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…
Read More »
A fully maintained associate lease is an agreement where an associate of the employee (typically spouse or partner), leases a fully maintained car to the employee's employer. Under the fully maintained operating lease, the associate agrees to incur and pay for the vehicles' running costs (e.g. fuel, repairs, insurance, and registration). The employer then provides…
Read More »
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…
Read More »
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…
Read More »
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…
Read More »
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…
Read More »
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 in performing the employee's work activities. Travel will be part of an employees work activities where: The work activities require the employee to undertake the trip. The employee is paid, directly…
Read More »
Holiday working spaces are work spaces in holiday destinations. The working spaces can be located literally anywhere in the world; including your favourite beach, forest, or snow holiday distination. Employees can work from the working spaces for a week, month or six months at a time. The work spaces can be hired by the day,…
Read More »
This tax strategy only applies to overseas employees working in Australia, and Australian residents working overseas. Under the FBT legislation the taxable value of holiday travel costs (flights, accommodation and meals) provided to these employees (and their families) are reduced by 50% if they travel back to either: the town where they lived before being…
Read More »
These 10 Tax Strategies apply to the majority of employees & produce the biggest tax savings (on average). Tax Strategy 1 – Salary Packaging Private Motor Vehicles Makes private motor vehicles tax deductible (average $3,000 tax savings pa). Tax Strategy 4 – Transporting Heavy or Bulky Equipment Makes home to work travel deductible (average $3,000…
Read More »Similar posts you may like
- 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 Planning Strategy 170 | Amend Prior Years Tax Returns
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 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
- Tax Planning Strategy 179 | Transferring a Life Interest in BRP into an SMSF
This strategy involves transferring the life interest in business real property into a SMSF (instead of transferring the whole interest in the real property). 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