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Work-related items that are exempt from FBT

Posted on July 19, 2016 by admin

There are a number of employee benefits that are exempt from fringe benefits tax (FBT). They include the following work-related items:
– portable electronic devices (mobile phones, laptops, tablets, portable printers and GPS navigation receivers)
– computer software
– protective clothing
– briefcases
– tools of trade

The FBT exemption is limited to items that are primarily for use in the employee’s employment or one item per FBT year for items that have an identical function (unless the item is a replacement item).

From 1 April 2016, the exemption extends to all small businesses that give employees more than one work-related portable device in an FBT year, even if the devices have substantially identical functions.

To be eligible for the exemption, small businesses must be in operation for at least one income year that starts or ends in the relevant FBT year.

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When do you have to pay tax on shares?

Posted on February 20, 2020 by admin

Investing in shares is a popular method of growing your wealth, however, there are tax obligations you need to be aware of to get an accurate sense of how much you’ll need to put aside for your investments.

When you own shares, you need to declare all your dividend income on your tax return. It is possible to claim tax deductions for certain expenses you pay to receive income from your shares. The deductions you are eligible for will depend on if you are carrying on a business of share trading or if you are an individual share investor, but they can include:

Individual share investors cannot claim a deduction for the cost of acquiring shares, such as costs for brokerage and stamp duty, however, they can claim deductions on the prepayment of expenses related to the shares such as internet fees or seminars.

Buying and selling shares can involve capital gains tax (CGT), depending on whether you make a capital gain or a capital loss on your shares. Your capital gains or loss is the difference between the price you paid for the shares and the price you sell them for. If you end up selling your shares for more than you paid for them, then you make a capital gain which may be taxed.

How much CGT you need to pay varies depending on:

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