Tax

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Tax

What is Entertainment? Is it Costing Me More Money Than I Know About? FBT

Ever found yourself scratching your head at the end of a financial year, wondering how those business lunches and office shindigs have bumped up your tax bill? Well, you’re not alone. Fringe Benefits Tax, or FBT, often catches Aussie business owners by surprise, especially when it comes to entertainment expenses. You need to know what counts as entertainment and how it can impact your tax obligations. In this blog post, let’s dig into FBT and learn how you can effectively manage these expenses to keep surprises at bay. So, What’s “Entertainment” in Business?   By the book, the Australian Taxation Office (ATO) tags entertainment as activities or perks involving food, drink, or recreation that are provided by employers to their employees or their associates. Think along the lines of business lunches, celebratory drinks, office parties, and even tickets to sporting or cultural events. If it’s fun, it’s likely entertainment. The classification of these expenses also dives into the context and conditions under which they’re provided. For instance, a casual drink at the office might not be entertainment, but an all-out bash with cocktails at a fancy venue? Definitely entertainment. The key factors that swing the decision include: ● Why it’s provided: Is it for general enjoyment at a social gathering, or is it essential for the employees to perform their duties? ● What is provided: Simple tea and biscuits or a full-on gourmet meal? ● When it’s provided: During work hours or at a separate time? ● Where it’s provided: On business premises or somewhere else like a restaurant or function hall? The nuances of these questions determine if an expense falls into the entertainment category and thus influences its tax implications, particularly concerning FBT. Regular business expenses that are plainly for operational purposes (like providing coffee or lunch during a working meeting on-site) generally steer clear of the entertainment tag. So, What is FBT?   Essentially, FBT is a tax employers pay on certain benefits they provide to their employees or their employees’ families and other associates – beyond the usual salary or wages. These benefits might include company cars for private use, free gym memberships, or entertainment perks like tickets to a game or a show. FBT is calculated separately from income tax and is based on the taxable value of the various fringe benefits provided. The ATO requires employers to ‘gross-up’ these benefits. This means adjusting the value of the benefits to reflect the gross salary employees would have had to earn to buy the benefits themselves. Employers must also register for FBT, calculate how much is due, and ensure this is reported and paid annually to the ATO. FBT Concessions and Exceptions Explained    FBT can be a bit confusing, but there are a bunch of exemptions and concessions that can significantly reduce how much you have to fork over. Here’s a quick rundown to keep without diving to deep into the weeds: ● Minor Benefits Exemption: If the value of a benefit is less than $300 and it’s provided infrequently, it won’t attract FBT. This can cover things like occasional staff lunches or small birthday gifts. ● Work-related Items: Items primarily used for work, like laptops, mobile phones, and protective clothing, are usually FBT exempt. There’s a catch though: it’s generally limited to one item per category per employee each FBT year unless it’s a replacement item. ● Emergency Assistance: Benefits provided for emergency relief, like first aid training or providing flu vaccinations, are exempt from FBT. ● Taxi Travel: Costs of taxi travel that begins or ends at your employee’s place of work or due to sickness are exempt. ● Tools of Trade and Electronic Devices: If tools or electronic devices are primarily for work use, they’re exempt. This even includes multiple devices in the same FBT year if your business qualifies as a small business under ATO rules. ● FBT Exempt Organisations: Certain not-for-profit organizations, like public benevolent institutions and health promotion charities, have higher FBT exemption caps. For instance, public benevolent institutions have a $30,000 cap, while hospitals and ambulance services have a $17,000 cap. Understanding these can help you navigate FBT more effectively and possibly save a fair bit in tax. Entertainment Decision Flowchart   Here’s a flowchart we’ve created to help simplify deciding whether or not an expense falls under the “entertainment” umbrella: With just a few decision points such as whether alcohol was involved, the event’s purpose (social vs. business), and the nature of the expense (functional vs. lavish), it becomes easier to figure out how these expenses will be treated come tax time. If you want to see it in action, imagine you’re planning two different events. For the morning staff tea held onsite without alcohol during business hours, the flowchart would tell you that this is a normal business expense — not subject to FBT, fully tax-deductible, and GST claimable. Contrast that with a client dinner held offsite in the evening where alcohol is served, and you’ll see that one will be categorized as an entertainment expense. That means it likely attracts FBT, isn’t tax-deductible, and you can’t claim GST. Feel free to steal this flowchart. It’s designed to be a practical tool for businesses to use right from the planning stage of any corporate event or entertainment so you can easily manage expenses. Tips and Tricks for Managing Entertainment Expenses   So, what strategies can you use to manage entertainment expenses and keep FBT low? Here are a few tips and tricks: ● Know the Deductions: Be clear about what is considered entertainment versus a staff amenity. Generally, events like staff parties or business lunches are entertainment and have different tax implications. ● Use the Right Methods: Adopt practical methods like the Actual, 50/50 Split, or 12 Week Register to accurately record and report entertainment expenses, which can help in maximising deductions and managing GST claims effectively. ● Plan with Tax in Mind: When organizing entertainment, consider how it will be perceived for FBT purposes. Keeping events simple and primarily for business purposes can help reduce tax liabilities. ● Keep Good Records: Maintain detailed records of all entertainment expenses, including the nature and purpose of the event, to substantiate claims and simplify tax filings. Of course, we understand all of this is challenging to wrap your head around. If you’re still struggling or just need a bit of guidance on how to put all this info into action, don’t stress — we’re just a call or click away. Drop us a line if you’ve got any questions or need a hand getting started. We’re here to help make sure your business is as tax-savvy as can be!

