Author: Ken Mansell

Most Division 7A loans are repaid without a single bank transaction. They are typically made by way of set-off against a dividend declared by the company. But what are the requirements we need to follow to make these set offs legal?  Some people say that we do a journal that creates a dividend that equals […]

In WYPF and Commissioner of Taxation (Taxation) [2021] AATA 3050 a developer in the ACT paid $14,000,000 (‘Monetary Consideration’) for the land to the ACT Land Development Authority, and also carried out certain works described as ‘Preparatory Works’ of $29,700,648.39 and other works described as ‘Building Works’ of $77,034,265.61.  The taxpayer wanted to include all these […]

Subsection 109D(3) gives the definition of what is a loan for the purposes of Division 7A. It has some pretty obvious definitions (“an advance of money” and “a payment of an amount … if there is an express or implied obligation to repay the amount”) and even has the wonderfully circular definition of “a transaction (whatever […]

Finally we have a Bill that proposes to remove the $250 non-deductible threshold for work-related self-education expenses. The $250 non-deductible threshold for self-education was introduced way back 1975 alongside a concessional tax rebate for expenditure on self-education. When the concessional rebate was repealed in 1985 the forgot to repeal the $250 non-deductible threshold. So 36 […]

Under JobKeeper, employees were paid $750 a week from their employee, but as taxable salary. Under its replacement, the so called “COVID-19 Disaster Payment”, employees who are in hot spot areas and who lose more than 20 hours a week get $750 a week paid to them by Services Australia (yes they have to apply […]

Yesterday I was reminded of my slackness in posting so here we go… Expenses for living at a location are usually not deductible. However, expenses incurred on accommodation and food and drink are usually deductible, or otherwise deductible, where an employee is working away from home for short periods of time. In these situations, an […]

I have avoided writing about the NSW (and any other Hotspot zone) disaster payments that people can apply for through MyGov if they lose more than 8 hours work a week. This is for the employees to get directly from Services Australia, and not from the employer, so I did not want to get into […]

Like in the lead up to the 2007 election, where Kevin Rudd promised (almost) exactly the same tax policy as had been announced 2 days before by Howard & Costello, Albo is going to take tax out of the debate for the upcoming election… Labor in government will uphold the legislated changes to personal income […]

While it is still unclear as you can’t apply till 26 July, we have a bit more information on the NSW “JobSaver” program – NSW government’s JobKeeper equivalent. The will be fortnightly payments of 40% of weekly payroll, with a minimum payment of $1,500 per week and a maximum payment of $10,000 per week (or $1,000 […]

The NSW government is giving one off grants to businesses, and one of the eligibility criteria is a letter from an accountant… aka you! Three different grant amounts will be available depending on the decline in turnover experienced over a minimum 2-week period from 26 June 2021 to 26 July 2021, compared to the same […]