Part 1 examines the key characteristics of a sound SMSF succession plan including planning for control of the fund to pass into trusted hands in the event of a member’s death or loss of capacity.
Clients failing to engage must “act now” or face rapid escalation of enforcement action, the Tax Office has warned agents.
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If you’re an Australian resident for tax purposes, you don’t have to pay income tax on the first $18,200 you earn each year, from any source. This is called the “tax-free threshold”.
Australian cryptocurrency owners need to be aware of their profits and whether they incur tax, experts have warned.
The Tax Office has revealed that 250,000 tip-offs have been received about tax avoidance and dishonest behaviours since July 2019.
The ATO is currently focusing on ensuring that taxpayers are aware of their obligations regarding treatment of withholding amounts and amount paid to foreign residents.
Cyber security is everyone’s business. With cyber threats becoming more frequent and
complex now is the time to make sure your business is secure.
A levy on short-stay accommodation bookings will apply from next year after being passed by the Victorian parliament.
The ATO has recently confirmed some key focus areas of business debt collection – including debts relating to superannuation guarantee (SG), pay as you go (PAYG) withholding and GST.
Australia’s superannuation system has seen a number of significant changes in recent years.
Recent results from the data-matching program identified issues around the reporting of rental income and claims for capital works and depreciating assets.
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The seven-day payment window and closure of the ATO’s clearing house are expected to disproportionately impact smaller employers.
Both the Treasurer and the Prime Minister have confirmed that Treasury is exploring changes to the contentious policy.
If you manage a self-managed superannuation fund (SMSF), recent changes to tax rules for certain fund expenses may affect you and the fund.
The draft legislation aims to modernise the luxury car tax by tightening the definition of a fuel-efficient vehicle and adjusting the indexation rate.
It’s estimated we spend a third of our life at work. It may even be more if you run your own small business. From working overtime during the week to catching up on paperwork on the weekend, having enough time to get everything done is a challenge for most small businesses.
The government has released further details about the design of its payday super policy including an updated super guarantee charge framework.
The new financial year has begun, and with it have come some important changes to superannuation from 1 July 2024. With these changes coming into effect, it’s a good time to give your super a check-up.
The Australian Securities and Investments Commission (ASIC) has issued a scam alert warning consumers that there has been an recent increase in the use of ASIC’s logo in social media scams. ASIC’s warning to consumers covers three main areas of concern.
Trade marks are a form of intellectual property protection your business can rely on to distinguish yourself from your competitors. Likewise, you can use trade marks to clearly differentiate your goods and services from your competitors.
The Tax Office will acquire property management records to clamp down on taxpayers misreporting rental income and deductions.
It’s common for small businesses to struggle when understanding their financial data. Cash flow needs and a Profit and Loss statement are analysed more often a business owner and so, understood better.
The lower risk profile of small practices means they should not face the same scrutiny as larger ones, the NTAA says.
The ATO is reminding businesses to lodge their tax payable payment annual report by 28 August after issuing around $9 million in penalties in the five years to 2023.
The ATO’s draft guidance on personal service income and the general anti-avoidance provisions is likely to be a shock to many small and microbusinesses in Australia.
The Early Release of Super scheme implemented during the COVID-19 pandemic had little impact on financial resilience or wellbeing, new research has shown.
If you run a business for any length of time, you will likely get involved with disagreements and disputes with your associates, whether they be customers, employees, suppliers or competitors.
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Having good working relationships with your suppliers is vital to ensure your business runs smoothly.
Travellers who mix business and pleasure will face increased scrutiny as the Tax Office cracks down on work-related expenses.
Casual employment is set to change again after Amendments to the Amendments to the Fair Work Act 2009 (Cth).
The June quarter inflation data is likely to see the RBA keep rates on hold next week, economists predicted.
An industry body warns strong take-up will only continue if the generous tax break remains.
After a soft patch since 2021, there is good reason to expect the $A to rise into next year
Estate planning is a complex area which requires careful consideration of tax implications.
The Tax Office has warned taxpayers to revise deduction rules and maintain proper records.
Find the list of tasks to be done in your business or reminders you need to know about.
The Tax Office is warning taxpayers against rushing to lodge their tax returns on 1 July.
The super changes on the way from the start of the 2024-25 financial year.
As a small business owner, you may be looking to recruit employees in a variety of capacities and for a range of purposes.
