Non-deductible threshold removed for self education
The non-deductible threshold for work-related education expenses of $250 has now been removed with the recent passing of legislation. This deduction limit was an artifact from when the self-education deduction measure was first introduced and no longer served its original purpose. Now that it has been repealed individual taxpayers only need to consider the deductibility …
Tax rules for personal services income
The tax legislation contains special rules about personal services income (PSI). The PSI rules are aimed at ensuring individuals cannot reduce or defer their income tax by alienating or splitting their PSI through the use of interposed companies, partnerships or trusts. An interposed entity is called a personal services entity (PSE). The ATO recently released …
Transitional approach extended: foreign companies
Foreign-incorporated companies that may have their residency status questioned as a result of the High Court’s decision in the Bywater Investments case will now have more time to organise their governance arrangements. The ATO has recently issued an update to a Compliance Guideline which gives these companies until 30 June 2023 to make any necessary …