Posted in Tax
Posted by G. Dean McKinnon
on 8 March 2022
When you arrange a payment plan with the ATO you are charged interest rates which are likely much higher than the rate you can achieve in the market.
The ATO review their interest rate on a quarterly basis. The most recent quarterly update for April – June 2022 was recently published, increasing the General Interest Charge (GIC) rate to 7.07%.
The GIC is applied for late payment of taxes and other obligations, is compounded daily, and tax-deductible. However, an easy way a...
Posted by G. Dean McKinnon
on 2 March 2022
Many of us have had to work from home over the past couple years during the COVID 19 lockdowns, which means we generally have used our personal equipment to complete our work, but not all expenses incurred will be tax-deductible.
Fringe Benefit Tax (FBT) has very specific requirements for what business related expenses are tax deductible and those that are subject to FBT. Whilst FBT is payable by the employer, many employers will request their employees to reimburse them for any FBT pa...
Posted by G. Dean McKinnon
on 24 February 2022
The ATO recently issued a Taxpayer Alert regarding parents that benefit from a trust entitlement of their children over 18 years of age.
It has been common practice for families to distribute trust income to various family members that have different Marginal Tax Rate brackets. The income may be declared distributed in the trust account and individual tax returns of the parents and children but the "economic benefit" may only reside the parents (i.e. the income is declar...
Posted by G. Dean McKinnon
on 23 July 2021
The ATO, using their data-matching program, will now be able to obtain lifestyle asset data from insurance policies for the 2021 FY, 2022 FY, and 2023 FY.
The ATO will be comparing the value of certain lifestyle assets to your declared income and if you have a boat that is insured for $100,000 but your declared income for the last three years was $20,000, you may have a problem ...
The data-matching program will look for assets above a certain value, so if you have a $5000 dingy I would...
Posted by G. Dean McKinnon
on 11 November 2020
The federal government's JobMaker Hiring Credit stimulus package is to be available to eligible employers over 12 months from 7 October, 2020.
Employers can receive up to $10,400 per new employee that has been hired to fill a new position.
The key point to remember is that the position must be new, and is not applicable if the employer hires a new employee to fill an existing position in the business.
Eligible employees aged 16-29 years will receive $200 per week.
Eligible emplo...