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Author: Harris Black

Tax Planning And The Benefits Of Corporate Beneficiaries

by Harris Black

By Brendan Power

Brendan Power, a Director of Harris Black gives a brief introduction to the reason and benefits of undertaking tax planning prior to 30 June each year.

By understanding and planning ahead for our clients’ circumstances, decisions can be made to ensure they remain as tax efficient as possible.  Where events have occurred (eg sale of assets, children turning 18 or a large increase or decrease in taxable income) Tax Planning with a client gives Harris Black the opportunity to discuss and determine the best course of action with their client.

We have seen an increase in the use of corporate beneficiaries (or bucket companies) as a useful entity to withhold income within the family group at lower marginal rates, and also as a possible alternative to contributions to superannuation.

Depreciation – 1 July 2020 to 30 June 2022

by Harris Black

By Bjorn Kirberg

Instant asset write-off tables – based on entity aggregated turnover

50% Accelerated Depreciation (Assessable income $500 million and under) – Over $150k

A 50% deduction applies from 12 March 2020 until 6 October 2020 and is only available to new assets (not second-hand) purchased for $150,000 or more and first held by 6 October 2020.

The 50% deduction is available in the year of installation with the remainder of the asset’s cost being depreciation under the usual depreciation rules.  

Instant Asset Write-Off Implications and Restrictions

Only available for Australian businesses, where the asset is used and located in Australia.

Not available for equipment purchased in a related entity such as a machinery hire company or a service entity which on-charges the operating business for use of the asset.

Not available for Division 43 capital works assets or assets allocated to a low-value pool.

For companies, this could cause a loss which may be beneficial if wanting to use loss carry back.

General Small Business Pools

Entity’s with a small business pool must write off the full pool balance in the 2021 financial year.

Meet The Staff – Renee Bettenay

by Harris Black

Renee started with Harris Black in 1997 and has since progressed to become a Director in 2006. Renee has a Bachelor of Business (Accounting) from QUT and is a Fellow of the Chartered Accountants Australia and New Zealand.

Some interesting facts about Renee – if she could live anywhere, Renee would live near the water and the most relaxing place she has been to is her Mum and Dad’s place on the Tweed River. Renee learnt how to water ski from her Dad, but a skill she would like to master is piano. If she could only take 3 items with her to a deserted island, Renee would take a kindle, sunscreen, and an unlimited supply of champagne!

An excerpt of the interview with Renee is below:


Superannuation Rates And Thresholds For 2021-22

by Harris Black

Contribution Caps

The concessional contributions cap is set to increase to $27,500 for the 2021-22 financial year (up from $25,000 since 2017-18).

The non-concessional contributions cap (which is set at 4 times the concessional cap) is $110,000 for 2021-22 (or $330,000 under the bring-forward rule over 3 years, subject to the other eligibility requirements).

Working From Home Deductions: “Shortcut” Rate Until 30 June 2021

by Harris Black

The ATO advises that the “shortcut” rate for claiming work-from-home running expenses has been extended again, in recognition that may employees and business owners are still required to work from home due to Covid-19.  This shortcut deduction rate was previously extended to 31 October 2020, but will now available until at least 30 June 2021.

Eligible employees and business owners therefore can choose to claim additional running expenses incurred between 1 March 2020 and 30 June 2021 at the rate of 80 cents per work hour, provided they keep record (such as timesheet or work logbook) of the number of hours worked from home during the period.

Super Transfer Balance Cap Increase From 1 July 2021 From $1.6 Million To $1.7 Million

by Harris Black

At the time you first commence a retirement phase superannuation income stream, your, “personal transfer balance cap” is set at the general transfer balance cap for that financial year.

Essentially, the transfer balance cap is a lifetime limit on the total amount of super that you can transfer into retirement phase income streams, including most pensions and annuities.

When the general transfer balance cap is indexed to $1.7 million from 1 July 2021, there won’t be a single cap that applies to all individuals.  Rather, every individual will have their own personal transfer balance cap of between $1.6 million and $1.7 million, depending on their circumstances.

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