Complication of investments for children
It is a fairly well-established and welcome act for an aunt or uncle or of course a parent to start a savings account for a new addition to the next generation. It is not so common however, among the warm and generous emotions that accompany such a gift to factor in the taxation obligations that […]
Simple Div 7A
If you have a company, then you have probably sat in a meeting with your accountant and heard the phrase ‘that may raise Division 7A issues’. Everyone usually then grumbles and nods wisely, and moves on… But you may be asking yourself, what is Division 7A? Glad you asked. In short, Division 7A is relevant […]
Do you have a Div 7A obligation?
Have you paid private bills from your company account? Do you owe money to your company? If you answered yes to any of the above questions then should understand how Division 7A (or “Div 7A”) works and how it affects you. When is a Div 7A loan triggered? It is usually triggered when a payment […]
Dealing with a wind up notice
Wind-up notices are a type of statutory demand that’s typically served by creditors, including the ATO, to enforce the payment of debt by a business. The wind-up notice, usually made under section 459E of the Corporations Act (‘the Act’), requires a business to appear in court with its creditor to determine whether the business is […]
Business Garnishee Notice
A garnishee order is a serious matter, as it means a court order has been made to allow creditors to recover debt from third parties. They can do this in a number of ways, including taking money from the debtor’s bank account and/or from their salary. If you are issued with a garnishee order you […]
Shutting down your business
Whether you’re closing down your business by choice or have been forced to do so, it is an involved process with strict compliance requirements. How you shut down will depend on your business structure and why you’re no longer operating your business. Where possible, plan ahead so you can get professional advice, fulfil compliance requirements, […]
Early Release of Super
From 1 July 2018, responsibility for the administration of the early release of superannuation benefits on compassionate grounds will be transferred from the Department of Human Services (DHS) to the ATO. Superannuation benefits can be released on compassionate grounds to meet expenses related to medical treatment, medical transport, modifications necessary for the family home or […]
Tax for Children
Taxing children’s savings accounts: Whose money is it? Back in the 1980s, people could reduce tax by havingtheir money in bank accounts belonging to their kids. In 1988, the Tax Office intervened for its position by issuing guidance. Thanks to a simple criterion and penal tax rates, parents cannotpass off their money as mere pocket […]
Tax of Foreign Income For Australian Residents
Under Australia’s taxation regime, resident taxpayers are subject to income tax on both income derived in Australia and on foreign sourced income. As a general rule, where foreign income is derived by an Australian resident, the gross amount (including any foreign tax paid on the income) must be included as assessable income. A foreign income […]
Bitcoins and SMSFs
While bitcoin may be the most well-known cryptocurrency, there are nearly 1,500 in existence. In its simplest form, a cryptocurrency is a “peer-to-peer electronic cash system”, which means that the currency is not in a physical form like cash but sits in an electronic register. What makes bitcoin work, where previous attempts at electronic cash […]
