News & Tax Insights

Costs incurred by an employer in providing recreational facilities for employees on the employer's business premises, or for the care of the children of employees in a childcare facility may be located on the business premises of a related company. The childcare facility does not have to be located on the employer's ordinary business premises. The exemption will still be available where an employer provides childcare facilities in premises which it has leased or purchased specifically for that purpose.

It may be possible to obtain an extension of time to pay your tax where: insufficient funds are available; payment would cause financial hardship and all avenues for obtaining the funds have been exhausted. The extended date for payment will apply where financial hardship is due to: Natural disaster; prolonged periods of unemployment; the taxpayer has died and probate has not yet been determined The general interest charge on the tax outstanding will accrue on a daily basis from the original date for payment, although this would be normally be waived in case of disasters. IN genuine dispute cases, an…

Certain gifts of art with a value of $2 or more can be deductible to individuals or companies. To qualify, the gift must be made to: The Australiana Fund Public libraries, museums or art galleries in Australia Artbank The gifts must be accepted to maintain or establish a collection. The deduction available is based on the specified written average market value obtained from approved valuers. Valuation expenses incurred are also tax-deductible.

Are you an employee receiving benefits from flights paid for by your employer? If the membership is your personal membership the benefits you receive will not be assessable nor will the benefits be subject to FBT.

Look closely at legal costs to determine whether you can claim a deduction. Costs incurred in the course of running your business, preserving the business and its good name, preparing leases, and debt collection costs are all deductible. Costs in registering patents, trade marks, designs and copyrights represent intellectual property and become depreciating assets. Legal costs incurred in buying or selling assets are not deductible but should be recorded as they form part of the cost base of the asset and can be offset against capital gains on disposal.

Be aware that if you set aside an area in your home solely for work purposes and claim a proportion of rates, maintenance, insurance and interest that part of your home will cease to enjoy the CGT exemption applicable to your main residence. You will need to apportion the cost and selling price of the residence in order to determine CGT payable on sale.

You can claim expenses incurred in providing food, drink, accommodation and travel that is reasonably incidental to the attendance at a seminar which lasts for at least four hours and assists you to earn assessable income. The seminar must not: Be a business meeting Have a main purpose of promoting or advertising the business or it's goods or services or; Have a main purpose of providing entertainment. The seminar can be held in an overseas luxury hotel at a tourist oriented location.