Life Insurance Policy Tax: 10-Year Rule for Bonus PaymentsLife policy tax
When a life insurance policy has been held by a taxpayer for 10 years or longer, reversionary bonuses received on that policy are generally tax-free. For policies held for less than 10 years, stipulated amounts are included in the taxpayer’s assessable income, and a tax offset is available. A bonus is not assessable income if […]
Accommodation Industry Woes
Some observations on the changing landscape of the accommodation industry in Australia, particularly in rural and regional areas.
Compliant Div 7A
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 […]
Answering emails on holidays
Everyone needs time off from the duties of their work. Yet in today’s society, taking time off is becoming increasingly harder. Employee’s often feel that if they take time off, they will fall behind or be regarded as lacking in dedication to their responsibilities. This leads many employees to take vacations that encompass bringing along […]
Searching for a liquidated company
Many businesses conduct checks on their suppliers, customers, debtors and investment partners as a matter of due diligence. While publicly available records are not as comprehensive as internal auditing, basic checks such as whether the business is in liquidation helps creditors stay informed. As a debtor company, if you are entering liquidation you will understand […]
Waiting until the last minute
If your company is unable to make debt repayments or owes the Australian Tax Office (ATO) tax debt, the ATO and your creditors can issue a statutory demand. This demand requires you pay the debt within 21 days, or enter into a payment arrangement. If you fail to do this within the set time frame, your […]
Who gets paid first in liquidation?
During liquidation one of the key issues for both the liquidator and concerned parties is what will happen to proceeds, and the order of priority of debt. If you are a creditor to a company going into liquidation, you will be keeping track of the process to ensure you are paid what you are owed. […]
Pitfalls for a new business
The stats for new business failures vary depending on the source. According to the Parliament of Australia, 56% of non-employing businesses operating in Australia in June 2010 were still operating in 2014. While this isn’t as extreme as the perception that half of all small businesses fail each year, the odds are still pretty frightening and […]
Family Succession in Business
Family Businesses ultimately come to a stage where they need to either be sold to an independent party or pass down to the next generation. If you are looking to pass the business down to the next generation, careful planning is required. Statistics show that: A total 70% of family businesses fail or sell before […]
Super as a tax deduction
Commencing from the 2019 income tax returns, individuals wishing to claim a deduction for personal superannuation contributions will need to obtain a specific declaration from their super fund prior to making the claim in their income tax return. This comes about due to concern individuals are claiming the deduction but not actually making the contribution […]
