Recent case highlights some of the trust tax problems that can occur It’s not uncommon for people to put assets such as their family home into a trust, particularly professionals working in litigious fields or family groups wanting to protect assets. The taxpayer, in this case, had become the owner of their main residence as…
Work-related deductions for you Last financial year, over 8.8 million taxpayers claimed $21.98 billion in deductions for work-related expenses. It’s an area under intense review by the ATO. If you claim work-related deductions, it’s important to ensure that you are able to substantiate any claim you make. To claim a deduction, you need to have…
Victorian State Government Budget – 27 May 2019 The Victorian state government recently handed down its annual state budget and there are a number of changes that will impact both business and investors. A summary of the key items is as follows. Payroll Tax The government’s three key changes are: Increase in the tax-free threshold…
ATO doubles rental deduction audits In the 2017-18 financial year, more than 2.2 million Australians claimed over $47 billion in deductions and the Australian Taxation Office (ATO) thinks that is too much – one in ten is estimated to contain errors. 4,500 audits of rental property deductions will be undertaken this year with the focus…
Tax Office to double audits of dodgy rental deductions Rental property owners are being warned to ensure their claims are correct this tax time, as the Australian Taxation Office (ATO) announces it will double the number of audits scrutinising rental deductions. In the 2017–18 financial year, more than 2.2 million Australians claimed over $47 billion in deductions.…
Expenses you can claim You can claim a deduction for your related expenses for the period your property is rented or is available for rent. management and maintenance costs, including interest on loans, can generally be claimed immediately (that is, deducted against your current year’s income). borrowing expenses, depreciation and capital works spending can be deducted…
Do you earn income overseas? A recent case highlights why you might pay more tax than you thought on foreign income. If you are an Australian resident and earn income from overseas, such as income from investments, sale of assets such as property, distributions from foreign trusts, etc., you will generally need to declare that…
Tax ‘safe harbour’ for inherited property When someone inherits a dwelling there are some special rules contained within the main residence exemption provisions that can provide a full exemption if certain conditions are met. If the conditions are not met, the beneficiary might face a nasty capital gains tax (CGT) bill for their good fortune.…
The impending changes to speed up your HELP repayments The Government has moved to put an end to ‘eternal students’ who constantly study and never earn an income and speed up the payment cycle for those with outstanding debt. New lifetime caps on Higher Education Loan Program (HELP) debt will prevent people from constantly going…
190,000 taxpayers ‘examined’ in ATO online rental blitz The Australian Taxation Office (ATO) has announced a new data-matching program targeting taxpayers earning income from the exploding popularity of short-term rentals available on platforms like AirBNB and Stayz. Utilising information from online platform sharing sites matched to information from financial institutions, the ATO is targeting 190,000…