Personal Services Income (PSI) Overview
It is not uncommon for professional people who provide services to set up a separate entity to run their business, be it a trust, partnership or incorporated company. The allure of course is the lower tax rate that these can secure, rather than at the top marginal tax rate that an individual would generally wear. […]
Need to know – Private Rulings
There have been cases where people believe the idle talk about being able to coerce a better tax outcome by applying for a private ruling from the ATO, but there are some sober facts that you may need to keep in mind if you have thought of it yourself. Of course it is certainly the […]
Business Restructure Basics
Changing market conditions, shifting consumer trends, and increased competition can all impact your business’s operating environment and make restructuring necessary. Business restructuring can consist of organisational and financial restructuring, with the former focusing on employees and processes, and the latter addressing the balance sheet. When done right, a business restructure makes your business more dynamic and […]
How to Approach a Commercial Lease
Signing a commercial lease is no trifling matter; it’s a legally-binding agreement with serious financial strings attached. A commercial lease is an agreement between the owner of a commercial property and someone who wants exclusive use of it for a set period. It normally applies to an office, warehouse or factory. The success or failure of […]
Limits of small business rollover
Subdivision 328-G of the ITAA97 was introduced in 2016 to enable Small Business Entities to restructure their business operations under tax rollover relief. In addition to the entity transferring the assets being required to be a Small Business Entity (i.e. turnover of less than $10M), and in addition to the transaction satisfying the criteria of […]
Running a business through a SMSF
Under the regulations, self-managed super funds (SMSFs) are not prohibited from carrying on a business, however the business must be: – allowed under the SMSF’s trust deed, and – operated for the sole purpose of providing retirement benefits for fund members. Note however that the rules governing SMSFs prohibit or limit some activities available to […]
Basics of Employee Share Schemes
Motivationally speaking, there’s not much that beats a financial reward. And as it is generally accepted that business owners are the most driven to see their business succeed, giving staff a real stake in an enterprise through owning shares in it is an incentive, and a reward, that many companies have utilised. Having a vested […]
Consequence of Div 7A
You might often have heard Division 7A mentioned as a very important section of the tax Act by your accountant and always wondered by it meant. Division 7A deals with amounts paid, lent or forgiven by a private company to certain assoicated entities (including individuals) that are treated as dividends, unless they come within some […]
Tax debts in liquidation
Liquidation involves the orderly winding up of your company, and distribution of assets to creditors and shareholders. While debts to the Australian Tax Office rank with equal importance to those owed to other unsecured creditors in the event of liquidation, there are instances when company directors may be personally liable for the company’s outstanding tax […]
10 Signs of Business Problems
Not every business endeavour is a straight path to success, and even some of the most successful ventures of all time have had periods where ends barely meet, or the future of the company might be in jeopardy. Instability in business is a facet of life, and recognising the tell-tale signs is vital to not […]
