Tax Articles

Division 7A is a significant provision under the Australian tax law that plays a crucial role in ensuring the appropriate taxation of private company loans and payments made to shareholders and their associates. Enforced by the Australian Taxation Office (ATO),...

What is TFN withholding tax? TFN Withholding Tax refers to the process of withholding a portion of an individual's or investor's income when they have not provided their Tax File Number (TFN), Tax Exemption Number or Australian Business Number (ABN) in Australia's...

Defining crypto in australia The Australian Taxation Office (ATO) does not provide a specific legal definition of crypto in Australia. However, it provides guidance on how crypto is treated for tax purposes. The ATO considers crypto a digital or virtual currency that...

What is luxury car tax? Luxury car tax (LCT) is a tax on purchasing or importing luxury vehicles that exceed a particular threshold value. The car's total value, which is used to assess the applicability of the tax, comprises several components. These include: the...

What is the fuel tax credit? Fuel tax credits refer to the financial incentives provided to businesses in Australia to offset the fuel tax, which includes the excise or customs duty paid on fuels used for specific activities.  Businesses can claim credits for the fuel...

What are self education expenses? For tax purposes, self education expenses include: courses undertaken at an educational institution (whether leading to a formal qualification or not) courses provided by a professional or industry organisation attendance at...

What is an income tax offset? An income tax offset directly reduces the amount of tax payable on taxable income. A tax offset is also referred to as a tax rebate. It is important to note that while tax offsets can potentially reduce your payable income tax to zero,...

Division 293 tax is an extra superannuation tax imposed on taxpayers who earn more than $250,000 including superannation annually. Without division 293 tax, higher income earners receive a comparatively greater benefit from superannuation than lower income earners....

What is payroll tax? In simple terms, payroll tax is a tax on total wages paid by employers to their employees. Payroll tax is not a federal tax. Each state and territory in Australia has its legislation governing payroll tax. This means that the specifics of payroll...

What is financial advice? Financial advice refers to professional guidance qualified experts provide to individuals regarding their financial matters. This advice aims to help clients make informed decisions about investments, budgeting, retirement planning, tax...

Inheriting money and assets While there is no inheritance tax, estate tax or death tax in Australia, beneficiaries may still have tax obligations related to the assets they inherit. Let’s explore two key considerations in more detail:Capital gains tax  Capital Gains...

Section 8-1 ITAA 1997 is the fundamental legal authority for claiming tax deductions. It says: (1) You can deduct from your assessable income any loss or outgoing to the extent that: It is incurred in gaining or producing your assessable income; or It is necessarily...

Assessable Income in Australia is defined as any amount that is ordinary income, an amount specified under income tax law as income. What does this mean?

What do you need to know about company tax in Australia? Read about establishment costs, share issuance, tax payable, and capital gains and losses.

This article discusses in-depth the concept of travel tax deductions in Australia in line with the policies set forth by the Australian Taxation Office.

Division 32 of the Income Tax Assessment Act 1997 (ITAA 97) contains the rules relating to entertainment tax deductions in Australia. What does it provide?

Car tax deductions in Australia are allowed provided substantiation rules are met. What do you need to know?

This article discusses investment property tax in Australia in relation to negative gearing and its impact on capital gains tax. Read more.

There are rules that you need to remember when it comes to commercial debt forgiveness. What are they? Find out in this article.