Loans to get a business started
It’s not uncommon for business owners to pour their money into a business to get it up and running and to sustain it until it can survive on its own. A recent case highlights the dangers of taking money out of a company without carefully considering the tax implications. A case before the Administrate Appeals […]
The ATO Debt Dilemma
Late last year, thousands of taxpayers and their agents were advised by the Australian Taxation Office (ATO) that they had an outstanding historical tax debt. The only problem was, many had no idea that the tax debt existed. The ATO can only release a taxpayer from a tax debt in limited situations (e.g., where payment […]
FBT 2024
The Fringe Benefits Tax (FBT) year ends on 31 March. We’ve outlined the hot spots for employers and employees. FBT updates and problem areas Important FBT issues FBT exemption for electric cars To encourage the adoption of no or low emissions vehicles, the Government introduced a concession to make these vehicles FBT-free when provided to […]
How to take advantage of the 1 July super cap increase
From 1 July 2024, the amount you can contribute to super will increase. We show you how to take advantage of the change. The amount you can contribute to superannuation will increase on 1 July 2024 from $27,500 to $30,000 for concessional super contributions and from $110,000 to $120,000 for non-concessional contributions. The contribution caps […]
Revised Stage 3 Tax Cuts
The revised stage 3 tax cuts have passed Parliament and will come into effect on 1 July 2024. Before the new tax rates come into effect, check any salary sacrifice agreements to ensure that they will continue to produce the result you are after. Resident Individuals Tax Rate 2023-24 2024-25 0% $0-$18,200 $0-$18,200 16% $18,201-$45,000 […]
The Fringe Benefits Tax traps
The Fringe Benefits Tax year (FBT) ends on 31 March. We explore the problem areas likely to attract the ATO’s attention. Electric vehicles causing sparks In late 2022, the Government introduced a concession that enables employers to provide some electric vehicles to employees without incurring the 47% fringe benefits tax (FBT) on private use. The […]
Can my SMSF invest in property development?
Australians love property and the lure of a 15% preferential tax rate on income during the accumulation phase, and potentially no tax during retirement, is a strong incentive for many SMSF trustees to dream of large returns from property development. We look at the pros, cons, and problems that often occur. An SMSF can invest […]
The problem when the evidence doesn’t match what the taxpayer tells the ATO
A recent case before the Administrative Appeals Tribunal (AAT) highlights the importance of ensuring that the evidence supports the tax position you are taking. The case involves heritage farmland originally purchased for $1.6m that sold 7 years later for $4.25m and the GST debt that the ATO is now pursuing on the sale. In 2013, […]
Contractor or employee?
Just because an agreement states that a worker is an independent contractor, this does not mean that they are a contractor for tax and superannuation purposes, new guidance from the ATO warns. Where there is a written contract, the rights and obligations of the contract need to support that an independent contracting relationship exists. The […]
Personal Income Tax Cuts
The personal income tax cuts legislated to commence on1 July 2024 will be realigned and redistributed under a proposal released by the Federal Government. After much speculation, the Government has announced that they will amend the legislated Stage 3 tax cuts scheduled to commence on 1 July 2024. This will mean that more Australian taxpayers […]
The key influences of 2024
Uncertainty has reigned over the last few years, but can we expect more consistency as we head into 2024? We explore some of the key issues and influences. Inflation and labour supply RBA Governor Michelle Bullock stated, “Inflation is past its peak and heading in the right direction, but it is likely to return to […]
The Christmas Tax Dilemma
Don’t want to pay tax on Christmas? Here are our top tips to avoid giving the Australian Tax Office a bonus this festive season. 1. Keep team gifts spontaneous $300 is the minor benefit threshold for FBT so anything at or above this level will mean that your Christmas generosity will result in a gift […]
The controversial case of the taxpayer who claimed a loss on their home
A decision by the Administrative Appeals Tribunal has the tax world in a flurry after the Tribunal found in favour of a taxpayer who sold the apartment she lived in for a loss, then claimed the $265,935 loss in her tax return as a deduction. In this case, the taxpayer successfully argued that the purchase […]
Navigating the Festive Landscape of Christmas and Tax Benefits
As the year draws to a close and Christmas festivities begin to ramp up, tax concerns should not dull employers’ willingness to give back to their employees and clients as a gesture of gratitude and goodwill. Here are some tips to consider when wanting to share the Christmas joy without incurring a tax bill in […]
The ‘AirBNB’ Tax
Property investors that choose to utilise their property for short-term stays (or leave it vacant) are firmly in the sights of the regulators. The Victorian Government’s recent Housing Statement announced Australia’s first short-stay property tax. The additional tax, which is scheduled to come into effect from 1 January 2025, is expected to generate $70 million […]
What can you claim?
