Entries by Salisbury Accountants & Business Advisors

Is penalty interest tax deductible?

July 5, 2019 in /by

The yes, no and maybe of penalty interest deductions

A new ruling has been released by the ATO on the deductibility or otherwise of penalty interest.

The term “penalty interest” refers to an amount payable by a borrower under a loan agreement in consideration for the lender agreeing to an early repayment of a loan. […]

Claiming car expenses

July 3, 2019 in /by

Common car expense claim questions answered

As a taxpayer, if you use your own car for work purposes, you can claim a tax deduction using one of two methods — the cents per kilometre method or the logbook method.

If you use someone else’s car for work purposes, you can only claim for direct costs […]

False laundry claims

July 1, 2019 in /by

ATO targeting false laundry claims

The ATO will take strong action against false clothing and laundry work-related expense claims this tax time.

The ATO noted that six million taxpayers claimed clothing and work-related laundry expenses in 2018. Although many Australians can claim clothing and laundry expenses, Assistant Commissioner Karen Foat said that it is unlikely […]