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Same sex marriage for tax avoidance

Two heterosexual Irish men marry to avoid inheritance tax on property… Perhaps in Australia we could see two heterosexual same sex “mates” getting married just before the death of one of them to avoid tax payable on a super death benefit by becoming a dependent as they are a spouse of the deceased, even if […]

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FBT and exempt vehicles

Forget salary packaging a car… may tradies just don’t need to worry about FBT at all due to the type of car they drive. Exempt Vehicles Rules To be exempt from FBT, all of the following conditions are satisfied: the vehicle is a panel van, utility (ute) or other commercial vehicle (that is, one not designed principally […]

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Pick any ABN…

The federal government’s Black Economy Taskforce claims 40 per cent of ABNs quoted in the Northern Territory were the Bunnings ABN… You have to love the Northern Territory…

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Rental properties and electricity data matching

From the Commissioner… His newest weapon is the data-matching of utility records, like electricity and gas meters, against properties that are claimed to be unoccupied, to test if landlords are telling the truth. “There’s going to be a whole lot of new things,” he said. “So when people say their place wasn’t rented, well, we’ll […]

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The Worst Tax Cheats Are… Salary and Wage Earners by Far!

The Commissioner has started to release “Tax Gaps”. He says a “Tax Gap” is: The tax gap is an estimate of the difference between the amounts the ATO collects and what we would have collected if every taxpayer was fully compliant. Tax gaps exist in all countries to some extent. The gaps are driven by […]

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Capital Loss Rental Property Schedules

I keep getting asked by Tax Depreciation providers if they should do Capital Loss Rental Property Schedules. The answer is almost always no and this is why… Capital Loss Rules Some Tax Depreciation preparers have told me that they are going to provide full tax depreciation schedules for every client, even if they can’t claim […]

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The next idea to avoid Div 7A gets messy

From the ATO website… Lots of people have asked me for years if they can “fix” a UPE from a unit trust to a company that is subject to Div 7A by converting the UPE to an equity investment in the trust by having the UPE replaced with units in the unit trust. What do […]

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When does the new GST withholding on new residential property start…

I have already written about the changes to GST for property developers from 1 July 2018. But everyone is already asking me about the transitional rules. So here is the summary… First, the requirement for the purchaser to withhold 1/11th of the consideration and send it to the ATO directly applies in relation to supplies […]