What is a capital gain?

A capital gain is the profit you have earned from the sale of an investment such as property or shares. In simple terms; the amount of the capital gain earned is calculated by deducting the cost of the investment from the sale proceeds you received. Conversely, a capital loss is incurred when the proceeds from the sale of the investment is less than what it originally cost you. If you…  Read more

Travelling to and from your investment property

From 1 July 2017, new rules came into effect that prevent taxpayers claiming a deduction for expenses they incur travelling to and from their residential investment property.   The Government restricted travel deductions to curb “widespread abuse around excessive travel expense claims relating to residential investment properties. This will stop residential property investors from using the tax system to pay for their holidays by claiming costs as a rental expense.”…  Read more

Transition From Sole Trader to a Family Trust

When starting your own business, the most cost effective and efficient structure to start this venture is usually the tried and true Sole Trader Structure. Personal ABN’s usually can get issued the same day as the application, you then register your preferred name with ASIC and bang you are in business before lunch! Whilst this structure, for the reasons mentioned, can be great to kick start your business, as you…  Read more

Got a HELP debt? The impending changes to speed up your repayments

The Government has moved to put an end to ‘eternal students’ who constantly study and never earn an income and speed up the payment cycle for those with outstanding debt. New lifetime caps on Higher Education Loan Program (HELP) debt will prevent people from constantly going to University without converting that study into a viable career. From 1 January 2019, new loan limits come into force: $150,000 – for students…  Read more

Working from home: What deductions can you claim?

  For a while now, the Australian Taxation Office (ATO) has been concerned about tax deductions individuals have been claiming for a whole host of expenses. The latest on their ‘hit list’ are home office expenses.  We guide you through what you can and can’t claim if you work from home. Last financial year, 6.7 million taxpayers claimed a record $7.9 billion in deductions for ‘other work-related expenses’ which includes…  Read more

190,000 taxpayers ‘examined’ in ATO online rental blitz

The Australian Taxation Office (ATO) has announced a new data-matching program targeting taxpayers earning income from the exploding popularity of short-term rentals available on platforms like AirBNB and Stayz.    Utilising information from online platform sharing sites matched to information from financial institutions, the ATO is targeting 190,000 individuals to make sure they have not failed to declare or under declared rental income or have overclaimed deductions. In effect, whatever…  Read more

Clothing deductions hung out to dry

The Australian Taxation Office is closely examining work-related clothing and laundry expense claims of taxpayers submitting their 2017-18 tax returns. The ATO says that clothing claims are up nearly 20% over the last five years with people either making mistakes or deliberately over-claiming. Common mistakes include people claiming ineligible clothing, claiming for something without having spent the money, and not being able to explain the basis for how the claim…  Read more

Rental property tips & tricks

Investing in property long term can be a great way to build your wealth. You would have heard of the stories of 20 something year-olds having 10+ properties and being millionaires. It may not happen that quickly for a lot of us, but if you can hold onto any asset for long enough, you will usually reap the rewards. Just take a look at the share market over the years,…  Read more

Tax time is looming…

No one wants to pay more tax than they need to or face unnecessary risks. We’ve compiled a list of our top tips for you. Donate – If you are going to donate to charity, now is the time. Any donations you make to deductible gift recipients can be deducted this year. Remember, if you received something in return for the money, like goods purchased at a charity auction, you…  Read more

Car expense claims on the ATO’s radar

This tax season the ATO will be keeping an eye on car expense claims. Whilst the ATO acknowledges that the rules can be confusing, its imperative to only claim for genuine travel. There are three golden rules that should be adhered to when making a claim for travel: only make a claim if you paid for the expenses yourself and you were not reimbursed. ensure the travel is directly related…  Read more

2018/19 FEDERAL BUDGET

Personal income tax changes Targeted tax relief to low and middle income earners The Government will introduce the Low and Middle Income Tax Offset, a non-refundable tax offset of up to $530 per annum to Australian resident low and middle income taxpayers. The offset will be available for the 2019, 2020, 2021 and 2022 income years and will be received as a lump sum on assessment after an individual lodges…  Read more

DOING NOTHING IS A HABIT

When most think about habits, they invariably think of habits as something they are engaging in unconsciously. While that is very true, what is also true, is that choosing not to do something you should be doing is also a habit. Doing nothing is also a habit – or a Do-Nothing Habit: Not reading to learn, is a habit. Not exercising every day, is a habit. Build Good Habits! Not…  Read more

Will your business be audited?

How the ATO identifies audit targets. The ATO is very upfront when it comes to their compliance activity. Every year they publish small business benchmarks that outline what a typical business ‘looks like’ in different industries. If your business falls outside of those benchmarks, the ATO is likely to take a closer look at why that is. Falling outside of the benchmarks might not indicate a tax related problem. It…  Read more

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