News

No deduction for carried-forward company losses

March 21st, 2017

The Administrative Appeals Tribunal (AAT) has ruled that a company was not entitled to deductions for carried-forward losses of over $25 million that it incurred in the 1990 to 1995 income years. The AAT found that the company did not satisfy the “continuity of ownership” and “same business” tests that applied in relation to the [...]

Super reforms: $1.6 million transfer balance cap and death benefit pensions

March 21st, 2017

Where a taxpayer has amounts remaining in superannuation when they die, their death creates a compulsory cashing requirement for the superannuation provider. This means the superannuation provider must cash the superannuation interests to the deceased person’s beneficiaries as soon as possible. The ATO has released a Draft Law Companion Guideline to explain the treatment of [...]

ATO targets restaurants and cafés, hair and beauty businesses in cash economy crackdown

March 21st, 2017

The ATO will visit more than 400 businesses across Perth and Canberra in April as part of a campaign to help small businesses stay on top of their tax affairs. The primary focus is on businesses operating in the cash and hidden economies. ATO officers will be visiting restaurants and cafés, hair and beauty and [...]

Tax offset for spouse super contributions: changes from 1 July 2017

March 21st, 2017

The ATO has reminded taxpayers that that the assessable income threshold for claiming a tax offset for contributions made to a spouse’s eligible superannuation fund will increase to $40,000 from 1 July 2017 (the current threshold is $13,800). The current 18% tax offset of up to $540 will remain in place. However, a taxpayer will [...]

Ride-sharing drivers must register for GST

March 21st, 2017

In a recent decision, the Federal Court has held that the UberX service supplied by Uber’s drivers constitutes the supply of “taxi travel” for the purposes of GST. The ATO has now advised that people who work as drivers providing ride-sharing (or ride-sourcing) services must: •    keep records; •    have an Australian Business Number (ABN); [...]

Reduce Tax with an Investment Property

March 16th, 2017

The most common question being asked by the majority of clients today of MDB is “HOW CAN WE REDUCE OUR TAX??” As we all know with the advent of the computer age the Australian Taxation office is now very aggressive scrutinising client taxation affairs. There are only a few true safe harbour ways to legitimately [...]

Superannuation Changes

March 16th, 2017

Some of the biggest changes to superannuation since the early 90s are coming into effect from 1 July 2017. This leaves less than five months for you to have your superannuation, investment, contribution, pension and estate planning strategies, reviewed to ensure you are positioned to receive the maximum benefits, while minimizing the negative impacts of [...]

Taxpayer denied deduction for work expenses of $60,000

February 21st, 2017

The Administrative Appeals Tribunal (AAT) has confirmed that a mechanical engineer with a PhD qualification was not entitled to deductions for various work-related expenses totally approximately $60,000. The expense claims in question (for vehicle, self-education and other work expenses), were denied because the taxpayer was unable to establish the required connection between the outgoing amounts [...]

No deduction or capital loss for apparent guarantee liability

February 21st, 2017

The Administrative Appeals Tribunal (AAT) has affirmed that two family trusts that were involved in a building and construction business with other related entities were not entitled to a deduction or a capital loss for $4.3 million that they claimed related to a guarantee liability. The AAT found that the documentary evidence and the oral [...]

Time extension to review objection decisions disallowed – again!

February 21st, 2017

The Administrative Appeals Tribunal (AAT) has refused to allow a taxpayer extra time to apply for review of a decision made by the Commissioner of Taxation. The taxpayer had previously made the same application for an extension, seven years after the Commissioner’s decision, but both the AAT and the Federal Court refused it. In this [...]