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Capital works deductions for rental property

Rental property investors can claim capital works deductions for construction costs for a rental property, however there are limits imposed in relation to the dates such works were completed. The deductions are only available on residential properties if these were built after 17 July 1985. Generally, up to 15 September 1987 the rate is 4%

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Is your client eligible for the small business income tax offset?

The small business income tax offset (also known as the unincorporated small business tax discount) can reduce the tax a business pays by up to $1,000 each year. The offset is worked out on the proportion of tax payable on business income. To be eligible, a taxpayer must be carrying on a small business as

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Standardised deductions may sound good, but it’s not so simple

A recent proposal to allow taxpayers to claim a standard $3,000 deduction for work-related and other personal expenses may sound good in theory, but it is unlikely to drastically change the tax return preparation process or reduce tax compliance work, says Tax & Super Australia (TSA). Think tank the Blueprint Institute recently released a report

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JobKeeper, Cash Flow Boost denials revisited, reconsidered

Neville Birthisel In the wake of the taxpayer’s victory in the Full Federal Court JobKeeper case Commissioner of Taxation v Apted [2021] FCAFC 45, the ATO has issued a Decision Impact Statement and a Law Administration Practice Statement.  These set out its revised policy towards allowing a “later time” to hold and ABN (JobKeeper Rules s11(6)) or

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Daily updates: 3-7 May

7 May No more COVID-related “get out of jail” card from ATO regarding bad debts At the top of the ATO’s web page listing its “completed issues” so far for 2021, it has inserted a notice about the treatment of, and general guidance on, bad debts. The ATO says: “We have determined that it is

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Tax return lodgments: Are you going to miss the bus?

By John Jeffreys, Tax Counsel I am very aware that many of you will have great difficulty in meeting the 85% lodgment requirement of the ATO for tax returns for the year ended 30 June 2020. Many of you are saying that it is impossible to meet lodgment targets. With this being so obvious, why

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Briefing a barrister

By Paul Jeffreys, Barrister at the Victorian Bar When you’re faced with a complex or high-risk question in tax or super, briefing a barrister can provide you with the expertise and perspective to help you and your client move towards a solution with confidence. Barristers (who are also referred to as ‘counsel’) are independent specialists

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Daily updates: 26-30 April

30 April ATO’s monthly performance scorecard records a few misses The ATO publishes a performance report on its service commitment activities each month, and the latest shows a few areas where it could have done better. Up to 31 March, responding within timeframes to SG employee notification issues within four months rated well below expectations

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Daily updates: 19-23 April

23 April Newly registered tax practitioners encouraged to join the conversationThe ATO holds open forums on a regular basis, and is encouraging new practitioners to take part in the upcoming sessions. Attendees can ask questions and hear tips and tricks that will help advance their career. See a list of topics here, and scroll down for

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Change of menu for business registration, and director ID regime is the entrée

The Modernising Business Registers program is well and truly under way, with Australian Securities and Investments Commission (ASIC) Registry employees already sharing office space and coffee mug cupboards with ATO staff. The plan is to unify the Australian Business Register (ABR) and 31 separate business registers administered by ASIC onto a single platform. The rolling out

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