Julia's Blog
By Julia Hartman
It is pretty clear, by the concessions available in the legislation, that it is the aim of the government to allow farmers to hold their farms in a SMSF. Nevertheless, it is far too easy to slip off the narrow path so make sure you get good advice right from the start. This blog will equip you with enough knowledge to judge a competent advisor.
Before embarking on any year-end tax strategy it is first important to consider whether you are going to be in a higher tax bracket next financial year. Examples of how this could happen would be a capital gain because you are going to sell an asset or your pay may go up next year. If your tax bracket is going to be higher next year, then it may be better not to drag deductions from next year into this year or delay income from this year to next year…
Updated 25 January 2019 Normally we don’t buy into the ATO fearmongering each year, saying certain deductions are in their sights. But the attitude of the ATO has changed from just wanting to confirm you are claiming legitimate deductions to actually wanting to find a way to deny a claim for an expense, even when …
Burning your money is probably illegal but if you are a pensioner it might save your franking credits. Under the proposed policy by the Labor party, franking credits will not be refundable unless you qualify for the pension. This is certainly a big incentive to qualify for the age pension. Let’s look at an example. …
How Franking Credits are Created: In simple terms, imagine an Australian company makes a $100 profit. It pays $30 tax on it and pays a $70 cash dividend to its one shareholder, an Australian resident. The shareholder also receives a tax credit for the $30. As a result, the shareholder declares $100 in income in …