What is Division 293 tax? Division 293 tax is an additional tax that applies to higher-income individuals. It is designed to reduce the tax advantage they receive on concessional (before-tax) super contributions. In simple terms, if your combined income plus concessional contributions for Division 293 purposes exceeds $250,000 in a financial year, you may be […]

Tax on redundancy payments explained If you’re made redundant, you may receive a lump sum payout. While this can provide financial breathing room, it’s important to  understand how that money is taxed. Not all parts of a redundancy payment are taxed the same and how it is taxed can make a  big difference to what […]

Car claims for electric vehicles Working out the cost of electricity used to run your electric vehicle (EV) where you use the vehicle for business purposes and you use the logbook method for making your claim for car expenses is a little more complex than monitoring the cost of fuel used to run an all […]

Accessing superannuation funds for medical treatment or financial hardship Superannuation is one of the largest assets for many Australians and offers significant tax advantages, however, strict rules apply  to when it can be accessed. While super is most commonly accessed at retirement, death or disability, there are limited situations where earlier access may be possible. […]

Helping your kids buy their first home using super If you want to give your children a head start on saving for their first home, the First Home Super Saver Scheme (FHSSS) is worth considering. It offers a tax-effective way for young people to grow a  deposit more quickly and is open to anyone who […]

THE CGT RETIREMENT EXEMPTION CONCESSION: What a boon! If you run a small business and sell it – or some of its asset(s) – and make a capital gain, the CGT “retirement exemption” may be invaluable to reduce or eliminate the tax payable on the gain. The funny thing is that you don’t have to […]

Protecting your super from scams With more than $4 trillion in superannuation, it’s no surprise scammers see it as a goldmine. ASIC has warned Australians to be on high alert after a rise in pushy sales tactics and false promises  designed to lure people into risky super switches. Since your super is one of the […]

Family trusts are great, but beware of disadvantages The tax advantages of using a family trust are well known – in particular, the ability to split income among family members so that a lower effective tax rate applies to the income. This is unlike the case where one person derives all the income or the […]

Deductibility of self-education expenses Many people spend their own money on attending courses that will hopefully make them more employable and maybe earn a higher income. That’s a good thing – a workforce that is more highly  skilled can lead to higher productivity, which is something that’s been in the spotlight of late. It’s not […]

What to do if you exceed your super contribution caps Superannuation is a great way to save for retirement, but the government sets strict limits on how much you can contribute each year. These limits are called contribution caps. If you go over them, you could face extra tax. But don’t panic – here’s what […]