Wikipedia defines a cryptocurrency (also known as crypto-currency, or crypto) as a digital currency designed to work as a medium of exchange through a computer network that is not reliant on any central authority, such as a government or bank, to uphold or maintain it. Bitcoin was created in 2009 by Satoshi Nakamoto as the…
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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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Structured settlement contributions are payments an individual has received and contributed into their super fund. Structured settlement payment is a payment arising from a personal injury claim where two legally qualified medical practitioners have certified that it is unlikely the individual can ever be gainfully employed in a capacity for which they are reasonably qualified or trained.…
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From 1st July 2017, the amount of capital that a member can have in the tax-free retirement (pension phase), is limited to $1.6 million. This means the pension earnings exemption only applies on $1.6 million of the member’s superannuation balance, and the earnings on the excess superannuation balance is subject to the normal 15% tax.…
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The first tax issue to consider with owning a racehorse is whether you are operating as a hobby or a business. Generally, it is difficult to demonstrate to the ATO that you have a racing business unless it is associated with breeding or training activities and is of significant scale. The tax benefits of owning…
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Bitcoin was created in 2009 by Satoshi Nakamoto as the world’s first cryptocurrency and is the biggest. Currently there are 669 cryptocurrencies in the world. Bitcoins are a digital currency so can be used to buy things electronically (and in that sense are similar to conventional currency). However, Bitcoins most important characteristic is that it…
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Non-geared unit trusts (NGUT) allow taxpayers to co-invest with their SMSF in property. The benefits of the NGUT structure include: Enables a SMSF with limited funds to co-invest in large property purchases. The SMSF can purchase additional units in the NGUT from related parties (at market value). The NGUT has flexibility in issuing and redeeming…
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From 1st January 2018, a 60% CGT discount applies for Australian resident individual’s investing in qualifying affordable housing. This also applies if the individual invests via a managed investment trust. The conditions to access the 60% discount are: The housing must be provided to low to moderate income tenants. Rent must be charged at a…
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A person aged 65 or over can make a non-concessional contribution into superannuation of up to $300,000 from the proceeds of selling their principal residence (if they have owned it for at least 10 years). This is available to both members of a couple for the same home. This strategy is available from 1st July…
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This strategy involves using the entertainment facility leasing provisions of the FBT Act to make owning and operating a boat or yacht as tax effective as possible. To achieve this, it should be structured as follows: Individual owns the boat or yacht. Individual leases the boat to the business entity on an exclusive basis for…
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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