New limits on FBT entertainment benefits

In the 2015-16 Budget, the Australian Government introduced a separate single grossed up cap of $5,000 for salary sacrificed meal entertainment and entertainment facility leasing expenses (meal entertainment benefits) for employees. That cap will apply from April 1, 2016, to coincide with the start of the FBT year. The new limits are designed to improve…

Tax on gifts and donations

Individuals can claim tax deductions when giving gifts or donations to organisations that have the status of deductible gift recipients (DGR). To be eligible to claim a tax deduction for a gift, the ATO stipulates that it must meet the following four conditions: the gift must “truly be a gift”; that is, a voluntary transfer…

ATO targeting private school parents

In the latest crackdown on tax evasion, the ATO is targeting parents suspected of paying their children’s private school fees from secret offshore bank accounts. Following concerns that overseas accounts are being used to hide away secret funds, the tax office will be contacting more than 100 parents with private school fees of up to…

Tips to speed up tax refunds

Many problems can occur when processing activity statements and tax returns which can lead to a delay in the ATO issuing refunds. However, these problems are often caused by small issues and can be easily avoided. Here is a list of tips to help minimise some of the issues that can prevent a speedy tax…

Employment termination payments

An employment termination payment (ETP) is a lump sum payment an employer makes to employees when their employment is terminated. Depending on the age of the employee, and the length of their employment, the amount of an ETP may be taxed at a different rate. An ETP may encompass a tax-free portion, a concessionally taxed…

How negative gearing works

Negative gearing is a popular tax strategy that gives investment property owners the ability to offset the cost of owning a property against their assessable income. Negative gearing involves generating short to medium term tax losses, which arise from tax-deductible costs that are higher than investment income, and leveraging this to increase exposure to potential…

Rolling over your CGT

A capital gain or capital loss is the difference between the cost of an asset and the profit or loss made when it is disposed of.  In certain circumstances, a capital gain from a CGT event can be deferred, or ‘rolled over’, until another CGT event happens which involves an asset in the following events:…

Home-based business expenses

Over the last few years, there has been a significant increase in the number of home-based businesses starting up in Australia. While working from home can help improve a person’s work and life balance, when it comes to claiming home expenses for these business owners, there are a multitude of factors that need to be…