Foreign residents disposing of taxable Australian property

Posted by Team AVS on 14 Jan, 2025 0 Comments

Foreign residents disposing of taxable Australian property Foreign residents are subject to capital gains tax (CGT) on the disposal of taxable Australian property (TAP). In contrast, foreign residents (except beneficiaries of resident non-fixed trusts) can generally disregard a capital gain or loss from a CGT event (such as a disposal) relating to non-TAP assets. TAP comprises of:

taxable Australian real property (TARP)
indirect interests i

Withholding changes when buying and selling property

Posted by Team AVS on 3 Jan, 2025 0 Comments

What Australian residents need to know about the updates to the foreign resident capital gains withholding (FRCGW).

The Foreign resident capital gains withholding (FRCGW) rules are changing from 1 January 2025.

Currently, Australian residents selling property must provide a clearance certificate to the purchaser at or before settlement to avoid having 12.5% withheld from a property sale where the value of the property is $750,000 or m

Income from illegal activities: losses and outgoings

Posted by Team AVS on 25 Nov, 2024 0 Comments

You can't claim income tax deductions for income earned through illegal activity.

The income tax law allows deductions against your assessable income for losses and outgoings incurred in carrying on a business. Generally, deductions will be allowed if there is a sufficient link between the loss or outgoing and the business income where the amount is not of a private or capital nature.

However, if your business activities are illegal – tha

Choosing to make personal super contributions

Posted by Team AVS on 12 Nov, 2024 0 Comments

If you're self-employed as a sole trader or in a partnership, you don't have to pay super guarantee for yourself.

You can choose to make personal super contributions to save for your retirement.

Make sure your super fund has your tax file number (TFN). If not:

contributions are taxed an additional 32%
your fund may not accept personal contributions
you may miss out on a super co-contribution, if eligible
it will be harder to keep

Work out if you have to pay super

Posted by Team AVS on 6 Nov, 2024 0 Comments

Work out when employers need to pay super guarantee and which employees are eligible.

When super guarantee is required

If you pay a worker, you are also required to pay them super guarantee:

Amount of pay – you pay it regardless of how much they are paid – their earnings amount is not relevant.
Employee age – for employees who are
18 years or older, you pay it regardless of how many hours they work
under 18 years old, you

Treating former home as main residence

Posted by Team AVS on 24 Oct, 2024 0 Comments

How the CGT main residence exemption works if you move out and use the 6-year rule when renting out your former home.

How it works

Your main residence (your home) is generally exempt from CGT.

Usually, a property stops being your main residence when you stop living in it. However, for CGT purposes you can continue treating a property as your main residence:

for up to 6 years if you used it to produce income, such as rent (sometimes

Exchange traded funds

Posted by Team AVS on 16 Oct, 2024 0 Comments

How ETFs work

An ETF is a managed fund that lets you buy or sell units on a registered exchange such as the Australian Stock Exchange (ASX).

When you invest in an ETF, you purchase units in a trust that owns investments, rather than owning the assets personally.

Many online trading platforms allow you to purchase ETF units yourself, or you can use a broker or financial adviser to buy units in an ETF.

What types of investments can be h

Time is running out to lodge your own tax return

Posted by Team AVS on 8 Oct, 2024 0 Comments

The ATO is reminding taxpayers that the due date for individuals who lodge their own income tax return is 31 October 2024.

The Australian Taxation Office (ATO) is reminding taxpayers that the due date for individuals who lodge their own income tax return (31 October 2024) is fast approaching.

As of 22 September, the ATO had received over 7.9 million income tax returns from individuals for the 2024 financial year. Over 4 million individu

Deny deductions for ATO interest charges

Posted by Team AVS on 3 Oct, 2024 0 Comments

After 1 July 2025 taxpayers will no longer be able to claim for ATO interest charges.

On 13 December 2023, as part of the 2023–24 Mid-Year Economic and Fiscal Outlook (MYEFO), the Government announced it will amend the tax law to deny deductions for ATO interest charges. This measure is not yet law.

This measure will mean that taxpayers will no longer be able to claim deductions for general interest charges (GIC) and shortfall interest c

Rental expenses to claim

Posted by Team AVS on 24 Sep, 2024 0 Comments

Check the expenses you can claim as a deduction for your rental property.

Rental expense categories

There are 3 rental expense categories, those for which you:

can claim a deduction now(in the income year you incur the expense) – for example, interest on loans, council rates, repairs and maintenance and depreciating assets costing $300 or less
can claim a deduction over several years– for example, capital works, borrowing expense

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Deepak Kumar Director, D.S Webtech Pty Ltd

AVS Business Services have been our tax advisers and accountants for more than 3 years now. We have a great working relationship and constantly receive industry updates and useful information for our business. I would recommend AVS to any one as I feel they provide a very professional, timely and accurate service. They are well versed in Tax and superannuation legislation and support all of our business needs. They are a pleasure to deal with and we are sure that we are always dealing with advisers who understand business very well.

Justin Wilson CEO, J.W.W Trading Pty Ltd

Being a layman with Tax and Accounting and new to Australia, I was looking for a professional and efficient tax accountant who can also help me understand the tax structure here and show some avenues to save money.I was recommended to AVS through my friend and it was no looking back since then.Team at AVS are diligent tax professionals with an eye to detail. They spend time in understanding the requirements and needs of clients, ensuring it aligns with all the legal aspects.I am very pleased working with AVS and would recommend to anyone who is looking for professional, efficient and personalized tax accounting services.

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G.D Singh & Dr Jaskirat Singh SMSF Trustees

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