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Our March newsletter includes: Extended deadline for SMSF CGT exemptions for depreciation assets ATO issues ruling on bad debts Simpler BAS for small businesses   Read here  Read more

February newsletter topics: New Year’s Resolutions for 2017 Tips for improving cashflow Preparing for public holidays in 2017 New safe harbour for car fringe benefit Are you short changing your employees on super? Intellectual property law basics Optimising your LinkedIn Common GST mistakes   Read here  Read more

The number of unfair dismissal applications lodged last year suggests that employers are still struggling with unfair dismissal laws.  Around 14,800 unfair dismissal claims were filed in 2015 and while most cases were settled before a formal hearing, they do create an unproductive distraction for employers. Australia’s unfair dismissal jurisdiction does not cover all workers; employees that earn over $133,000 per year cannot access unfair dismissal laws unless they are…  Read more

for may employers, it can be easy to forget the responsibility of managing your superannuation obligations amidst the busy lifestyle of operating a business. However, those who fail to meet their superannuation obligations risk facing severe and even damaging liabilities. Employees who pay their workers $450 or more before tax in a calendar month must pay superannuation on top of the employee’s wages.  If any employee is under the age…  Read more

It is never the wrong time to start thinking about diversifying your investment portfolio. One of the keys to investment success lies in knowing how to diversify as a precautionary measure before it becomes a necessity.  However, being overly cautious can limit your capacity to attract good returns. The real art to amazing investment portfolios lies in knowing how to strike the perfect balance between caution and risk.  This is…  Read more

Incorporating a borrowing strategy within self managed superannuation funds (SMSF) to purchase a property has become increasing popular in recent years. However, it is important for SMSF members to undertake sensible and detailed analysis of the true risks involved or they could find themselves in serious trouble with the ATO. Limited recourse Members have to follow strict borrowing conditions called a “limited recourse borrowing arrangement” (LRBA) when gearing their super…  Read more

Negative gearing is arguable the most generous tax break available to Australian property investors. Whether you’re an established property investor or contemplating purchasing your first investment property, you may care to familiarise yourself with the way that negative gearing works. A property is considered to be negatively geared if the owner has taken on debt in order to acquire it and the net rental income is less than the costs…  Read more

When selling a property registered for GST, the margin scheme can be used as an alternative way to work out the GST payable on a concessional basis. Where the scheme is applied, GST is paid for one-eleventh of the sale price.  The margin scheme calculates GST on the increase in value since 1 July 2000 if the property was acquired before 1 July 2000; or the difference between the purchase…  Read more

Income insurance is designed to protect you and your family in the event that you become unable to work due to illness or injury. Protecting your income becomes particularly important if you have ongoing bills or debts such as a mortgage or if you have a spouse or children who are dependent on you financially. Choosing income insurance can be tricky and there are a lot of considerations that need…  Read more

Some small businesses make simple mistakes; others just don’t provide the right information.  Make sure your business is not caught out by completing your Business Activity Statement correctly. Here are five easy lodgment tips to help businesses save time and get their business activity statement right the first time round; Lodge all your outstanding activity statements.  The tax office cannot process refunds until all of a business’s lodgments are up…  Read more

It is an unfortunate fact of business life that sometimes you will not be paid in full for work you have done.  The silver lining is that there are some tax break that can come along with a bad debt. The first thing you have to do is make sure that the debt can be officially considered as bad for tax purposes.  This means you cannot have “forgiven” the debt,…  Read more

  It is inevitable that a business owner will eventually leave their business.  Whether they sell, retire or leave due to health reasons, it is important to be prepared for when that day eventually arrives. Creating a succession plan is a simple and common sense approach to ensure continuity in a family business.  Succession plans enable smooth transitions and decrease the likelihood of disruptions.  Early succession planning can maximise a…  Read more

Don’t get caught out by the ATO when lodging your work-related expense claim this financial year. Unusually high work-related expense claims from any industry or occupation are on the ATO’s hit list this year.  The tax office has stated that it will be paying particular attention to claims that have already been reimbursed by employers or made for private purposes such as travel from home to work. Taking such a…  Read more

We find that there are seven common themes that arise when assessing whether a business idea will succeed. 1.  Your idea has a strong point of difference To survive in business, you need a compelling point of difference.  If your idea is not novel, then what makes you different.  The stronger this difference is, the stronger your competitive advantage will be. 2.  People say “WOW” (and want it) An instant…  Read more

Cutting costs can be a quick and easy way to improve the profitability of your business.  Introducing cost-control measures can bring immediate savings and ensure you remain profitable in the long term. It’s important that cost-control measures are carefully managed.  Eliminating errant expenses is clearly beneficial but indiscriminate cost cutting could lead to a drop in quality or poor morale if staff fear being made redundant or are not given…  Read more

While the ATO continues to crackdown on tax minimisation strategies, quite a few legal pathways to paying less tax while preserving wealth for retirement or estate planning purposes still exist. Family trusts have significant tax saving abilities that make them an attractive tool for wealth creation.  Family trusts are discretionary trusts that set up to hold a family’s assets or run a family business.  They are commonly used by families…  Read more

Deciding whether you should prioritise paying off your mortgage or boost your superannuation balance is an important decision and there are many factors that should be taken into consideration. The first thing that you should think about is how likely it is that you will want to access the money before your retirement. If you have funneled your extra cash into additional mortgage payments, then you will usually be able…  Read more

A testamentary trust is an effective estate planning tool that can provide greater flexibility when it comes to protecting assets and minimising tax when distributing assets to beneficiaries. Testamentary trusts are established through an individual’s Will that do not come into effect until the individual has passed away.  The trust outlines a structure whereby assets are managed by appointed trustees for the benefits of the beneficiaries nominated in the Will.…  Read more

With the price of private school fees being anyway up to $20,000 (and even beyond) per child per year, sending you children to the school of your choice may be one of the biggest investments of your life. Of top of this, with government plans to increase university fees and change indexation of HECS debts, many parents are also wondering how they can help their children avoid starting life with a…  Read more

  Business owners planning to sell their business need to consider the tax implications involved and the capital gains tax (CGT) concessions available to them. To prevent a hefty tax bill and maximise profit, careful planning is required.  Owners need to be mindful of the business business CGT breaks available to them as they can reduce or eliminate the tax payable on the profit from the sale. Planning ahead is…  Read more