GST Lite for Business
The ATO says that it has “listened to the concerns of small businesses, tax professionals, industry associations and software providers”, and is working towards reducing GST compliance costs for small businesses. “We are reducing the amount of GST information required for the business activity statement (BAS) to simplify GST bookkeeping and reporting requirements,” it says. […]
Tax and holiday homes
Now that summer has come and gone, the ATO has been active in issuing reminders about the taxation issues surrounding holiday homes. The fact the ATO issues reminders is a sure sign that the topic is continuing to be a concern. Even though it is still some time before the owners of beach shacks or […]
Partnership interest deduction
Loan interest can be deductible to a partnership A general law partnership is formed when two or more people (and up to, but no more than, 20 people) go into business together. Partnerships are generally set up so that all partners are equally responsible for the management of the business, but each also has liability […]
Div 7A Compliance
Division 7A is an integrity measure that was designed to prevent companies from making tax-free distributions to shareholders or their associates. This can occur where distributions of profit are disguised as loans or other transactions. This effectively allows the shareholder or their associate to have access to the corporate tax rate. A consequence of Division […]
Div 7A Reminders
Div 7A loans result in a deemed dividend. But not all loans from private companies to their shareholders fall under Div 7a. There are ways around it. Div 7A Loans A loan from a private company to a shareholder or associate is treated as a dividend, unless repaid in time or subject to an exclusion. […]
Tax negotiation basics
When dealing with Tax Debt often one of the most important steps is to let the Australian Taxation Office know you are not ignoring them and that you have appointed a Professional Company to deal directly with them on your behalf. The Australian Tax Office has a policy of working with businesses to solve their […]
GST on Gold
When purchasing investment grade gold and silver bullion, there is no GST, but the definitions of ‘investment grade’ for precious metals are very specific. Here are the standards: According to the ATO, “No regulations have been made to specify any other substance. To be precious metal for GST purposes, the metal must therefore be gold, silver […]
GST Withholding for Developers
GST withholding will apply to any taxable supply of ‘new residential premises’ or ‘potential residential land’. There are some exceptions: supplies of ‘substantial renovations’ and ‘commercial residential premises’ are excluded. There is also an exception where the purchaser is registered for GST and acquires the supply for a ‘creditable purpose’. Giving a notice to the […]
Tax planning tips
All taxpayers are allowed to arrange their affairs in a manner that remains legal but which minimises their taxation liabilities. So here is 30 ways to minimise the tax you pay, and to leave a few dollars in your pocket, not the tax man. What is Taxable Income? The trading profit of a business is […]
Depreciation of intangibles
Business taxpayers will know that asset depreciation is an important aspect to their business’s tax health and longevity. However the importance, and revenue generation role, of knowledge-based or intangible assets has become much more common in the modern business landscape. Innovative companies know that changes in the economy, including globalisation and digitisation, have elevated the […]
