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24.01.2022 Vacant home tax begins 1 Jan 2018 in Victoria The Victorian State Revenue Office has stated that vacant residential land tax will apply from 1 January 2018. It is different to land tax, the absentee owner surcharge and the federal annual vacancy charge. It will apply to homes in inner and middle Melbourne that were vacant for more than six months in the preceding calendar year (1 January to 31 December). The six-month period need not be continuous. The new tax is calculated a...s 1% of the capital improved value (CIV) of taxable land. The CIV of a property is the value of land and buildings as determined by the general valuation process. It is displayed on the owners council rates notice. http://www.iknow.cch.com.au//vacant-home-tax-begins-1-jan-

24.01.2022 #TAXPLANNING The second strategy of reducing tax or deferring tax payment is related to withholding tax on interest, dividends and royalties Any interest, dividends and royalties received by a non-resident in Australia are not put to tax as per the normal assessment procedure rather they are taxed on the basis of flat rate withholding tax. Such rule is applicable in case of only those interests and dividend incomes where there are important exemptions for interest paid on ove...rseas debentures. The general anti-avoidance provisions are applicable in relation to withholding tax and withholding tax is payable where the payment of interest, dividends or royalties is done to a non-resident through a tax-exempt entity. See more

24.01.2022 ATO has published range of documents, helping people understand what they can and cant claim. Look at the list for IT Professionals. Not sure about something, call us on 0432 120 120

23.01.2022 ANZ predicts 2 interest rate rises next year https://propertyupdate.com.au/rba-to-raise-interest-rates-/

23.01.2022 https://taxbanter.com.au/foreign-resident-capital-gains-wi/

23.01.2022 #TAXPLANNING Increasing deductions for individuals The impact of increased #deductions for individuals depends on the type of assessable income earned by them.... Any deduction against salary income has the impact of reducing the tax and the size of tax reduction will depend upon the marginal tax rate of an individual. Any deduction against non-salary income has the impact of reducing tax liability for current year and PAYG instalment rate for the next income year. The employed individual gets less deduction as compared to deductions available against self-employed income. Few of deductions available for employed persons (i) An employee has the right to claim deduction for expenses incurring by him in earning assessable income provided the expense is not of private and capital nature. (ii) An employee is entitled to claim deduction for superannuation contributions provided the employment income is less than 10% of the total income. (iii) Interest paid on borrowings used for the purpose of earning assessable income can be claimed as deduction.

22.01.2022 INDIVIDUAL TAX RETURN CHECKLIST! It's important to be prepared with some items of information which will help you maximize your tax refund or reduce your tax liability. To ensure this we have prepared a Tax return checklist for you. Refer to the image below. Reading through this list may even help jog your memory about some work-related expenses or other tax-deductible items that you may otherwise have overlooked. Hope this helps. We want to make the tax return experience as convenient & smooth as possible.

22.01.2022 SCAM ALERT Be on the lookout for this new tax refund review scam email. It asks you to review a previous refund by clicking a malicious link. Dont clic...k the link! Itll take you to a fake online form designed to steal your personal info. Forward the email to us at [email protected] Delete the email and dont respond to the sender. Warn your friends and family to beware of this scam, and head to our scam alerts page for more details: ato.gov.au/scamalerts

20.01.2022 #TAXPLANNING (In continuation) 5th Method is to increase deductions and offsets The taxable income is the difference between the assessable incomes and allowable deductions. The increase in #allowabledeductions reduces and taxable income and hence reduces the tax liability.... Practically most of the taxpayers fail to take the advantage of deductions because of their unawareness or absence of records required to avail the benefit of deductions. Take for example in case of claiming deduction for work related use of motor vehicles, the maintenance of records is essential. Taxpayers will be benefited by availing #deductions through incurring related expenditure in the current year, rather than in subsequent years. It is beneficial in a case where the tax rates in current year are higher than the tax rate in next years. The capital expenditures are not deductible under ITAA97, but they also help in reducing the tax liability as the amortization or depreciation of such assets used is claimed as deduction.

19.01.2022 #TAXPLANNING (in continuation) The third strategy available with taxpayers to reduce the assessable income is to select the best CGT option for calculating gain Individuals, complying superannuation entities and trusts have a choice as to the computation of #capitalgain on the disposal of assets. The choice relates to indexation option or the discounted option. The taxpayer can select the method which provides maximum benefit to it. The benefit is in terms of reduced tax liab...ility. For example in case individuals and trusts, the capital gain is computed on assets acquired after 11.45 am on 21st September 1999 by applying the #discountingmethod. If the CGT asset was acquired before 11.45 am on 21st September 1999, the individual has the option to apply either #indexationmethod or discounting method. In case of complying superannuation entities, it has to pay tax on two third of the gain on the sale of capital assets acquired after 11.45 am on 21st September 1999 without any indexation. If the CGT asset is purchased before11.45 am on 21 September 1999 the superannuation entity has the option to include in its assessable income: two-thirds of the capital gain calculated without any indexation of the cost base, or the whole of the capital gain calculated with the indexed cost base frozen from 30 September 1999. (Strategies to be continued)

