Earning Rental Income

If you rent out your family home, whether partially or in full, there are circumstances where you may not receive the full Main Residence Exemption from Capital Gains Tax when the house is sold. There are interpretations of Capital Gains Tax that do reduce the overall tax outcomes.

It is important that all dates and expenses of the property including purchase outlays, are kept with primary documentation.

Importantly, discuss the specifics of your situation with your tax professional - preferably before any change of use is made.

COVID saw many people legitimately having increased claims for home office expenses. The ATO have now revised how these expenses can be claimed.

From the 1st of March 2023, to make a home office claim a record such as a timesheet, roster or diary of ALL the hours you worked from home is required. The cents per hour rate encompasses the work use of your internet, telephone, electricity, computer consumables and stationery. Other specifics may be claimable eg depreciation on IT equipment and office furniture.

Home Office

Electric Vehicles & FBT

Of special interest to employees and their employers, the ATO have released new legislation exempting electric vehicles from Fringe Benefits Tax, from the 1st of July 2022.

To satisfy the conditions of being a ‘zero or low emissions vehicle’, the car must be:

• A battery electric vehicle

• A hydrogen fuel cell electric vehicle, or

• A Plug-in hybrid electric vehicle – however, from the 1st of April 2025, these will no longer be exempt.

The vehicle must also be below the Luxury Car Tax threshold for fuel efficient vehicles for the period in which it was purchased, whether brand new, or privately (second-hand).

As cryptocurrency becomes a more common asset in investment portfolios, traders and investors of these types of assets need to be aware of the ATO’s current legislation.

Being treated much the same as other more common types of assets – such as shares, a CGT event will occur when certain types of transactions take place, including:

• Buying a cryptocurrency asset

• Selling a cryptocurrency asset

• Trading, exchanging or swapping a cryptocurrency asset

• Converting a cryptocurrency asset to Australia or foreign currency

• Buying goods or services with a cryptocurrency

Just like with any assets subject to Capital Gains Tax, detailed record keeping is key to accurate calculation of CGT when applicable.

Crypto-Currency

Super Deductions

If a Personal Superannuation Contribution has been made during the financial year, a valid Notice of Intention to Claim (NOI), from your super fund, is needed to claim a tax deduction in your return.

A PDF NOI form can be downloaded from the ATO’s website. This notice must be sent to your superannuation fund and acknowledgement of the receipt of this valid notice from the fund before you lodge your Tax Return including the deduction.

GST registration is optional for all businesses, though is compulsory when a business meets the following turnover:

• The GST threshold (gross income from all businesses) of $75,000 is exceeded

• Through projections, the business is expected to exceed the GST threshold in the next year of operation

Other factors also influence the need for GST registration.

GST Registration

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