If you run a “bucket company” as a beneficiary of a family trust you will be interested to hear that a new Bill has been introduced in Parliament that will exclude companies that fail a “passive income test” from the lower corporate tax rate of 27.5 per cent.
Specifically, new laws commencing on 1 July 2019 will prevent an employer from claiming a deduction for payments to employees such as salary, wages, commissions and bonuses.
Are you a business that has had a GST refund held up as a part of the ATO’s risk assessment program to verify GST refunds? The Inspector-General of Taxation (IGT) has recently completed and released his review into ATO’s practice and the findings are surprisingly good for the ATO. Even so, as a part of the review, the IGT made several recommendations to improve the process which the ATO has mostly agreed to.
It's been a little over a year since the dual changes of the pension transfer balance cap and the reduction of tax concessions for transition to retirement pensions were implemented by the government. Recent research has indicated that these changes has achieved their policy outcome by making almost 25% of previously tax-free SMSF assets lose their status and become taxable.
It might seem like a horror movie cliché, a monster that follows you wherever you go, but did you know that your higher education debts under the Higher Education Loan program (HELP), Trade Support Loan (TSL) or the Higher Education Contribution Scheme (HECS) debts follow you wherever you go in the world?
Sustainability of tax revenue is key to any government's fiscal sustainability, that is, the ability to meet both current and future financial obligations (including debt servicing obligations) without major policy adjustment.
The ATO is reminding ride-sharing drivers of the importance of complying with the tax laws. Assistant Commissioner, Tom Wheeler, said the ATO is, "still working to educate ride-sourcing drivers, but now focus is shifting to drivers who are ignoring their obligations."
Have you looked at your trust deed recently? If you have a trust, chances are it was set up by your accountant or solicitor, and you didn't have to do too much of the legwork. Look closely at your deed and you'll notice that it will specify a date on which the interests in the trust vest and contain a clause which specifies the consequences of that date being reached.
An amount paid by your employer to cover expenses such as accommodation, food, or drinks while you travel for business is typically know as a travel allowance. There is also another type of allowance, called the living-away-from-home allowance (LAFHA), which compensates you for additional expenses when you are required to live away from home due to work duties. So what is the difference between the two?
Taxpayers who can't pay their tax by the due date should consider whether to request a payment arrangement with the ATO.
Key small business tax concessions introduced in 2015 include a company tax rate cut for small business entities and a tax discount for entities that are not incorporated.
The tax benefits available from salary sacrificing into superannuation are largely determined by the difference between the individual's marginal tax rate and tax treatment of the contributions in the superannuation fund's hands.