While other political issues were holding centre stage in late November 2017, the Parliament very quietly passed a Bill to limit plant and equipment depreciation deductions for rental property owners and deny travel deductions on rental properties. It has received the Royal Assent on 30 November 2017. As detailed in the May 2017 Budget, these changes apply from 1 July 2017 onwards.
You might want to subdivide to make some profit, to generate regular rental income or to reduce your backyard maintenance. You will need to think about what happens when you sell….
Generally, your main residence is not subject to capital gains tax when you sell it, but subdividing your land will create two (or more) separate titles which are now separate assets. These subdivided properties will have tax implications when you sell them.
As an employer you are obliged to pay your employee their wages, remit their PAYG Withholding to the ATO as well as remit superannuation payments to their superannuation fund accounts.
In an ideal world, on the first day your employee starts work with you, they would complete their forms including a Super Choice Form informing you their superannuation fund account details for you to remit superannuation payments.
The USA is one of very few countries who tax their citizens on their world-wide income no matter where they are living overseas. This means that US citizens who live in Australia are required to also lodge US tax returns with the Inland Revenue Service. If you are a US citizen, living in Australia, it is important to let your Australian accountant know as soon as possible as there can be unforeseen consequences from your Australian business activities if caught up under the USA IRS’s expansive rules and regulations.
Photo Courtesy of Wikimedia Commons: By James Montgomery Flagg (http://www.usscreen.com/american_spirit/) [Public domain]
The following examines some common misunderstood rules around the employee vs contractor situation.
You may have an ABN but that does not make you a contractor.
Fact: The ATO has various checks to ensure business owners are treating their staff/contractors correctly.
To put it simply, the ATO will look at the work arrangement and the way the payments were calculated etc to determine whether one is an employee or not.