Significant changes to the Victorian Vacant Residential Land Tax (“VRLT”) were enacted in the State Taxation Acts and Other Acts Amendment Act 2023 (Vic) which received Royal Assent on 12 December 2023. These changes will take effect from 1 January 2025 and 1 January 2026. The use of the residential land during the 2024 calendar year may impact landowners. The vacant residential land tax assessments […]
Working from home because of COVID-19 means most will have more deductions than in a normal year. These checklists will help your tax agent ensure you don’t miss any deductions. Simply print, complete and return. Please click on the following links to access the checklists most appropriate to your needs. Individuals Company Trust Partnership Superannuation Funds
All too often a small business operates as an ‘island’, not knowing how they are really doing. These benchmarks allow meaningful comparisons.
The ATO reports that more than 42,000 small businesses fail to work with them in regard
to finalising their tax obligations.
Over May and June we will add two articles to our website to help you plan and take actions before the end of the 2023-24 financial year.
Small businesses are increasingly falling behind on debts, with two-thirds of all debt owed by small business, the ATO warns.
Taxpayers who “copy and paste” work-related claims each year or try to offset their rental income by inflating deductions will be in the Tax Office’s sights.
A standard form contract is a pre-written contract used repeatedly for a particular type of transaction.
Jim Chalmers has handed down the government's third budget, with a $300 power bill boon for every Australian household, but the purse strings kept tight on other measures.
The 2024 Federal Budget is broken down into these five PDFs. Click on each to read more.
Jim Chalmers has handed down the government's third budget, with a $300 power bill boon for every Australian household, but the purse strings kept tight on other measures.
Four main components of this year's Federal Budget can be seen by using the following links.
In May and June, we will add two articles to our website that help you plan and take action before the end of the 2023-24 financial year. Both Part 1 and 2 will cover the following, though Part I focuses on key strategies to manage your tax bill. All are worth dedicating time to review and think about how your business can organize your affairs in these ways.
Since the government’s announced changes to the Stage 3 tax cuts to give lower income earners more benefits, the chorus of voices advocating for changes to other aspects of the tax system, such as negative gearing, has grown steadily stronger.
Foreign resident capital gains withholding (FRCGW) of 12.5% applies for all property sales of $750,000 or more.
The ATO is targeting unlawful tax and super scheme promoters, citing “serious” penalties and reputational risk.
Australians made more than 600,000 reports about scams in 2023 — about 18 per cent more than in 2022.(ABC News: Evan Young/Canva)
Anybody who has a Fringe Benefits Tax obligation should take an odometer reading of motor vehicles. . This reading is one of the annual requirements of the logbook method of fringe benefits calculations for the Fringe Benefits Tax period ending 31st March 2024. If you are not sure if you have an obligation, it will only take a few minutes, so just do it! Remember […]
The new financial year is fast approaching and so are a number of changes to superannuation contribution amounts and the individual tax rates. These changes are outlined below, as is some information on how you may be able to work with these changes when managing your tax affairs during 2024-25.
Consumers remain deeply pessimistic about the near-term outlook for the economy despite signs of improvement last month, says the major bank.
New guidance has been released on best practice principles for debt notifications in response to the re-activation of old debts by the ATO.
The following is a list the ATO has compiled that is tailored to occupations and industries.
The ATO has developed quite a number of benchmarks to help small businesses develop an idea of their performance compared to similar businesses in the same industry.
The new financial year is fast approaching and so are a number of changes to superannuation contribution amounts and the individual tax rates. These changes are outlined below, as is some information on how you may be able to work with these changes when managing your tax affairs during 2024-25.
Existing issues within the SG system must be rectified before the government proceeds with the new changes, the IPA says.
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The Tax Office lacks power under current laws to do anything about the wildly unpopular scheme despite plans to review its approach, according to a UNSW professor.
Individuals participating in the sharing economy should be aware that transactions for supplying taxi travel/ride sourcing and short-term accommodation are now required to be reported under the sharing economy reporting regime (SERR).
Every business owner wants to grow their business and their profits.
The task of worker classification has been a long-running point of contention but the Commissioner’s response to recent court cases suggests a written contract is king.
The ATO has flagged a return to more aggressive debt collection actions after seeing a trend of profitable businesses that have the capacity to pay their tax debts but are actively choosing not to do so.
New taxpayer alerts on incorrect R&D claims that are attracting our attention.
Common conditions of release include the fund member having reached preservation age and retired, or commenced a transition-to-retirement income stream; ceasing an employment arrangement on or after the age of 60; being 65 years old even though they haven’t retired; or having died.
Beginning the year with a clean financial slate can be pivotal to your business’ health.
An individual power of attorney gives an attorney legal authority to manage a person’s assets and financial affairs.
