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This is where a business taxpayer brings forward the expenditure on regular, on-going deductible items. However, business taxpayers are generally entitled to deductions on an ‘incurred basis’. Therefore, there is generally no requirement for the expense to be paid by 30 June 2015. As long as the expense has genuinely been incurred, it will generally...

Any part of an expense prepayment relating to the period up to 30 June is generally deductible. In addition, non-SBE taxpayers may generally claim the following prepayments in full: – expenditure under $1,000; – expenditure made under a ‘contract of service’ (e.g., salary and wages); or – expenditure required to be incurred under law. Prepayments...

Non-SBE business taxpayers should endeavour to maximise deductions by adopting one or more of the following strategies: • Prepayment strategies; • Accelerating expenditure; and • Accrued expenditure.

Many of our business clients like to review their tax position at the end of the income year and evaluate any year-end strategies that may be available to legitimately reduce their tax. Traditionally, year-end tax planning for small businesses is based around two simple concepts – i.e., accelerating business deductions and deferring income. However, Small...

The following outlines common types of deductible expenses claimed by individual taxpayers, such as employees and rental property owners, plus some strategies that can be adopted to increase deductions for the 2014/15 income year. 1. Depreciable plant, etc, costing $300 or less Salary and wage earners and rental property owners will generally be entitled to...

The 2015–2016 Budget did not make any changes to the current personal tax rates, although in the lead-up to the Budget, the Treasurer indicated that the 2% budget deficit levy (tax) on incomes over $180,000 would not be extended beyond its initial three years. The levy was announced in last year’s Budget and applies for...

The following articles outline key announcements of the May 2015 Federal Budget.

The Government confirmed that a 10% cap will apply to the “deductible amount” for pension income received from a defined benefit superannuation scheme for the purposes of the social security income test. Recipients of Veterans’ Affairs pensions and defined benefit income streams paid by military superannuation funds are exempt from this measure. In addition, the...

The Government confirmed that the Age Pension assets test threshold for a single homeowner will be increased to $250,000 (up from $202,000) and $375,000 for a homeowner couple (up from $286,500) from January 2017. The assets test threshold (or assets free area) for non-homeowners will be increased to $450,000 (single) and $575,000 (couple). The assets...

The Treasurer said the Government will stop people from claiming parental leave payments from both the Government and their employers – he said this was effectively double dipping. This would apply from 1 July 2016.