News
Favourable tax treatment for employers
RAT and PCR Tests. Finally, some good COVID-19 news (at least on the tax front) for employers.
Cashflow forecasts
Now more than ever businesses should consider preparing cashflow forecasts.
Employee allowances
Do your employees travel for work? The ATO has issued new guidance to help employers determine whether to pay employees a travel allowance or a living-away-from-home allowance (LAFHA).
In-specie super contributions
Most contributions to a SMSF are made in cash, but did you know you can also contribute certain assets to your fund too? These types of contributions are called “in-specie” contributions and may be a good alternative to consider if you don’t have available cash on hand and want to make a contribution to super.
Paying employees super through a super clearing house
If you’re a small business owner, you’ll know that you’re required to pay your employees (and certain contractors) superannuation guarantee (SG) in addition to their salary or wages. But how do you pay your SG contributions in a simple and effective way? The answer is through a superannuation clearing house (SCH).
On-boarding new employees
With Australia now opening back up after the COVID restrictions, unemployment is tipped to fall to the lowest rate in just over 50 years – down to under 4%. If over the coming period you hire new staff, there are certain steps you should follow to cover off on your tax, workplace, and superannuation obligations.
Your Business Structure
At the start of each year, business owners typically review their affairs, including at times their trading structure. Others may be going into business and choosing their initial structure. There are four main business structures – sole trader, company, trust, and partnership (or a combination of these).
Topping up your concessional contributions
Thinking about making up for lost time and making extra contributions to top up your super? The good news is that the “catch-up” concessional contribution (CC) rules can help individuals who feel they have missed out on building their retirement savings to make extra before-tax contributions.
What does Temporary Full Expensing (TFE) of assets mean for me?
As Australia looks to get back to work and continue its recovery, the Temporary Full Expensing (TFE) measures are available to support business and encourage investment. Eligible businesses can claim an immediate deduction for the business portion of the cost of most assets in the year they are first used or installed ready for use.
Consolidate your super
Did you know that there are approximately 10 million unintended multiple super accounts, which represents around 35% of all member accounts held by funds?
Single Touch Payroll 2: The time has come
In the May 2019 Federal Budget, the Government announced that Single Touch Payroll (STP) would be expanded to include additional information, building on the first stage of STP which was made compulsory for most employers from 1 July 2019.
Have you obtained your director ID? Make sure you do
The director identification number (director ID) regime is now in place with Australia’s newest company directors having to comply first.
Where there’s a will, there’s often a dispute
From wine-fuelled political debates over Christmas lunch to overly competitive games of Monopoly, there are many reasons family members can find themselves at loggerheads with one another. A particularly serious scenario is when a parent passes away and leaves behind an estate that becomes a source of bitter conflict between siblings.
Superannuation budget measures one step closer
Several superannuation proposals announced in this year’s Federal Budget have been introduced into Parliament in the Treasury Laws Amendment (Enhancing Superannuation Outcomes for Australians and Helping Australian Businesses Invest) Bill 2021.
ATO’s ABN cancellation program continues
The ATO has announced that it is continuing to review inactive Australian Business Numbers (ABNs) for cancellation. Your ABN may be selected for review if you have not reported business activity in your tax return, have not lodged activity statements that include business income, or there are no other signs of business activity in other lodgements or third-party information.
Changes to actuarial certificate requirements for SMSFs paying a pension
Commencing a pension from an SMSF can be easy process provided it is done the right way and you follow the rules that apply.
Becoming the executor of a deceased estate
There comes a time in many people’s lives when they are appointed the executor of a deceased estate.
ATO extends COVID-19 relief measures for SMSFs
SMSF trustees that are financially impacted due to COVID-19 because of extended lockdowns in certain States and Territories will be granted extended relief to cover the 2021-22 financial year.
CGT retirement exemption where gain is made by a company or trust
Applying the “Retirement Exemption” in the CGT Small Business Concessions can be quite difficult – particularly where a company or trust makes the capital gain and the exemption is sought to be applied for the benefit of individual shareholders in the company or beneficiaries in the trust.
