Trust Tax Losses
Australian trust loss rules are complex, poorly understood and onerous to apply. As a result, business or investment trusts risk claiming losses incorrectly, a situation that can result in a significant tax liability. By making a family trust election (FTE), small to medium sized privately-held businesses operating as a trust can satisfy the trust loss […]
Tax for Children
Taxing children’s savings accounts: Whose money is it? Back in the 1980s, people could reduce tax by havingtheir money in bank accounts belonging to their kids. In 1988, the Tax Office intervened for its position by issuing guidance. Thanks to a simple criterion and penal tax rates, parents cannotpass off their money as mere pocket […]
Tax of Foreign Income For Australian Residents
Under Australia’s taxation regime, resident taxpayers are subject to income tax on both income derived in Australia and on foreign sourced income. As a general rule, where foreign income is derived by an Australian resident, the gross amount (including any foreign tax paid on the income) must be included as assessable income. A foreign income […]
The Value of your Accountant
Many businesses, especially smaller businesses, aren’t committed to consulting their accountant on a regular basis. This can turn out to be a costly error over the longer time when in fact a trusted and competent accountant helps you understand what’s happening in your business. The advice that your accountant gives you can help you avoid […]
What qualifies for safe harbour protections?
The insolvent trading law, as seen from the eyes of the Australian business community, was verging on draconian, penalising business failure heavily and stigmatising corporate insolvency beyond salvage. If, despite the best of plans, a business was heading for failure, the director had all the incentives to act conservatively rather than take bold decisions to lead the […]
Safe Harbour for Directors
It’s not unusual for company directors to fall into the trap of insolvent trading in an attempt to save their company from liquidation. And while this practice is illegal, in recent years new legislation has been introduced to protect company directors who are trying to turn their business around. This legislation is called ‘Safe Harbour’. […]
How Safe Harbour Will Impact ‘Ipso Facto’ Clauses
Changes are being made to Australian laws that will impact what occurs when businesses are experiencing financial trouble. But what are the changes, and how are they different to the current legislation? Find out how Safe Harbour will potentially change current business processes. History Until recently, Australian insolvency laws have made it difficult for businesses […]
Overview of Safe Harbour Provisions
What is safe harbour? Safe harbour is legal provisions that reduce or eliminate liability in certain situations as long as certain conditions are met. Under these provisions, a client won’t be liable to some administrative penalties if they are able to provide all the relevant tax information to you. This will also only apply if […]
Issues for Property Owners
Because property ownership is such an important issue for many people, we want to remind everyone of some recent changes to: The tax treatment associated with residential rental properties (e.g. travel deduction and depreciation changes); Withholding tax obligations on purchasers of property: 12.5% CGT withholding on the sale of any property for $750,000 or more […]
Basics of Family Trust Elections (FTEs)
Most practitioners have heard of family trust elections (“FTE“), and some may have made FTE’s to err on the side of caution. However, in many cases, a clear explanation of the reasons for making a FTE is not readily available. This article aims to provide a practical explanation of the main situations in which a […]