19.01.2022 How to make property investment profitable? Tax #allowances or deductions help us to make property investment profitable and claiming #depreciation on the #propertyinvestment is one of the best ways. Depreciation is the decline in the value of investment property over a period of time. There are two ways to claim depreciation (i) Capital works deduction: The construction cost of the property can be claimed as deduction by spreading it over a period of 40 years. For instance, ...if the construction cost is $400000, the deduction of $10000 can be claimed for 40 years. (ii) Depreciating asset: The assets which have limited life and which decline in value with usage are depreciated over a period of its life. For instance, the light fittings, furniture, carpets etc. The list of such assets and their effective life has been prescribed by ATO. There are two methods to claim depreciation #Primecost method: Under this method the amount of depreciation allowed as tax allowance is same for each year of assets life. #DiminishingValue method: Under this method, the amount of depreciation charged in initial years of assets life is greater than the amount of depreciation charged in later years. See more

18.01.2022 Instant asset write -off has 3 effective thresholds for FY 2019. Equipment should be purchased and installed ready to be used for a business to claim write-off.

18.01.2022 GST Margin Scheme - A scheme through which you can reduce your #GST liability on the sale of property GST #marginscheme is a way of computing GST on the property sold as a part of business. The GST is generally computed on the sale proceeds of the property and it is taken as one tenth of the total proceeds. But under margin scheme, the GST is not computed upon total sales proceeds rather it is computed upon margin of sales. Margin of sales represents the difference between th...e sale price of property and its purchase price. For the margin scheme to be applicable, any of the following conditions must be satisfied. (i) The property must have been purchased before 1st July 2000 or (ii) If it was purchased after 1st July 2000, the property was purchased from the seller under the margin scheme if the seller of property was registered for GST Or It must have been acquired free of GST See more

17.01.2022 INDIVIDUAL TAX RETURN CHECKLIST! Its important to be prepared with some items of information which will help you maximize your tax refund or reduce your tax liability. To ensure this we have prepared a Tax return checklist for you. Refer to the image below. Reading through this list may even help jog your memory about some work-related expenses or other tax-deductible items that you may otherwise have overlooked. Hope this helps. We want to make the tax return experience as convenient & smooth as possible.

16.01.2022 Are you ready for 2019 Tax season? Bookings are now open via our new booking system: https://www.bookitlive.net/sap_tax_melbourne. Please click on this link to choose a suitable day, time & location to see Amit to discuss your taxation needs & lodge your Tax Returns. If you are time poor & prefer to lodge your returns remotely, simply email us & we will get in touch to process it over the phone. You can reach us on 0432 120 120 or email us on [email protected]. ... Also, we now have a new location in Mulgrave, along with Sandhurst, Frankston & Melbourne CBD. Please book it accordingly through below book it live link. Speak soon! See more

14.01.2022 #Taxplanning ( In continuation) Increasing deductions for businesses : It is the another way of reducing #taxliability in case of business income. Business tax payers can reduce their tax liability by increasing the deductions for businesses. Few of deductions are explained as below:... (i) Borrowing expenses: The interest paid on borrowings used for working capital of a business is allowed as deduction provided the borrowings have been applied for income generation purpose. (ii) Superannuation: The contribution made by an employer in respect of complying superannuation fund for the eligible employees is allowed as deduction and FBT exempt. But if the contribution made by an employer is in respect of non-complying superannuation fund then it will not be allowed as deduction and will be subject to FBT also. (iii) Bad debts: The bad debts are allowed as deduction in the period in which they are written off. In case of commercial debt forgiveness measures, the amount of the deduction may be reduced as it may be deemed to be dividend. (iv) Capital allowances: The capital allowance or depreciation is allowed as deduction provided the income generating operations have started. Such allowance is available to the asset holder only. (v) Blackhole expenditure: The business is allowed to claim deduction for the capital expenditure if such expenditure is in connection with current, former or a proposed business and is not allowed as deduction under any other section. The time period over which such expenditures are written over is generally five years. (vi) Trading stock: In case of businesses which are involved in buying and selling of goods, are allowed as deduction for the devaluation of their trading stock. (vii) Incentive deductions: Various incentive deductions are provided to the businesses for certain expenses like research and development expenditure, environmental protection expenditure etc. See more

13.01.2022 CGT and main residence exemption the 2017 Federal Budget measure to deny foreign and temporary tax residents access to the CGT main residence exemption will be amended to allow temporary tax residents who are Australian tax residents to still have access to the exemption.

