As we approach the Christmas period, it is common for many Australian SMEs to provide Christmas parties and gifts to employees and clients, but many businesses make the mistake of thinking these costs are automatically tax-deductible. Christmas parties A Christmas party is considered ‘entertainment’ and in many cases is subject to fringe benefits tax (FBT). … Continued
A recent report by Rice Warner comprehensively evaluates the comparative costs of running a self-managed superannuation fund (SMSF) versus an Australian Prudential Regulation Authority fund (APRA). Firstly, let’s take a look at what each fund is and how they’re set up. A self-managed superannuation fund (SMSF) is a type of private super fund (a trust) … Continued
Are you aware of the adjustments to JobKeeper and how they affect you? As many of you are aware, the Government recently announced that JobKeeper payments will be extended until 28 March 2021, with payments being made over two separate extension periods. The extension periods are: Extension period 1, which covers the seven new JobKeeper … Continued
As anticipated, the Government has announced an extension to its two major stimulus programs; JobKeeper and JobSeeker, to ensure support is provided after 30 September when the programs were originally due to expire. The current extensions to the programs are as follows: JobKeeper Extension: JobKeeper has now been extended till 28 March 2021 – with … Continued
Are you one of more than 800,000 Australians who have opted to defer repaying your home loan due to the COVID-19 pandemic? The deadline to resume mortgage payments is fast approaching. Your lender may have contacted you to ask if you are able to recommence paying your loan at the end of the six-month deferral … Continued
It has been a tough year for most small business owners with many of you forced to shut doors due to COVID-19. As restrictions ease and we adjust to current conditions, you may be wondering what trade looks like for your business on the other side of this calamity? Under the new Small Business Recovery … Continued
You may have heard about the new Government HomeBuilder Stimulus package and be wondering if you could benefit? HomeBuilder provides eligible owner-occupiers (including first home buyers) with a grant of $25,000 to build a new home or substantially renovate an existing home. HomeBuilder will assist the residential construction market by encouraging the commencement of new … Continued
The Government has announced a second round of stimulus that is significantly larger than what was proposed two weeks ago, to assist businesses through the economic shocks of COVID-19. The measures currently in place are as follows: Boosting Cash Flow for Employers This stimulus measure has been enhanced with eligible businesses now able to receive … Continued
One of the most common mistakes made by property investors when completing their annual tax return is confusing repairs, maintenance and improvements. It’s important to understand and distinguish each deduction in order to correctly lodge your claim and maximise your tax refund. According to the Australian Taxation Office (ATO), repairs are considered work completed to … Continued
Partial year depreciation deductions can boost your cashflow. If you haven’t owned your investment property for a full year you can still claim depreciation deductions this tax time. Investors can claim pro-rata depreciation deductions for the period their property is rented out or is genuinely available for rent. That is, the property is given broad … Continued
Shared assets in strata title lucrative for investors A strata title is used when individuals own part of a property usually called a ‘lot’. This is generally an apartment, unit or townhouse complex which shares ownership of common property including driveways, foyers and gardens. The ownerships are combined through a legal entity called the owners … Continued
What is depreciation? As a building gets older and items within it wear out, they depreciate in value. The Australian Taxation Office (ATO) allows property investors to claim a deduction relating to the building and fixtures it contains. Depreciation can be claimed by any owner of an income producing property. This deduction essentially reduces the … Continued
There are a number of factors that determine the cost of an insurance policy. A cheap life insurance or income protection insurance policy doesn’t necessarily mean it’s an inferior one, and by the same token, the most expensive policy may not be the best to suit your needs. The price of an insurance policy is … Continued
Often when starting out in a business, the simplest and cheapest structure to use is either an individual (i.e. sole trader) or partnership. The cost to setup these structures are low, and with the expectation of low revenue in the initial years, it can also be the most tax effective. For a little more money, … Continued
All employees want to minimise their tax payable. Who wouldn’t? A major assumption is that claiming deductions on most receipts means minimising the tax payable – but you need to ensure you are following the ATO guidelines. The ATO states that in claiming deductions, individuals need to ensure they claim only what is related to their profession. With increasing … Continued
The 7 Mortgage Types There’s a lot more to loans than interest rates and fees. A low rate is important, but it is not everything. There are different types of loans and features that will make managing your mortgage easier. As your mortgage broker, we take the time to teach and advise you on the fundamentals so you can make an informed … Continued
Saving for a deposit? Most lenders require a minimum deposit of 10-20% of the total loan amount. You’ll also need to cover the cost of Lenders’ Mortgage Insurance (LMI) if your loan amount is more than 80% of the value of the property. So ideally, you should start with a 20% deposit to avoid paying LMI. What … Continued
Finding Your Dream Home Once you know what you can afford, you can get a much better idea of what type of home you can buy and where you can live. When it comes to the type of property and location, many first home buyers find they need to compromise in some way. A free-standing … Continued
Looking at buying your first home? With regularly moving interest rates and new products, taking out a loan with a bank may see you lost in an ever-changing market. If you’re looking to purchase your first home, you may also be considering your first home loan; this may seem daunting at first, but it doesn’t need to be. With … Continued
What is Critical Illness cover? Critical Illness cover provides a lump sum payment if you’re diagnosed with a life-changing or terminal disease. It is then up to you to choose how you use this payment – to cover medical expenses, the cost of being unable to work, or to pay your household bills. Why is … Continued
Depreciation can be a rather complex area with specific rules, qualifying dates, depreciation rates, methods for claiming and pre-determined effective lives of assets. As such, claiming depreciation deductions can be a confusing task for many property investors. For this reason, it’s imperative that investors get a depreciation specialist to prepare their tax depreciation schedule. This … Continued
Covered at every age Do you still have the same haircut you had when you were in school? Is your breakfast choice based on which cereal box has the coolest mascots on it? Are you still wearing your high school jumper to the gym? If your answer to any of these questions was a horrified … Continued
Are you ready for the PAYG Payment Summary Report Deadline? At the end of each financial year you will need to lodge PAYG Payment Summary Report with the Australian Taxation Office (ATO). This report should be sent to the employee by 14th July and lodged with the ATO by 14th August. Time is flying so … Continued
When it comes to protecting your family, knowledge is not just power – it’s security. You have a choice when it comes to paying premiums: stepped or level. But what does that mean and which one is right for you? There is no one-size-fits-all answer as both policies will be suitable for different types of … Continued