Tax

Tax Tips: Renting out your home

Have you ever thought about renting out your house as a short-term rental on a platform such as Airbnb or Stayz or through an agent? Whether it’s a new job interstate or overseas, a long holiday, financial troubles or a family member in need of a carer, there are plenty of reasons why a homeowner might leave their home (known here as the ‘principal place of residence’ or PPR) to move elsewhere for a period of time. Sounds simple right? But; you could end up being liable for more than you bargined for without the right planning. There is never a one-size-fits-all answer to the queries that arise around property and much will depend on a person’s specific circumstances and tax position. However; we have put together a guide outlining some of the most common implications. What is a Principle Place of Residence (PPR)? Most of the rules which can affect the taxes you need to pay to the government are based on the concept of PPR. The Australian Taxation Office (income taxes) and the State Governments (land taxes) have their own definitions of PPR but generally a dwelling is considered to be your main residence if: you and your family live in it your personal belongings are in it it is the address your mail is delivered to it is your address on the electoral roll services such as gas and power are connected. The length of time you stay in the dwelling and whether you intend to occupy it as your home may also be relevant. To be your main residence, your property must have a dwelling on it and you must have lived in it. You are not entitled to the exemption for a vacant block. Usually when you stop living in a property it is no longer considered your PPR. However, there is some instances where you can choose to continue to use a home as your PPR such as: for up to 6 years if you used it to produce income, such as rent (sometimes called the ‘6-year rule’) indefinitely if you didn’t use it to produce income You can’t treat any other property as your main residence (except for up to 6 months if you are moving house). If you decide to rent out your PPR for a short time there could be some financial consequences.  They generally fall into the following categories: Income Taxes Capital Gains Taxes GST Land Taxes Let’s look at each in a bit more detail Income Tax   From an income tax perspective the following applies with the assumption that the property is considered your principal place of residence: rental income will be taxable income costs incurred in producing the assessable income usually can be deducted as if it was a general rental such as apporting interest expenese for the period of renting; property management fees, water, rates, land tax etc.  All costs would only be able to be claimed for the period of time that it was rented and producing assessable income. cost of renting alternative accommodation is not tax deductible if relocating some else for work; an employer may provide a Living Away from Home Allowance (LAFHA) any large capital repairs would need to be depreciated – depreciation can only be claimed for the period that the property is being rented.   Capital Gains Tax With respect to the capital gain tax implications: Assuming the property is owned by an individual who has deemed the property their Principal place of residence (PPR) and they have no other PPR and the property was the PPR from the beginning:   There is a ‘6 year rule’ where you can vacate the PPR and provided there is not other PPR during that time under specific circumstances the gain made on selling the property (now or later) could be exempt.  Prima face (without the existence of this 6 year rule) if you earn income from a main residence CGT will apply either on the full sale, partially or apportioned. The legislation for the 6 year rule is written having regard to the intention for vacating.  The ATO would look at the reason for not living in the PPR during that time and using it for income producing purposes.  Reasons that are valid to claim the exemption include relocating for work interstate or overseas or financial distress. Ie it can not be just for the purposes of finanical gain. Goods and Services Tax (GST) Residential properties are generally considered “input taxed” for GST.  This means you will not have to charge & pay any GST to the ATO. This also means however; you will not be able to claim any GST on costs associated with the property. If you are considering renting out a commercial property this will likely have GST obligations. Make sure you check your situtation with us to confirm. Land Tax Earning assessable income on a property could also have land tax implications.  If the property is currently exempt from land tax under the main residence exemption then vacating the property could trigger a land tax liability.  These rules are state based so be sure to check the state where your property is located.  For NSW there is a land tax exemption if you are living away from home however to qualify you must: have lived in the property for 6 months continuously prior to moving out not have another PPR only earn income to cover basic property expenses such as rates, water, and other amenties Not lease for more than 6 months in a calendar year. If you lease out your property for longer than six months, you must pay land tax in the following year, unless you move back into the home before 31 December. The financial consequences of poor planning surrounding renting out your home could be significant! Make sure to contact us before you make any decisions to discuss your specific circumstances.

