2020 has been a year of unpredictable circumstances; we were all caught off guard.
Now is the time to speak to your tax professional to ensure you have a plan in place to manage the changes that may affect your tax liabilities.
These changes are best managed in advance!
Tax Planning in COVID 19 times
Tax planning for businesses, groups and family groups can provide significant tax efficiencies
Having the appropriate business structure in place facilitates tax efficiency
Taxable Income actual and predicted for businesses and individuals for 2020 and 2021 is likely to have changed due to COVID 19
Tax credits have also changed too due to the PAYG Cash Boost
Taxable Income – changes from COVID 19 include:
Revenues have decreased and in other businesses increased
Employment costs may change for many businesses due to reduced staff
JobKeeper has increased revenue
Tax Credits from the PAYG Cash Boost will change tax and cash outcomes
Rent expense may have reduced for affected businesses
Interest paid may be less and therefore the deduction is less
Home office costs may have increased
There are a lot of changes affecting your tax liabilities, that are best managed in advance
Capital Gains Tax for Foreign Residents on Main Residence
There are significant changes to the rules on Capital Gains Tax rules that may catch out some taxpayers, leading to a nasty surprise for a large tax amount payable on a sale of their residence
Long time Australian residents that have recently become foreign residents would have planned to pay no tax on the sale of their main residence
The changes have been swift, catching taxpayers on the hop and not able to change their circumstances or plans to qualify for the exemption
Foreign residents will need to sell their main residence by 30 June 2020 to qualify for the existing exemption