30% tax rebate

[zenq]

I am going to shortly get a new vehicle for work use. I am hoping to benefit from the 30% rebate presently being offered (till June 30)
Presently I am in a partnership with 3 others in a business and we keep our vehicles out of it to keep things simple. I am contemplating starting a new business through which I will do some consulting work in the same field and possibly to use as a property investment vehicle (though I already have a family trust for that).

I thought I could purchase the vehicle through this new business to gain the tax rebate benefit.

What should I look out for in terms of trips and traps in starting a new business like this which may appear to be tax avoidance

 

[Propertunity]

I am contemplating starting a new business through which I will do some consulting work in the same field .....
What should I look out for in terms of trips and traps in starting a new business like this which may appear to be tax avoidance

Well first off starting a new business is not tax avoidance BUT I think what you're saying is that because you are consulting in the same field as you are currently employed it could be seen as such.

The 80/20 rule will get you if you just consult for just one entity or related entities of this one entity. (look up the ATO web-site). If you get caught by this rule then you are deemed to be earning wages not being SE.

 

[LynnH]

I am hoping to benefit from the 30% rebate presently being offered (till June 30)

The legislation to introduce this rebate has not passed both houses of Parliament yet, and is not expected to do so until June.

Refer to the article titled "Investment Allowance Warning" on the top of Page 4 of this newsletter:

www.bantacs.com.au/newsflash/current_issue.pdf

Cheers
LynnH

 

[AUSPROP...]

I just visited the websites of 3 govt depts and still only have half the picture. Bureacracy just seems to be getting worse.