Saturday 22 Jul 2017
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Latest Accounting News
Hot Issues
Items that heat up your depreciation deductions
Doing a budget is a good idea but ....
Government ‘undermines’ tax system in new moves on property expenses
Taxpayer denied deduction for work expenses of $60,000
Overtime meal expenses disallowed because no allowance received
Key Economic Indicators, 2017
Government to shut down salary sacrifice loophole
Crowdfunding legislation gets greenlight
ATO heavyweight responds to hacking fears
Checklist - Individuals Tax Returns - 2017
Checklist - Tax time 2017 - Company, Trust & Partnership
Checklist - Superannuation Funds - 2017
ATO to ramp up scrutiny of $20K tax break use
‘Bank-like heists’ make way for new wave of cyber crime
ATO reports on key contraventions for 2016-17
ATO, mid-tiers warn on common expenses myths
SMSF trustees told to take action on contributions
Higher instant asset write-off threshold for small business extended
Australian population figures
New data points to spiralling retirement costs
Personal insolvency numbers spike across Australia
ATO cracking down on taxable fringe benefits
Intangible capital improvements made to a pre-CGT asset
The three core pillars of this year's budget
Federal Budget - 2017-18 - Overview
Does your business import or export goods and services?
Federal Budget - 2017-18 - Budget documents
When does an asset cost less than $20,000? Depreciating assets: composite items
ATO finalises guidance for capped defined income streams
Warning on trap with trust deed updates
2011 Census - what was the make up of your area?
It’s no secret that Australians have some of the largest houses in the world.
Resources on our site to help you and your family.
ATO defends approach to SG compliance
Essential steps for SMSF clients before 30 June
New tax incentives for early stage investors
Articles archive
Quarter 2 April - June 2017
Quarter 1 January - March 2017
Quarter 4 October - December 2016
Quarter 3 July - September 2016
Quarter 2 April - June 2016
Quarter 1 January - March 2016
Quarter 4 October - December 2015
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Quarter 3 July - September 2014
Quarter 2 April - June 2014
Quarter 1 January - March 2014
Quarter 4 October - December 2013
Quarter 3 July - September 2013
Quarter 2 April - June 2013
Quarter 1 January - March 2013
Quarter 4 October - December 2012
Quarter 3 July - September 2012
Quarter 2 April - June 2012
Quarter 1 January - March 2012
Quarter 4 October - December 2011
Quarter 3 July - September 2011
Quarter 2 April - June 2011
Quarter 1 January - March 2011
Quarter 4 October - December 2010
Quarter 3 July - September 2010
Quarter 2 April - June 2010
Quarter 1 January - March 2010
Quarter 4 October - December 2009
Quarter 3 July - September 2009
Quarter 2 April - June 2009
Quarter 1 January - March 2009
Quarter 4 October - December 2008
Quarter 3 July - September 2008
Quarter 2 April - June 2008
Quarter 1 January - March 2008
Quarter 4 October - December 2007
Quarter 2 April - June 2007
Quarter 1 January - March 2007
Quarter 4 October - December 2006
Quarter 2 April - June 2006
Quarter 4 October - December 2005
Quarter 3 July - September 2005
Quarter 2 April - June 2005
Quarter 2 April - June 2004
Quarter 1 January - March 2004
Quarter 4 October - December 2003
Quarter 3 July - September 2003
Quarter 4 October - December 2001
Quarter 2 of 2004
Articles
Prepayments and Capital Acquisitions
Manage Your Own Super?
New Power of Attorney Rules
Year End Tax Planning ? (Short List)
Year End Tax Planning ? (Long List)
2004 Tax Checklists: Help Us Help You - Business
2004 Tax Checklist: Help Us Help You - Personal
Vehicle Log Book ? Electronic Version
Trading Stock for Retailers and Wholesalers ? Signification Tax Change
Victorian Employers ? New Minimum Conditions
Food and Entertainment or Seminar Expense
Depreciation ? New Terminology
Prepare For A Fringe Benefits Tax Audit
Restrictions on Bookkeepers Providing Business Activity Statement Services
Lease Residuals ? Motor Vehicles
Financing Arrangements: Input Tax Credits
The New Spam Act
Pyramid Selling Schemes
Partnerships: Commissioner loses Part IVA Case
Prepayments and Capital Acquisitions
The restrictions on claiming prepayments, means that Year End Tax Planning is more difficult.

STS tax payers can still claim (deductible) prepayments up to 12 months ahead.  That means they can enter into leases of plant and equipment up to 30 June and pay and claim the next 12 month?s lease payments.

Or, they can even enter into a one year lease, with a 65.63% residual authorised by the Tax Office (ITR IT 28) and can often effectively claim nearly 40% of the cost of the item.

STS taxpayers on a cash basis for GST can benefit from entering into a Chattel Mortgage.  Under this type of arrangement:

  • they can claim the whole amount of the GST straight back (remember you can?t do this under an HP agreement); and
  • for assets that go into the ?General Depreciation Pool?, they can immediately claim 15% of the cost as depreciation.

Non-STS taxpayers on a cash basis for GST who buy plant and equipment before year end can benefit from using a Chattel Mortgage, or bank loan (using other security if necessary).

At least that way, they can claim the full amount of GST back immediately.






    


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