Tax

Technology Boost 20% Bonus Tax Deduction

Under the technology boost, small businesses may be able to access a bonus 20% tax deduction on eligible technology expenses and depreciating assets which are used to digitise their operations. Dates: for expeneses incurred between 7:30 pm AEDT 29 March 2022 to 30 June 2023 (note there from 29 March 2022 – 30 June 2022 would normally fall into the 2022 tax return however the bonus for that income year should be claimed in 2023 tax return) Limits: Bonus deduction is limited to $20,000 per year (ie on expenses up to $100,000 pa). That is; 7:30 pm AEDT 29 March 2022 to 30 June 2022 – $20,000 1 July 2022 to 30 June 2023 – $20,000 Eligibility: Aggregated turnover < $50m The expenditure must already be deductible for your business under taxation law What Expenses are included:  Eligible expenditure may include, but is not limited to, business expenditure on: digital enabling items – computer and telecommunications hardware and equipment, software, internet costs, systems and services that form and facilitate the use of computer networks digital media and marketing – audio and visual content that can be created, accessed, stored or viewed on digital devices, including web page design e-commerce – goods or services supporting digitally ordered or platform-enabled online transactions, portable payment devices, digital inventory management, subscriptions to cloud-based services and advice on digital operations or digitising operations, such as advice about digital tools to support business continuity and growth cyber security – cyber security systems, backup management and monitoring services Where the expense is partly for private purposes, the bonus deduction can only be applied to the business-related portion. If the expenditure is on a depreciating asset, the asset must be first used or installed ready for use for a taxable purpose by 30 June 2023. If a business purchases a depreciating asset in the relevant period, the expenditure will be the cost of the asset. What you can’t claim salary and wages capital works costs financing costs training or education costs (these may be eligible for the Small business skills and training boost) expenses that form part of your trading stock costs. Resources: https://www.ato.gov.au/Business/Income-and-deductions-for-business/Deductions/Small-business-technology-investment-boost/ Examples of expenses which could be eligible for the Technology Boost 20% bonus tax deduction: Advisory Costs – Advice about digitalising a business Cyber security including INSURANCE premiums Digital assets such as laptops, servers, online data drive, back-up system (Included unless they are disposed of, and that disposal is not involuntary, before 30 June 2023) Leases of digital equipment Portal payment devices (eq square device) Payment gateways – electronic (eg Merchant Fees for electronic payments) Printers/scanners – This depends upon how the printers/scanners are used. If they are used to convert paper documents into digital documents that are then stored/used by the business, then they may be able to be included in the 120% digitalisation boost. If they are used to generate paper documents, then they will not be included in the 120% digitalisation boost. Security cameras – Depends on the context. Installation of cameras to monitor stock troughs remotely would qualify. Security cameras to record movement of customers is unlikely to qualify unless it is linked to a digital initiative (e.g. self-service in a supermarket). Subscriptions software Subscriptions marketing – Subscriptions for digital marketing software and access to digital marketing such as Instagram are included in the 120% digitalisation boost Telephones – Telephones – Smartphones – Yes. Smart mobile phones are needed for multifactor authorisation which is an integral part of the digital environment. Handsets not included Items that are NOT included Interest/financing costs of acquiring digital assets – These costs are specifically excluded from the 120% digitalisation boost – section 328-460 In house software development costs – likely to be salary and wages which are specifically excluded from the 120% digitalisation boost. Recruitment costs for digital staff Training costs in relation to digital technology If you would like to discuss if your small business is eligible to claim the Technology Boost 20% bonus tax deduction, please contact us. 

