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Latest Accounting News
Hot Issues
Global outlook summary: Down but not out
Bookkeepers remind on incoming TPRS obligations
Golden Rules for Deductions
How's Australia going - vital statistics?
Tax, SMEs set to be ‘political football’ in 2019 as election nears
Cap lifted on popular financing option for clients
Expiry of 900,000 interest-only loans set for January
Australian Taxation Office (ATO) Scam Alert: Fake Demands for Tax Payments
Tax Office sounds alarm on popular property strategy
Our Advent calendar for 2018
‘Please do not panic’: ATO boss addresses STP concerns
Stop!! Don't do a paper Budget, use our online budgeting tools instead.
Employee Christmas Parties and Gifts – Any FBT?
Behavioural Coaching and your financial plans
FBT – Christmas Parties and Taxi Fares
Information needed to be the BBQ expert.
Tax consequences of trust vesting
Fringe Benefits Tax (FBT): employees’ private use of vehicles
ATO to contact clients over bank details
ATO claws back $850m in unpaid SG in FY 17-18
Appetite for property in SMSFs shows signs of life despite tough market
Superannuation gender gap narrowing, research shows
Identification numbers for directors
How financial advice helps create wealth.
Australia's vital statistics
Unlocking equity crowdfunding in Australia
$20m boost for SME clients looking to exporting
Work-Related Expenses
ATO updates crypto guidance
Articles archive
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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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