Small Business Tax Concessions – Basics
In addition to the capital gains tax (“CGT“) exemptions and rollovers available more widely, there are four concessions that allow you to disregard or defer some or all of a capital gain from an active asset used in a small business: 15-year exemption – If your business has continuously owned an active asset for 15 years […]
FBT and entertainment
New changes to salary packaged entertainment From 1 April 2016, all employers providing salary packaged meal entertainment or entertainment facility leasing expenses (EFLE) benefits to employees will be unable to use the 50/50 split method and 12 week register method for valuing the salary packaged benefits. Only the actual method can be used to determine […]
Controlling your superannuation
How to Control Your Superannuation Most people want to take control of their superannuation. There are a few things you can do for making the most of your super. Minimise your super fees The first thing you can do is look at minimising your super fees. It is estimated that 20% of Australian’s pay more […]
Managing carried forward losses
You operate a company Your accountant set you up in a company and in recent years things have been pretty tough business wise so much so that the company has incurred significant losses. Your business partner who feels the business cannot afford 2 owners and who owns the other 50%, has asked you to buy them […]
What is Division 7A? A basic explanation
Division 7A only applies to private companies, all loans, advances and other credits made by private companies to shareholders (or their associates), and so is highly relevant in the SME market. This is an area of high risk for the ATO. Craig Dangar notes that this is an area of concern for many businesses, especially […]
GST on eBay
As of 1 July 2018, Australian goods and services tax (“GST“) will apply to sales of low value goods imported by consumers into Australia. Craig notes that the consequence of this will a significant administrative burden for small operators but this can be managed effectively through a good bookkeeping arrangement. Businesses that meet the registration threshold […]
New GST Rules for Property Developers
https://youtu.be/wGIR-zSzZrM From 1 July 2018, a Goods and Services Tax (“GST“) withholding obligation will be imposed on purchaser of certain residential premises, including certain vacant land. Purchaser must withhold the ‘GST component’ of the sale price of affected land and pay it directly to the Commissioner instead of the seller. Transitional rules may apply for […]
Basic Trust Tax
Income tax and capital gains tax issues Because a trust is not a person, its income is not taxed like that of an individual or company unless it is a corporate, public or trading trusts as defined in the Income Tax Assessment Act 1936 (Cth). In essence the tax treatment of the trust income depends […]
Basics of backpacker taxes
The Australian tax year runs from 1st July to 30th June each year. Tax returns lodged by individuals have to be filed any time from 1st July to 31st October, for the previous year. If you do not fill in a tax return, penalties can apply. Backpackers are almost always not considered residents for tax purposes. Though most of us will […]
Basics of Testamentary Trusts
A testamentary trust can save you or your beneficiaries a lot of money when it comes to tax. They are usually used to protect assets. A testamentary trust is created by a will in order to provide a higher level of control over the distribution of assets to beneficiaries. The main benefit of a testamentary […]