The Australian Taxation Office have released a new draft ruling on self-education expenses. We revisit the deductibility of self-education expenses and what you can and can’t claim. If you undertake study that is connected to your work you can normally claim your costs of that study as a tax deduction – assuming your employer has […]
‘Electrifying’ your Business
Electricity is the new black. Gas and other fossil fuels are out. A new, limited incentive nudges business towards energy efficiency. We show you how to maximise the deduction! The small business energy incentive is the latest measure providing a bonus tax deduction to nudge the investment behaviour of small and medium businesses, this time […]
Legislating the ‘objective’ of Super
The proposed objective of superannuation released in recently released draft legislation is: ‘to preserve savings to deliver income for a dignified retirement, alongside government support, in an equitable and sustainable way.’ The significance of legislating the objective of super is that any future legislated changes to the superannuation system must be in line with this […]
The shape of Australia’s future
We look at the key takeaways from the Intergenerational Report. The 2023 Intergenerational Report (IGR) is a crystal ball insight into what we can expect Australian society to look like in 40 years and the needs of the community as we grow and evolve. It doesn’t map out our path to flying cars and Jetsons […]
The Billion Dollar TikTok Scandal
$1.7 billion paid out in fraudulent refunds, another $2.7bn in fraudulent claims stopped, around 56,000 alleged perpetrators and over 100 arrests to date. How did the TikTok tax scandal get out of control? It was promoted as a victimless hack that delivered tens of thousands of dollars into your bank account. Like any hack, taking […]
Heather McKenzie
When Director, Shaun Reeves and then owner Jim Skaines asked Heather McKenzie to interview for a position at their small accounting firm in 1993, no one could have imagined her commitment. “I was originally employed as an accountant,” Heather smiles. “Pretty much the same as I am now – except there were only six of […]
Ten years of Trucks, Growth and Laughter
According to Toni Dunlop, co-owner and managing director of Ausroad Group, there’s nothing worse than being reprimanded by your accountant. “I kept having meetings with our accountants and left feeling like I was getting told off all the time,” he remembers. “There was one day in particular after an annual review, I felt like we’d […]
Thinking of subdividing?
You’ve got a block of land that’s perfect for a subdivision. The details have all been worked out with Council, the builders, and the bank. But, one important aspect has been left out; the tax implications. Many small-scale developers often assume that their tax exposure is minimal – but this is not always the case […]
What does it take to hand your business to the next generation?
What is the end game for your business? Succession is not just a topic for a TV series or billionaire families, it’s about successfully transitioning your business and maximising its capital value for you, the owners. When it comes to generational succession of a family business, there are a few important aspects: For generational succession […]
Why is my tax refund so small?