Accounting

Protecting a Legacy: The Challenges of Passing on the Family Business

When it comes to mixing family and business, there are two schools of thought. Firstly, it’s a bad idea as it will affect your ability to make rational decisions and force you to not always put ‘what’s best for the business’ first. Secondly, with it becoming increasingly difficult to find staff, employing family members is a great idea as they will be loyal and also personally invested in the success of the business. Obviously, there are a range of variables that will affect your perspective on this (such as whether your family members have a strong work ethic) but family businesses, whether they’re corporate giants like News Corps’ Murdochs or your local grocery store, remain a reality for many and there are a number of important steps you can take to ensure your business runs smoothly now and in a future where you’re no longer the boss. Talk it over Non-family run business owners can be as ruthless (or kind and compassionate) as they please. Major business decisions needn’t be negotiated with staff (but can, and many would argue, should be) and these decisions are unlikely to become a topic of conversation at your next family gathering. Family business owners, however, must recognise that their decisions have repercussions beyond the 9-5 daily grind. These decisions will follow you home and that’s why it’s vital that you have open and honest conversations with your family employees about their role within the business, their expectations, their core competencies and, especially, their remuneration and equity within the business. As a general rule, we would advise that pay matches the role an employee is performing. If someone is working 10 hour days managing a complex logistics system, they deserve more than someone working seven hours a day at the checkout. When it come to equity, however, keeping this equal between all parties is often a safe approach to take. Establish rules and structure Where there are ambiguities, tension can arise. By establishing a hierarchy of business decision makers, clearly defining people’s roles and responsibilities and, rules around how issues and disputes are handled, much of this can be avoided. Identifying and implementing best practices in these areas are something best done by the owner, given they will be the person with the most knowledge of the business, but your accountant is always a good person to speak to should you have any questions. Encourage Financial Literacy To make informed decisions, you need information. Better yet, you need objective information and your various financial statements are as close to ‘objective’ information as you’ll get. Encouraging (or insisting) that your family employees familiarise themselves with the relevant financial materials will ensure that any disputes or decisions are made based on the best information. Recognise the struggle If you’re the business owner and you have family members working for you, there’s a chance that they won’t understand the struggle you’ve had to go through to get where you are. They tend to take things for granted, particularly if they’re younger and weren’t around from the early times of your business. They only know that you have a successful company and have plenty of money and may be under the impression that success is a given. Make sure you remove any of their complacency as complacency is a first step to failure. Form a handover plan When the time comes to move on and hand over the reins of the business to your family employees, there is plenty to consider. Who is best at what job? Who or which people will become the key decision makers? If there are life-changing circumstances for a person (injury, illness, for example) who takes on their role? Who has proven to be competent and who hasn’t? As always, your accountant is always here to help should you have any questions. If you want to learn more about how to handle a family business, please contact us below.

