Tax Planning | Edgeworth Partners

Not all debts are the same. Even if the interest rate is.

Did you know that two loans that look identical can have a radically different impact on your financial management? The difference lies in whether interest on a loan is deductible or not.

What makes debt deductible?

There is a big difference between the economic impact of deductible debt and non-deductible debt. This article examines how you can decide whether interest is deductible or not.

There’s no need to salary sacrifice any more…

Until now, salary sacrifice has been one of the only ways that an employee can make an extra tax-advantaged contribution into their super fund. But that changed on 1 July 2017. Now, almost everyone can make additional contributions without their employer even knowing – which might come in handy next time you ask for a pay rise!

2017 Budget – Winners and Losers

Compared to previous years, the 2017 Budget was a bit of an anti-climax. In previous years, there have been a number of big-ticket changes - such as the big changes to superannuation that we have been discussing in recent articles. But this year there have simply been a whole lot of small changes, some of which will be of benefit and others will represent a small loss.

Borrowing to pay super contributions

Super contributions are a legitimate expense of a business. As long as the business uses a company structure, it can even borrow to make contributions on behalf of all of the staff – including the company directors. This can create a nice little tax saving that might not otherwise be possible.

Tax deductible debt

Did you know you can pay the same rate of interest to a bank – but that the actual cost to you of that debt will differ depending on whether the interest is deductible or not? This makes managing debts for tax effectiveness one of the most useful things any business owner or investor can do. This is a simple idea but it is important that you get the detail right. So, please read on and don’t hesitate to contact us if you would like to hear how you can take advantage of this simple mathematical truth.

Homes are the best investments for you and your kids

A family home is the starting point for any financial plan. It is also a fundamental part of a happy lifestyle – like your home, like your homelife, as they say. Over the next month, we will be showing you ways to get the most out of home ownership – both for yourself and for other people you might be worried about, like your adult kids. This article sets the scene.

Business Owners and Deductible Overseas and Interstate Travel

This article is a must-read for any business owner thinking about travel. Claiming a tax deduction for travel costs can make a huge difference to the effective cost of that travel. The Australian Taxation Office’s general position is that the cost of travel is tax deductible to the extent that the travel relates to the business' purpose of deriving assessable income from an existing business activity. A business can't claim costs for travel related to speculative business activities that you have not yet entered. But travel that relates to work that your business is already doing will usually be fine.

Tax Deductible On-Site Meals for Business Owners

Here is a great little tip to keep in mind for 2017. Most businesses owners work long or irregular hours and usually eat at least one meal a day at work. Provided it uses a company or trust, a business can often claim a tax deduction for meals that are eaten at work. Just make sure you eat your meal on site and do not serve alcohol with the meal.

Tax-free gifts for Christmas/End of year

The end of the year is almost here. Here is a great way to reward your staff - with a little bit of help from the taxman.