Phone: (03) 9563 4688

Email: office@aubreypaton.com.au

Address: 17D Chester Street, Oakleigh VIC 3166

find:
Hot Issues
Federal Budget 2018 - Overview
Your Budget
4 components of our 2018 Federal Budget
Resources to help understand and implement Single Touch Payroll (STP)
New rules capture SMSFs trading big with cryptocurrency
New passive income test for lower corporate tax rate
Tools to help you manage your financial position are available on our site.
‘A simple mistake can attract our attention’: ATO reminder about FBT slips-ups
Australia by numbers – Update
Beware residency rules if moving overseas
Meaningful tax reform in high demand
Working holidaymakers and tax returns
Single Touch Payroll – 1 April 2018 Action
Property investors on notice after ATO spots false claims
ATO issues update on cryptocurrency compliance traps
Australia's vital statistics
Accountants spy elder abuse spike as mortgage stress sets in
Tax office releases fresh guidance on SMSFs
Labor's tax plans could favour the rich, analysis shows
FBT Reminder – Odometer Reading
Our website is really our digital office.
‘Substantiation will be a key focus’: ATO drums in tax time 2018 hit list
Super changes: $1.6 million transfer balance cap and death benefit pensions
Payroll, compliance issues top dodgy practices in Aussie business
Employee travel expense deductions
The Goldilocks effect - Economic and market update 4Q 17
Tax assessments confirmed for undisclosed business income
Super returns on the up despite clients’ hesitation
Australia. All you need to know to be the expert.
Business confidence hits 5-month high: NAB
Articles archive
Quarter 1 January - March 2018
Quarter 4 October - December 2017
Quarter 3 July - September 2017
Quarter 2 April - June 2017
Quarter 1 January - March 2017
Quarter 4 October - December 2016
Quarter 3 July - September 2016
Quarter 2 April - June 2016
Quarter 1 January - March 2016
Quarter 4 October - December 2015
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Quarter 3 July - September 2014
Quarter 2 April - June 2014
Quarter 1 January - March 2014
Quarter 4 October - December 2013
Quarter 3 July - September 2013
Quarter 2 April - June 2013
Quarter 1 January - March 2013
Quarter 4 October - December 2012
Quarter 3 July - September 2012
Quarter 2 April - June 2012
Quarter 1 January - March 2012
Quarter 4 October - December 2011
Quarter 3 July - September 2011
Quarter 2 April - June 2011
Quarter 1 January - March 2011
Quarter 4 October - December 2010
Quarter 3 July - September 2010
Quarter 2 April - June 2010
Quarter 1 January - March 2010
Quarter 4 October - December 2009
Quarter 3 July - September 2009
Quarter 2 April - June 2009
Quarter 1 January - March 2009
Quarter 4 October - December 2008
Quarter 3 July - September 2008
Quarter 2 April - June 2008
Quarter 1 January - March 2008
Quarter 4 October - December 2007
Quarter 3 July - September 2007
Quarter 2 April - June 2007
Quarter 1 January - March 2007
Quarter 4 October - December 2006
Quarter 3 July - September 2006
Quarter 2 April - June 2006
Quarter 1 January - March 2006
Quarter 4 October - December 2005
Quarter 3 July - September 2005
Quarter 2 April - June 2005
Quarter 1 January - March 2005
Quarter 4 October - December 2004
Quarter 3 July - September 2004
Quarter 2 April - June 2004
Quarter 1 January - March 2004
Quarter 4 October - December 2003
Quarter 3 July - September 2003
Quarter 2 April - June 2003
Quarter 1 January - March 2003
Quarter 4 October - December 2002
Quarter 3 July - September 2002
Quarter 2 April - June 2002
Quarter 1 January - March 2002
Quarter 4 October - December 2001
Quarter 1 of 2002
Articles
Business Losses deduction denied
School Building Funds
Superannuation Guarantee - 'Ordinary Time Earnings"
Excellent Salary Sacrifice Contribution
Self Education Deductible
Salary Sacrifice arrangements
Generic domain names auction
Interest rates - fixed or variable?
Interest - Disgrace or Just Plain Theft
New CGT Asset Register
No ABN quoted?
Unsure about an ABN quoted to you?
Coles Myer Shares in super funds
Fringe benefits at Christmas
Business Losses deduction denied
A loss venture (the typical Collins St farmer or the computer supplier after hours) can be denied the business loss unless some new (1st July 2000) rules are met.

Non-commercial loss rules defer the deductibility of business losses made by individuals unless and until one of four statutory tests are satisfied.

Broadly, they are:

* the assessable income test (that is, activity produces at
  least $20,000 assessable income);

* the profits test (that is, tax profits were made in three
  of the last five years);

* the real property test (that is, $500,000 non-private
  real property is used); and

* the other assets test (that is, $100,000 of other
  specified assets are used).

There are exceptions concerning primary production and professional arts business losses where the individual has other unrelated income of less than $40,000 per year.

A Tax Office ruling discusses the Commissioner?s discretion to grant relief and suggests it will apply very narrowly as follows:

* if special circumstances have meant that losses were
  incurred (eg. a long illness or natural disaster); or

* to particular industries where there is typically a long
  lead-time to profitability (eg. forestry or viticulture)
  ? in such a case, evidence of commercial viability must
  be produced.

A noteable exception is the timber industry - our knowledge and involvement as Financial Plannners can help here.  The Government seems keen to ensure that plantation timber becomes a substitute for native forest. Special concessions apply to recommended products - ask Doug for more information.        


14th-March-2002