When a motor vehicle is used 100% for private purposes there is normally no tax deduction available on the expenditure. With this strategy an employee can generate annual tax savings of $2,500 – $3,000 pa by salary packaging their private motor vehicle with their employer. The tax savings result from the motor vehicle tax concessions…
The purchase of an antique, veteran or vintage car for use in a business will provide the normal depreciation and operating deductions. This will be subject to the luxury car limit and log book obligation for business use. Motor vehicles, including antique, veteran & vintage cars, are exempt from capital gains. This is a win…
Business travel involves being away from home for at least one night for business purposes. This is to be contrasted with other types of private travel such as for leisure purposes or regularly commuting between one’s home and workplace. Reasons for business trips include visiting customers or suppliers, meetings at other company locations, professional development…
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 from the return. If allowable deductions have been omitted (and can be substantiated) and the time limits on income tax amendments are met, the prior year’s returns can be amended. The…
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…
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,…
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.…
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…
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…
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…
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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"
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