The Australian Taxation Office has finalised new guidance on the tax treatment of rental properties, with particular attention being given to holiday homes that are also rented out. The new guidance follows draft material released late last year and is particularly relevant to owners of coastal, country, ski-area or short-stay accommodation properties that are used […]
With the 2026–27 Federal Budget introducing a proposed $1,000 standard work-related expenses deduction and a new $250 Working Australians Tax Offset (WATO), many taxpayers are asking an important question: what is the difference between a tax deduction and a tax offset? While both can reduce the amount of tax you pay, they operate in very […]
The Federal Government has released draft legislation proposing a new “instant” standard tax deduction of $1,000 for work-related expenses. If implemented, this measure would allow eligible taxpayers to claim a flat deduction at tax time without the need to retain receipts—replacing the current $300 no-receipt threshold administered by the Australian Taxation Office. It’s important to […]
From 1 July 2025, businesses will no longer be able to claim income tax deductions for interest charges imposed by the Australian Taxation Office (ATO) on unpaid or underpaid tax liabilities. This change applies to both the General Interest Charge (GIC) and the Shortfall Interest Charge (SIC) for amounts incurred in income years starting on […]
If you’re investing in your career by studying or undertaking professional development, you might be eligible to claim a deduction for self-education expenses in your 2024–2025 income tax return. You may be able to claim if your study has a direct connection to your current employment – for example, it helps you maintain or improve […]
If you own vacant land and are hoping to claim tax deductions, you’ll need to meet strict conditions set by the Australian Taxation Office (ATO). Eligible deductions may include interest payments on loans, land taxes, council rates, and maintenance costs, but only under specific circumstances. What Counts as Vacant Land?According to the ATO, land is […]
When you’re starting a new business venture, it may take some time before the business becomes profitable. And there may be other situations where an established business operates at a loss in a particular year. So, what does this mean tax-wise? When your deductions in an income year are greater than your assessable income, you […]
Deduct work-related expenses People overclaiming deductions for work-related expenses like vehicles, travel, internet and mobile phones and self-education are on the ATO’s hitlist again this year. There are three main rules when it comes to work-related claims: You can only claim a deduction for money you have actually spent (and that your employer hasn’t reimbursed). […]