13.01.2022 Social security rates increase take effect from 20th Sep 2017. The maximum age pension payment is $894.40 per fortnight for singles and $674.20 per fortnight each for couples. These rates include the pension supplement ($50 each) and the energy supplement ($10.60 each). http://www.iknow.cch.com.au//social-security-benefit-incre

13.01.2022 Keeping consistency with last years budget, the $20,000 instant asset write-off will be extended again for small businesses. A business with an aggregated turnover less than $10m is eligible to immediately write-off an asset costing under $20,000 if installed and ready for use by 30 June 2019. Clients can now disregard any potential cash flow issues with purchasing a new asset as the large immediate write-off was due to end at 30 June 2018. Subsequently, any small business pool which goes under $20,000 as at 1 July 2018 may be entitled to a full write-off next year.

11.01.2022 Deductions you may be able to claim for your work-related expenses at tax time

07.01.2022 #TAXPLANNING . Reduce rate of tax/defer payment of tax The first strategy to reduce the rate of tax or defer payment of tax is to take advantage of tax offsets and other benefits... Tax offsets are deducted from the tax payable computed upon the taxable income. If the amount of any tax offsets is greater than the tax payable, the excess is wasted as it cannot be carried forward to next years. Franking credits The receipt of franking credits has impact upon the tax liability of individuals, whether franked dividends are received directly or through trusts or partnerships. The following points should be considered to maximize the benefits of franking credits for the taxpayers Rebatable recipients may offset the balance of those credits against tax payable on their other income and are entitled to refunds of any remaining excess. Franking credits are of less benefit to non-residents than to residents Benefits to associates of private companies that are deemed to be dividends may not be franked. Foreign income tax offsets A taxpayer should structure their affairs in a way that the benefits of foreign income tax offsets are used in the same year as the taxpayers cannot carry forward them. Concessions for personal superannuation contributions Some low income employees are entitled to concessions in the personal superannuation contributions as well as on contributions made on behalf of a low income or non-working spouse.

07.01.2022 Various tax concessions available to small business

07.01.2022 Cryptocurrency is not a personal use asset if it is acquired, kept or used: as an investment in a profit-making scheme in the course of carrying on a business.... Only capital gains you make from personal use assets acquired for less than $10,000 are disregarded for CGT purposes. However, all capital losses you make on personal use assets are disregarded. https://www.ato.gov.au//Tax-treatment-of-crypto-currenci/

07.01.2022 Were proud to present our workshop on simplifying your accounting to save you time and money. Tag someone that hates doing their books.

06.01.2022 #TAXPLANNING. (In continuation) The fourth strategy available with the taxpayer to reduce the assessable income is to avoid deriving assessable amounts as taxpayers are not assessed on amounts that are not derived. Some of the ways to avoid deriving assessable income are given as below: 1. Diversion of income... It can happen by giving the asset concerned to someone who is able to realize it without suffering any tax liability or to divert income to another taxpayer. Some of the methods which can be applied to divert income are Transfer of the right to receive income Channeling of an individuals income into a business structure like company, partnership, trust etc. to facilitate income splitting and access to business deductions Transfer of income-producing assets 2. Change of accounting basis Under certain circumstances, a change of accounting basis from accrual to cash or from cash to accrual basis may lead to amounts received to be treated as not having been derived for income tax purposes. (The approval for change in accounting basis should be received from Commissioner) 3. Salary packaging and salary sacrifice arrangements Salary packaging can also yield tax benefits to employee. Take for example, an employee can enter into an effective SSA with employer under which the employee sacrifices a part of salary in return for the employer making superannuation contributions (or providing other fringe benefits) of an equivalent value for the employees. (To be continued)

06.01.2022 Remember there are 3 Golden rules to claiming your Tax deductions: 1. You must have spent the money, 2. it must be related to your job & 3. you must have a record to prove it.... ATO has simplified record-keeping for your next years Tax return. Download an "ATO App https://www.ato.gov.au//Online-serv/ATO-app/myDeductions/" to keep track of your work-related expenses for next years Tax return. For further information call us on 0432 120 120

