Melbourne taxable area
The Victorian Government has introduced new legislation to levy an additional land tax on vacant residential properties. This tax will be the first of its kind in Australia.
Under the proposal, owners of residential real estate in inner city or “middle areas” of Melbourne are to inform the State Revenue Office if it is vacant. Vacant is defined as being unoccupied for a period of six months or more in the preceding calendar year. The six-month period applies whether the property was unoccupied continuously or in aggregate.
Industry Specific Tax Deduction Guides
Adult industry workers – claiming work-related expenses
Australian Defence Force
Australian Defence Force members – claiming work-related expenses Australian Defence Force members
Building & construction
Building and construction employees – claiming work-related expenses
Business professionals – deductions you may be able to claim
Earth moving plant operator
Earthmoving plant operators – claiming work-related expenses
Education professionals – claiming work-related expenses
Electricians – claiming work-related expenses
Engineers – claiming work-related expenses
Fitness & sporting industry
Fitness and sporting industry employees – what expenses can I claim?
Flight attendants – claiming work-related expenses
Foreign property investors to pay more land tax and stamp duty
Starting with the Victorian Budget on 5 May 2015, the majority of states in Australia have implemented surcharges on foreign investors in the residential property markets. Below are tables that will assist you in understanding the new surcharge for each state that has changed in recent memory.
Most recently, Queensland will implement a land tax surcharge for absentee owners from 1 January 2018. Changes to the rates will apply in NSW from 1 July
Taxation Determination TD 2017/19 –
The Commissioner has set out the amounts considered to be reasonable in relation to claims made by employees for the 2017/18 income year for:
• overtime meal expenses — for food and drink when working overtime
• domestic travel expenses — for accommodation, food and drink, and incidentals when travelling away from home overnight for work (particular reasonable amounts are given for employee truck drivers, office holders covered by the Remuneration Tribunal and federal members of parliament), and
• overseas travel expenses — for food and drink, and incidentals when
The ATO has issued a media release warning taxpayers not to make incorrect tax claims for rental properties, particularly holiday homes. Compliance is a problem in this area where deductions for holiday homes are claimed even if the property is not genuinely being rented out.
Home owners can only claim tax deductions for expenses made during a period when the home is rented out or genuinely available for rent. Property owners are advised that if they rent their property at a discounted rate, they can only claim deductions equal
CGT discount increased for affordable housing investors
From 1 January 2018, the capital gains tax discount will be increased from 50% to 60% for resident individuals who invest in affordable housing. This measure was included as part of the housing affordability section of the 2017/18 Federal Budget.
The conditions to access the 60% discount are:
• the housing must be provided to low to moderate income tenants
• rent must be charged at a discount below the private rental market rate
• the affordable housing must be managed
If you have a family trust that will distribute the net profit to beneficiaries for the 2017 financial year, you need to create and sign a trust resolution by the 30th June 2017.
A Trust Resolution is a statement of intention to distribute the profits to the beneficiaries you have nominated (made presently entitled to).
If you don’t draft and sign a resolution by the 30th of June 2017, the ATO will deem that nobody (beneficiaries are not presently entitled) to the profit being distributed and assess the trust under s99A of the Income
Family trusts vs SMSFs
With major changes to superannuation rules, family trusts had previously been overlooked as a wealth management tool as investors incorrectly believed that the benefits / investments would be largely eroded via a family trust.
While at the same time, there has been a growing perception that superannuation has become overly complex and expensive, especially when compared with the better understood benefits in a family trust.
In fact, the set-up costs for family trusts and SMSFs can be similar, at around $2,200. In terms of running
Foreign and temporary tax residents will not be able to claim the CGT main residence exemption from budget night 2017 (7:30pm AEST on 9th May 2017). However existing properties held prior to this date will be allowed an extension until 30th June 2019 to still claim the main residence exemption.
Previously Foreign and temporary residents were able to utilise the absence rule in the CGT main residence exemption provisions to claim the main residence exemption on an Australian property.
They could previously use the exemption up to 6 years if they were
The “Accelerated Depreciation” threshold of $20,000.00 will end after midnight June 30, 2018. This now is due to revert to $1,000 from 1 July 2018.
Small businesses (with aggregated turnover of less than $10 million) will be able to immediately deduct purchases of eligible assets up to $20,000 first used or installed ready for use by 30 June 2018.
Assets costing more than $20,000 can be placed in a simplified depreciation pool, to be depreciated at 15% in the first year and 30% in subsequent years.
Criteria to meet include:
Grouping won’t apply. If