New taxpayer alerts on incorrect R&D claims that are attracting our attention.
Following years of mixed messaging, Labor has bowed to economic pressure and announced changes to its stage three tax cuts.
The uncapped version of the instant asset write-off scheme was extremely popular among SMEs with the average spend over $90,000, according to ScotPac.
GrantConnect provides centralised publication of forecast and current Australian Government grant opportunities and grants awarded.
Spending by associated entities or activities conducted overseas will be subject to increased scrutiny, the Tax Office says.
The taxation of digital assets used for lending and borrowing would benefit from clear-sighted guidelines.
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There are different types of small business benchmarks that help compare your business' performance.
Changes to interest deductibility, taxes, thresholds and even passport fees made up the fineprint of the mid-year economic update.
If you are an owner of commercial property, it is important to understand commercial leases well.
As a business owner, managing your debtors and improving your cash flow are crucial to the success of your business.
Spending by associated entities or activities conducted overseas will be subject to increased scrutiny, the Tax Office says.
Parliament, the FWO, unions, employees and employers alike grappled with the ever-complex Fair Work Act in 2023.
The Christmas break-up party and/or gifts to employees can be exempt from Fringe Benefits if a few rules are followed. The cost can be exempt as either an exempt property benefit or an exempt minor benefit. Exempt Property Benefits Costs like food and drinks provided for employees as part of a Christmas party, on a working day on business premises and consumed by current employees […]
The latest CreditorWatch data shows small businesses are being hardest hit by rising prices and interest rates.
Come back each day and click on the next date for more inspirational and Christmas quotes.
UPDATED: The end of LMITO and revised WFH rules have taken billions out of refunds, ATO figures reveal.
Today, data is an important product for all types of organisations.
UPDATED: Hardworking Australians deserve higher wages, the Treasurer says.
The Australian Government is assisting older Australians to work, if they are able and wish to do so, by allowing them to keep more of their pension when they have income from work.
There are three main areas of significant change: Transition from stamp duty to annual property tax for commercial and industrial property. This will apply to commercial and industrial properties acquired on or after 1 July 2024. (existing owners of properties purchased before 1 July 2024 will not be affected). Once a property enters the new system the annual property tax will be payable at […]
Billions in collectable debt mean the Tax Office is working to shorter time frames and responding more quickly to inaction. Small businesses will witness more action from the ATO over outstanding lodgements and debt collection as it targets the $50.2 billion in collectable debt owed by the sector, according to a specialist in business restructuring and corporate insolvency at PwC. Chris Sequeira said the ATO […]
Loans to members continue to be the highest reported contravention of the superannuation laws by SMSFs, says the ATO. The ATO claimed that these loans comprise 16 per cent of all breaches in auditor contravention reports lodged by SMSF auditors between 2019–2022. It reminded SMSF trustees that they cannot loan money or provide other forms of financial assistance to a member or relative or they […]
The ATO has extended its motor vehicles data matching program for 2022–2023 to 2024–2025 financial years.
Repelling attacks is just the start – businesses must demonstrate an ability to respond or the board will be held accountable, the regulator says.
Accounting firm William Buck warns most owners are “flying blind” when it comes to maximising the value of their business at the point of sale.
Many small business-owners experience this feeling when they look at their books. You work hard, money comes in but it all just seems to disappear. Why?
Selling a business involves several steps, moving parts and legal documents.
The cents per kilometre method is a simple way to work out how much you can deduct for car-related work or business expenses.
Did you know that your clients aged between 35-44 are the most likely to pay money to a scammer?
As flagged earlier in the year when the announcement was made, the Federal Government recently released a consultation paper on its proposal to reduce super tax concessions for individuals with super balances over $3 million, including those with self-managed super funds (SMSFs).
The amendment will hold off the threshold reverting to $1,000 until June 30 next year.
The general and shortfall rates for late tax payments rise for the eighth quarter in a row.
Imagine you think up a fantastic name for your business and are ready to start operating. You have set up your website and begin advertising online using the business name and logo you have designed.
Improving cash flow is the no. 1 challenge for most family businesses, according to a new survey.
The revised procedure will encompass an additional 1.7 million entities from 13 November.
SMBs can be particularly vulnerable to cyber security risks, with limited resources, expertise, and infrastructure all contributing factors as well as lack of awareness and training.
Fewer taxpayers have raced to file an early return and the total paid out in refunds is already down by $1.7 billion.
UPDATED: This budget measure waives fines for late lodgment of income, BAS and FBT returns due during the pandemic.
