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Concessional Contribution Cap to $27,500

We knew it was coming due to RBA rates, but finally the Commissioner has indexed the Contribution caps for super… And the three year rolling contributions goes to $330,000 on 1 July 2021 as well.

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Monday Rambling (its Easter so I am early) – GST, the Margin Scheme & Property development in the ACT

The Commissioner has ended the 10 year discussion on how the margin scheme works for major developments in the ACT. Many developers have received large GST refund in the past but these won’t be happening going forward. However, while the Commissioner states his new Determination, GST Determination GSTD 2021/1, is retrospective he states that  developers with […]

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Worth an argument??? Maybe not…

In the case Cross and Tax Practitioners Board [2021] AATA 441, the Commissioner wrote to the Tax Practitioner Board, saying that a tax agent had lodged 125 SMSF annual reports, each saying the fund had been audited by a specific auditor on a certain date, when no such audit had occurred. The best part is […]

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Monday Ramblings – Personal Service Businesses and Part IVA

In addition to the Commissioner’s new draft guideline on Allocation of professional firm profits that I have “blogged” on before, he has also released a Draft Taxation Ruling covering the operation of the personal services income. It is in Draft Taxation Ruling TR 2021/D2 Income tax: personal services income and personal services businesses He had previous […]

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Monday Ramblings – Debt Forgiveness again – but with UPEs

Last week I wrote about claiming a capital loss for forgiving a debt. The follow up question is always about an unpaid present entitlement.  As the beneficiary has included the UPE in their assessable income it seems like the conditions for a bad debt deduction under section 25-35 have been met. But the Commissioner has […]

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Penalised for being ethical – JobKeeper voluntary repayments

The Commissioner has just thrown a spanner at the brilliant marketing people who think every business should repay their JobKeeper payment as their businesses continued to thrive… Even if you give it back, the Commissioner will tax you on it and may not give you a deduction. Let that sink in. You get $100k in […]

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Monday Ramblings – Can I get a CGT loss when I forgive a debt?

I know this is the second question I get asked – the first is can I get a revenue deduction which is “NO… COME ON MAN!” unless you are a money lender (section 8-1) or the debt has been treated as income and this is a bad debt (section 25-35) – but this is the […]

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Monday Ramblings – Rental Property Tax Depreciation Schedules and second hand assets

Since 1 July 2017, there have been specific rules for deductions for decline in value of certain second-hand depreciating assets in a residential rental property under Division 40 (section 40-27).  These rules sates that if a taxpayer uses these second hand assets to produce rental income from residential rental property (not a commercial property), they […]

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Allocation of professional firm profits – Important new guideline

Finally the Commissioner answered the question of how much of the profits of a professional firm that we can allocate to entities other than the owner of the firm. Background In 2015 the Commissioner released a document called “Assessing the risk: allocation of profits within professional firms guidelines”. This allowed us to send 50% of the […]

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Monday Ramblings… What is the Imputation Rate?

To work out the Company Tax Rate we need to know the aggregated turnover for the entire year and the base rate passive income for the entire year – See a rambling of mine a month a go called “Sunday Ramblings – Company Tax Rates are Messy”… However, Companies can pay franked dividends to their […]