05.01.2022 Do you avail the benefits of #exemptions, #deductions and #allowances to reduce your tax liability. If not, start availing it and minimize the tax in lawful manner so that you have to pay less tax to the government. Tax Planning: One can reduce its tax liability through proper #taxplanning. Tax planning allows a taxpayer to avail the maximum benefits of deductions, allowances and exemptions provided under the act. One of such allowances relates to capital gain exemptions or ...allowances. Therefore one of the methods of tax planning is to Derive capital, not income. The benefit of an asset or right can be treated as either capital receipt or revenue receipt. The receipt should be preferred to be treated as capital receipt rather than revenue receipt to reduce the tax liability. The careful analysis and identification of receipts is very important as the capital receipts attach less or no tax liability in many situations. The difference between the #ordinaryreceipt and #capitalreceipt becomes more important when the assets are acquired before 20th September 1985 as such assets are exempt from the CGT. Main points of consideration (i) If the asset being sold is a pre- GT asset, its proceeds should be treated as capital receipt as it will not be assessable. (ii) If the residential house or small business assets are being sold again its proceeds should be treated as capital receipt as it will not be assessable. (iii) In case of non-exempt assets or post CGT assets also, the sales proceeds should be preferred to be treated as capital receipts as the benefits of discounting the capital gains can be availed by individuals, complying superannuation entities and trusts. (iv) Small businesses can also avail CGT concessions which will reduce their tax liability. (v) The receipts should be preferred to be treated as capital receipt rather than the income to avail the benefits of adjustment of capital losses of current year or previous years available for such adjustment.

04.01.2022 #TAXPLANNING. Benefits of averaging can be availed by certain category of persons to reduce their tax liability. The benefits of averaging system are available for authors, artists, composers, inventors, performers, production associates and sportspersons. Under this scheme, the tax is computed by applying the following steps: 1. Division of total assessable income into professional income and other income.... 2. Division of total taxable income into taxable professional income and other taxable income 3. Computation of taxpayers average taxable professional income. 4. Dividing the taxpayers total taxable income into above-average special professional income and normal taxable income. 5. Computation of tax payable on the normal taxable income using ordinary individual rates 6. Computation of tax payable on the normal taxable income plus one-fifth of the sum of the above-average special professional income using ordinary individual rates. 7.Differentiate between the amount calculated in step 6 and 5. It is the amount of tax payable on the above-average special professional income. 8. Add the tax payable on the above-average special professional income (step 7) to the tax payable on the normal taxable income (step 5) to give the total tax payable. See more

04.01.2022 #TaxDeductions for Gifts or donations 2017 You can claim #deduction for the #giftsordonations you make as per the following provisions (i) voluntary gifts of $2 or more made to an approved organisation... (ii) a net contribution of more than $150 to an approved organisation for a fund-raising event (see Special circumstances and glossary 2017 for further conditions) (iii) contributions of $2 or more to - a registered political party - an independent candidate in an election for parliament - an individual who was an independent member of parliament during 2016-17 or in limited circumstances had been an independent member https://www.ato.gov.au//Deduct/D9-Gifts-or-donations-2017/

03.01.2022 Claiming deductions for vacant land If you bought a block of land to build a rental property on, you may be entitled to claim a tax deduction. If you are able to show that youve taken active and genuine steps to build a rental property and make it available for rent as soon as its completed, then you can claim a deduction for expenses such as loan interest, council rates, and other ongoing costs. Sometimes delays occur, and where these are beyond your control, you could st...ill be entitled to a tax deduction. The best approach is to keep records of all steps youve taken and document any delays. Lets look at some examples of active and genuine steps, as well as delays beyond your control. Examples of taking active and genuine steps include seeking finance for the construction from a financial institution or disposing of other investments to fund the construction; engaging with builders to understand the construction process and obtain building cost estimates; engaging with architects to design a suitable house plan; researching council development plans or possible covenants over the property; meeting with local real estate agents to work out expected rental returns. Examples of delays beyond your control include disputes in the approval process with local council or neighbours; your builder going into liquidation; the property being impacted by a natural disaster. There are some delays that are unacceptable. These include holding the land to generate capital growth, even if you think you might build on it in the future, or because there has been a downturn in the real estate market; or choosing not to build until you can afford the house you want. When you decide to sell the land or your intention to build a property to rent changes, you must stop claiming deductions immediately. If you choose to sell the property, then you might need to pay capital gains tax. So be sure to keep records of any expenses incurred, including those youve already claimed deductions for. Source:ato.gov.au See more

03.01.2022 #TaxPlanning: Strategies Strategy Number 2: Maximizing the cost base of an asset The capital gain tax liability in case of assets acquired after 19th September 1985 can be reduced if the cost base of an assets can be maximized. ... The cost base of an asset can be increased by making a simple change in the proposed structure of the transaction subject to the commercial consideration. Take for example; the cost base of a company can be maximized by a taxpayer who proposes to fund a company, by subscribing to its share capital instead of giving it money in the form of loans. It will result into favorable tax consequences See more

02.01.2022 Pics from yesterdays presentation by Amit Aggarwal @ SAP Tax Accountants on advanced strategies for structuring your Investments along with significant Tax updates with respect to Property, presented to our sophisticated Investors, builders & developers. When it comes to investing in properties, make sure you have expert support & guidance for building the tax strategies that will help you put cash back into your hands. Good luck! #propertytax #tax #taxtime #investments #accounting #propertydevelopers #builders