The deadline for submitting this report is the 28th August 2023. While it may be difficult sometimes to differentiate between an employee and a contractor the form still has to be submitted. Your accounting software can most likely help.
In February 2022, the High Court handed down a landmark decision in ZG Operations v Jamsek, which clarified the test for determining whether a worker is an employee or an independent contractor.
A change to contract law you might not be away of but need to be. It is essential to understand the unfair contract terms (UCT) regime and how it affects your rights and responsibilities. Otherwise, you may face serious consequences.
For years now, Australians have been hacked, scammed, contaminated by viruses, and spammed.
Individual property investors should be aware that the Australian Taxation Office (ATO) has announced a new data matching program that will obtain data from various financial institutions for the 2021–2022 to 2025–2026 income years
The ATO has provided some insights to the areas it will be focusing on consisting of rental property deductions, work-related expenses, and capital gains tax.
Set out below are some key considerations to utilise when negotiating and trying to resolve a dispute.
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Did you know that in 2022 almost 30% of all Australian businesses with a registered trade mark were in Victoria?
The Australian Taxation Office has warned content creators that they need to be aware of their income tax and GST obligations.
Continuing its theme of closing the tax gap of individuals for budget repair, the ATO has notified the public of the extension of an existing data-matching program on ride-sourcing.
If you performed some of your work from your home office during the 2022-2023 financial year, you may be able to claim a deduction for the costs you incurred, even if the space you used is not set aside solely for work-related purposes.
The scamming industry is creative – different opening lines via telephone and emails appear daily.
Australia has a relatively high level of financial literacy when ranked globally. In a study of 140 economies, Australia ranked in the top 10 countries for financial literacy.
These changes will affect almost everyone, including families, workers, business owners and retirees.
Engaging overseas contractors can be an effective way for businesses to respond to their business needs. However, while there are many advantages to hiring overseas contractors, you must consider this against legal risks, such as the risk of sharing the personal information of Australian individuals with overseas parties.
As a business, you may consider installing video surveillance on your premises to discourage theft or ensure the safety of your customers and personnel. However, your business may suffer significant legal implications if you do not adhere to legal requirements around filming or recording customers that enter your store.
The multi-agency operation found documents that allegedly showed the employment of unlawful non-citizens.
The RBA expects that inflation will return to target in mid 2025 but rising unit labour unit costs presents a significant risk for inflation.
These checklists will help your tax agent ensure you don't miss any deductions. Simply print, complete and return.
Every end of financial year (EOFY) season involves a rush by Australians wanting to get their tax returns completed. Increasingly, though, this period is seen as an opportunity for bad people to take advantage of us. Too often the EOFY rush involves hastily clicking on links, giving personal information to the wrong person, or submitting documents to insecure portals or sites. One in four Australians […]
The following are all the links to the federal government's description of its 2023 Budget. At the bottom are the Budget Documents for those that love to get into the fine detail of a Budget.
Federal Budgets can involve a lot of content. The following are a quick summary of the main issues. The other related article has more detail.
Many Australians own a holiday home, but according to the Australian Taxation Office, there
are a small number of holiday home owners who, on average claim deductions that are six
times higher than income earned from the property.
New workplace changes to paid parental leave, and workplace sexual harassment laws.
Firms confront too much information but insufficient practical guidance when it comes to digital lockdown, says COSBOA.
Small business will need to race to beat the cut-off date for the instant asset write-off scheme, says a tax principal at RSM Australia, or become ensnared in “significant red tape” once more onerous rules came back into force.
The fine tuning of Single Touch Payroll is now endeavouring to disguise family violence
leave.
Computer hacking has been around for as long as there have been computers. Once it used to be computer geeks showing the world how smart they were. Now it's become very serious with almost any person, company or Government at risk from these criminal activities.
Here's how long you'd live consuming only this liquid, and nothing else.
Tough conversations and engaging clients proactively will be key to minimising fallout, say insolvency specialists.
From 30 March 2022 to 28 September 2022, businesses that acquired fuel for use in heavy
vehicles for travelling on public roads couldn’t claim fuel tax credits.
Stay ahead of changing tax laws with ChangeGPS TaxPlan Advanced tools and upcoming webinar series.
Electric vehicles become exempt from the levy for the first time and Mazars expects an influx of salary packaging requests.
Anybody who has a Fringe Benefits Tax obligation should take an odometer reading of motor
vehicles
Revised rules require fresh advice but clients often blame their tax professional, says Tim Munro.
How to calculate capital gains tax (CGT) on your assets, assets that are affected, and the CGT discount.
You may need to report money and assets taken from your company or trust as income in your tax return.
