The COVID-19 period in everyone’s life continues, and as time goes by more issues keep arising regarding certain tax matters. One such issue, which the ATO has realised may be a concern, is the changed rental property market, and the deductions for expenses that are and are not available.
We also consider the issue of passive income and where this figures when qualifying for JobKeeper. There has also been a temporary change made to bankruptcy laws because of the economic fall-out of COVID-19.
Also, as tax time does not simply disappear because of a certain virus, we offer some end-of-financial-year last minute tax tips, a warning on issues stemming from property development undertaken by SMSFs, and how resident or non-resident status affects tax outcomes.
The overwhelming issue of the day is of course the coronavirus. The government's stimulus package launched in response to the crisis is welcome. We spell out what this means for different taxpayers, and how the measures will work.
Also in this issue we examine the superannuation guarantee amnesty, an interesting quirk of the FBT rules regarding e-bikes, and the important choice of trustees with an SMSF.
The dominating factor in all our lives at the moment is of course COVID-19. We look at issues that may change the normal deductions taxpayers can make for working from home, plus examine details of the new JobKeeper scheme that both employers and employees will need to know.
There is also the early release from superannuation option that may help many people get through this difficult period, and the temporary changes to the instant asset write-off rules, as well as accelerated depreciation, that are available now.
The bushfire season has highlighted the very central importance that volunteers play in Australia, but along with these essential roles there can also be tax outcomes to consider.
We also sketch out the essentials to know about the First Home Super Saver scheme, succession planning for family businesses, and the possible tax offsets available in the superannuation arena. Discretional trust distributions are also briefly explained.
If you own certain high-end assets, it may be prudent to make sure your tax affairs are in order. The ATO has asked dozens of insurance companies for policy details over certain asset values to check up on these taxpayers’ tax obligations.
We also look at the realities of accessing some of your retirement savings early, and examine the sorts of expenses you can claim when an investment property is damaged or destroyed. There is also a new obligation regarding CGT when selling taxable property, and we also have a warning about staying safe online.