Income Tax Planning Stuff Tax Policy

UPEs and Division 7A…

Another discussion paper on how to solve the problem of UPEs and Division 7A has been released… And it is very very interesting. This discussion paper is by the Board of Taxation. And they suggest that a UPE to a corporate beneficiary should be excluded from Division 7A. But if you want a trust that […]

Income Tax

Increased tax rate starts now

Remember that from 1 July 2014 the Medicare Levy goes to 2% (from 1.5%) so the marginal tax rates all go up. And remember we are doing this to afford the NDIS… Raising $3.3 billion a year to “afford” a $9-14 billion a year program… Thanks greatest Treasurer in the world… But you don’t have […]

Legislation Tax Policy

Why worry about what is important when you can focus on the irrelevant?

Late last year the government indicated it was not going to continue with more than 60 “announced but unenacted” tax and super measures. But it is hard to keep people (and especially tax lobbyists) happy. Even while they applauded this announcement they started to scream… “But what if taxpayers have acted on these announced changes.” […]

GST Rulings

Luxury Cars and Hire Purchases

We now have a final ruling that is exactly like the draft – LCTD 2014/1 – so have a read about the draft

Funny Stuff

Tax avoidance history…

In 1660 there was a tax on fireplaces in England. So everyone covered up their fireplaces and the tax was repealed in 1689. In 1696 there was a tax on the number of window a house had in England. So houses had less windows and the tax was repealed in 1851 (people argued less windows […]

GST Income Tax Legislation Super Tax Policy

Clearing the Tax and Super Decks

Apart from the changes in the Mining Tax and Carbon Tax repeal bills (small business instant asset write off, carry back losses…), and the promise to remove the means testing of the private health insurance offset, the government only has a series of promises to do certain things the previous government announced. There are 37 […]

FBT Income Tax Part IVA Planning Idea Planning Stuff

Employee Benefit Trusts And “Deep Throat”

Many years ago I received a call from a very junior ABC journalist (her career has very much blossomed since the and she is now a household name). We met in a meeting room where I worked an she provided me with two private rulings – both about employee benefit trusts. The first was a […]

Income Tax Planning Idea Planning Stuff

The purpose of Dividend Access Shares

I have been asked for as long as I have been working in tax about dividend access shares. I have lots of profits in company but the shares are owned by high taxed individuals. Sell the shares? But there is a whopping huge uncrystalised capital gains on the shares so this does not work. So […]