Welcome to this month’s issue of our newsletter. Our aim is to keep you informed about current tax and superannuation related matters.
This month we look at:
• Crystalising capital losses: It’s been a tough 12-months for investors. However, a loss on an investment is only realised if you dispose of the asset. If you retain the asset, you may be able to ride things out and hopefully the market bounces back. Even where you do sell and incur a capital loss, there can be a silver lining from a tax perspective.
• PAYG instalment variations: The ATO is encouraging accountants to educate clients around varying PAYG instalments – this can potentially assist cashflow. If your or your business’s financial situation has changed for the worse, varying your PAYG instalments downwards can help with cashflow which can be a significant problem for small business. There are however dangers in varying.
• Legislating the purpose of superannuation: Treasury released a consultation paper on legislating the purpose of superannuation. However, as noted in the paper, the purpose of legislating such an objective is to guide future policy makers rather than lay the groundwork for changes to existing superannuation settings.
• Changes to claiming work-from-home deductions: Are you one of the five million Australians who claim work from home deductions? If so, stricter record-keeping requirements may now apply from 1 March 2023. A new, increased cents per hour rate is also now available.
• Super teething issues: Last year 9,700 individuals applied for compassionate release of super for dental treatment expenses, and 82% were approved. Out of those approved, 9% were for a dependent child’s dental treatment, which could include braces. What are the rules around making a claim?
• FBT and car logbooks: The majority of employers calculate any car fringe benefits under the logbook method. As we approach the end of the FBT year, logbooks need to be in order, including adequate descriptions of trips, odometer records and more!
Click here to read the Rose Partners March 2023 Newsletter.
If you would like to discuss anything raised in the newsletter, please contact our Team.