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Latest Accounting News
Hot Issues
Bushfires 2019–20 (ATO)
Accounting profession responds to bushfire crisis
Helping your business survive a natural disaster - ATO
Single Touch Payroll (STP) – now ensure super is paid on time.
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Australia by the Numbers
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Introductory Rates & Interest Free Periods
Our Advent calendar for 2019
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Don’t forget sharing economy income
Impress your friends with your knowledge!!
Salary sacrificing and the superannuation guarantee
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Reverse Mortgage?
How the gig economy could create hidden tax issues for contractors and employers
15,000 tip-offs as ATO black economy hotline rings hot
What happens when interest rates hit the floor?
Director Penalty Notices (DPN)
Synchronised global economic slowdown
STP to be increasingly monitored
6 new accounting related videos
GDP by country since 1800
Information needed to be the BBQ expert.
Employee or independent contractor: What happens when it goes wrong?
Single Touch Payroll (STP) reporting irregularities: ATO contacting businesses
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Articles
Prepayments and Capital Acquisitions
Manage Your Own Super?
New Power of Attorney Rules
2004 Tax Checklists: Help Us Help You - Business
2004 Tax Checklist: Help Us Help You - Personal
Year End Tax Planning ? (Short List)
Year End Tax Planning ? (Long List)
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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