Tax

EOFY is almost here: Brace Yourself for an ATO Clampdown

The end of financial year is almost here and there is little time left to get your affairs in order. This year, there are some tax changes likely to affect you whether you’re a business owner, a salaried employee, an investor, or a retiree. Here are a few key points to consider but remember that everyone’s situation is unique so always contact us directly for specific advice. Table of Contents For Individuals More scrutiny from the ATO The recent Federal Budget was a sign that fiscal restraint was not exactly on this government’s agenda and it is evident that a shift towards recovering as much revenue from personal income taxes is underway. This comes as no surprise considering the extensive Covid-19 Measures splurged on taxpayers in recent years. The Australian Taxation Office (ATO) is therefore set to adopt a more assertive approach to enforce tax compliance. Their focus will be on: rental property income and deductions. work-related expenses. capital gains from crypto assets, property and shares. The ATO wants to address non-compliance, deal with typical mistakes and emphasise the importance (and legal requirement) of accurate reporting and record-keeping. “Rental property deductions: landlords – listen up!” This headline is taken directly from the ATO website so if you own a rental property or are thinking about renting out your home for a while take note. The ATO is concerned that they are seeing several mistakes in tax returns with property related deductions or rental income not being recorded at all. The main areas where mistakes occur include: The treatment of building improvements, renovations, and repairs. Proper apportionment of interest expenses and what to do about borrowing expenses. The difference in reporting of Gross Rent v the Net Rent the Property Agent transfers to your bank account. Landlords – Be prepared! Keep receipts for repairs and maintenance organised by your Property Agent for your rental property. This will help determine if they qualify as immediate deductible repairs as the agent may sometimes classify assets or improvements incorrectly in the statements. Properly classify building expenditure as either a deductible repair, non-deductible initial repair, or capital works. Familiarise yourself with limitations on depreciation deductions for second-hand assets in residential rental properties. Note that one-off Special Strata Levies for specific capital expenditure are not immediately deductible. Accurately apportion interest expenses for properties with private use or mixed borrowed funds. Understand that immediate asset write-off concessions available to businesses do not apply to rental properties. Local travel to and from your rental property to inspect it or for whatever reason is not deductible. “Work-related expenses: avoid the ‘copy-paste’” “We continue to see shifts in the way Aussies are working, and it’s important to consider whether your claims reflect your working arrangements this year.” ATO Assistant Commissioner Tim Loh This is a nice way for the ATO to say you must be able to provide evidence of your expenditures, substantiate your hours worked from home, and establish the work-related nature of your claims. Did you work from home (WFH) during the year? New rules for claiming work-from-home expenses came into effect during the 2023 financial year. If you intend to claim work-from-home expenses, last year’s approach may not satisfy the tax office. It’s crucial to revise your record-keeping practices; otherwise, you might miss out on a tax deduction. Take note: The simple temporary shortcut method of 80 cents per hour for working from home expenses concluded on 30 June 2022. Starting from 1 July 2022, the new fixed rate method of 67 cents per hour applies. This rate covers the extra electricity and gas incurred for working from home, phone and mobile, internet, stationery and computer consumables. You can’t claim these expenses separately and in addition to the hourly rate. You also have to prove you incurred each expense and not someone else in the house. You need to keep an electricity bill, phone bill showing you incurred the expense. From 1 July 2022 to 28 February 2023, you can keep a representative record of the total number of hours worked from home. For the period of 1 March 2023 to 30 June 2023, as well as future income years, you must maintain a record of the actual hours worked from home. Eg diary or timesheets. You can claim the depreciation on assets used while working from home such as computers and office furniture. Refer to our previous Blog on this topic or contact us directly to discuss. Other risk areas for work-related deductions The set rate per business km is 78c per km for the 2023FY (max 5,000km per car) If you keep a logbook for your electric car and claim a % of your running costs, the home charging rate is 4.2c per km per draft ATO guidelines. If you maintain a logbook to work out your work-related car travel, you should update it every 5 years so that it reflects the pattern of usage of your car. Work Uniforms or Protective Clothing – there are very few instances when claims for regular clothing are acceptable. You may be able to claim occupation-specific attire, protective gear, mandatory work uniforms, registered optional work uniforms you pay for. You can claim deductions for self-education expenses if they are directly related to your employment, such as enhancing or maintaining skills in your current job or resulting in increased income from your current job. The $250 non-deductible threshold no longer applies. Capital gains from crypto assets, property and shares “Through our data collection processes, we know that many Aussies are buying, selling or exchanging digital coins and assets so it’s important people understand what this means for their tax obligations”  ATO Assistance Commissioner Tim Loh In other words, the ATO has data matching capabilities to identify when transactions like this occur. If you’ve engaged in cryptocurrency trading, sold investment properties, shares, or other assets during the year, don’t hesitate to contact us early. We’ll assist you in gathering the necessary documents and information for your tax return, and help

