deductions

An impressive array of work deductibility guidance

One of the most useful elements of the recently finalised taxation ruling TR 2020/1 can be found in its “not legally binding” section, specifically “Appendix 1 – further guidance”. This section sets out supporting guidance that covers specific occupations and common situations for the principles outlined in the ruling itself. This ruling therefore provides both

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Insurance cover through your SMSF can be tax deductible

  Buying insurance within an SMSF can give access to deductible expenses that would otherwise not be available, as some insurance premiums, such as for life insurance (which typically cannot be claimed as deductions by individuals for income tax purposes) may be available as tax deductions for the SMSF. The same concession applies for any

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Share and trust interest assets of certain businesses may lose CGT concessions

  Changes made to the CGT small business concessions through the measures contained in Treasury Laws Amendment (Tax Integrity and Other Measures) Bill 2018 represent a marked departure from the previous rules for determining if a capital gain from shares or trust interests qualified for the concessions. These changes generally accord with the aim of

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Is the deduction substantiation threshold an ‘80s anachronism?

  Every tax time, the ATO is in the habit of pointing out the most common mistakes or misconceptions that regularly come to its attention — see its Tax myths busted! here. Generally leaving out some item of income is high up on the ATO’s list of taxpayer errors, as is trying to claim deductions

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Travel allowances (and retaining the exception to substantiate)

A travel allowance is a payment made to employees to cover accommodation, food, drink or incidental expenses they incur when they travel away from their home overnight or longer in the course of their duties. In most circumstances, when claiming other deductions, your clients will be expected to be able to substantiate the expense being

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A quick guide to tradie tax time deductions

For tradies, doing business comes with daily costs. A quick guide to tradie tax time deductions Here are some tradie tax time deductions and expense claims you can make this year. Don’t pay any more tax than you have to this financial year. Your tools, uniform, equipment and vehicle all incur deductible costs.   For

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Be aware of your clients’ “fingers crossed” expense claims

The ATO has found that certain “higher risk” expenses are typically incorrectly claimed by taxpayers time and again. If your clients persist in suggesting the following expense claims, it will pay to go over the details to make sure the claim is not knocked back. Travel between home and work Travel between home and work

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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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