Julia's Blog
By Julia Hartman
Refunding Franking Credits – Let’s address the Elephant in the Room – Tax Free Superannuation Labor party policy is that franking credits should not be refunded to taxpayers and self managed superannuation funds (SMSF) who don’t have enough taxable income to pay tax. Note that public superannuation funds that pay tax free pensions will still …
Obviously, you have to declare the income you receive and are entitled to claim expenses but the long-term consequences of a property earning income is capital gains tax (CGT) which means keeping records for the rest of the time you own it. This will even apply to your home in most circumstances. When the Property …
Before embarking on any year-end tax strategy it is first important to consider whether you are going to be in a higher tax bracket next financial year. Examples of how this could happen would be a capital gain because you are going to sell an asset or your pay may go up next year. If your tax bracket is going to be higher next year, then it may be better not to drag deductions from next year into this year or delay income from this year to next year…
Updated 25 January 2019 Normally we don’t buy into the ATO fearmongering each year, saying certain deductions are in their sights. But the attitude of the ATO has changed from just wanting to confirm you are claiming legitimate deductions to actually wanting to find a way to deny a claim for an expense, even when …
How Franking Credits are Created: In simple terms, imagine an Australian company makes a $100 profit. It pays $30 tax on it and pays a $70 cash dividend to its one shareholder, an Australian resident. The shareholder also receives a tax credit for the $30. As a result, the shareholder declares $100 in income in …