Hot Issues
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Vaccination rates as they happen around the world
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Approaching the dawn
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Videos and other resources for our clients
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Key dates for the second JobKeeper extension period
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80¢ per hour work-from-home deduction method extended
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2020 is coming to an end. Phew!!
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Victorian State Budget Overview 2020 - 2021
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Employee Christmas Parties and Gifts – Any FBT?
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FBT – Christmas Parties and Taxi Fares
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JobMaker hiring credit given green light despite ongoing concerns
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Part 1 – Budget reminders. Under the Hood.
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Part 2 – Budget reminders. Under the Hood.
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Part 3 – Budget reminders. Under the Hood.
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Comprehensive list of COVID-19 initiatives and packages.
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Businesses not meeting obligations warned as ATO restarts compliance programs
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Budget 2020 - A very comprehensive break down.
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Budget 2020 - Fact Sheets
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Budget 2020 - At a Glance, Overview, Outlook
Article archive
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Quarter 4 October - December 2020
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Quarter 3 July - September 2020
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Quarter 4 October - December 2019
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Quarter 4 October - December 2018
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Quarter 1 January - March 2018
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Quarter 4 October - December 2017
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Quarter 1 January - March 2017
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Quarter 4 October - December 2016
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Quarter 3 July - September 2016
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Quarter 2 April - June 2016
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Quarter 1 January - March 2016
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Quarter 4 October - December 2015
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Quarter 3 July - September 2015
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Quarter 2 April - June 2015
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Quarter 1 January - March 2015
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Quarter 4 October - December 2014
Year End Tax Deductions – “equipment”

As retailers promote heavily for taxpayers to buy before year end, are their advertisements real or imaginary?

       

If a retailer promotes a TV for a 40% discount at $2,500 with the slogan “eligible taxpayers will get a tax deduction”, is that real and should I be tempted?

If you have just begun working from home instead of the work office, as an employee you should ask “can I claim the $2,500?”

Short answer - No.

Home office work related expenses rules will allow depreciation of the non-private portion if there is a connection with employment.  A reasonable question would be – why do you need a $2500 TV screen compared to a $150 screen or a notebook?  Whilst the quantum is not the test, it goes to the credibility of the connection with employment.

If you can make the connection, the depreciation claim may be 20% of the cost for the remaining days to the end of the year.   At a marginal tax rate of 30% the benefit is minor. 

The justification for buying any equipment should firstly be economic, with tax benefit secondary

An alternate question may be – “why can’t I benefit from the instant asset write off that is constantly reported and advertised?

This relates to small business entities who probably don’t care about a tax deduction right now – they only care about staying in business.  For most small business, tax deductions can help but the economic benefit of any expenditure is the first rule.

 

 

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