ATO debts do affect your credit rating!

(22/11/2019) The ATO now has another “stick” in its arsenal to get businesses to engage with it and manage outstanding tax debts. Laws have recently been passed that allow the Tax Office to disclose tax debt information of businesses to registered credit reporting bureaus (CRBs). The aim of the laws, according to the government, is […]

Less tax for some working holiday makers?

  (22/11/2019) In a decision that was hailed by various media outlets as monumental, the Federal Court’s decision that a backpacker would not have to pay extra “backpacker tax”, was touted to have wide ranging application to all holiday makers. However, upon further analysis, the impact of the decision is very much narrower than first […]

Trusts avoiding CGT… Alert!!!

(15/11/2019) The ATO recently issued an alert on its concerns over trusts avoiding CGT by exploiting restructure rollovers. Specifically, it is actively reviewing arrangements that supposedly allow a unit trust to dispose a CGT asset to an arm’s length purchaser with no CGT consequences. As a result, both taxpayers and advisors who enter into these […]

Debt forgiveness due to love…

(08/11/2019) Private companies that pay amounts of money, make loans, or forgives debts of shareholders or associates of shareholders, may be subject to Div 7A rules which are designed to ensure that income is not inappropriately sheltered at the corporate tax rate. Generally, these rules deem certain moneys and/or benefits (eg loans and forgiven debts) […]

Vacant land: major building defects…

(15/11/2019) As a testament to the far-reaching consequences of recent residential building defects crisis, the government has recently decided to change the legislation on vacant land deductions to exclude structures affected by natural disasters or other exceptional circumstances such as substantial building defects. Previously, the government had sought to crack down on “land banking” by […]

Crowdfunding: is it income?

(01/11/2019) You may have heard the ridiculous story of a man who wanted to raise US$10 for a potato salad and ended up with US$55,000 from complete strangers. Or perhaps you’ve heard stories of shameless couples who wanted to people to fund their lavish weddings or honeymoons? Crowdfunding has fast become the go to place […]

Super guarantee opt-out…?

(08/11/2019) Under the superannuation guarantee framework, employers are required to contribute a minimum percentage (currently 9.5%) of their employee’s ordinary time earnings into superannuation. Employers that fail to do so will be liable to a penalty called the superannuation guarantee charge, payable to the ATO. If you’re a high-income earner with multiple employers, this requirement […]

Non-commercial losses: does it apply to you?

(01/11/2019) Do you run a side business in addition to your main employment? This could be in primary production (ie a farm or winery), retail or any other profession, trade, vocation or calling, provided it is not in a role of an employee. If you do, you may be subject to non-commercial loss rules, which […]

Tax relief for drought-stricken farmers

(25/10/2019) As the ongoing effects of the drought sweeps across the nation, the financial effects are no doubt weighing heavily on the minds of farmers and other primary producers. While the government cannot make it rain, it is doing its bit to ease the financial strain by giving those affected by drought more time to […]

Genuine redundancy payment: age increase

(25/10/2019) With everyone retiring later in life and working longer, the government has been playing catch up to align some outdated age provisions in the tax law to today’s standards. One such change brings into line the genuine redundancy payment’s qualifying age with the age pension age. In real world terms, it means the qualifying […]