We show you why. There is a psychology to tax refunds that successive Governments have been reticent to tamper with. As a nation, Australia relies heavily on personal and corporate income tax, with personal income tax including taxes on capital gains representing 40% of revenue compared to the OECD average of 24%. And, for the […]
Joseph Tepuni-Fromont on how SRJWW supports Everything Suarve’s growth
“I dream big. I’m the type of person that actions things,” smiles Joe. “I don’t just talk about it – I action it.” In March 2020, Joseph Tepuni-Fromont had a vision – to support troubled youths from disadvantaged communities and build an organisation that helps them with their mental well-being, life skills, education and job […]
The 120% Technology and Skills ‘Boost’ Deduction
The 120% skills and training, and technology costs deduction for small and medium business have passed Parliament. We’ll show you how to take maximise your deductions. Almost a year after the 2022-23 Federal Budget announcement, the 120% tax deduction for expenditure by small and medium businesses (SME) on technology, or skills and training for their […]
What changed on 1 July 2023
The new financial year has started and with the change of month, came an abundance of changes for you, businesses and superannuation. Are you aware of them all? Employers & Business Superannuation For you & your Family Important: 1 July 2023 wage increases For employers, incorrectly calculating wages is not portrayed as a mistake, it’s […]
Proof of Identity (POI)
In recent times, tax and identity fraud have been fuelled by lack of proper identification processes in tax practitioners’ offices. As a tax practitioner, it is vitally important we are vigilant in undertaking adequate client identification processes. Overall, this will help minimise risks for identity fraud for our clients, our practice and the government. The […]
Super Savings & Strategies
Tax deductions for topping up Super You can make up to $27,500 in concessional contributions each year assuming your super balance has not reached its limit. If the contributions made by your employer or under a salary sacrifice agreement have not reached this $27,500 limit, you can make a personal contribution and claim a tax […]
9 Tax Savings for your Business & Protecting against Risk
1. Bring forward the purchase of assets If there are large assets your business needs to buy (or upgrade), you have until 30 June 2023 to use the temporary full expensing rules. These rules enable businesses with an aggregated turnover of up to $5bn to fully deduct the cost of the asset upfront rather than […]
Tax Savings for the Taking!
It’s that time of year when we all look at what last minute things we can do to maximise tax savings. In the wise words of the late Kerry Packer to a Senate estimates committee, “Of course I am minimising my tax. And if anybody in this country doesn’t minimise their tax, they want their […]
Selling a business?
Earn-out clauses for the sale of a business are increasingly common. We look at the positives and negatives that every business owner should consider. Business transactions often include earn-out clauses where the vendors ‘earn’ part of the purchase price based on the performance of the business post the transaction. Typically, an earn-out will run for […]
A Guide for Owners
When you start up a business, inevitably, it consumes not just a lot of time but a lot of cash and much of this is money you have already paid tax on. So, it only seems fair that when the business is up and running the business can pay you back. Right? There a myriad […]
What sharing platforms are sharing with the ATO?
From 1 July 2023, a new reporting regime will require platforms that enable taxi services including ride sourcing, and short-term accommodation to report their transactions to the ATO each year. From 1 July 2024, the regime will expand to include all other platforms. While the legislative instrument for the reporting regime is still in draft […]
Tax on Super Balances above $3M
In a very quick turnaround from announcement to draft legislation, Treasury has released the exposure draft legislation for consultation to enact the Government’s intention to impose a 30% tax on future superannuation fund earnings where the member’s total superannuation balance is above $3m. The draft legislation confirms the Government’s intention to: Currently, all fund income […]
How does tax apply to Electric cars?
Just in time for the Fringe Benefits Tax (FBT) year that started on 1 April, the Australian Taxation Office (ATO) has released new details on electric vehicles. The FBT exemption for electric cars If your employer provides you with the use of a car that is classified as a zero or low emissions vehicle there […]
Shaun Reeves: 30 years from Manager to Leader
A self-proclaimed introvert who doesn’t mind the odd red wine or two, Shaun Reeves toes the line between deeply complex and delightfully simple. “I live for superhero moments,” he smiles. “That’s what makes my day and my life. The ability to create positive change for other people – whether it’s for our clients, team, community […]
Budget 2023-24
Little has been released to date on the impending Budget beyond the tax on super balances above $3m and the decision not to extend the temporary $1,500 low and middle income tax offset beyond 30 June 2023. Cost of living is a focus but on this, the Government is walking a tightrope between easing pressure […]
Joseph’s Journey
In 2018, I was coming to the end of my school journey, going from a comfortable environment over the past 12 years, to wondering what was the next step? I knew I had a passion for maths, economics and accounting but never knew what any could entail as a career. After discussions with my accounting […]