2018 Federal Budget
The item that may receive the most analysis from the whole of this year’s federal budget will be the increase of the 32.5% tax bracket, and an expansion of the Low Income Tax Offset. A win for small businesses in this year’s budget sees the retention of the $20,000 instant asset write-off for another 12 […]
Extension of application of 2017/13
On 15 August 2018, the Australian Tax Office (ATO) updated Practical Compliance Guideline (PCG) 2017/13 to extend its application to Division 7A sub-trust arrangements adopted in accordance with Practice Statement Law Administration 2010/4 (PS LA 2010/4) that mature in the 2019 income year. PCG 2017/13 as amended provides that the same circumstances that apply to the 2017 and […]
Amendments to Div 7A
Division 7A of the Income Tax Assessment Act 1936 aims to prevent shareholders (or their associates) from inappropriately accessing the profits of private companies via payments, loans or debt forgiveness transactions without recognition as income by the ultimate beneficiary. Essentially, Division 7A stops private companies from avoiding dividend taxation and making tax-free distributions of profits to shareholders. […]
