Unless you are in the business of rental property investing, most residential rental property investors can no longer claim a deduction for travel costs incurred when inspecting, maintaining or collecting rent from rental properties. The new legislation was introduced from
CGT strategies for your holiday rental
Holiday rentals provide you with a home away from home to spend time with your loved ones and a steady source of income while renting it out. To ensure owning a holiday rental brings you the greatest dividends, keeping valid
ATO offers leniency to small business owners
Small business owners deal with many issues on a daily basis. Between managing staff, suppliers and customers, running a business can be quite stressful. Around 45 per cent of Australians aged 16-85 will experience a common mental health-related condition in
ATO targeting work-related expenses
The ATO is cracking down on individuals who are over-claiming work-related expenses. The Tax Office is reminding individuals that they can only claim a work-related deduction if: • they have spent the money themselves and were not reimbursed • it
Guide to Negative Gearing – changes from 1st July
Negative gearing is a common tax strategy used by property investors to offset the costs of owning a property against assessable income. The strategy is arguably one of the most generous tax breaks available to Australian property investors. It allows
ATO issues ruling on bad debts
The Australian Taxation Office (ATO) has issued a ruling that clarifies the circumstances in which a deduction for bad debts is allowable. Under section 63 of the Act, to obtain a bad debt deduction a debt must exist before
CGT exemptions for depreciating assets
The disposal of a depreciating asset may incur capital gains tax (CGT) if the asset has been used for a non-taxable purpose (i.e. private purposes). However, there are a number of CGT exemptions that may apply to a capital gain
ATO crackdown on trusts
The ATO is currently targeting contrived trust arrangements that minimise tax by creating artificial differences between the taxable net income and distributable income of closely held trusts. Arrangements where trustees are engineering a reduction in trust income to improperly gain
How do franking credits work?
Franking credits are a kind of tax credit that allows Australian companies to pass on the tax paid at company level to shareholders. Franking credits can reduce the income tax paid on dividends or potentially be received as a tax
ATO crackdown on work-related expenses
The ATO is currently targeting work-related expenses by taking a closer look at unusual deductions and claims that are higher than expected. The Tax Office will be looking for expense claims that are much higher than others who are in