Debt forgiveness
“Pardon” is a word that can sound somewhat archaic — which could be why the term “debt forgiveness” is barely mentioned in discussions on “bankruptcy”, even though the two concepts are related. Bankruptcy is dramatic, Hollywood; debt forgiveness seems dated, even mildly medieval. In reality debt forgiveness, on the face of it, is a means […]
AirBnB Hitting Rural Motels Hard
The past year has been tough for smaller operators as the impact of technology continues to increase and businesses struggle with significant fixed costs that may not be achieving a realistic return on investment. Airbnb is here to stay and traditional accommodation providers (motels and serviced apartments) are under pressure.
Pitfalls of Cash Flow Loans
We have witnessed the rapid rise of short-term lenders, lending on cash flow. These loans tend to signal the end, rather than the start of the business lifecycle. We see these options as being a six-month indicator for the business to completely fail.
Present Owners Fare Better in Hospitality
For businesses that are struggling now, the prognosis is not great, and without significant change there is unlikely a panacea to the improvement of the business. It’s been no surprise that more active and present owners have been more willing and able to adapt, making for businesses that fair better through market changes or periods of decline.
Wine Equalisation Tax
How the Wine Equalisation Tax works When the goods and services tax was introduced on to the Australian tax landscape in 2000, there was a lot of angst about the negative effect on the cost of living that this blanket 10% impost would have. A glimmer of consolation was that pulling a cork out of […]
Myths around contractors
The Tax Office says that it has encountered several myths and assumptions adopted by both workers and employers when it comes to trying to decide the tax status of a job appointment. It found that employers continually rely upon some inaccurate factors when making distinctions about what makes a worker an employee or contractor — […]
Contractor or Employee?
Most independent contractors take care of their own tax liabilities (instead of the employer withholding employees’ tax under the PAYG withholding system) and therefore may require an Australian business number (ABN) to avoid having tax deducted at maximum rates from payments made by recipients of the contracting service. Contractors may also need to register for […]
Undercover employee
The undercover employee The Tax Office’s ongoing compliance efforts have some constant focus. One of these is the often flawed characterisation of an employee as a contractor by businesses. The mischief from the Tax Office’s point of view is the avoidance of employer obligations relating to the Superannuation Guarantee (SG) and Pay As You Go […]
Succession Planning
From about five years ago, the baby boomer generation started to turn 65. A surge in Australian business owners retiring began, and continues, but the topic of succession planning, although given some emphasis by this demographic wave, remains a perennially under-addressed issue. Often a recurring subject of the ATO’s “Building Confidence” compliance website, effective succession […]
Franking credits under the new rates
The recent cut to the tax rate for small incorporated businesses, while generally welcomed, can bring with it some important considerations when it comes to distributing franked dividends. The rate change to 28.5%, which applies from July 1, 2015, means that small businesses could easily frank dividends in excess of the underlying taxes paid on […]
