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SMSFs with 5 or 6 members

And the third Bill passed today (but still to be approved by the Government majority in the House of Reps, so pretty much a formality) increases the number of members of a self managed superannuation fund from ‘fewer than 5 members’ (meaning 4 or less members) to ‘no more than 6 members’ (now can have […]

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Change to Super Choice starts in 13 days

In another Bill passed by the Parliament today (still has to go back to the House of Reps to approve amendments but this is pretty much a formality), the rules regarding default funds in choice of super has been changed for any employee starting employment on or after 1 July 2021… so any new employees […]

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13 days for 66 and 67 year olds to make $300k super contribution

Today a change passed through the Parliament (still has to go back to the House of Reps to approve amendments but this is pretty much a formality) that allows individuals aged 65 and 66 who were not previously able to access the bring forward non-concessional contributions cap due to their age may do so, starting […]

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It was just that way Commissioner

In the case of VNBM and Commissioner of Taxation [2021] AATA 1626 the directors of a company made the following payments… So why would the directors (spouses with the husband being an accountant and tax agent) decided to pay such a large salary in the March 2020 quarter? Have a look at the PAYGW for […]

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Only a surgeon…

On 12 February I told you about the surgeon who did not lodge tax return for years and ended up owing $1.2 million in taxes. As a reminder, he argued the tax debt should be forgiven as if he had to pay the $1.2 million, he would suffer the following “serious hardships”: He could no […]

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A win for the NZ teams

If you support NZ sporting teams playing in Australia, and you are not a rugby fan, it has been a long time since you have been on top. But now these NZ teams playing in Australian comps can boast that they won in the best way… not on the pitch or court, but in the […]

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Monday Ramblings – Cheapest way to reward employees

I am always getting asked about bonuses, and generally it is around the timing idea of declaring the bonuses before 30 June so the employer gets the deduction in year 1, but paying the bonus after 30 June so the employee has to pay tax in year 2. Yes, you can do this… But I […]

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Monday Ramblings – Fringe benefits tax and car parking fringe benefits

Since 1996, the place to go to work out if an employer has to pay FBT on car spaces it owns or leases has been Taxation Ruling TR 96/26, titled “Fringe benefits tax: car parking fringe benefits”. Note: reimbursing someone who has used a third party car park is not a car parking fringe benefit […]

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Late Monday Rambling – A Budget

What do we have in this year’s Federal Budget for all our tax and super practitioners? First, we have the announcements that we are keeping what we already have for a bit longer… Retaining the low and middle income tax offset for the 2021-22 income year  The Government will retain the $1,080 low and middle […]

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Claiming internet and phone costs – finally a case

I have been waiting for a case like this for some time. In Spencer and Commissioner of Taxation [2021] AATA 1106, the taxpayer claimed all his home internet and all his phone costs (including buying the phone). His employer had given him a work phone and a tablet with a SIM card so he could […]