Single Touch Payroll – what does it mean?
Businesses used to report this information to the Australian Taxation Office (“ATO”) once a year. Now, they need to send a report after each pay day. And those reports must be submitted digitally, using a very specific format. Changes to when you report payroll Small businesses used to finalise their payroll records at the end […]
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 […]
Investment of company funds in Hybrid Trusts
The Australian Taxation Office (“ATO”) has recently removed from its website legal database the edited text of a private ruling regarding the investment of surplus funds of a private company into a hybrid unit trust. It is unsurprising that the ruling has been removed, since the ATO had months earlier added the rider at the […]
Using a LRBA within a SMSF
An “integrity” measure, which aimed to stop Self managed superfunds (“SMSF”) trustees from manipulating their total superannuation balance in order to keep below the $1.6 million threshold, may have the unintended outcome of reducing the appeal of Limited Recourse Borrowing Arrangements (“LRBA”). Legislated changes to LRBAs in regard to calculating an SMSF member’s total superannuation […]
CGT Concessions and the Difficulties for Shares and Unit Trust Interests
When selling a business, it is always important to determine whether or not a seller can qualify for the small business CGT concessions. The potential benefit of this is to either exempt, reduce or defer the tax implications of a capital gain made on the sale. When examining the small business CGT provisions, there is […]
Exemptions for Work Christmas Parties
It’s not quite Christmas time yet, but most businesses will be in the process of thinking ahead to the yuletide festivities, if not already into well-advanced planning. One of the perennial questions is if and how fringe benefits tax applies to these activities. There is no separate fringe benefits tax (FBT) category for Christmas parties […]
Is attending a conference tax deductible?
The test is a standard question of whether the conference costs were ‘necessarily incurred in earning your assessable income’. The ‘necessary’ causes some taxpayers some concerns. If the conference keeps your knowledge current and/or refines your skills, is in the area that you currently operate and is in the nature of continuing professional development, then […]
Can I have two PPR?
Capital Gains Tax (“CGT”) applies to the capital gain made when any capital asset is sold by a taxpayer, including land and buildings. In simple terms, the capital gain is the difference between the sales price (net of selling costs) and the cost price (plus stamp duty, legals and the costs of acquisition). You can […]
GST for property developers
When it comes to property developing, GST considerations are almost always present. The GST rules require you to register for GST if your annual turnover in the past twelve months or projected annual turnover in the next twelve months exceeds $75,000 at any point in time. Furthermore, you may want to voluntarily register so that […]
Basics of Family Trust Elections
Most practitioners have heard of family trust elections, and some may have made family trust elections to err on the side of caution. However, in many cases, a clear explanation of the reasons for making a family trust election is not readily available. This article aims to provide a practical explanation of the main situations […]