CGT on sales of property inherited by a foreign resident
Is there CGT when a property inherited from a foreign resident is sold? Am I liable for CGT on a home I inherited from a foreign resident when I sell it one year later? The following scenario demonstrates how the CGT rules work in this situation.
New laws to improve the way super is divided in divorce
A new law will level up the playing field for divorcing couples to ensure both partners have fair and equitable access to superannuation, particularly during acrimonious family court proceedings.
Important news on the compulsory director identification number (DIN)
This is important information for anyone who is a director of a company, registered foreign company, registered Australian body or Aboriginal and Torres Strait Islander corporation.
Xero Price Increase
Changes to Xero's business and partner edition pricing will commence from 23 September 2021. The cost of Xero Standard and Premium plans will increase in Australia (the price for Starter will remain the same).
Christmas and the Taxman
When do employee gifts and celebrations attract fringe benefits tax (FBT)? And when are they exempt?
Christmas is traditionally a time of giving – including employers showing gratitude towards staff for a job well done. However, Christmas
parties and gifts can attract the attention of the Taxman.
SuperStream deadline fast approaching
SMSF trustees must get ready to process rollovers via SuperStream by 1 October 2021. This means trustees will no longer able to send and receive paper rollover benefit statements and cheques between superannuation funds.
Home as a place of business during COVID: CGT implications
The COVID-19 pandemic has resulted in more employees working from home than ever before. This, in turn, has resulted in such people being able to claim a range of deductions for various “running expenses” associated with working from home.
Compensation payments: Avoiding contribution issues
Superannuation fund trustees who receive compensation from financial institutions and insurance providers must consider how receipt of these payments may impact a member’s contribution caps.
COVID-19 JobSaver & Mirco-Business Grant Update
All businesses receiving the JobSaver and Micro-Grants must be re-tested on their eligibility to receive future payments.
Stapling super: Reducing multiple accounts for employees
New legislation will ensure that when an employee moves jobs, the super fund they used with their former employer will be ‘stapled’ and will automatically follow them.
Trust distributions to non‑residents
When an Australian trust makes a distribution to a non-resident beneficiary, it is often the case that the Australian trust is required to pay tax on the distribution.
Buying a new home before selling the old one: The ins and outs
Sometimes an individual or couple decide to buy a new home before selling their existing one. In such cases, a concession exists that allows for both houses to be treated as a main residence for up to six months – but only if certain conditions are met.
Claiming GST credits for employee reimbursements
If you are an employer registered for goods and services tax (GST), you may be entitled to claim GST credits for payments you make to reimburse employees (including company directors) or partners in a partnership for certain work-related expenses.
SMSFs & property development Emerging risks
There has been an increase in the number of SMSFs entering into arrangements where real property is purchased and developed to subsequently be sold or rented out. Such investments can help the fund build up its wealth more quickly than other forms, and from a tax standpoint, any rent or eventual capital gain may enjoy concessional tax treatment.
How to treat work-related travel and living away from home costs
The ATO has released new guidance to help clarify the tax treatment of costs and allowances incurred when an employee travels – or spends time living away from home – for work.
NSW COVID support for businesses and households
Help available for NSW businesses and households impacted by COVID-19 and recent lockdowns.
Forsyths Office Arrangements during COVID-19 lockdown.
Forsyths Office Arrangements during COVID-19 lockdown. Due to the recent lockdown announcements, the Tamworth and Armidale Forsyths offices will be closed to clients for the next 7 days.
Lockdown Support - New Measures Announced
The NSW and Federal Governments have announced a series of new measures to support business during extended lockdowns of four weeks or more:
Where do reward programs stand in regard to tax?
Many businesses and organisations offer their customers loyalty award-based incentive programs. They are designed to reward customers for purchasing or using a company’s goods and services (or sometimes affiliated businesses).
