Category: Uncategorized
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A few easy questions about a 30% tax rate for super funds with more than $3,000,000 in assets
From 2025‑26, the tax rate applied to earnings for superannuation balances above $3 million will be 30%. UPDATE – GOVERNMENT CLARIFIES TO THE 30% IS AN EXTRA TAX AFTER YEAR END ONLY ON EARNINGS ABOVE $3 MILLION I assume this means that a super fund in accumulation phase that has a total superannuation balance at…
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Super tax increases does not fix the budget…
The Gratton Institute has done the leg work for us and it shows that you cannot fix the Federal Budget by taxing super. Their proposals are far reaching… but hardly raise enough revenue each year to cover just the increase, not the actual cost, in spending programs like the NDIS. Idea 1: removing tax concessions…
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Payroll tax for medical centres
I hang out with lots of doctors and right now they are all talking about payroll tax. Last year a NSW case found a medical centre had to pay payroll tax on its contracted GPS. This was followed up by a ruling by the Queensland Treasury saying the same (Although the Queensland government is now…
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General non-arm’s length expense rules for superannuation funds
In a 2020 Practical Compliance Guidance the Commissioner indicated that a 45% tax rate could apply to all the income of a super fund – making a super fund useless from a tax perspective – if there were “non-arm’s length expenses of a general nature”. These are expenses linked to all income of the fund.…
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Alienation of professional firm profits
The 2022/23 year is the first year that the Commissioner’s guidelines on the risk of Part IVA (the general anti-avoidance rule) applying to us alienating professional firm profits to lower tax entities applies – but to be honest we probably have a couple more years (see section 2.1 of the paper below). So in case…
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Trust distributions the Commissioner does not like – 100A
Now that the Commissioner has released his final ruling and guideline on when he will look to apply section 100A, it is about time we looked at what he has to say.
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Self education deductions and expensive MBA programmes
Below is an extract from this paper that covers this often overlooked issue… There were 11 private ruling requests in 2022 regarding whether a taxpayer could claim self-education deductions for undertaking an MBA, and that was a low year (by Jan 12 of 2023 there were already 2 for 2023). The reason for there being…
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Apportioning the flight costs where you travel for work and you add on a holiday
Below is an extract from this paper that covers this often overlooked issue… There are obviously circumstances where apportionment of the costs of self-education is required. One of the most common examples of this is the attendance at a work-related conference or seminar where there are both income-earning purposes and for private purposes. But when…
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Employee or contractor
The Commissioner has released a draft Practical Compliance Guideline that states that (in summary – more details in section 3.2 of this paper) if your clients gets advice from you about whether a worker is an employee or contractor, the client informs the work of the outcome and what it means for them in relation…
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“Working from home” and “home is a business” deductions
With the new 67 cents per hour rate from 1 July 2022, and some changes, including not covering depreciable assets and not requiring a dedicated work area, I thought I would write a paper on working from home v your home being a place of business.
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