Backpacker tax: Government backs down. The Federal Government has responded to pressure and dropped its plan to introduce a 32.5% tax on backpacker workers. Instead, working holidaymakers will be taxed at a lower rate of 19%, starting January 1, 2017. They will still be charged from the first dollar earned.
Boat / Yacht - tax deductible? If you enter into an arrangement to lease a boat to others for a fee, deductions you can claim are limited in the following circumstances: - you are carrying on a business of boat hire or charter – you must apportion expenses between business and non-business use. A business is generally carried out on such a scale and in such a way as to show it is being operated on a commercial basis and in a commercially viable manner. There are several indicators which point to whether you are carrying on a business.
the ATO will continue to insist on monitoring compliance regarding rental property income and deductions, following the 2015 campaign which saw 500 postcodes issued with warnings that urged holiday home owners to ensure deductions were not made during periods in which a property was not available for let. he ATO will up the ante regarding a crackdown and investigation into the ‘sharing economy’, “driven in part by the high levels of non-compliance amongst those driving for Uber or renting rooms through Airbnb”.
Superannuation Fact On 15 September 2016, the federal government announced that the proposed $500,000 lifetime cap on non-concessional contributions was now scrapped, and would be replaced with an annual $100,000 non-concessional cap (subject to legislation). The start date for the annual non-concessional cap is 1 July 2017, which means the $180,000 annual non-concessional cap remains in place until 30 June 2017, and the bring-forward rule allowing up to $540,000 in non-concessional contributions, also remains in place until 30 June 2017.
If you buy tools, equipment or other assets to help earn your income, you can claim a deduction for some or all of the cost. If the tools are used for both work and private purposes you will need to apportion the amount you claim. Examples of tools, equipment or assets:
• computers and software
• desks, chairs and lamps
• filing cabinets and bookshelves
• hand tools or power tools
• protective items, such as hard hats, safety glasses, sunscreens and sunglasses
• professional libraries
• safety equipment
• technical instruments.