Rental and other rental-related income is the full amount of rent and associated payments that you receive, or become entitled to, when you rent out your property, whether it is paid to you or your agent. You must include your share of the full amount of rent you earn in your tax return.
What happens if Rental Bond is retained in case of tenant default or damage caused to property by the tenant?
You must include rental bond money as income if you become entitled to retain it, for instance, because a tenant defaulted on the rent, or because of damage to your rental property requiring repairs or maintenance.
In case of commercial rent, if landlord becomes entitled to rental bond then the amount will be inclusive of GST (if landlord is registered for GST) and GST liability will arise as a result.
What if you received an insurance payout?
If you received an insurance payout, there may be situations where the payout needs to be included as income, for example, if you received an insurance payment to compensate you for lost rent.
What If you received a reimbursement or recoupment for deductible expenditure?
If you received a reimbursement or recoupment for deductible expenditure, you may have to include an amount as income. For example, if you received an amount from a tenant to cover the cost of repairing damage to some part of your rental property and you can claim a deduction for the cost of the repairs, you need to include the whole amount in your income.
Contact Expert Tax on 0449 952 855 or 1300 869 829 for tax related matters.
Superannuation guarantee amnesty bill passed Parliament on 24 February 2020 and has now received Royal Assent and is law.
This law change provides a number of incentives for employers to pay any unpaid historical superannuation guarantee (SG) amounts relating to the period 1 July 1992 to 31 March 2018.
Superannuation guarantee amnesty benefits
Provided superannuation guarantee charge (SGC) relating to the period above is paid during the amnesty period of 24 May 2018 until 6 months after the date of Royal Assent (6 September 2020), eligible employers will receive the following benefits:
- The SGC will be deductible
The SGC, which is usually non-deductible, is comprised of the following amounts:
- the total SG shortfall – that is, the total of the SG shortfalls for each affected employee.
- interest on SG shortfalls – currently 10% per annum on each individual SG shortfall; and
- an administration fee – usually $20 per employee, per quarter (but note point 2 below).
- The administration fee component of the SGC will be waived.
- No penalties will be applied for failing to lodge an SGC statement.
In usual circumstances this penalty can be up to 200% of the SGC amount. A further incentive is that if any SG shortfall relating to the period between 1 July 1992 and 31 March 2018 is not disclosed during the amnesty period (24 May 2018 until 6 months after the date of Royal Assent) and this is subsequently uncovered by the Australian Taxation Office, a minimum penalty of 100% of the SGC will apply.
Contact Expert Tax on 0449 952 855 or 1300 869 829 for further assistance on business and personal tax related matters.
ASIC Annual Review
Every company has an annual review date, usually the same date it was registered. Shortly after this date, Australian Securities & Investments Commission (ASIC) will issue an annual statement and an invoice. Companies must pay annual review fee to keep the entity registered.
Business owners can check the review date for a company on ASIC’s Organisation and Business Names search. You will need to provide an Australian Company Number (ACN) to do the search.
If you don’t pay the annual review fee in time, you may need to pay additional fees.
ASIC fees are not subject to GST. Note – ASIC annual review fees are deductible on tax return.
Expert Tax are registered ASIC agents. We offer range of services to manage your ASIC accounts including submitting forms for making changes.
Expert Tax also offers services to manage your ASIC correspondence at a small annual fee to ensure you don’t miss any correspondence from ASIC.
Contact Expert Tax on 0449 952 855 or 1300 8 MY TAX (1300 869 829) for further assistance.