What are CGT events?

A CGT event occurs when an individual or company makes a capital gain or capital loss by selling or disposing of an asset they own. Determining the timing of a CGT event is quite important, as it determines which income year an individual will report the capital gain or capital loss, and may affect how…

Avoiding tax scams

If a tax refund or promise sounds too good to be true, then it probably is. Tax scams can take many forms, such as false emails and text messages, but phone scams are the number one threat in Australia. Phone scammers usually impersonate an ATO employee and tell the receiver that they owe a tax…

Tax implications for overseas workers

Australians who work overseas for an extended period of time should be wary of the tax implications that can arise from taking up such offshore opportunities. The tax residency status of an Australian who move overseas for employment plays a key role in determining how much tax that person is required to pay in Australia.…

Salary sacrificing

While many employees can sacrifice salary in exchange for most work-related purchases, it is essential that employers are aware of FBT when working out the expense that will replace the income in a salary sacrifice arrangement. Employees should also be wary that if their employer has to pay FBT, that cost will most likely be…

Using the CGT discount

A capital gain is a profit made from the sale of an asset. Your capital gain is calculated as the difference between what you paid for the asset and what you eventually sold it for. A capital gain is considered by the ATO as part of your assessable income and is taxed at your marginal…

Negative gearing for property investors

Whether you’re an established property investor or contemplating purchasing your first investment property, you may care to familiarise yourself with the way that negative gearing works. A property is considered to be negatively geared if the owner has taken on debt in order to acquire it and the net rental income is less than the…

Family trusts

While the ATO continues to crack down on its tax minimisation strategies, quite a few legal pathways to paying less tax while preserving wealth for retirement or estate planning purposes still exist. Family trusts have significant tax-saving abilities, and can save high-income earners a fair amount of money over a few years by apportioning wealth…

Working from home deductions

Those who produce some form of assessable income at home or incur expenses from using that home as a workplace can claim for expenses and tax deductions. Individuals can claim deductions for their home if it is used for income earning activities but isn’t a place of business, or if it is being used as…