The low and middle income tax offset (LMITO) announced in the 2018–19 Federal Budget continues to be available for 2019–20. An offset is not a refund and can only reduce the amount of tax you need to pay. The amount of the offset you may be entitled to will vary depending on your individual circumstances, […]
If you receive a refund from the Services Australia income compliance program, you or your tax agent do not need to take any action for tax purposes. That is: you will not be taxed on this amount you should not include it in your tax return you do not have to submit […]
Changes to personal income tax thresholds announced by the Government during the Federal Budget have been incorporated into the withholding schedules and tax tables and will apply to payments made on and from 13 October 2020. As the changes to withholding are made part way through the income year, employers and other payers who are unable […]
Action prior to Midnight Income Delay receiving income until July 2020 given individuals are assessed on a cash basis. Defer crystallising foreign exchange gains until July 2020. Deductions Individual taxpayers could consider pre-paying deductible expenses (e.g. investment property mortgage interest, insurance, subscriptions) for up to twelve months. Consider bringing forward purchases of employment related depreciable […]
Actions Prior to Midnight Trustees must ensure that income distribution resolutions are made and documented, including any separate streaming of franked dividends and capital gains. Ensure any shareholder loan repayments required under loan agreements are made. Reviewing your debtors and writing off any unrecoverable debts. Review asset register and stock and consider: scrapping obsolete or […]
Salary Sacrifice Significant tax savings can be achieved via salary sacrificing additional superannuation contributions or by including fringe benefits within your salary package. Importantly, salary sacrificing arrangements must be put in place priorto the period of service to be effective from a taxation point of view. With the availability of “transition to retirement pensions” (also known […]
