In recent years there has been much debate about the effectiveness and fairness of Australia’s current rules for taxing discretionary trusts. These trusts are very popular and are widely used for holding investments, conducting businesses and succession planning. However, a recent ATO-commissioned study that highlights several problems with trust taxation rules, together with changes proposed…

If you are an employee and you sometimes work from home, you may be able to claim deductions for some of the expenses you incur, provided you are not reimbursed by your employer. Here, we consider two common types of expenses that employees may claim and how you must substantiate your deductions. Running expenses such…

Renting out your holiday home for part of the year can help to finance the costs associated with purchasing and maintaining the property. As well as providing an income stream, this will also allow you to deduct some of the expenses such as interest payments on a loan you have taken out to buy the…

The government is simplifying the Division 7A rules that govern deemed dividends, proposing a new 10-year loan model for compliant loans to start 1 July 2019. Significantly, companies with existing loans would be forced to transition to the new model, which also includes a considerably higher benchmark interest rate. Division 7A is a long-standing tax…

In an effort to assist women experiencing family and domestic violence, the government has proposed to extend the ability to access early release superannuation based on feedback from the wider community. Currently, the early release of superannuation can only be provided in limited circumstances such as terminal illness and severe financial hardship. It is hoped…

Labor may implement tax policies of negative gearing restrictions, reduction of the CGT discount, and ending excess dividend imputation if it wins government next year. If you hold any investments you may be subject to Labor’s negative gearing restrictions which would likely be limited to newly-constructed housing. The restrictions would apply on a global basis….

With the next Federal election inevitably occurring sometime next year (possibly in May), it might be a wise time to examine the tax policies that Labor is likely to introduce if it wins the election. If elected, Labor will likely legislate a cap in relation to deductions for the use of accountants. Little detail has…

Being a director of a company comes with many responsibilities, this could soon increase with a government proposal to introduce a “director identification number” (DIN), a unique identifier for each person who consents to being a director. The DIN will permanently be associated with a particular individual even if the directorship with a particular company…

The sharing economy has become a big disrupter in the Australian market. It seems like everyone is getting in on the action of making a little extra money on the side whether it be renting out a spare room, driving for a ride sharing service, or even sharing their cars. It is no surprise then…

Departure Prohibition Orders (DPOs) have long been used as a tool by the government as a way to stop those who owe debts from leaving the country before they pay their debts, even if they are just going on a holiday. It has been used successfully for more than a decade in the enforcement of…

© 2015 MARK BABBAGE | MADE FOR FUN!

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