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Warning issued over tax avoidance schemes

Posted on Jun 30, 2014 by editor

The ATO has recently advised taxpayers to seek a second opinion on before entering into any tax avoidance schemes. According to the ATO tax avoidance schemes are designed to appear legitimate, even to savvy investors. In particular taxpayers should be wary of complex financing schemes that rely heavily upon round robin financing schemes and non-recourse loans. Essentially, if the scheme involves reducing you’re your taxable income by declaring deductions that you are not entitled to, it is likely to be illegal. If a provider tries to dissuade you from telling people about the scheme, or discourages you from seeking a […]

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Claiming a computer as a tax deduction

Posted on Jun 25, 2014 by editor

If you use a piece of equipment, such as a computer, for work related activities then you may be able to claim it as a tax deduction. If the item is valued at over $300 then you cannot claim the entire cost in the year of purchase. Instead, you will need to calculate the depreciation in value each year. When equipment is used for both professional and personal use, as computers so often are, then you can only claim a tax deduction for the equivalent portion that is used for professional purposes. For example, if you use the computer half for work […]

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Changes to self managed super funds in 2014

Posted on Jun 20, 2014 by editor

From July 2014 there will be a new range of penalties that will apply to SMSF trustees in breach of superannuation rules. Currently, the only significant financial penalty that has applied to non-compliant SMSF trustees is the penalty tax that allows the ATO to confiscate half of your assets. However, from July11 2014 the ATO will be able to impose a range of financial, administrative and educational penalties. One feature of the new regulations will prohibit trustees from paying fines from their SMSF assets. As an SMSF trustee, it is your responsibility to make sure that you are aware of […]

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Changes to non-concessional super contributions

Posted on Jun 6, 2014 by editor

Non-concessional contributions to superannuation are contributions that are made from your income after tax. In the 2013-14 financial year the cap on non-concessional super contributions was $150 000, with contributions exceeding this being taxed at 46.5%. As non-concessional contributions to super have already been taxed this meant that contributions exceeding the cap were potentially being taxed at 93%. Many Australians over the age of 60 were making substantial contributions to their super in order to take advantage of the tax breaks and accidentally exceed the cap. In the 2014-2015 financial year, the cap on non-concessional super contributions will be raised […]

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Claiming tax deductions on investment properties

Posted on Jun 5, 2014 by editor

If you own a rental property or are considering purchasing an investment property, it is important to be aware of the tax deductions you can claim. Claiming all of the legitimate deductions on your investment property can save you a lot of money. On the other hand accidently claiming illegitimate deductions can cost you a lot of time and energy, potentially even leading to an investigation by the ATO. There are some immediate deductions that you can make on a rental property, for example, advertising fees, agent costs, repairs and administrative expenses. Legal fees that are directly related to renting […]

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