Colin loves to discuss about tax and bookkeeping related issues. Please check back frequently for more updates.
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Having Fun in the Workplace
Having fun in the workplace can significantly improve productivity and performance. Employees also are generally more loyal to the company. Not only that, having fun in a workplace:
How does one have fun in workplace? The commonly acknowledged way to do that is to provide entertainment related items in the workplace. Equipment, such as gaming consoles, cable TV, pinball and Foosball machines, etc, can be purchased and provided for employee use during work breaks.
The Australian Tax Office is aware that workplace culture has changed, and entertainment related equipment in the workplace can actually increase employee productivity. Hence, for each item of equipment that costs less than $30,000 (as at the time of publishing this blog), the entire amount will be tax deductible upfront.
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Are Holidays Tax Deductible?
When you are traveling for business, you are away for least one night for business purposes. There is a clear distinction between traveling for business and private travel for ‘for leisure purposes’ or even commuting between one’s home and workplace.
If there is a direct connection between your employment and the business travel, such as visiting customers or suppliers, meetings at other company locations, professional development and attending of seminars, and even networking, you can claim deduction for the travel expenses.
But when any part of the travel is for the purpose of private purposes, such as a holiday, the expenses claimed will have to be apportioned. This is accomplished by calculating the number of days in the trip was in relation to business purposes, and also the number of days that was in relation to private purposes. Days considered business purpose include:
You can also attend conferences interstate and overseas. For example, traveling to Chatswood from Brisbane, or even to Honolulu from Sydney.
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Is it a Hobby or a Business?
Only individual taxpayers can have a hobby. By converting a hobby into a business there is the advantage of having some previously private expenses being made tax deductible.These expenses include car expenses, home office expenses, travel expenses, training expenses, etc.
What is even more advantageous is that if the expenses of the business exceed the income, you have a situation where the taxpayer now has a loss that may be either carried forward to the next year, or potentially be applied to his/her other income.
So when exactly does a hobby become a business? If the hobby possesses the following characteristics, it may very well be a business:
When in doubt for any of the above, it would be recommended that you enlist the help of a qualified tax accountant, who will be able to assess your specific situation.