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Travel (remember that?) allowances refresher — and some common mistakes

The idea of making allowances to cover the cost of necessary travel by employees is not a new area of tax, but it had become significant — before the restrictions imposed by the pandemic. Businesses had been increasingly moving staff around to achieve expansion and build greater ties across greater distances, and one assumes (after

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Deriving rent and the small business CGT concessions

To access the small business CGT concessions, certain conditions must first be satisfied. One such condition is that the CGT asset satisfies the active asset test. Satisfying this test requires the asset to be an “active asset” of the taxpayer for the lesser of 7.5 years and half of the relevant ownership period. A CGT

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ATO to allow extended time for minimum yearly repayments on Div 7A loans

Many clients that are incorporated businesses may twitch a little whenever the term Division 7A is uttered within earshot — and not just those who may have attempted to make “tax-light” distributions. The fact is, in these COVID-19 times, that concerns about Div 7A applying are understandable. Some borrowers are facing circumstances beyond their control,

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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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