We all get bombarded with information from every source possible and frankly, it's too much. Even if you haven't already flicked it into spam you probably don't have time to read it. We call it Information Overload. So, on this page we've selected big picture news items we think are relevant and of interest to our clients.
Even if a sole trader’s income is below the tax-free threshold, the ATO requires business clients to lodge a tax return each year. Recently the ATO issued a media release reminding tax agents and business clients of this obligation.
For 2016 and 2017 tax returns the ATO has just announced that “bucket companies” may very well be a small business and that there is lack of clarity around the recent budget changes to small business company tax rates.
There has been a LOT of debate over the years about whether active fund managers add value, or whether you are better off investing into a low-cost alternative such as an Index Fund or Exchange Traded Fund (ETF).
The reality is not as simple or clear cut as the marketing teams from each side make it out to be. You should be very careful about what you invest into and therefore make informed decisions. Caveat Emptor is a phrase that is more important now than it usually is. In this article, we’ll look to explore why this is the case.
Did you ever wonder what happens to social media accounts after someone dies? It is estimated that 8,000 Facebook account holders die each day and that the number of accounts belonging to dead people could be as high as 30 million.
Have you thought about your digital legacy when drawing up your will? Most people only deal with their material assets. What instructions should you leave behind for your executor or family in regards to your social media accounts?
Whilst the ATO publishes that the tax-free threshold is $18,200, income earners can actually earn more than this before they have to start paying tax.
The Low Income Tax Offset (LITO) is a $445 tax offset available to Australian residents who earn less than $37,000. This means that eligible taxpayers can earn up to $20,542 before they have to pay any tax.
The long-awaited housing affordability package commenced on 1 July 2017.
1. NSW has now scrapped stamp duty for first home buyers on existing and new homes up to $650,000.
2. There will also be stamp duty discounts for homes up to $800,000.
3. There also is a $10,000 grant for new homes up to $600,000.
The Government has announced that it will allow future voluntary contributions to superannuation made by first home buyers from 1 July 2017 to be withdrawn for a first home deposit, along with associated deemed earnings. Concessional contributions and earnings that are withdrawn will be taxed at marginal rates less a 30 per cent offset. Combined with the existing concessional tax treatment of contributions and earnings, this will provide an incentive that will enable first home buyers to build savings more quickly for a home deposit.
Recent changes to the corporate tax rate for certain smaller companies has resulted in the necessity to re-consider whether all companies are in fact carrying on a business.
The ATO has now stated that it is not possible to definitively state whether a particular company is carrying on a business.
There are a number of recent changes for those of Age Pension age or approaching retirement. From 1 July 2017, the age to be eligible for the Age Pension is changing.
Clients who were born on or after 1 July 1952 will need to be aged 65 years and six months before being eligible, and the Age Pension age will then go up by six months every two years until 1 July 2023, when the Age Pension eligibility age will be 67.
You’ve made it through the financial year and navigated the new superannuation laws that took effect on 1 July 2017 but there is one thing you should always think about and that’s your investment strategy. Additionally, there is no better time than right after a financial year ends where you can review your self-managed super fund’s (SMSF) investment strategy and its performance.