The dwelling in which you live will be exempt from CGT if you own it. The term dwelling includes a flat, home unit, caravan, houseboat or other mobile home and includes the land on which it is built up to a maximum of 2 ha. If your spouse is living permanently separate and apart from you, you would each be entitled to ...

In a new episode of the Tax Office/Myer float saga, the Federal Court granted orders for the Tax Office to serve a demand for $739 million on an Australian Director after the Tax Office made out a case that he was the local representative of a Dutch and Cayman Islands companies in the TPG group ...

We have previously reported on this case between Mr and Mrs Clark and the Tax Office. The High Court has refused to hear an appeal by the Tax Office. This case had previously been found in favour of the Clarks by ...

The Tax Office have an employee/contractor decision-making tool on their website and are using it during the field visits to determine whether an arrangement is true contracting or actually an employment circumstance. They say they have detected false contracting arrangements in call centres, transport and logistics, retail, education ...

A Tribunal ruling (previously reported in September 2011 taxInsight) found that the CEO of a services company was indeed conducting a business of share trading on a part-time basis. This decision allowed for claiming deductions because of the drop in value of shares during the global financial crisis and further clarified the factors to consider when assessing whether an activity is a business or mere academic pursuit or hobby ...

We know it’s basic but make sure you get three quotes for all purchases. At the very least it will keep your supplier on their toes and will provide further...

Directors of a trading company are subject to personal risk from statutory penalties from mining, occupational health and safety, environmental, PAYG withholding and superannuation guarantee legislation. Rather than holding the company shares personally...

Take out a life insurance policy on your partner’s life so that you have funds available to acquire his/her interest in the business if they pass away. The proceeds of a life insurance policy are ...

The Tribunal has knocked out a claim for deductions over five years for franchise “establishment fees” made by a branch of the Bendigo Bank. This puts doubt on similar payments for other franchise groups ...

An interpretive decision on trust distributions received by an insurance company has worrying implications for trust beneficiaries because it states that the beneficiaries’ income from the trust distributions may include amounts that were nontaxable in the trust ...

Payments by an employer to an employee who was a victim of floods may be an FBT exempt benefit (and not salary and wages). Conditions are ...

A 50% discount is available on assets held by individuals and by discretionary family trusts if the asset has been held for at least 12 months. If you intend to sell ...

In two separate cases, the Tribunal has denied access to CGT concessions where valuable assets were sold and the taxpayers relied on poor valuations. In <em>Syattadel Holdings</em> a marina purchased in 1996 for $1.675 million was sold in 2006 for $8.9 million. The $8.9 million price must have been subject to really good negotiation on the part of the vendors as the taxpayer’s valuation placed a market value of ...

An interpretive decision has been released concerning spouses of overseas employees who are registered under the formal Home School Education Program to tutor the children and keep records of the teaching/learning programs, time allocated, assessments of achievement and ...

These are assets (other than collectables) kept primarily for your personal use and enjoyment. If acquired for $10,000 (excluding GST) or less ...

Two long and complex draft tax rulings have been released setting out the taxation and GST treatment for farm-out arrangements in the resources industry. They change the previous Tax Office position on the taxation outcomes of certain aspects. State governments issue exploration permits and mining licences subject to conditions and work programmes. Farm-out arrangements are a common way for ...

Question: We have been running and accrual-based accounting process but feel that, given the size of our entity, this is somewhat onerous administratively. We acknowledge that we must continue accruals for leave, depreciation and other related items, but are enquiring if we can revert to a more cash-based process for standard income and expenditure items ...

Question: In prior years my client, a medical doctor, received salary income and claimed work related self education and other deductions. During last year she had no salary income but received a scholarship to undertake research and a Ph.D. degree. I understand scholarship income is exempt. Can she still claim work related self-education and other expenses?