making some private expenses tax deductible. Expenses such as motor vehicle, home office, travel, etc., may become deductible. A contractor’s total expenses are normally maximised by utilising the PSI Entity strategy which may make private motor vehicle expenses and living away from home accommodation and…
Read More »Similar posts you may like
- Tax Planning Strategy 151 | Tax Incentives for Early Stage Investors
Malcolm Turnbull’s Innovation Statement released on 7th December 2015 provides tax incentives for early stage investors. The tax incentives will encourage early stage investment Read more
- 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
- Tax Planning Strategy 131 | Companies
The advantages of operating a business through a company include: 30% tax rate (standard company tax rate) 27.5% tax rate for companies with a Read more
- Tax Planning Strategy 176 | 5 Year Catch-Up Super Contributions
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 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