When it comes to investment property depreciation, people mostly focus on the building and what’s inside, but the outdoors can be depreciable too.

It is important to know that not all landscaping is depreciable; there is a difference in how ‘hard’ and ‘soft’ landscaping is treated in terms of depreciation.

Hard landscaping, also known as hardscape, is the structural component or hard-surfaced area of the yard and assets. Sheds, retaining walls, outdoor tiles, seating and concrete walkways are examples. Assets such as these hold depreciable value and can be claimed using capital

GST Margin scheme guidance enhanced after user mistakes

If you sell or develop the property, you may be eligible to use the margin scheme, reducing the amount of GST payable on some property transactions.

However, the ATO says it has noticed errors in the two key parts to the margin scheme that taxpayers must get right – eligibility and calculation.

It has therefore improved its web content, which includes new videos, updated examples, and a link to the GST property decision tool

Learn More

Do I have to pay tax if I sell

Small Business Clients

Business in the following industries that make payments to contractors or subcontractors needs to lodge a Taxable Payment Annual Report (TPAR) by the 28th of August each year.

Black or Cash Economy Detection

The TPAR is a black economy measure designed to assist the ATO to identify contractors who don’t report or under-report their income. 

The ATO estimates that around 280,000 businesses need to lodge a Taxable payments annual report (TPAR) for 2019-20.

60,000 Business have not reported there (TPR) for the 2020 Financial Year.

The ATO has today confirmed more than 60,000

Property Landscaping Tax Deductions?

A common question asked by clients!

Landscaping work

How do I treat for tax the cost of landscaping to improve the value of a property?

Landscaping is an improvement to the property and therefore not deductible under section 8-1.

OK, what about landscaping being deductible under Div 43 capital works over 40 years?

Or if not claimable as a capital improvement under Div 43, can we add to the cost base of the investment property as improvements and no tax deduction allowed?

Answer

Costs involved in landscaping a property are generally seen to

Individuals

Personal income tax cuts

Date of effect1 July 2020

 Tax thresholdsTax rateCurrentFrom 1 July 2020From 1 July 20240%$0 – $18,200$0 – $18,200$0 – $18,20019%$18,201 – $37,000$18,201 – $45,000$18,201 – $45,00030%  $45,001 – $200,00032.5%$37,001 – $90,000$45,001 – $120,000 37%$90,001 – $180,000$120,001 – $180,000-45%>$180,000>$180,000>$200,000LITOUp to $445Up to $700Up to $700

Bringing forward the personal income tax plan will:

Increase the top threshold of the 19% tax bracket to $45,000 (from $37,000)Increase the top threshold of the 32.5% tax bracket to $120,000 (from $90,000)Increase the low income tax offset from $445 to $700

In addition, the LMITO (low and middle

JK1 Finished on the 27th September

(JK) 1 finished on the 27th September so all payments for JK 1, Fortnight 13 need to be paid by 27th September and then make the Monthly Declaration by 14th October to receive the  September JK1 Subsidy of $1,500 per fortnight per employee.

JK2 – Starts on the 28th September

What doesn’t change for employers, according to the ATO:-

Employers don’t need to re-enrol for the JK2, if they already enrolled for JK1 for fortnights before 28th SeptemberEmployers don’t need to reassess employees eligibility or ask employees to

JobKeeper Payment Received

Urgent JobKeeper action required forNew Employees by Monday 24th August 2020 The Government has amended the JobKeeper rules to allow more employees to qualify for the JobKeeper payment.This is achieved by extending the eligible employee test to also include eligible employees who were employed on 1 July 2020 (in addition to those employed on the original 1 March 2020 employment date), where they are not currently nominated for JobKeeper payments with another entity. As a result, more employees may qualify for JobKeeper payments from 3 August 2020 (i.e., JobKeeper fortnight 10),

Renta Property Tax Returns affected by COVID-19

Frequently asked tax questions for rentalproperties affected by COVID-19

My tenants are not paying their full rent or have temporarily stopped paying rent because their income has been adversely affected by COVID-19. Can I still claim deductions on my rental property expenses?

The simple answer is Yes 

If tenants are not meeting their payment obligations under the lease agreement due to COVID-19 and you continue to incur normal expenses on your property, then you will still be able to claim these expenses in your tax return.

I’m considering

COVID-19 $150,000 Instant Asset Write-Off

The best tax breaks for small business is the instant asset write-off, a great way for your business to purchase capital assets and get an immediate tax deduction.

As part of the COVID-19 Coronavirus Stimulus Package, the instant asset write off threshold has increased from $30,000 to $150,000 (net of GST) per asset acquired.

This measure applies to all purchases from 12 March 2020 to 30 June 2020 where the assets are used or installed ready for use, in the business by 30 June 2020.

Examples of tax-deductible items

Some of

Employer payments to employees

Job Keeper Payment OverviewSupport for Employers to keep employees on the books!

Employer Register Now for Jobkeeper

The Job Keeper Payment will provide a flat $1,500 a fortnight per employee for businesses to retain or rehire nearly six million workers.Businesses that experience a 30% drop in turnover since the 1st March 2020 will be eligible.

Employers that have already lost their job will be eligible if the business had them on the books on the 1st March 2020.

The first payment will be received by employers from the ATO in the first week