May 2009

SMSFs and borrowing money

Trustees of self managed superannuation funds (SMSFs) are generally prohibited from borrowing money except in specific circumstances. One exception, for example, is found in the new rules for certain limited recourse loans, where the lender only has a claim against a certain asset of the SMSF. click here for more details

ATO data matching programs

The ATO has announced that it will be undertaking a number of data matching programs to identify taxpayers who may not be meeting their taxation obligations. click here for more details

Super fund members may be entitled to more age pension

The Government is now encouraging Australians on a part-pension to tell Centrelink if they want to take advantage of recent Government changes to the amount they are required to withdraw from their superannuation. click here for more details

Income tax: 2008/09 cents per km rates

The 2008/09 cents per kilometre rates for claiming deductions for car expenses have been released.

The record keeping exemption threshold for the FBT year commencing 1 April 2009 is $7,063 (replacing the amount of $6,766 from the previous year).
 

FBT: Benchmark interest rate

The benchmark interest rate for the FBT year commencing 1 April 2009 is 5.85% p.a (replacing the rate of 9.00% that applied for the previous FBT year).

The ATO has also released the following for the 2009/10 FBT year:

• the amounts that are considered to be a reasonable food component of a living-away-from-home allowance (LAFHA);
• the cents per km rates for motor vehicles other than cars (for FBT purposes); and
• the indexation factors for the purpose of valuing non-remote housing.

Please contact our office if you would like to know more about these.

Student entitled to deductions against Youth Allowance

The Federal Court has held that a student taxpayer who received Youth Allowance was entitled to a deduction for the expenses she incurred in pursuing a teaching degree, as she incurred them in the gaining or producing of her assessable income (being the Youth Allowance). click here for more details

Liability limited by a scheme approved under Professional Standards Legislation.

The information in this newsletter is quite general in nature and anyone intending to apply it practically to their own circumstances should seek professional advice to verify it’s individual applicability. 

If you have any queries regarding the information contained in this
update please do not hesitate to contact us.

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