Tax Advice and Planning - Aston Accountants

$20,000 Instant Asset Write Off Extension

Just a reminder…

The small business asset write off threshold of $20,000 will continue until the 30th of June 2018. This applies to small businesses with a turnover threshold of less than $10 million in the 2017 financial year.

To refresh your memory, the small business instant asset write off applies to small businesses that purchase assets costing less than $20,000.

Under this concession, business owners can deduct 100% of the asset in the financial year they are purchased, rather than having to depreciate the asset over its useful life which could be 10 years for example. .

Eligibility

The asset is to ready to use in the financial year you make your claim. This means the asset needs to be fully installed.

You must be a small business with a turnover under $10 million

Things will change 1 July 2018…..

On the 1st of July 2018 the ATO will be reducing the threshold from $20,000 to $1,000, so now is the time to consider whether you can take advantage of this opportunity.

If you are considering purchasing business assets, give us a call first. We can help make sure you are getting the best deductions for your business.

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ATO’s views on Bitcoins and other cryptocurrencies

In recent months Bitcoins and various other cryptocurrencies have attracted a lot of attention after having a roller-coaster ride in its prices over the past few months, and with more and more cryptocurrency trading platforms becoming available in Australia, it has become easier for Australians to dip into the crypto world. As cryptocurrencies are a new concept, what are the views of the ATO in relation to this new type of virtual currency?

Work-related car expenses – what can you claim?

Do you know what you are allowed to claim when you use your car for work?

Check out a few frequently asked questions and answers here.

Attention employers – Single Touch Payroll is coming!

The ATO is introducing a new system – Single Touch Payroll – to help employers report their employee payment information more easily and efficiently.

What is Single Touch Payroll?

Single Touch Payroll is a new system for employers to conveniently report their employee wages, withholding and superannuation information at the time when they prepare payroll on their accounting or payroll software.

What does it mean to you?

Foreign Investment Property Owners – Beware of the new tax!

The Bill has passed and received Royal Assent on 30 November 2017 for the Commissioner of Taxation to charge a vacancy fee to foreign residents owning an investment property in Australia that is not occupied. This has been popularly called a “ghost tax”.

The fee only applies to non-Australian tax residents who own a residential property that was “vacant” for more than 183 days in a financial year.

A residential property is “occupied” (ie not “vacant”) when:

(a) the owner or his/her relatives genuinely lives in the property,

(b) the property is under a lease or licence for a minimum of 30 days, or

(c) the property is genuinely available for lease or licence for a minimum of 30 days.

If the property is classed as “vacant” (ie not “occupied”), then the owner of the property will need to file a “Vacancy fee return” to the Commissioner of Taxation and pay the vacancy tax.

in Capital Gains Tax / News / Personal Tax Returns / Tax Advice and Planning by Emily Yip