I’m guessing you’ve heard this quote before… “Give me a lever long enough and I could move the world” – Archimedes. But did you know just how relevant that statement is to your future wealth building? Let me explain… The major difference between rich people and poor people is this: Rich people always use leverage.…
I have just come across this brilliant and practical savings system that will not only get you on the track to securing your financial future but it also lets you spend money on yourself! Does that sound good to you? Well read on! In this current climate of doom and gloom with the retirement age…
Never get emotional when considering an investment. I collect guitars and I sometimes get emotional and pay too much. Why? Because if I really want a guitar, I pay whatever I have to. I don’t avoid telling mum what I pay, I just mumble sometimes when she asks. As you’re never going to live in…
Titled land stock starts to dwindle and property developers begin setting of the plan many months out from the release date. To understand when stock is dwindling, keep an eye on the number of vacant titled lots on the market. Unfortunately this information is not easy to come by unless you have relationships with land…
In the current market, buyers have plenty of opportunities to find their ideal property. Stock levels are high so buyers THINK they can afford to take their time when making a buying decision with these conditions especially those upgrading their property. We’ve seen a shift over the past two years with sales volumes and consumer…
The Government is looking to cut red tape for employers by simplifying tax and superannuation reporting obligations through its initiative called Single Touch Payroll (STP). “Employers currently manually report Pay As You Go (PAYG) withholdings to the ATO,” the Assistant Treasurer Kelly O’Dwyer said. “Under the new STP this information will be automatically reported to…
Two company taxpayers have been unsuccessful before the Federal Court in seeking to set aside statutory demands issued by the ATO. The matter essentially involved two individuals who carried on property development activities through several entities (including the taxpayers) and their recollections of an alleged “global deal” with the ATO at a meeting on 10…
The mining tax has been repealed. However, in order to pass the legislation through the Senate, the Government made a deal with the Palmer United Party and Senator Muir to defer the abolition of: the Income Support Bonus to 31 December 2016; the Schoolkids Bonus to 31 December 2016 (and restrict the Bonus to families…
The ATO is increasing its focus on holiday home investors and, in particular, whether they are correctly claiming deductible expenses. A key concern is when people make claims for expenses when the property was not available for rent. The ATO has recently advised that it will be sending letters to taxpayers in approximately 500 postcodes…
In a surprise – but welcome – move in the 2015 Federal Budget, the Government announced a small business tax discount. The Government said that, with effect from 1 July 2015, individual taxpayers with business income from an unincorporated business that has an aggregated annual turnover of less than $2 million will be eligible for…
Individuals can claim deductions for mobile, home phone and internet expenses that have been incurred for work purposes. However, correct apportionment for work use is a key issue. According to the ATO, as there are many different types of plans available, taxpayers need to determine their work use using a reasonable basis. For example, phone…
The deadline to take advantage of the ATO’s initiative to allow eligible taxpayers to come forward and voluntarily disclose unreported foreign income and assets with reduced penalties is nearing. The ATO has urged taxpayers with offshore assets to declare their interests ahead of a global crackdown on people using international tax havens. The Tax Commissioner…
Tax time is in full swing and the ATO has highlighted areas of concern for individuals ahead of tax return lodgment time. High on the ATO’s watch list is work-related expense claims that are significantly higher than expected. In particular, the ATO will be paying particular attention to claims that have already been reimbursed by…
In a recent case, the Administrative Appeals Tribunal (AAT) refused an individual’s application to be released from his tax debt of $58,000 on the grounds of serious hardship. The AAT noted that no explanation was offered for the taxpayer’s failure to meet his tax liabilities as they arose. The AAT said that instead of paying…
Even though the Commissioner of Taxation endeavours to interpret the law to give effect to its purpose or object, there are instances where this is not possible. To address this, the Government has announced that it will provide the Commissioner with a statutory remedial power to allow for a more timely resolution of certain unforeseen…
There are many ways in which entities can defer income, maximise deductions and take advantage of other tax planning initiatives to manage their taxable incomes. Taxpayers should be aware that in order to maximise these opportunities, they need to start the year-end tax planning process early. Of course, those undertaking tax planning should be aware…