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Great video - thanks. BUT isn’t ATO now scrutinizing the actually distributions to beneficiaries to ensure they actually receive and use the funds and the distributions aren’t simply to avoid/reduce tax. Therefore unless you actually want to gift the money to the beneficiaries - this may not work under scrutiny from the ATO especially under an Audit.
Thank you for your Webinars!!! Can you please do one on FBT with Salary Packaging - An employee buying a car - how much tax is saved and cost to the employer
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Hi Derek, Thanks for the video. I have a query though. Say, for example, a director took a loan of $50,000 on 1 Jan 2021 and repaid it on 30 Sep 2021. He lodged his FY 21 tax return on 31 Dec 2021. Now, does the director needs to pay the interest for the loan from 1 July 2021 to 30 Sep 2021? or can we not charge any interest stating that the loan was repaid before tax lodgment date eventhough the loan was repaid after the end of financial year 2021.
Hi Derek - just clarifying- if I’m already salary sacrificing 16,500 and entertainment card of 2500 - can I further salary sacrifice the EV car - on top of what already doing - so 18500 plus additional SS of car - I work for non profit
Hi Derek, at 14.59 you have mentioned that the Tax office will take away the credits for good, so the company's franking account will do down by the 33,333 franking credits?
Thank you very much Derek. Your video is the best explaining car FBT and it help me a lot for my checking of my FBT calculations. My accountant of 20 years plus doing my returns was not able to help me. Thank you.
If I buy a car using company money and title it in my trust is that something I can do? I would use after tax money of course and NOT write it off as its personal. Just want to avoid taking money out paying income tax since i dont own it the trust does
Loved the video Just want to ask - as you said- lot of time, effort and fair bit of money has to be spent to setup and then ongoing expenses. Is it worth to buy a investment property especially has to pay 2-4% extra interest rate above the standard variable rate
YES. FBT rules use a 'deemed' depreciation and a 'deemed' interest rate to calculate the FBT, even if you have fully written off the car and you don't have any finance. The FBT is calculated on the original cost (Plus GST), not the written down value. derek
Thanks Derek, your video was really helpful. Would it be possible to get a copy of your spreadsheet calculator so I can check what would be best for our circumstances. Thanks again
someone on $45k isn't paying 32.5% tax. It is only on each dollar OVER $45,000 is the 32.5% tax rate applied to. Under $45,000 income is taxed at NIL (up to $18,200) and 19% between $18,200 and $45,000.
Hi Derek, I've been looking into Division 7A loan myself recently and hence finding your video. I did watch both of your recent videos on division 7A, but just want to comment I don't think the calcuation for option 6 is entirely correct, please correct me if I've missed something. The additional cost of $37,179 is a break down of addtional repayment of $29,743 from personal interest repayment and $7,436 of additional company tax, but you've completely ignored the income of $22,307 it made from the interest you personally paid. So I think it's either Additional $29,743 over 7 years for the individual. Or Additional $7,436 over 7 years for both entity + the additional tax required to get the $22,307 out from the company to individual as franked dividend. Also if I personally use the Division 7A loan to invest, then the interest of $29,743 would be tax deductable right? Which then leads to my 2nd calculation which I'm not certain I've done it correctly, but the net outcome of all tax bracks is $0 additional payment for Division 7A loan after all deductions and taxes at 15% you get a $4,461 personal interest decuction, but claims $2,975 back from frank dividend + pay $7,436 company tax at 30% you get a $8,923 personal interest decuction, but pays tax of $1,487 frank dividend + pay $7,436 company tax at 45% you get a $13,384 personal interest decuction, but pays tax of $5,948 frank dividend + pay $7,436 company tax
Hi Derek, thank you so much for your video and it’s really amazing and helpful and please keep doing it because we love your video!!!!👍👍👍 unfortunately my company has this issue of never done a logbook or fbt return for two company owned sedans, does that mean we have to lodge all the previous years fbt return using only statutory method? That will be lots of money to pay for employees contributions and will ATO penalise for late lodgement too? Many thanks!!!🙏🙏🙏
The ATO does require an actual logbook if you want to use the operating cost method, otherwise you have to use the Statutory method. Having said that, a few years ago i had a client who was audited by ATO (income tax audit) and didn't have a logbook. maybe we got a reasonable person from the ATO, but we were able to show the client still had the same car, their current business was the same and therefore usage of the car hadn't changed over the past 3 years. They agreed to let my client keep a log book for the next 13 weeks and provide that as evidence of usage going back 3 years (obviously the percentage miraculously worked out to be almost exactly what he had claimed). derek
@@TwelveAccountingThank you very much Derek and I totally agree with you!!! We have to try our best to do the correct things so I will check with management tomorrow! Thanks again and you’re so wonderful ❤❤🙏🙏
Love your every video and please make more videos when you’re free! 🙏🙏🙏would you provide the name of this budget software you used in this video? Many thanks!!!❤❤❤
Thanks for the videos Derek. I'm a sole trader landscaper. I have an old work vehicle which I have been claiming using the cents per km method but plan on buying a new car before the end of this financial year. Can I claim this financial year both the cents per kms for my old car and 15% depreciation on the new car using the actual cost method?
Thanks for the video. You mentioned that if you pay Div7A loan to the company, the interest is not deductible to you but is taxable to the company. Is it only when the money is used for private purposes? What if you buy shares or investment property ? If you borrow from the bank the interest will be deductible. Could you please clarify.
No. You need to have a company to act as the trustee of the SMSF. The rules require either two trustees (in case 1 dies) or a company as the trustee (companies don't die). Your employer can make contributions to your SMSF no problems. derek
Can we claim the interest on loans ,which is not claimed before in tax return? Our accountant didn't claim the interest rate for the initial few years of our investment property. PLS advice.
