Selling Property! Will GST & the margin scheme apply to you?
The sale of an investment property in Australia can introduce intricate GST (Goods and Services Tax) considerations that often escape the notice of many property investors. However, there are specific scenarios where investors can mitigate their GST obligations. While the sale of your primary residence is usually exempt from GST, selling an investment property can […]
Superannuation & Deceased Will
On a person’s death, their superannuation benefits can only be paid directly to one or more ‘dependants’ as defined for superannuation purposes, unless they are paid to the deceased’s legal personal representative to be distributed in accordance with the deceased’s Will. Super paid after a person’s death is called a ‘super death benefit’. If the […]
Foreign Resident Capital Gains Withholding
When an Australian resident for tax purposes, sells property valued at $750,000 or more, they must have a FRCGW certificate to present to the purchaser at or before settlement. If an FRCGW is not provided 12.5% of the property purchase price must be withheld and paid to the ATO. To claim back the credit that […]
How are Working Holiday Makers (WHM’s) taxed!
Working holiday makers (WHM’s) may be taxed on the same basis as a resident Australian national if they are both: -from a non-discrimination article (NDA) country -an Australian resident for tax purposes. Criteria for same tax rate You may be taxed on the same basis as a resident Australian national if you satisfy all the following – you are: -the holder […]
ATO: Update to work-from-home deductions
The fixed rate method for calculating your deduction for working from home expenses has been revised. This revised method is available from 1 July 2022. To be eligible to claim a deduction for working from home expenses, you must: • incur additional running expenses as a result of working from home • be working from home […]
Self-education threshold removed
The ATO has removed the $250 reduction on self-education expenses as of July 1 2022. Prior to this measure, the first $250 self-education expense could not be deducted. Amounts over this limit would be calculated in the total allowable deductions on an individual tax return. Self-education expenses can be: Final criteria to meet and choose […]
ATO: Under 18’s Employee Tax Rates
Under 18 year old individuals working as employees have special rules that apply to the income they earn. Certain income may be taxed at higher rates. If you are under 18 years old, some of your income may be taxed at a higher rate than an individual’s income tax rates for adults. However, you pay the same individual income […]
ATO: Meal allowance and deductions
Overtime meal expenses – for food and drink when working overtime. Overtime meal allowance can only be used where you receive an allowance to cover that expense. That allowance needs to appear on your PAYG Summary for the 2021–22 income year. The reasonable amount for overtime meal expenses is $32.50. The reasonable amounts only provide […]
ATO: don’t engage in asset wash sales
The Australian Taxation Office (ATO) is warning taxpayers, don’t engage in asset wash sales to falsely increase their losses and diminish gains or expected gains from investments. Wash sales are a form of tax avoidance, which is prohibited. Wash sales usually involve the disposal of assets such as shares and crypto just before the end […]
Top #10 Deductions for Tradesmen
Knowing the most common deductions that may be claimed in your industry is important. Below is a list of the top #10 deductions for Tradesmen / Construction workers to consider when preparing their tax return. When considering what can be claimed on your tax return, you will need to think in terms of connections. If you can […]