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Monday Ramblings – No more “$1.6 million” transfer balance cap… now it is $1.7 million

Back on 1 July 2017 we all became experts on the $1.6 million transfer balance cap. The only amount that we could transfer into a tax free retirement phase was $1.6 million.  But now the Commissioner has just told us that the “superannuation general transfer balance cap” will increase from $1.6m to $1.7m on 1 […]

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Crazy Taxes #187

San Francisco voters overwhelmingly a new tax such that any company whose top executive earns 100 times more than their median worker will pay an extra 0.1% surcharge on its annual business tax payment. If a CEO makes 200 times more than the median employee, the surcharge increases to 0.2%; 300 times gets a 0.3% […]

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Monday Ramblings – Work related expense substantiation rules

I do like making life hard for people who ask me basic tax questions. When they ask me if they can claim a tax deduction for a work related expense, I like to say, “based on what I can see, you can’t claim the deduction.” I say that as to be technically correct, if they […]

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Monday Ramblings – The Commissioner is encouraging drinking…

Each year the Commissioner releases a tax determination that encourages drinking. This year it is TD 2021/1 titled “value of goods taken from stock for private use for the 2020-21 income year”. Back in 2004, the Commissioner released a Practice Statement on valuing goods taken from trading stock for private use by sole traders or […]

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There is no connection between these two at all

I am sure there is no connection between these two events at all… California is going to impose a 0.4% tax on residents with a worldwide net worth in excess of $30,000,000. The proposed tax applies to anyone spending as little as 60 days in California. Finally, it continues to apply for 10 years after […]

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Lucky we live in Australia & not the US…

Joe Biden is will become the 46th President next week. While many of his policies are vague, tax is not one of them. And with the Democrats having control of Congress it is likely all these changes will be made… Imagine having to advise your clients about these changes… The highest marginal tax rate (kicking […]

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The Treasury and the real world – Instant asset write-off stuff up

We all know that on budget night we got an instant asset write off – for most of our clients with aggregated turnovers under $50 million, new and second hand assets of any value can be immediately written off (between $50 million and $5 billion only can write off new assets). But we quickly realised […]

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Use tax to make people pay child support

In Australia (and the UK and most developed economies) when one party to a child support arrangement pays another party a child support payment, the payment is non-assessable/non-deductible. Effectively, the payer gets no tax deduction and the payee does not include it in their taxable income… But not everywhere… In the Solomon Islands Income Tax […]

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Tax nerd test…

What section of the ITAA97 did you think of when you saw the Death Star (or Star Killer Base) explode? Yes, I thought about exactly the same section…

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Monday Ramblings – Is the sun setting on salary packaging?

When the FBT Assessment Act was introduced in 1986 the salary packaging industry was born. Before this there was the “general” rule that the value of benefits had to be included in an employee’s taxable income, but as this “general” rule was so vague, it was hard to specifically advise on salary packaging with certainty. […]