Wednesday 28 September 2016

HOBBY INCOME – NON ASSESSABLE INCOME


Where an activity you engage in is deemed a hobby, for example a spare-time activity or a pastime pursued for pleasure or recreation, any income generated from that activity is generally excluded from your assessable income of your tax return.

Types of income that are excluded may include:

- Gifts or amounts bequeathed to you
- Prizes that are not related to your business activities
- GST that you have collected
- Money that you have borrowed
- Most payouts from your own personal income protection insurance policy
- Gambling wins

The following link explains in more detail excluded income


Wednesday 21 September 2016

VOLUNTARY HELP REPAYMENTS


The ATO offers an incentive for taxpayers to make additional voluntary repayments on their HELP debts. If you make a payment of $500 or greater the ATO will deduct an additional 5% of the repayment amount off your debt. This could be attractive if you are trying to actively reduce your HELP debt. Please note though you will still be required to make the compulsory repayment when you lodge your tax return at year end if your income is over the threshold which is currently $54,869. In addition the ATO is withdrawing this bonus scheme as of 1 January 2017 so if you wish to take advantage there are only a few months left to do so.

For more information see the following from the ATO.


https://www.ato.gov.au/Individuals/Study-and-training-support-loans/Voluntary-repayments/

Please contact Andrew Marshall or Janine Orpwood at Langley McKimmie Chartered Accountants on (03) 5427 8100 to discuss further.

We provide accounting and wealth management services to clients in WoodendGisborne and Macedon Ranges areas within Victoria Australia.  

Wednesday 14 September 2016

RAINING, RAINING, RAINING! Maintaining livestock and rainfall records


Accounting for primary production livestock on small holdings can be challenging. Remembering births, deaths and other movements during the year is often difficult when 30 June rolls around.

Here at Langley McKimmie, we have developed a wall chart to assist with the recording of livestock movements throughout the year. We’ve combined it with a rainfall chart and calendar.

If you would like a copy, please feel free to drop in to collect one.


Please contact Andrew Marshall or Janine Orpwood at Langley McKimmie Chartered Accountants on (03) 5427 8100 to discuss further.

We provide accounting and wealth management services to clients in WoodendGisborne and Macedon Ranges areas within Victoria Australia.  

Wednesday 7 September 2016

SMSF's AND RELATED PARTY LENDING


A related party limited recourse borrowing arrangement (LRBA) is a loan between a non-bank (related party) and a SMSF for acquisition of property or listed security to be held in the SMSF. 

Trustees of SMSF’s that currently have a LRBA in place for a property or listed security need to ensure that these LRBA’s are in line with the new safe harbour provisions set out by the tax office in relation to:  

- Interest Rate
- Term of Loan
- Maximum Loan-to-value ratio
- Security
- Nature & frequency of payments
- Loan agreements  

Where a LRBA is not in line with the safe harbour provisions, trustees have the options to:  

- Change the terms so they are consistent with arms - length dealing by 31 January 2017
- Bring the LRBA to an end by 31 January 2017
- Refinance to a commercial lender by 31 January 2017  

The tax office has advised trustees of SMSF’s have until 31 January 2017 to ensure their LRBA is in line with the safe harbour provisions, including correcting their treatment during the year ended 30 June 2016.


Please contact Andrew Marshall or Janine Orpwood at Langley McKimmie Chartered Accountants on (03) 5427 8100 to discuss further.

We provide accounting and wealth management services to clients in WoodendGisborne and Macedon Ranges areas within Victoria Australia.  

 

Thursday 1 September 2016

SUBDIVIDING LAND? YOU MAY HAVE TO PAY GST



When subdividing a block of land, including the block on which you currently reside, there are many tax matters to consider.

One of which is whether or not you are required to register for GST.

The below ATO link details some items to consider when subdividing land including whether GST is required.
 


Please contact Andrew Marshall or Janine Orpwood at Langley McKimmie Chartered Accountants on (03) 5427 8100 to discuss further.

We provide accounting and wealth management services to clients in WoodendGisborne and Macedon Ranges areas within Victoria Australia.