Category: Tax Planning

Inheriting a property feels like a gift, but in the world of Australian tax, it’s a gift that comes with a complex instruction manual. Many of the Capital Gains Tax (CGT) rules for inherited property are not just complicated; they’re deeply counter-intuitive. What you assume might be true can often be the opposite, leading to unexpected and costly tax bills.

Drawing from a recent expert webinar on the topic, we’ve distilled some of the most surprising and critical takeaways that every potential beneficiary, executor, and property owner should understand.

As Fringe Benefits Tax (FBT) lodgement season approaches, family businesses should carefully review the perks they provide to working directors and family members. A high-profile case involving luxury vehicles provided to three brothers who run a large business empire through a discretionary trust highlights the complexities — and potential risks — of informal arrangements. While the case initially appeared to expand FBT exposure, the latest decision handed down by the Full Federal Court offers reassurance that not all benefits provided to working owners will automatically trigger FBT.

What may seem like harmless “owner entitlements” or beneficiary perks can still attract scrutiny from the Australian Taxation Office (ATO). However, the courts have emphasised the importance of substance, documentation, and the capacity in which benefits are provided.

Trusts are the Swiss Army knife of asset protection—versatile, reliable, and widely recommended. But what happens when the tax consequences of moving assets in, out, and between trusts turn out to be far more treacherous than the brochure suggested? The sources reveal a landscape where timing nuances can shift tax liabilities between years, where well-meaningRead More »

Leaving debts outstanding with the ATO is now more expensive for many taxpayers. As we explained in the July edition of our newsletter, general interest charge (GIC) and  shortfall interest charge (SIC) imposed by the ATO is no longer tax-deductible from 1 July 2025. This applies regardless of whether the underlying tax debt relates toRead More »

This tax season, we’ve seen a surge in questions about whether interest on a loan can be claimed as a tax decuction. It’s a great question as the way interest expenses are treated can significantly affect your overall tax position. However, the rules aren’t always straightforward. Here’s what you need to know. The purpose ofRead More »

If you’re carrying an Australian Taxation Office (ATO) debt there is a good chance that it will cost you even more from 1 July 2025 onwards. This is because from 1 July 2025 two types of interest charges imposed by the ATO are no longer deductible. What are the interest charges? There are two mainRead More »