Taxable Payable = Tax rate 2. (Assessable cash flow (s 6-5) – Allowable deduction (s 8-1/8-5)) – Tax counter + Medicare health insurance levy and surcharge Taxes offset:
For seperate: franking credit, foreign taxes credit; low income earner rebate Intended for company: franking credit, overseas tax credit
Low profits earner: h 159N ITAA36: 600 – (36, 1000 – 25, 000) 2. 0. apr; Less than 25001, rebate $600 Medicare levy threshold: 55, 000+ 1% surcharge
0~16284, Nil; 16285~17604, Nil + 20% of excess more than 16284; more than 17604, 1 ) 5% of taxable income Deduction: (general 8-1; certain 8-5)
Standard deduction: t 8-1
Expenditure is insurance deductible, there must be a nexus involving the expenditure and income (Ronpibon Tin circumstance – apportionment of spending would be required when the spending is included the two capital characteristics and allowable expenditure) or perhaps expenditure must be necessarily incurred in holding on a organization to gain or produce these kinds of income (FCT v Snowden & Willson Pty Ltd). The loss incurred when the company was robbed – insurance deductible under h 8-1; and the recovery with the loss coming from insurance would be assessable. Organization travel bills (airfare, accommodation) related to the present client – deductible; related to create new company – capital nature – not deductible If prior to the trip, organization intention although charged into partially private, airfare remains full allowable (计划是business trip，但是中途改变主意，多了部分private trip，机票全deductible) In the event before the trip, private purpose changed into organization, airfare is still full allowable under s 8-1 (计划是private trip，但是中途改变主意，多了部分business trip，机票全deductible) 关于air ticket, 只要trip中包含business的部分，那就是deductible Holiday accommodation & meal/entertainment would be apportioned to business and private. Business part would be deductible below s 8-1 Capital expenditure: If the expenses relating to the firm's business structure and therefore the regarded as capital expenditure rather than deductible beneath s 8-1 (Sun Newspaper Ltd & Associated Magazines Ltd v FCT). But under t 40-880 supplies a deduction above 5 years for capital expenditure that is certainly otherwise not really deductible which related to an enterprise that is, was or is usually proposed being carried on when it comes to producing assessable income. The deduction can be allowed in equal amounts over the amount of 5 salary years beginning in the year which the expenditure is definitely incurred. (超过5年的expenditure可以被deducted，像depreciation一样，平均5年来deduct). The new building would define as an eligible building and a deduction will be allowed corresponding to 2 . five per cent of the cost with the building. In the event the building is usually industrial building, attract the higher rate of 4% pa (s 43-150). Depreciation = cost 2. 2 . 5% * holding days / 365 Credit expense: s 25-25: TP may obtain a deduction to get expenses sustained in funding money where money is employed to produce assessable income (e. g. stamp duty, legal fee). Price ≤100 may be written away in the initial year. If the expenses ≥100 they are over the period of the loan, not exceeding your five years (1826 days). Devaluation = (borrowing expense as well as 1826) 5. days Debt: s 25-35: it is necessary the fact that debt is usually bad (not merely doubtful), and has become written away as a awful debt in the past year in which the deductions is sought. A write-off by means of modification after the end the year is insufficient. The debt must also have been completely brought to consideration as assessable income, or relate to money which has been given in the normal course of a business of lending money by a TP who carries on a money financing business. Legal expenses:
BP Australian versus FCT – only promote BP essential oil ⋄ allowable [if the gas station is not purchased BP petrol, it will business lead the market talk about of BP reduced. But if the TP your time legal cost ⋄ BP market share goes up ⋄ revenue nature] NAB v FCT – give home loan to defence ⋄ deductible
Hallstroms v FCT – prevent rival patent from becoming extended ⋄ deductible [patent: in the event that one organization have this obvious, on different company are able to use that technology. If TP spend the legal fee ⋄ the company...