Trust distributions from a discretionary trust
The purpose of a trust is to separate the legal and beneficial ownership of assets. The legal ownership of the asset rests with the trustee. The beneficiaries benefit from the income that flows from the assets.
Trust losses: Keeping them in the family
Who can (and can’t) be part a family group for the purpose of making a family trust election (FTE)?
Capital works deductions for rental property
Rental property investors can claim capital works deductions for construction costs for a rental property, however there are limits imposed in relation to the dates such works were completed.
What the new - your future, your super means for you
Recent legislative reforms to the superannuation arena are set to change the retirement savings landscape for many Australians.
What lockdown support is available to business?
The NSW and Federal Governments have announced a series of new measures to support business during extended lockdowns of four weeks or more.
Avoid common mistakes in your business return, and include appropriate income
We know you want to get your tax right, so it may help you this tax time to know how to avoid making what the ATO has found are the most common tax mistakes.
Getting deductions for clothing and laundry expenses right
The ATO allows certain taxpayers to claim a deduction for the cost of buying and cleaning occupation-specific clothing, items of protective wear and for certain unique, and usually distinctive, uniforms.
Steps to take when winding up your SMSF
There will most likely come a time when your SMSF will need to be wound up, with a change in members, the fund’s finances, perhaps separation or other family causes among the many reasons why winding up the fund becomes necessary.
When the taxman sends a bill, not a refund
Most people who earn income as employees have tax payments made on their behalf throughout the year through pay-as-you-go (PAYG) withholding to help them meet their annual tax obligations. But this withholding of amounts can sometimes miss the mark.
Super Guarantee rate increase on 1 July 2021
As of 1 July 2021, the minimum super guarantee rate will rise from 9.5% to 10%, with further increases over the next five years.
The ATO’s eligibility requirements for SMSF trustees or directors
All members of a self-managed super fund (SMSF) must be individual trustees or directors of the fund’s corporate trustee. Anyone 18 years old or over can be a trustee or director of a super fund as long as they’re not under a legal disability (such as mental incapacity) or a disqualified person.
New guidance on “personal services income” rules
The ATO has recently updated its guidance material on the operation of the personal services income (PSI) and personal service business (PSB) rules.
The tax treatment of cryptocurrency
Cryptocurrencies, once again surging in popularity, have a unique tax treatment that every taxpayer dealing with cryptocurrency should be aware of.
Federal Budget 2021-22
The Government has decided not to go down the austerity path, which will be a relief for many taxpayers and businesses.
Evidencing SMSF property valuations
The ATO recently clarified the evidence that is required to support real property valuations within SMSFs, particularly in light of the unique challenges brought about by COVID-19.
The SME Recovery Loan Scheme is now open
Loans for small to medium enterprises (SMEs) are available until 31 December 2021 under the Federal Government’s SME Recovery Loan Scheme. The scheme is designed to support the economic recovery, and to provide continued assistance, to firms that received JobKeeper and also to businesses that are flood-affected.
Dealing with excess before-tax super contributions
Making extra before-tax contributions into super (called concessional contributions) can help boost a person’s retirement savings. But fund members need to be aware of the implications for when they exceed the concessional contributions cap.
EOFY tips for your tax plan
The financial year is almost over, but there are still effective strategies you may be able to put in place.The aim is to make sure you pay no more tax than you have to for the 2020-21 year and maximise any refunds you may be entitled to. This is still the case, if not more so, in the on-going COVID-19 environment.
Some payments are not counted as income by the ATO
It is possible to receive certain payments that do not need to be included as income in your tax return. However some of these amounts may be used in other calculations, and may therefore need to be included elsewhere in your tax return.
Refinancing loan interest may be deductible to a partnership
A general law partnership is formed when two or more people (and up to, but no more than, 20 people) go into business together. Partnerships are generally set up so that all partners are equally responsible for the management of the business, but each also has liability for the debts that business may incur.
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