n An individual has been successful before the Victorian Civilnand Administrative Tribunal (VCAT) in seeking the principal place of residencenland tax exemption for his home located in Shoreham, Victoria, despite being an“world-traveller” whose wife lives overseas. n In 2003, the taxpayer was left the property in Shoreham in hisnmother’s will. After moving into the property, […]
ATO small business benchmarks updated
n The ATO hasnannounced the latest benchmarks for small businesses. Based on the data fromn2014 income tax returns and business activity statements, the benchmarks covernover 1.3 million small businesses. n ATO AssistantnCommissioner Matthew Bambrick said one of the great things about the benchmarksnwas that they gave a lot of small-business owners peace of mind. n […]
SMSF early voluntary disclosure service for contraventions
The ATO has introduced a new self managed super fund (SMSF) early engagement and voluntary disclosure service. Each year, an approved SMSF auditor must audit a fund. The auditor is required to report certain regulatory contraventions to the ATO using the auditor/actuary contravention report. The ATO encourages SMSF trustees to voluntarily disclose regulatory contraventions, which […]
New tax governance guide for SMSFs
The ATO has released a new tax governance guide that can be used by SMSFs. The ATO has worked with businesses to design a guide to help private groups with tax governance. The guide also provides practical guidance about the key elements of SMSF governance. When managing an SMSF, trustees need to apply a high […]
Property developer entitled to capital gain tax concession
A taxpayer has been successful before the Administrative Appeals Tribunal (AAT) in arguing that a commercial property it acquired, developed and later sold for a profit of some $40 million had been acquired as a capital asset to generate rental income, and not for the purpose of resale at a profit. The AAT reached this decision […]
Superannuation concessional contributions caps must be observed
n An individualntaxpayer has been unsuccessful before AAT in seeking to have excessnsuperannuation concessional contributions for the 2014 financial year ignored.nIn addition to having a full-time job, the individual also held a number ofncasual part-time jobs. To grow his retirement savings, he salary sacrificednsuper, but he did not check on his super balances. n In […]
Help the kids buy homes, but watch for land tax
n A taxpayer hasnbeen unsuccessful before the Queensland Civil and Administrative Tribunal in anland tax dispute in arguing that there was a “constructive trust” in relationnto three residential properties. The taxpayer, a father, had purchased thenproperties for each of his three adult children to live in. There werenagreements that the children would pay their parents […]
Fringe benefits tax
n • nThe rules for individuals claiming car expensendeductions have changed. As a result, if employers reimburse expenses relatingnto an employee’s use of their own car, only two methods are available forncalculating the taxable value of this fringe benefit (when employers apply then”otherwise deductible rule”). n • nA separate gross-up cap of $5,000 has beennintroduced for salary […]
Individuals
n • nFor the 2015–2016 income year, the generalntax-free threshold available to Australian resident taxpayers is $18,200. n • nAustralians who have student debts and arentravelling or living overseas will soon have the same repayment obligations asnpeople who are still living in Australia. n […]
Capital gains tax
n n n Taxpayers may consider crystallising any unrealised capitalngains and losses in order to improve their overall tax position for an incomenyear. For example, if the taxpayer anticipates a significant capital gain in annincome year, they may consider reducing the gain by crystallising a capitalnloss in the same income year. However, the Commissioner’s view […]
