December 2018 / January 2019 Newsletter

Please click on the following link to view our monthly accounting/tax newsletter for December 2018 / January 2019:

December 2018 / January 2019

We would like to highlight the following articles in this month’s newsletter:-

Rental property travel expense claims – The ATO has identified 26,000 taxpayers who have claimed deductions during tax time 2018 for travel to their investment residential rental properties, despite recent changes to the tax laws that disallow such claims – it does not matter what the travel was or why it was incurred. Hence, from 1 July 2017, property investors cannot claim any travel expenses relating to inspecting, maintaining or collecting rent for a residential rental property as deductions.

Downsizer super contributions – The ATO has issued guidance on the recently enacted downsizer superannuation contribution measures, which allow individuals aged 65 or over to make a contribution into their superannuation fund of up to $300,000 from the proceeds of selling their home. This measure took effect on 1 July 2018. If you think you are eligible for the downsizer superannuation contribution, please contact us.

Small business corporate tax rates Bill is now law – The Treasury Laws Amendment (Lower Taxes for Small and Medium Businesses) Bill 2018 received assent on 25 October 2018 and and has become law. This implements the Government’s proposal to accelerate the reduction of the corporate tax rate for corporate tax entities that are base rate entities (ie corporate tax entities that derive no more than 80% of their income in passive forms and have an aggregated turnover of less than $50 million). The corporate tax rate for base rate entities will now reduce from 27.5% to 26% in 2020–2021, then being cut further to 25% for the 2021–2022 and later income years.

If you have any queries in regards to your tax and accounting matters, please do not hesitate to contact us to discuss further.