The CGT implications of subdividing and building on the family property

Dianne KennedyAccounting and Tax, Asset Protection, Blog, Tax

Given the state of the property market in Australia these days, a not-uncommon situation can arise where a residential property owner seeks to demolish and subdivide the block containing the family home and build residential units. If you have the available land of course, the above is a solid strategy. However it can cause headaches from a tax perspective — … Read More

Simplified depreciation and the small business pool

Dianne KennedyAccounting, Accounting and Tax, Blog, Expenses and Claims, Tax

The simplified depreciation rules are attractive for small businesses as they allow an immediate write-off for assets costing less than $20,000. In contrast, tax paying entities that do not qualify as a small business must use the general depreciation rules (also known as the uniform capital allowance rules), where assets costing more than $100 need to be depreciated over their … Read More

Getting deductions for clothing and laundry expenses right

Dianne KennedyAccounting and Tax, Blog, Expenses and Claims

The ATO allows certain taxpayers to claim a deduction for the cost of buying and cleaning occupation-specific clothing, items of protective wear and for certain unique, and usually distinctive, uniforms. To claim a deduction it is generally expected that you will be able to provide evidence that you purchased the clothing concerned, and will have diary records or other evidence … Read More

Gumtree or Facebook group sourced assets, and the realities of making a claim

Dianne KennedyAccounting and Tax, Blog, Expenses and Claims, Tax

A recent case before the Administrative Appeals Tribunal (AAT) brought into focus a growing phenomenon that you should keep in mind for work-related or business expense deduction claims, especially where the acquisition of claimable assets is made in a certain way. The engineer and his “invoice” The case involved a taxpayer’s attempt to make a claim for the cost of … Read More

Tax and the sharing economy

Dianne KennedyAccounting and Tax, Blog, Tax

The concept of a “sharing economy” has been around for long enough now to have had a very real impact on how we transact.  Think Uber, think Airbnb. By now, most people will have realised that the “sharing” part of the concept does not refer to an absence of any monetary exchange, but rather to the use and access of … Read More

New small business CGT rollover relief

Dianne KennedyAccounting and Tax, Tax

Small businesses will be able to change their legal structure without triggering a capital gains tax (CGT) liability at that time based on legislation just passed. Eventual disposal of course is another matter. The measure is designed to provide greater flexibility for small businesses to change as the business changes. Small Business and Assistant Treasurer Kelly O’Dwyer said: “Small business owners who find they … Read More

Best Tips for the Small Business Pool Write Off

Dianne KennedyAccounting and Tax, Blog, Strategic Planning

The temporary $20,000 immediate write-off for “small business entities” attracts regular queries, even though it has been many months since the initiative was first announced with the Federal Budget early this year. While most inquiries relate to claiming the immediate deduction, there has also been confusion about the rules in claiming general small business pool balances that are below $20,000 … Read More

3 Tips to Beat Bracket Creep

Dianne KennedyAccounting and Tax, Blog, Tax

3 tips to beat bracket creep

The government has said it is looking for ways to combat bracket creep – like making smaller brackets or adjusting them for inflation – but in the meantime, here’s how it affects the average working taxpayer. Jackie earned $179,000 a year (excluding super) during 2014-15. She sat in the $80,001 to $180,000 tax bracket, so her income in that bracket … Read More

5 Tips for a Tax-Free Christmas Work Party

Dianne KennedyAccounting and Tax, Blog

  Christmas will be here before we know it, and it is likely that better organised employers will already be thinking about their yuletide preparations. While you should feel free to pop a champagne cork or three for your employees, make sure that you don’t get the tax hangover; particularly with fringe benefit tax and associated income tax and GST … Read More

How Taxes Work for the Sharing Economy in Australia

Dianne KennedyAccounting and Tax, Blog

Australia Sharing Economy Tax for Uber and Airbnb

Have you ever let a room on the popular accommodation site Airbnb? Ever shared a ride with pseudo taxi service Uber? If you participate in what’s now called the “sharing economy”, you may have some tax to pay. The Tax Office says the sharing economy is a new way of “connecting buyers (‘users’) with sellers (‘providers’) for economic activity”. That … Read More