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What is a loan for Division 7A

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 […]

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$250 self education deduction reduction going

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 When the concessional rebate was repealed in 1985 the forgot to repeal the $250 non-deductible threshold.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 […]

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The COVID Disaster Payment is better than JobKeeper

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 […]

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Am I travelling or am I living away from home

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 […]

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Updated NSW COVID disaster payments

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 […]

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No “Tax Policy” election

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 […]

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JobSaver in NSW

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 […]

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NSW 2021 COVID-19 Business Grants

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 […]

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Did they just announce another JobKeeper?

Is the question I was asked today. So let’s look at what they announced today for NSW employees and employers. First they increased the COVID-19 Disaster Payment that employees, or anyone can claim through Services Australia. But this I not a “JobKeeper” as the employee approaches Services Australia and proves they are down to their last […]

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Pay your Div 7A minimum yearly repayments one year later due to COVID-19…

The Commissioner has acknowledged that, as a result of the COVID-19 situation, shareholders who have taken loans from a company may be unable to pay the required minimum yearly repayment required under Division 7A. To help in this situation the Commissioner has indicated he will allow an extension of the repayment period for those borrowers […]