Latest News
$13.6m in penalties imposed for false R&D claims
A joint investigation involving the ATO found that, between 2014 and 2017, a Sydney business coach promoted unlawful tax schemes encouraging clients to lodge over-inflated, inaccurate or unsubstantiated research and development (‘R&D’) tax incentive claims. The Federal Court recently handed down judgment against the business coach, his company co-director (and former tax agent), and their […]
When to lodge SMSF annual returns
All trustees of SMSFs with assets (including super contributions or any other investments) as at 30 June 2024 need to lodge an SMSF annual return (‘SAR’) for the 2023/24 financial year. The SAR is more than a tax return — it is required to report super regulatory information, member contributions, and pay the SMSF supervisory […]
Study/training loans — What’s new
The indexation rate for study and training loans is now based on the Consumer Price Index (‘CPI’) or Wage Price Index — whichever is lower. This change has been backdated to indexation applied from 1 June 2023 for all HELP, VET Student Loan, Australian Apprenticeship Support Loan, and other study or training support loan accounts. […]
ATOs notice of rental bond data-matching program
The ATO will acquire rental bond data from State and Territory rental bond regulators bi-annually for the 2024 to 2026 income years, including details of the landlord and tenant, managing agent identification details, and rental bond transaction details. The objectives of this program are to (among other things) identify and educate individuals and businesses who […]
ATO debunks Division 7A ‘myths’
Editor: The ATO has recently published a document ‘debunking’ various Division 7A ‘myths’. Division 7A of the tax legislation is intended to prevent profits or assets being provided to shareholders or their associates tax free. A payment or other benefit provided by a private company to a shareholder or their associate can be treated as […]
CGT withholding measures now law
The Government recently passed legislation making changes to the foreign resident capital gains withholding laws (among other changes). Editor: Foreign resident capital gains withholding is relevant for all vendors selling certain taxable real property (e.g., Australian land). Even Australian residents can be caught by these laws because, if they do not have a valid ‘clearance […]
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Why Partnerships? Facts and Foibles
Set-up Costs Partnerships can be less expensive to set up as a business structure than starting business as a sole trader, as there will likely be greater financial resources than if you operated on your own. On the flip side however, you and your partners are responsible for any debts the partnership owes, even if […]
Travel to a workplace: What’s in … What’s out?
A recurrent topic of conversation is when taxpayers can claim deductions for travel to a work location, and the eligibility or otherwise of certain claims in regard to that travel. Work-related travel is a hot focus area of the ATO as taxpayers can often get claims wrong for such expenses and costs. Indeed, over the […]
Start-up business: which is the right structure for you?
Startup businesses need to make one important decision from the outset – what type of business set-up will best suit your enterprise now? And which structure will be best for the future? You’ve got a choice of four basic business structures — sole trader, partnership, company or trust. Of course, there are also more sophisticated structures […]
5 tips to get home office deductions right
You might be sick of the daily commute, or want more flexibility of hours — or it could be that you have a talent or skill and feel sure that this can translate into a fulfilling career in your own business. Or it could just be that the idea of working from home seems to […]
General facts about winding up your business
There are times where business owners, voluntarily or involuntarily, may need to wind up their business. It is generally less complicated to wind up the business of a sole trader (who has declared “bankruptcy”) than to wind up a business run through other structures. For companies, the terms typically used would be to “go into […]
Don’t let a tax debt put you in a spin
Whether you’re running a business or are just an individual trying to make ends meet, there is nothing worse than finding yourself in a situation where you have a tax debt owing to the ATO, which most likely will also be accruing a general interest charge and perhaps even a shortfall interest charge. The Australian […]