Tax Articles

Land Tax

Land Tax

What is Queensland Land Tax? Land tax in Queensland is a state imposed tax assessed annually based on the freehold land possessed as of midnight on June 30 each year. Freehold land refers to land...

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Part IVA

Part IVA

Part IVA of the Income Tax Assessment Act of 1936 contains the income tax general anti-avoidance rule (GAAR). The GAAR operates alongside a number of other specific anti-avoidance rules contained in...

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Debt and Equity Rules

Debt and Equity Rules

Contents What is debt funding and equity funding? The taxation of debt arrangements versus equity arrangements The rules for classifying arrangements as debt or equity for taxation purposes...

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Everett Assignment

Everett Assignment

Contents What is an assignment? What is an Everett assignment?   What is the tax advantage of an Everett assignment?   What about assignments dissimilar to Everett type assignments?     Allowable...

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Taxable Australian Property

Taxable Australian Property

A foreign resident of Australia for tax purposes is generally only subject to Australian tax on Australian sourced income. However, when it comes to capital gains tax, a foreign (tax) resident will...

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TOFA

TOFA

Contents What is TOFA? Entities required to comply with TOFA rules Opting for the TOFA (division 230) framework What are financial arrangements? Determining profits and losses from financial...

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NANE Income

NANE Income

Contents What is NANE income? Why income is classified as NANE Key categories of NANE income Exclusions from NANE income What is NANE income? Non assessable non exempt income (NANE) refers to...

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Exempt Income

Exempt Income

Contents What is exempt income? Exclusion of ordinary income from assessable income Consequences of exemption Exempt income for education and training Exemptions for educational payments Defence...

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Land Tax

What is Queensland Land Tax? Land tax in Queensland is a state imposed tax assessed annually based on the freehold land possessed as of midnight on June 30 each year. Freehold land refers to land that is privately owned, excluding state owned land or land leased from...

Part IVA

Part IVA of the Income Tax Assessment Act of 1936 contains the income tax general anti-avoidance rule (GAAR). The GAAR operates alongside a number of other specific anti-avoidance rules contained in Australian tax law. The GAAR is subordinate to the operation of those...

Debt and Equity Rules

Contents What is debt funding and equity funding? The taxation of debt arrangements versus equity arrangements The rules for classifying arrangements as debt or equity for taxation purposes Conclusion What is debt funding and equity funding? There are broadly two...

Everett Assignment

Contents What is an assignment? What is an Everett assignment?   What is the tax advantage of an Everett assignment?   What about assignments dissimilar to Everett type assignments?     Allowable deductions for expenses related to assigned partnership interests...

Business Commencement and Closure Deductions

Contents Introduction Pre Commencement Expenditure Closure Related Expenditure Specific Deductions Blackhole Expenditure Small Business Entity Immediate Deduction Introduction  The most common way a taxpayer will be eligible for a deduction on business related...

Taxable Australian Property

A foreign resident of Australia for tax purposes is generally only subject to Australian tax on Australian sourced income. However, when it comes to capital gains tax, a foreign (tax) resident will not recognise a capital gain or loss on a CGT event which occurs to a...

TOFA

Contents What is TOFA? Entities required to comply with TOFA rules Opting for the TOFA (division 230) framework What are financial arrangements? Determining profits and losses from financial arrangements Integrity measures TOFA tax timing methods What is TOFA?TOFA...

NANE Income

Contents What is NANE income? Why income is classified as NANE Key categories of NANE income Exclusions from NANE income What is NANE income? Non assessable non exempt income (NANE) refers to specific types of income that are defined by tax laws or other Commonwealth...

Exempt Income

Contents What is exempt income? Exclusion of ordinary income from assessable income Consequences of exemption Exempt income for education and training Exemptions for educational payments Defence related payments Welfare and exemptions Compensation for loss of pay or...

Contractor vs Employee

When hiring workers, it is critical to correctly classify a worker as an employee or contractor. If an employer classifies them incorrectly, they may face fines and penalties. However, classifying workers is not as simple as one may think as there are multiple factors...

Employee Share Scheme

Contents What is an employee share scheme? ESS – Employer’s perspective Employer obligations ESS– Employee’s perspective Employer obligations What is an employee share scheme?An employee share scheme (ESS) is a scheme under which shares, stapled securities or rights...

Intellectual Property

Contents What is intellectual property? Entitlement to a deduction for the payment of rights to use ip? Is income derived from ip assessable? What is intellectual property?Intellectual property IP encompasses a range of intangible assets and rights held by a taxpayer....

Allocation of Professional Firm Profits

Contents Gateway 1 – commercial rationale Gateway 2 – high risk features The risk assessment framework Related articles The distribution of profits made by professional firms to the controllers of a business and their associates may present tax complications....

Testamentary Trust

What is a testamentary trust?A testamentary trust is essentially a trust that is established through a person's last will and testament. Unlike discretionary or family trusts, which are typically created separately during an individual's lifetime through a trust deed,...

Hire Purchase Agreement

Contents What is a hire purchase agreement? Tax treatment Hire purchase v leasing v outright purchase Limitations under division 240 What is a hire purchase agreement?A hire purchase agreement commonly refers to a contractual arrangement whereby a person or entity...

Tax on Compensation

Compensation payoutsThere are many forms of compensation payouts which may be awarded to taxpayers. This can include compensation in relation to personal injury or illness, damage to reputation, damage to property, lost employment, lost opportunity, or loss of income...

Tax Consolidation

If your business is a company that owns 100% of another company, trust or partnership, tax consolidation is an option you should consider. A consolidated group generally consists of a head company and subsidiary members. Throughout consolidation, subsidiary members...

Working Holiday Maker

Contents Who is a working holiday maker? Working holiday maker taxable income Australian resident WHMs from NDA countries Getting started as a working holiday maker End of the income year or completion of work in australia Claiming a departing australia superannuation...

Temporary Resident

Contents Who is a temporary resident? Exemptions for foreign source income Non assessable non exempt income CGT for temporary residents Controlled foreign companies Temporary residents in non resident trust estates Interest paid by temporary residents FBT concessions...