This edition features pieces on:
- FBT and employee gifts: Some employers, especially at Christmas time or for birthdays, give small gifts to their employees or employee associates (such as their spouses). How FBT, GST and income tax applies to such gifts depends on a range of factors including the value of the gift, the type of gift, and the recipient.
- Research and development: A recent court case around R&D is a timely reminder of the eligibilityrules around this tax incentive. By way of background, the research and development tax incentive (R&DTI) helps companies innovate and grow by offsetting some of the costs of eligible R&D. If your company is conducting certain R&D activities, it may be eligible for this incentive.
- Super withdrawal options: For individuals who have retired and met a condition of release, or who have turned 65 and are still working, you can receive your superannuation as an super income stream, as a lump sum, or a combination of both. There are advantages of each withdrawal option.
- SMSFs and higher interest rates: While higher interest rates (10 increases since May 2022) have provided SMSFs with a viable and very safe investment opportunity, there are certain downsides, especially for those funds with a limited recourse borrowing arrangement (LRBA).
- Trusts – are they still worth it?: Despite the ATO’s recent crackdown on what were long-regarded as legitimate trust distribution strategies, they remain very much a viable business structure for a range of reasons including legitimate tax minimisation, asset protection, and more!
- Unexpected, first-time, tax debts: For a range of reasons, some taxpayers (particular younger folk) are receiving tax bills for the first time. We tackle some of the likely reasons and myths in this area.
Please contact us for clarification, or further advice, regarding any of the topics covered in this newsletter.
Disclaimer: All information provided in this newsletter is of a general nature only and is not personal financial or investment advice. Also, changes in legislation may occur frequently. We recommend that our formal advice be obtained before acting on the basis of this information.