Think outside of the box – investment company
Harry and Emma are migrant doctors in their late 30. They have no family and relatives in Australia. They are keen to start their investment portfolio in shares and ETF. Most advisers will probably recommend a trust structure despite there being no lower tax bracket beneficiaries or individual name to invest and create wealth. We, […]
Business Structure for Medical Practice
There are three arrangements you can choose i.e., Partnership Arrangement, Trust Arrangement and Hybrid Trust Arrangement. Partnership Arrangement – Old School We see less of this today. Trust Arrangement – Most Common This arrangement is the most common one we see today. Hybrid Trust Arrangement – New Way We hear this term more often today […]
GP & Medical Practice – Road to Financial Freedom
When it comes to financial planning for GP, we have not yet seen any advisors who have recommended a GP set up their own medical practice but are trying to sell commission-based products. This is an unbelievable omission! It is the best investment return and rewarding financial journey. Whether you start from scratch or buy, […]
Director Identification Number
Director identification number (director ID) is a new requirement for all company directors, designed to help combat illegal (phoenix) activity by making it easier to trace directors’ relationships with companies. Directors can apply for their director ID from November 2021 on the new Australian Business Registry Services (ABRS) (Link). There is no need to do […]
Medical Centre and Independent Associate Doctors Arrangement – Payroll Tax?
Are you running a Big Medical Centre or Multiple Medical Centres? If yes, Have you got Service Arrangement correct between the Clinic and Independent Associate Doctors? How about payment arrangement between the Medicare Department & Private Health Funds and Independent Associate Doctors? The latest case between Thomas and Naaz Pty Ltd v Chief Commissioner of […]
Myth – Company Structure & Medical Practitioners’ Personal Service Income (PSI)
A frequently asked question from medical practitioners, “I would like to use a company structure and quarantine a portion of my income in the company to minimise my tax” or “my friend is using a company to minimise the tax”. Before that, we need to understand that patient fees generated by medical practitioners are a personal service […]
Small Business Support Payments
You don’t need to pay tax on some COVID-19 payments from the governments to support small businesses. These payments will be non-assessable non-exempt (NANE) income for tax purposes. There are two types of grant programs announced by the government that may be NANE income: These are: State and Territory grants relating to recovery from COVID-19 […]
SMSFs Can Have 6 Members From 1 July 2021
From 1 July 2021, SMSFs can now have anywhere between one to six members. The usual trustee/member rules (which broadly require each member to be a trustee/director of the trustee and vice versa) continue to apply. QC66117
Depreciation Car Limit for Financial Year 2021-22
Passenger vehicles (vehicles that carry less than one tonne and nine passengers, and not a motorbike or similar) are subject to a cost limit for the purposes of calculating depreciation. The limit is $60,733 for the 2021-22 income year (it is $59,136 for 2020-21).
Budget 2021-2022
Personal Taxation Self-education expenses $250 threshold to be removed. The Low and Middle Income Tax Offset (LMITO) will be extended for another year. Taxable income Offset $37,000 or less $255 Between $37,001 and $48,000 $255 plus 7.5 cents for every dollar above $37,000 up to a maximum of $1,080 Between $48,001 and $90,000 $1,080 Between […]
Super Contributions Caps
From 1 July 2021, the concessional and non-concessional contribution caps and the general transfer balance cap are set to increase due to indexation for the first time since July 2017. The concessional cap increases from $25,000 to $27,500, and the non-concessional from $100,000 to $110,000. The $1.6m general transfer balance cap will become $1.7m from 1 July […]
Dollar-Cost Averaging
Dollar-Cost Averaging is simply the strategy of making regular investments over time instead of a one-off lump sum investment. You are not relying on timing strategies aimed at picking when a market has bottomed or peaked. It is a sound savings regime and suitable investment strategy. Of course, the other side of the coin is […]
Full Expensing of Assets
Eligible businesses with an aggregated turnover of less than $5 billion can deduct the full cost of new eligible depreciating assets that are first held, and first used or installed ready for use for a taxable purpose, between 7:30pm AEDT on 6 October 2020 and 30 June 2022. For small and medium sized businesses (with aggregated turnover of less […]
The Shortcuts Method
It has been quietly extended to Dec 31, 2020 by the ATO. They may extend it, depending on when work patterns return to normal. ATO guidance QC 62090
Small and Medium Business Grants in Victoria
The Federal and Victoria Governments have reached an agreement to make the grants recently announced under Victoria’s Business Resilience Package on 13 September 2020 and future grants programs paid until 30 June 2021 for small and medium business exempt from income tax. The Federal Government will extend this arrangement to all states and territories on […]
JobKeeper 2.0
The eligibility changes, which will apply nationwide from 28 September, will now require businesses to show the requisite actual decline in turnover for the September quarter alone, rather than for both the June and September quarter as previously announced. Likewise, from 4 January 2021, businesses will only need to demonstrate a decline in turnover for […]
Cents per Kilometre Method
The cents per kilometre rate increase to 72 cents per km for 2020-21. QC33712
Covid-19 Protective Clothing
Taxpayers working in industries such as healthcare, retail and hospitality can claim a tax deduction on protective items such as face masks, gloves, sanitiser and anti-bacterial. This pivots on these items not being supplied by an employer and not being reimbursed. QC62845.
The Backing Business Investment Measure
Business purchasing assets costing more than $150,000 will be able to claim: Deduction of 50% of the cost or opening adjustable value of an eligible asset on installation. If you are using the simplified depreciation rules, you can claim 57.5% of the cost of the asset in the first year you add the asset in […]
Instant Asset Write off $150,000
It has been extended until 31 Dec 2020. Motor Vehicles Passenger vehicles, designed to carry a load less than one tonne and fewer than nine passengers, are subject to $57,581 cap. You cannot claim the excess cost of the car. The passenger vehicles cap increase to $59,136 from 01 July 2020. Super Contribution An absolute […]
Employees working from home
On 07 April 2020, ATO issued QC 62090 that employees working from home due to the COVID19 can claim a tax deduction under a “shortcut method”, i.e. 80 cents per hour. The Shortcut Method is more generous than the existing Home Office Deduction Method QC31977, i.e. 52 cents per hour. It covers internet costs, phone […]