Category: Uncategorized
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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…
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What company tax rate should I use?
What Company Tax Rate should I use? 27.5% or 30%? What imputation rate should I use? 27.5% or 30%? Here are my thoughts (and sorry it took me 9 pages to answer the questions)… Company Tax Rates and Imputation
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Paper on changes to Div 40 depreciation deductions and rental properties
AIQS Nov Tax Depreciation Update This is a paper I wrote to help people work out when they can claim Division 40 depreciation deductions on a rental property. Given that the opposition has agreed to pass the Bill in the Senate I have written it as if it is law so I don’t need to…
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Property developers get a GST slap…
The Government announced back in the 2017-18 Budget that from 1 July 2018, purchasers of new residential premises or new residential subdivisions would pay the GST on the purchase price directly to the ATO as part of the settlement. This was to stop developers using the GST to fund the next development, rather than paying…
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What a waste of time…
I know the ATO is famous for wasting others time but what about when they waste their own time… Today (18 October) the ATO released a draft Taxation Ruling (TR 2017/D7) titled “Income tax: when does a company carry on a business within the meaning of section 23AA of the Income Tax Rates Act 1986?”…
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Not more on rental property depreciation!
Sorry but I keep getting asked about the grandfathering provisions in the Treasury Laws Amendment (Housing Tax Integrity) Bill 2017 that relate to claiming Division 40 depreciation on assets in rental properties. So this is the link I can just send to those asking me this question. The Bill states this… 13 Application of amendments (1)…
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What is a Taxi?
Lets start with a definition… According to dictionary.com… contradiction kɒntrəˈdɪkʃ(ə)n noun a combination of statements, ideas, or features which are opposed to one another. When considering the exemption from FBT for certain taxi travel under section 58Z of the FBTAA86, the Commissioner states: The exemption is limited to travel in a vehicle licensed by the…
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Who gets the 27.5% Company tax rate?
You would think this is an easy question to ask… But it is not. The rules seem pretty easy. They are: A corporate tax entity carries on a business in the income year; The aggregated turnover of the corporate tax entity for the income year is less than: for the 2016-17 income year — $10…
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Einstien on Income Tax
Albert Einstien used a tax agent called Leo Mattersdorf. He told the following story a few years after Einstein’s death in 1955… One year while I was at his Princeton home preparing his return, Mrs Einstein, who was then still living, asked me to stay for lunch. During the course of the meal, the professor…
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Tax Depreciation Bill in Parliament
The Bill to limit tax depreciation for residential buildings has started its process through the Parliament. I have discussed these changes before, firstly when they were announced on Budget night, and second when draft legislation was released for consultation. But now we have the Bill in Parliament and in the next few weeks the Parliament will…
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