Hot Issues
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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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Employers cautioned over ‘hard and fast’ decline in turnover eligibility
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‘Follow the spirt of the law’, warns ATO
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$120m in JobKeeper clawed back by ATO, new compliance areas highlighted
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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
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Temporary home office expenses shortcut extended again
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JobKeeper extension – changes implemented
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JobKeeper Participants – are “workers”
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Commissioner registers updated JobKeeper alternative tests
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Varying Pay As You Go (PAYG) Instalments
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Reminder of Medicare Levy Surcharge (MLS)
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September update of latest COVID-19 initiatives.
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ATO JobKeeper 2.0 guidance surfaces
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Expats Return to Australia – Travel Expenses
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Profession to be relied on for post-JobKeeper turnover certificates
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Update of Superannuation contribution rules from July 1, 2020
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Expats & COVID-19 Impacts on tax residency
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Economic recovery could be slower than anticipated: RBA
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High Court rules in favour of employers on personal leave accruals
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JobKeeper Phase 2 - Latest Update
Article archive
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Quarter 3 July - September 2020
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Quarter 2 April - June 2020
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Quarter 1 January - March 2020
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Quarter 4 October - December 2019
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Quarter 3 July - September 2019
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Quarter 2 April - June 2019
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Quarter 1 January - March 2019
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Quarter 4 October - December 2018
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Quarter 3 July - September 2018
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Quarter 2 April - June 2018
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Quarter 1 January - March 2018
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Quarter 4 October - December 2017
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Quarter 3 July - September 2017
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Quarter 2 April - June 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
Quarter 2 of, 2015 archive
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SMSFs may be missing out on allowable deductions
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Change to Early Access Rules
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Capital Gains Tax – which year?
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Checklist for Employers Year-end
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Year-end Tax Planning – Small Business
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Year-end Tax Planning – Trusts
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Reminders and Tax Strategies for SMSFs pre-year end
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Year-end Tax Planning – Individuals
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Overtime Payments May Eliminate Claims for Unfair Dismissal
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Tips and traps for acquiring SMSF assets from related parties
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ACCC issues scam warning
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SME Dispute Resolution
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Land Tax – Victoria
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R&D incentives at risk
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ATO adds ‘hot issue’ to its SMSF target list
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Additional Super Contributions Not Appropriate for all
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Issues arising from an underpaid pension
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Salary and Superannuation after the death of an employee
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IPA calls for zero pc tax rate
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Budget 2015 - some professional opinions
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Australian Government - Budget 2015
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Looming end to SMSF Borrowings?
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ATO warns SMSFs on franking credits scheme
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Lump Sum Payments - Employer Reporting
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Small business tax cuts 'not enough', says IPA
Part 1 – Budget reminders. Under the Hood.

 

The 2020 Federal Budget was one of the most far reaching and complex ever brought in.  This is the first of three articles to remind us of important topics the budget addressed. 

 

       

Exempting granny flat arrangements from CGT

Whilst there has been Centrelink encouragement for granny flats, the capital Gains Tax issues have prevented wider acceptance.  That may change now.

The law will be amended to provide a targeted CGT exemption for granny flat arrangements.

The CGT exemption will apply to arrangements with older Australians or those with a disability, where there is a formal written agreement in relation to the granny flat.

The new exemption is proposed to apply from the first income year after the date of Royal Asset of the enabling legislation.  This should mean the 2021 financial year.

The change will only apply to agreements that are entered into because of family relationships or other personal ties and will not apply to commercial rental arrangements.

 


 

Temporary Full Expensing of Eligible Capital Assets

Most businesses are now able to claim full deductions for depreciating assets.

Businesses with aggregated annual turnover of less than $5 billion will be able to deduct the full cost of eligible capital assets in the year they are first used.

Full expensing in the year of first use will apply to:-

  • New depreciating assets
  • The cost of improvements to existing eligible assets
  • For small and medium businesses (aggregated turnover of less than $50 million) – second-hand assets

Applies to eligible capital assets acquired after 7.30pm on 6 October 2020 and first used or installed by 30 June 2022.

In an extension to the previous rules, eligible businesses that acquire eligible new or second-hand assets under the $150,000 instant asset write-off by 31 December 2020 will have an extra six months, until 30 June 2021, to first use or install those assets.

Whilst the acquisition date is important, the asset must also be in use or ready for use.

 


 

Victoria’s business support and other State grants to be tax neutral

The Victorian Government’s business support grants for small and medium businesses, as announced on 13 September 2020, will become non-assessable, non-exempt (NANE) income for tax purposes.

The Federal Government will extend this arrangement to similar grants by all States and Territories on an application basis.

NANE income treatment is only available for grants announced on or after 13 September 2020 and paid between 13 September 2020 and 30 June 2021.

On 13 September 2020, the Premier of Victoria announced a $3 billion Business Resilience Package to help Victorian businesses impacted by the ongoing COVID-19 business restrictions and to prepare for ‘COVID Normal’ business.

The package includes grants of $10,000, $15,000 or $20,000 for eligible businesses in targeted sectors, depending on the size of annual payroll, in a third round of Business Support Fund.

State based grants without this legislation, are considered to be assessable income for income tax purposes  There is no immediate benefit, but this change will mean no 2021 income tax becomes payable.

 

 

 

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