Authoritative and technically accurate information and guidance on all areas of tax

Expanding the empire (and retaining the CGT main residence exemption)

A question that surfaces now and then from clients in regard to capital gains is whether the main residence exemption extends to additional land acquired after the time of acquisition of the residence. The short answer is yes — provided that certain requirements are met (which in the main pertain to subsections 118-120 and 118-165

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ATO’s top 10 tips for rental property owners common tax mistakes

The ATO has issued a list of tips that should help rental property owners avoid what it has found are their 10 most common errors. It says that avoiding these common mistakes will save many taxpayers time and money. A downloadable PDF of this advice is available for you to distribute to clients (click here).

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Commissioner’s ‘remedial power’ flexed for first time

The Commissioner of Taxation has limited powers to modify the implementation of tax law in circumstances where taxpayers will benefit, or at least be no worse off, as a result of the modification. The first use of this power to modify the law (the Commissioner’s remedial power, or CRP) took effect on 17 October 2017.

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Business costs, and the deductibility of interest expenses

If a business racks up an interest bill from borrowing funds to pay for the expenses of running the business, or to acquire other income-producing assets or investments, this expense is generally allowed as a tax deduction for the relevant year. For business taxpayers under the accruals accounting method, a claim can be made for

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Novated leases and claiming car expenses

Consider the following scenario.Novated leases and claiming car expenses Susan is a senior executive at XYZ Pty Ltd (XYZ). She is occasionally required to travel to regional areas to perform her duties. Susan received a vehicle under a full novated lease as part of her total remuneration package. XYZ’s policy is that any FBT liability

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