Why your tax refund is lower this year
Listen to our Principal, Teddy Kosasih FCPA CA, explaining why your tax refund is lower this year.
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Listen to our Principal, Teddy Kosasih FCPA CA, explaining why your tax refund is lower this year.
Certain concessional contributions of a taxpayer whose income is in excess of the Division 293 threshold for the year (see table below) are taxed at 30%. This rate of tax includes the normal contributions tax of 15% paid by the receiving fund on concessional contributions plus an additional tax of 15% known as Division 293…
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Superannuation funds must meet the ‘sole purpose test'(s62 SIS Act) to be eligible for the tax concessions available to a complying superannuation fund. This means a superannuation fund needs to be maintained for the sole purpose of providing retirement benefits to its members, or to their dependants if a member dies before retirement. A superannuation…
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Negative gearing is the term given when interest paid on funds borrowed to finance the acquisition of an income-generating investment (eg a rental property, shares which generate dividends, or any other investment that generates assessable income) exceeds income received in the short-term, ie the investment produces a net tax loss for the year. There is…
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The past few years have been challenging for many small businesses with the COVID-19 pandemic and natural disasters having a significant impact on their businesses. With the announcement of tax penalty amnesty scheme in the May 2023-2024 federal budget, the Australian Taxation Office is encouraging small businesses which have overdue income tax returns, fringe benefit…
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ITAA97 Subdiv 118-B A dwelling that is owned by an individual and qualifies as their main residence throughout the period they own it is generally exempt from CGT. However, if the dwelling is also used for income earning activities or it has not always been the taxpayer’s home throughout the period they owned it, then…
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The Personal Service Income (PSI) rules are a set of ATO provisions designed to prevent persons who derive income from their personal services from “splitting” or “alienating” that income with other persons and therefore minimising the overall tax payable. If you cannot pass one of the tests within the PSI rules and do not have…
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Self-education includes courses undertaken at an educational institution (whether leading to a formal qualification or not), attendance at work-related seminars or conferences, self-paced learning and study tours (overseas or within Australia). For self-education expenses incurred before 1 July 2022, you generally can’t claim the first $250 of expenses. TR98/9 details the ATO’s views on the…
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A self-managed superannuation fund (SMSF) is a superannuation fund with no more than six members (increased from four members from 1 July 2021) that satisfies the requirements outlined in s17A SIS Act. The SMSF sector emerged on 8 October 1999 from the former ‘excluded superannuation funds’, following a government’s inquiry into the Australian financial services…
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