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Understanding novated leases, FBT and claims for work-related car expenses

Posted by Team AVS on 15 Dec, 2017  0 Comments

A novated lease is a popular way for employers to reward and incentivise their staff. Through a salary sacrifice arrangement that includes a novated lease, employees are provided with a vehicle and can also reduce their personal tax liability. However, employees should understand how fringe benefits tax (FBT) might apply to their arrangement and what they can do to minimise an FBT liability.


What is your “total superannuation balance” and why does it matter?

Posted by Team AVS on 7 Dec, 2017  0 Comments

Recent superannuation reforms introduced a concept of “total superannuation balance”, which on the surface may give the simple impression that it is the sum of the balances of a person’s superannuation interests. However, this is not the case
Broadly, the first three of the above will not be available to an individual if his or her total superannuation balance is greater than the new general transfer balance cap (set at $1.6 million for the 2017-18 financial year and indexed in $100,000 increments in line with the CPI).


Can salary sacrifice work for you?

Posted by Team AVS on 30 Nov, 2017  0 Comments

Salary sacrifice can be a great way to get a part of your remuneration in a form other than cash – and not personally pay tax on it.

Salary sacrifice (or salary packaging) is where you agree to take part of your wage as a benefit of some kind, equal in value to the salary it is exchanged for. The upside in you doing this is that your income tax is then based only on the reduced amount of salary that results.

If your employer agrees to go

Claiming business website development costs

Posted by Team AVS on 22 Nov, 2017  0 Comments

Most businesses have an online presence – whether to advertise their business or allow customers to purchase goods or services. Websites vary in costs and complexity – from a simple “skin” to a retail site that you may have engaged a web developer to design and set up.

It’s just as well then that the Tax Office has recently provided guidance on how you can go about claiming a deduction for your website development costs.


Hand in your own till? Beware Division 7A

Posted by Team AVS on 17 Nov, 2017  0 Comments

Business owners of private companies often borrow money from their own companies for all sorts of reasons. However, there is an area of the tax law that seeks to sanction against situations in which private companies dole out money to those within a business, in a form other than salary or dividends, that needs to be understood by business owners. This is known as Division 7A.


Tax treatment of foreign income earned by the Australian Residents

Posted by Team AVS on 7 Nov, 2017  0 Comments

Under Australia’s taxation regime, resident taxpayers are subject to income tax on both incomes derived in Australia and on foreign sourced income. As a general rule, where foreign income is derived by an Australian resident, the gross amount (including any foreign tax paid on the income) must be included as assessable income.


Understanding limited recourse borrowing arrangements

Posted by Team AVS on 30 Oct, 2017  0 Comments

A self-managed superannuation fund (SMSF), generally speaking, is not able to borrow to acquire assets. The rationale is that superannuation is meant to be a relatively conservative investment vehicle, and borrowing can put the fund at risk.

An example of this risk at work was seen during the global financial crisis (GFC) through margin lending schemes where people borrowed money to invest in shares.  When the GFC hit, people not only lost th

ATO can increase(or reduce) its penalties

Posted by Team AVS on 24 Oct, 2017  2 Comments

Any voluntary disclosure that is made by a taxpayer before being told that an audit is to be conducted will reduce the base penalty amount by 80% if the shortfall is greater than $1,000 or is a scheme shortfall amount or to nil if the shortfall is less than $1,000.

The taxpayer will generally be taken to have made an honest mistake unless there is information to indicate that the taxpayer did not make an honest mistake. The voluntary disclosure must be made in writing, be signed with the appropriate taxpayer or agent declaration and posted to the ATO.


Implications of Company Franking Credits

Posted by Team AVS on 16 Oct, 2017  0 Comments

The recent cut to the tax rate for incorporated businesses that turnover less than $50 million a year, while generally welcomed, can bring with it some important considerations when it comes to distributing franked dividends.

The rate change to 27.5% is to be staggered, starting with companies that turnover up to $10 million a year, with retrospective effect from July 1, 2016. It will then apply to companies turning over up to $25 million in 2

Claiming start-up costs for Immediate deductions

Posted by Team AVS on 11 Oct, 2017  0 Comments

Before July 1, 2015, relevant business capital expenditure, including start-up expenses, was deductible under the auspices of this five-year deduction entitlement housed under a section of the capital allowances rules. However, after that date, certain start-up expenses for businesses, including costs associated with raising capital, that would otherwise have been deductible over five years, can be immediately deductible. These include professional expenses associated with starting a new business, such as professional, legal and accounting advice


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