Concerns over Safe Harbour Provisions

The option of an informal workout for struggling companies has become far more attractive thanks to the introduction of safe harbour laws, in addition to a more accommodating banking and tax recovery environment. The safe harbour regime was introduced on 19 September 2017, when amendments to Australia’s insolvency laws came into effect. Despite the build […]

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 […]

Detail of Personal Services Income (PSI)

What are the PSI Rules meant to do? The rules were designed to improve the integrity of the tax system by addressing both: The capacity of individuals and interposed entities providing the personal services of an individual to claim higher deductions than employees providing the same or similar services; and The alienation of personal services […]

Basics of Personal Services Income (PSI)

Basics of personal services income

How do the Personal Services Income Rules work? If 80% or more of the PSI comes from one source, the results test must be passed.  Otherwise, the business is not a PSB and the PSI rules will apply. If less than 80% of the PSI comes from one source, the business will be a PSB […]

What is my Tax Rate?

As a result of some confusion, the Federal Government has introduced legislation to confirm when a company is eligible to be classified as a Small Business Entity and be taxed at the 27.5% tax rate. The proposed new legislation is contained in Treasury Laws Amendment (Enterprise Tax Plan Base Rate Entities) Bill 2017. The proposed […]

Taxation of Cryptocurrency

Craig Dangar looks at the consequence of crypto currency from the perspective of taxation and how it can be treated. 1. A cryptocurrency similar to Bitcoin is not a “currency” for tax purposes The ATO in its published guidelines states that Bitcoin is not a currency, but rather is treated as an asset, the price of […]

Business or a hobby?

Am I a running a business or is it Hobby? The determination of whether you are running a business or a hobby are not set in stone and there are a number of factors to consider. The difference can be significant from a tax perspective. For losses incurred in a hobby there is no ability […]

Laundry Allowance

Your tax agent tells you, you can $150 claim for laundry relating to your work uniform, is this correct? We have recently been working with a tax agent that had a standard policy of claiming $150 regardless of the occupation, this has resulted in a heavy audit of his clients and a disallowing of many […]

Non Commercial Loss Rules

Losses that you incur in running a business as a sole trader or partnership are referred to as non-commercial losses. Under the correct circumstances, these losses can be offset against other income. If the tests are passed, individual taxpayers can benefit from these losses by offsetting them against other income such as salary and wages […]