Monday 20 Nov 2017
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Latest Accounting News
Hot Issues
300,000 SMEs utilising $20K write-off, says ATO
‘A bad thing times 10’: ATO set for new SMSF blitz
Capital Gains and Renounceable Rights
Paperwork bungles lead to $38k in payments
Australian Dietary Guidelines and healthy eating chart (PDF)
Former director liable for company’s unpaid tax liabilities
Resources on our site to help you, your family and your friends.
Super for housing measures enter Senate
No Special Circumstances to allow Excess Super Contributions
Housing tax measures progress to Parliament
AirBnb – wrong tax outcome?
Are young investors wasting their youth?
ATO sending 'more letters than ever' on income tax errors
Powerful Budgeting, cash flow and Super Tools available on our site.
Property, unit trusts in ATO's sights
Australian Dietary Guidelines and healthy eating chart (PDF)
Major Bank Levy Passed
NSW tops list as ATO reveals billions in lost super
Australia's leading causes of death - ABS
How is your super going, ready for retirement?
ATO increasing data exchange with international regulators
Illegal SMSF early access scheme leads to $6,000 fine
Our 'hardest' SMSF tasks
Uber drivers hit for 10% tax
Lack of literacy promotes unrealistic goals
Taxpayer failed to prove that payments were “loans”
New STP dates confirmed as ATO goes on compliance blitz
ATO flags compliance project for FY17/18
Items that heat up your depreciation deductions
Articles archive
Quarter 3 July - September 2017
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Quarter 1 January - March 2017
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Quarter 1 January - March 2015
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Quarter 3 July - September 2014
Quarter 2 April - June 2014
Quarter 1 January - March 2014
Quarter 4 October - December 2013
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Quarter 1 January - March 2013
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Quarter 1 January - March 2010
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Quarter 3 July - September 2009
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Quarter 1 January - March 2009
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Quarter 3 July - September 2008
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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
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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