Long service awards granted in recognition of 15 years or more service are tax deductible and FBT exempt, provided the value of the award doesn’t exceed the following specified amounts: $1,000 for 15 years’ service. Plus $100 per additional year of service. Where the value of an award exceeds the relevant maximum value, no part…
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…
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…
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…
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…
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…
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…
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…
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…
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…
Similar posts you may like
- Save tax with a home-based business
Home-based businesses are small businesses that operate from the owners home. The attractions of starting and running a business from home include: Tax Read more
- ‘Special demands travel’ from home to work can be tax deductible
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 Read more
- Tax Strategy – Change PSI to personal services business (PSB)
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 Read more
- Tax Planning Strategy 172 | Antique, Veteran or Vintage Car
The purchase of an antique, veteran or vintage car for use in a business will provide the normal depreciation and operating deductions. This 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