The ATO allows certain taxpayers to claim a deduction for the cost of buying and cleaning occupation-specific clothing, items of protective wear and for certain unique, and usually distinctive, uniforms. To claim a deduction it is generally expected that you will be able to provide evidence that you purchased the clothing concerned, and will […]
By Benfletcher At some point in the life of your business, it will benefit you to move from being a sole trader to a company setup. Ben Fletcher explains what to consider before making the move. In my experience there are three main reasons a sole trader would move to a company structure for their […]
The obscure deductibility gem alluded to in this article’s headline is in fact true. It was about 1990 when the ATO was asked about the tax deductibility of interest on a loan a business may have taken out to repay a tax debt. Borrowed money to pay your business tax debt? It was the […]
By Dynamic Business The deadline for registering for the Research and Development Tax Incentive, which offsets some of the costs of eligible R&D activities, is Monday, 1 May, the Department of Industry, Innovation and Science has reminded businesses. “The deadline to apply for registration is 10 months after the end of a company’s income year,” […]
Parliament has finally passed most of the business tax relief package announced in the last Federal Budget, but with some amendments. The legislation, which has finally passed the Senate, brings into effect the following changes for small business: Progressive cuts to the company tax rate: The tax rate will be progressively reduced to 27.5% […]
Negative gearing is not isolated to property investment, although this is where many if not most Australian taxpayers will associate the mechanism. The fact is that the measure exists within the fundamentals of Australia’s tax system anyway — a deductibility of interest on borrowings made to undertake an investment. It is nothing more than […]
By: Max Newnham It is an unfortunate fact of life that too often business owners have a total aversion to paying income tax. This can lead to earning too much black money, that the owners hope to hide from the tax man, and also can result in tax deductions being maximised without considering whether the cost […]
Companies with a turnover of up to $50 million a year will receive a tax cut, applicable to this financial year, taking the rate down from 30% to 27.5%. Small business gets a step-up The tax cut will be staggered, with an immediate cut in 2016-17 for companies with an annual turnover up to […]
By James Harkness SMEs with revenues up to $50 million will have their tax rates cut after the Federal Government struck a deal with the Nick Xenophon Team (NXT) in the Senate on Friday. Under the deal, which will cost $5.2 billion over the next four years, the tax rate for businesses with turnovers up […]
By Jim Minifie and Cameron Chisholm, Grattan Institute In the drawn-out debate on the value of a company tax cut to our economy, there have been a number of claims: that the plan would cost $50 billion; that the cuts are just a handout to foreign investors; that there will be little benefit for many years; and […]