ATO brings in changes for calculating working from home deductions.
The labour shortage and increased workplace flexibility has seen potential retirees remain in the workforce for longer, says KPMG.
The proposed tax on earnings calculation for balances exceeding $3 million will see some members paying tax on unrealised earnings, says the SMSF Association.
The latest figures from the ABS reveal economic growth last year and show inflation coming off its peak.
Around 100,000 SMSF directors still need to apply for their director ID despite the deadline passing two months ago. Extensions are available for legitimate reasons.
The largest portion of the SMSF investment pool is held in domestic shares, according to a recent survey.
More demanding record-keeping requirements in the November draft have been in place since 1 January.
Loans to members and financial assistance continues to be the most commonly reported type of contravention based on ATO statistics.
With illegal early access schemes on the rise, the Tax Office has issued a fact sheet warning super members about the promoters of these schemes.
After a slow start in May, figures show how the office went up through the gears with director penalty notices.
As part of the government’s intention to “strengthen” the ABN system, Treasury has released
draft legislation to imposing new compliance obligations for ABN holders to retain their
ABN.
The Federal Government has released a consultation paper seeking views on options to
regulate the “buy now, pay later” (BNPL) market.
After the Christmas and new year break, it is quite possible that some employers may have missed the
due date for the December 2022 quarter superannuation guarantee contributions (SCG) payment of
29th January 2023.
Don’t clean out the garage. Forget that lapsed gym membership. Here are 5 new year’s resolutions to keep if you want to stay on top of your tax and super in 2023.
You and your business can still be held responsible for injuries that happen in the home while carrying out work-related duties.
With the eligibility age for downsizer contributions now age 55, the SMSF Association has highlighted some important considerations for younger clients looking to use the measure.
We see common behaviours among small businesses that get their tax right. These tips will help you to pay the right tax.
Charges are pending following an operation with the Australian Federal Police (AFP) that uncovered 70 sales systems using suppression technology.
Thousands of dollars in claims “that would fail the pub test” contribute to $1.6bn tax shortfall, assistant commissioner says.
The ATO fails to resolve the key question of what constitutes “ordinary family and commercial dealing”, tax professionals say.
Lending digital currency can be viewed as disposal while losses from the recent downturn may offer little relief from previous capital gains.
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Assistant Treasurer guarantees dividend imputation scheme but says off-market share buybacks exploit a loophole that must be closed.
A cash flow forecast is a vital business tool you can use to work out whether you have enough cash to run or expand your business
Just seven companies paid 40 per cent of the $69 billion income tax reaped from 2,500 large corporations.
The Christmas break-up party and/or gifts to employees can be exempt from Fringe Benefits if a few rules are followed.
Check out who are the biggest brands in the world.
Some employers, who are commendably anxious to protect their employees and clients from the drink/driving laws, also pay for taxis/rideshare to and from the place of entertainment.
Interest rates have been on the rise in Australia, and this has caused a lot of concern among consumers. Many people are worried that they will not be able to afford their monthly mortgage payments, and some are even considering selling their homes.
If you're looking to purchase a car, you may be wondering what the differences are between leasing and a hire purchase. Both can offer different financial benefits and drawbacks depending on your needs.
Rising costs and extra paperwork has hit work-life balance for independent earners, specialist accountancy says.
A rundown of the main measures that will impact accountants and small business.
All the detail for those who like to better understand the fine print.
The Treasurer announced two changes to the JobKeeper scheme. The first makes it easier for organisations to qualify for the JobKeeper payment extension from 28 September 2020, while the second change adjusts the reference date for employee eligibility. We have prepared a guide to help you navigate the new landscape. Please feel free to download it.
The Victorian Government has launched the $500 million Business Support Fund to help small businesses survive the impacts of the coronavirus (COVID-19) pandemic and keep people in work. Funding of $10,000 per business is available and will be allocated through a grant process. To check your eligibility and to start an application process please follow the link below: https://www.business.vic.gov.au/support-for-your-business/grants-and-assistance/business-support-fund
In response to the potential economic downturn which may be caused by the Coronavirus pandemic, the government has issued several announcements and measures which may help with your business’s cash flow. These are: 1. Credits coming to your Activity Statements This assistance will be in the form of a “credit” to your Activity Statements between now and June 2020. The government will allow this credit […]
Until recently, a company that had experienced a significant change in ownership or control could only carry forward its earlier tax losses to a later income year if the company carried on the “same” business after the change. However, a new alternative test that applies retrospectively from 1 July 2015 means that now companies only need to carry on a “similar” business. What exactly does […]