Accounting

Electric Vehicles and Fringe Benefits Tax (FBT) Exemptions

Electric Vehicle FBT Exemption: What’s Behind the Fashionable Concession? Your Questions Answered   What type of Electric Vehicle is exempt? First, the Electric Vehicle  must be a “car” as the FBT law defines it. A “car” is: A vehicle designed to carry less than 1 tonne, and A vehicle designed to carry less than 8 passengers Electric utes over 1 tonne are not “cars” and are therefore not exempt under these rules – there are special FBT rules for utes and don’t assume they are always exempt from FBT. Motorcycles, scooters and similar vehicles are not “cars.” Second, the car must be a Zero or low emissions vehicle that is: A Battery electric vehicle A Hydrogen fuel cell electric vehicle, or A Plug-in hybrid electric vehicle – but only until 31 March 2025. From 1 April 2025, a plug-in hybrid EV will not be considered a zero or low emissions vehicle under these rules unless: Use of the hybrid vehicle was exempt before 1 April 2025, and You have a financially binding commitment to continue providing the vehicle on or after 1 April 2025. An option to extend the agreement beyond 1 April 2025 doesn’t make it a binding agreement. When does an EV become exempt? The electric vehicle must be held and used for the FIRST time on or after 1 July 2022. It cannot be an existing EV you purchased before that date or supplied to an employee before that date. However, it is okay to have ordered a vehicle before 1 July 2022 and have it delivered after that date. The car benefit must be provided to a person who receives or is entitled to receive salary or wages in your business: A current employee (or their associate eg spouse) Not a future or former employee Careful – buying a car for yourself as a shareholder of your company (but not as an employee) may result in falling into the Div7A trap! An EV is held where it is: Owned (including Hire Purchase/Chattel Mortgage) Leased including novated lease, or Otherwise made available to the provider An EV is not “held” where it is owned by the employee. However, the exemption is available where the car fringe benefit is provided under a salary packaging arrangement between employer and employee (say, in the case of a novated lease). What is the limit on the Cost price of the EV? If the EV was subject to Luxury Car Tax at any time, it is not exempt. The LCT threshold for Fuel-efficient vehicles for the 2023FY is $84,916. What if I buy a second-hand vehicle? You need to do some research as there is no exemption if: it was originally purchased by the previous owners before 1 July 2022 the car was EVER subject to the Luxury Car Tax (LCT). So, you must research its history and assess whether it would have been subject to LCT if purchased new. This can be a tricky process as some EVs hover close to the LCT threshold, and the threshold includes additional costs such as dealer charges and added options. What about all the costs of running the electric vehicle – are they exempt from FBT too? The car expense benefits that go with the car benefit are exempt. These are: Registration Insurance Repairs and maintenance Fuel and electricity to charge and run the EV Will a new battery qualify as a “Repair” and therefore an exempt car expense benefit? That depends. Over time, all rechargeable batteries will inevitably lose capacity, a phenomenon known as battery degradation. Typically, you won’t have to replace the battery for at least 8-10 years. However, the current cost of a new battery pack can be expensive, ranging between $12-20K. Technology is rapidly advancing in energy density and long-term battery health. This means that newer batteries may offer more driving range, making your current EV more relevant for a longer time. What does the ATO say about buying a new battery in relation to FBT? A replacement battery may still be a repair where it adds, in only a minor and incidental way, to the overall efficiency of function of the vehicle ie, same power, same storage same lifecycle. If the new battery has significantly more power and energy storage and a longer lifecycle, it would be a capital expense rather than a repair and not an exempt cost of running the EV. Is the Government going to keep this scheme going indefinitely? The government will start reviewing the EV FBT exemption rules by December 2025 and complete a report by mid 2027 on the uptake of EV’s and efficacy of the policy. This gives them an out if it becomes too costly or just isn’t popular. There is also a chance the rules are wound back after a change in government within the next 2 years, but grandfathering rules may apply to existing car benefits. Where can I charge my electric vehicle so that the charging cost is exempt? A commercial charge station, or The employer’s premises Can I reimburse an employee for the electricity costs of charging the EV at their home? The ATO fact sheet does not provide specific guidance on electricity charging costs incurred by the employee (i.e, charging at their home) and reimbursed by the employer. But electricity to charge and run the electric vehicle is likely to qualify for the car expense exemption – as long as the EV being charged is provided as a car benefit.  The ATO recently released a draft guideline, PCG 2023/D1, to assist determining the cost of charging electric cars at home. As of April 1st, 2022, the ATO has established a rate of 4.20 cents per km. The guideline outlines how employers can calculate the reportable fringe benefit (RFBA) of an employee’s electric vehicle and why it’s important to consider why an employee driving an exempt EV may need to maintain a log book. Is an electric vehicle charging station at the employee’s home exempt? No.

Tax

New Working From Home Deduction Rules – Changes to Recordkeeping

Employees who work from home can claim limited deductions against their personal tax for some expenses incurred at home. The ATO has just changed how you calculate and support those deductions. In short, from now on you must have evidence of your expenses and hours worked from home, even for the fixed rate method.

Tax

How to Vary PAYG Instalments

If you have profit or investment income, the ATO may require you to pay quarterly PAYG Instalments based on the previous year. If conditions change, you can vary PAYG Instalments. Here’s how.

Inline Three Directors
Accounting

What’s in the October 2022 Federal Budget?

The Federal Budget announced on Tuesday night was the second for 2022, and represents the new Government drawing a line under the previous government’s policies. The Budget itself did not present many substantial reforms or initiatives.