Articles

GST & the margin scheme

The margin scheme is a way of working out the GST you must pay when you sell property as part of your business. You can only apply the margin scheme if the sale of the property is taxable. If you purchase property where the margin scheme was applied to the sale, you...

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Tax residency – Business

You need to know the residency status of your business entity to determine your Australian income tax obligations. Foreign resident entities are generally taxed in Australia on any income that has an Australian source. Australian resident entities are generally taxed...

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Tax residency – Individual

Tax residency Australian residents are generally taxed on their worldwide income from all sources. Temporary residents of Australia and foreign residents are generally taxed only on their Australian-sourced income, such as money they earn working in Australia. To...

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Property Renovating & Tax

Property Investing vs Property renovating business If you're renovating one or more properties, the most important tax issue to consider is whether you are an investor or whether you are carrying on a business of renovating properties. If you're an investor, any...

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FBT Exemptions & Concessions

Some fringe benefits, such as discussed below, are exempt from Fringe Benefits Tax ("FBT") or receive concessional treatment. Work related fringe benefits The following work related fringe benefits are exempt from FBT: portable electronic device such as mobile phone,...

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Fringe Benefits Tax (FBT)

Fringe Benefits Tax ("FBT") is essentially a tax employers pay on non-salary/wage benefits provided to employees or associates of employees. Fringe benefits tax is separate to income tax and is calculated on the taxable value of the fringe benefits provided. Examples...

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Capital Gains Tax (CGT)

Capital Gains Tax ("CGT") CGT is not a separate tax besides income tax – CGT is actually income tax on capital gains. Essentially, a capital gain occurs when you sell an asset for more than you bought it. The capital gain is the excess of sale proceeds above the cost...

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Self Managed Superannuation Fund (SMSF)

Is a Self Managed Superannuation Fund ("SMSF") the right choice for you? Whether an SMSF is a good choice for you depends on your situation. Some factors will include: Your age The funds you have available How much spare time you have to manage an SMSF What type of...

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Income tax rates

Individual (tax resident of Australia) The following rates for 2015–16 apply from 1 July 2015. Taxable income Tax on this income 0 – $18,200 Nil $18,201 – $37,000 19c for each $1 over $18,200 $37,001 – $80,000 $3,572 plus 32.5c for each $1 over $37,000 $80,001 –...

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Car Salary Packaging

Car salary packaging will not always save you money, despite what salary packaging firms would have you believe. In fact in some circumstances it can cost substantially more than buying a car in your own name. Recently I reviewed a quote from a salary packaging firm...

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Investment Properties & Tax

Introduction  When investing in a rental property, it is essential to realise that tax isn’t the most important factor. The most important factor is to buy a house that will increase in value as much as possible. This sounds obvious, but it is surprising how many...

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Asset Protection

Introduction Asset protection is one of the most important issues when considering wealth building. How tragic it is when people work hard for years to accumulate wealth, only to then lose it due to poor planning decisions. Threats to assets include loss in market...

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Small Business Structures

Introduction This article is a brief overview of the most common small business structures. It primarily applies to small businesses. The definition of a “small business entity” for tax purposes is essentially a taxpayer which has less than $2 Million aggregated...

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How to Choose an Accountant

There are a number of issues to consider when choosing an accountant. Some issues will be more important than others, depending on your situation. This article explains things you need to be aware of when you choose an accountant. Location Location used to be an...

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Tax Scammers

Tax Scammers are increasing their efforts and employing new techniques to scam unsuspecting taxpayers as the 31st October deadline for individual tax returns approaches. Scammers are reportedly phoning taxpayers to falsely claim that they are being audited, urging...

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ATO Certainty Letter

The ATO has advised that it will shortly commence contacting more than 500,000 taxpayers to let them know that their recently submitted tax returns are in order and will not be subject to further review. The ATO says that people who receive a certainty letter can be...

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