Losing a tax loss
Business owners are naturally keen to be able to absorb a business loss as a tax deduction, but it also pays to not stray too far from the generally accepted rules regarding tax losses — there are circumstances where the ATO is legitimately able to deny such claims. The ATO has the discretion to disallow […]
Basics of Shares and Tax
Investing in the stockmarket is a lot more common than it was years ago, with ordinary Australians having experience with shares and the stockmarket either directly or through managed funds or via their superannuation fund. Recent research conducted by the Australian Securities Exchange (ASX) found that around 60% of Australians hold share investments outside of […]
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 […]
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 […]
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 […]
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 […]
CGT Building Concessions
Building a new home? Is this exempt from CGT? It is a widely recognised fact that capital gains tax does not apply to a taxpayer’s main residence. One of the requirements for the exemption is that there needs to be a building on that land. What is less well known however is that main residence […]
Single touch payroll and lodgments
Single touch payroll reporting is now in effect for most employers with 20 or more employees. For those with less than 20 employees, this will come into effect for you come 1 July 2019. Each time you pay your employees, you will report the tax and super information to the ATO from your Single Touch […]
Pension withdrawals above minimum
From 1 July 2017, where pension members are withdrawing amounts above their minimum annual pension payment required, they will be diminishing the capital value of their pension account. Particularly if a member had already ‘maxed out’ their transfer balance cap (‘TBC’) of $1.6 million, they will likely have no opportunity to convert any further amounts […]
