Articles

Are you receiving PSI?

Personal Services Income (PSI) generally only applies to individuals that receive more than 50% of their ordinary or...

Stage 3 Tax Cuts – Changes

The talk about the stage 3 tax cuts has reached fever pitch recently. The changes were originally legislated by the...

Holiday home not genuinely available for rent

In the holiday season, some people head to their holiday home to celebrate with family or friends or to let their...

ATO data matching – directors and officeholders

The ATO has announced a data-matching program which will acquire officeholder data from ASIC, the Office of the...

Stage 3 Tax Cuts: Rates And Offsets

Despite the calls to scrap the already legislated stage 3 tax cuts, the government did not announce any changes in the...

Company profits tax-free scheme: ATO warning

The ATO has recently issued a Taxpayer Alert warning that it is reviewing arrangements where an individual taxpayer...

Non-deductible threshold is removed for self-education

The government has reintroduced and passed a raft of measures that faced an uncertain fate when the House of...

Tax implications of deferred rent

If you run a business from rented premises, there may be tax consequences when rent is either waived, deferred or...

Life interest – Right to reside

The tax consequences of creating a life interest and a right to reside are set out in Taxation Ruling 2006/14. In...

Scrip for Scrip Rollover

Contents Eligibility Significant stakeholders Common stakeholders Impact of rollover on shareholders (original...

Small Business Entity

Contents Satisfying the $10 million aggregated turnover test Meaning of aggregated turnover Meaning of annual turnover...

Share Buyback Tax

What is a share buyback? A share buyback involves a company purchasing its own shares from shareholders. The company...

Tax on Options

Contents What is an option? How does an option work? Tax implications of options Renewing an option Disposal or lapse...

Taxation of Special Lease Payments

Contents Surrender of lease payments Lease incentives Lease variations Lease premiums Long-term lease CGT discount It...

Small Business CGT Concessions – Disposal of Shares or Trust Interests

The topic of this article concerns a niche but very commonly questioned aspect of the the small business CGT...

Small Business Restructure Rollover

It is very common for a small business to restructure to facilitate growth or adapt to commercial needs. By...

Buy Sell Agreement – CGT Implications

Contents Setting the scene CGT event D2 – grant of an option? Options “enlivened” Market value Insurance Owners of a...

Property Development – CGT or Income Tax?

Contents Why the distinction matters Three possibilities Mere realisation Examples of subdivisions/developments on...

Taxable Australian Property

A foreign resident of Australia for tax purposes is generally only subject to Australian tax on Australian sourced...

TOFA

What is TOFA?TOFA (Taxation of Financial Arrangements) is a tax framework that focuses on taxing the gains and losses...

NANE Income

What is NANE income? Non assessable non exempt income (NANE) refers to specific types of income that are defined by...

Exempt Income

What is Exempt Income?Exempt income means any amount of ordinary income or statutory income that is not subject to...

Contractor vs Employee

When hiring workers, it is critical to classify if a worker is an employee or contractor. If an employer classifies...

Employee Share Scheme

What is an Employee Share Scheme?An employee share scheme (ESS) is a scheme under which shares, stapled securities or...

Intellectual Property

What is Intellectual Property?Intellectual property IP encompasses a range of intangible assets and rights held by a...

Allocation of Professional Firm Profits

The distribution of profits made by professional firms to the controllers of a business and their associates may...

Testamentary Trust

What is a Testamentary Trust?A testamentary trust is essentially a trust that is established through a person's last...

Hire Purchase Agreement

What is a hire purchase agreement?A hire purchase agreement commonly refers to a contractual arrangement whereby a...

Capex (Capital Expenditure)

Contents What is capex?  Types of capex What can capex reveal about a business? Examples of capex How to calculate...

Opex (Operating Expense)

Contents What is Opex? How to manage opex effectively Types of opex How to calculate opex What are the examples of...

Goodwill

Contents What is goodwill? Types of goodwill Accounting for goodwill in financial statements Key factors in accounting...

Special Purpose Financial Statements

Contents What are special purpose financial statements? Entities eligible or required to prepare SPFS Benefits of...

General Purpose Financial Statements

Contents What are general purpose financial statements? Tier 1 and Tier 2 frameworks for GPFS GPFS – purpose and...

Australian Accounting Standards

Contents What are Australian Accounting Standards? What is IFRS? The importance of accounting standards in Australia...

Intangible Assets

Contents What is an intangible asset? Criteria for recognising intangible assets Types of Intangible assets...

Non Current Liabilities

Contents What are non current liabilities? Types of non current liabilities Important financial ratios incorporating...

Non Current Assets

Contents What are non current assets? Tangible and intangible assets Types of non current assets Capitalisation of non...

Income Statement

Contents What is an income statement? Single statement approach Two statement approach Corrections and changes Income...

FBT Rebate

What is the FBT Rebate? The FBT (Fringe Benefits Tax) rebate is a benefit offered to certain organisations, known as...

Exempt Fringe Benefits

What are Exempt Fringe Benefits?An exempt benefit, often referred to as an "exempt fringe benefit," is a type of...

Residual Fringe Benefit

What is a Residual Fringe Benefit?A residual fringe benefit is a type of fringe benefit that occurs when an employer...

Reportable Fringe Benefits

What are Reportable Fringe Benefits?Reportable fringe benefits for employees are additional perks or benefits that you...

Property Fringe Benefit

Defining a Property Fringe Benefit Property fringe benefits refer to non-monetary benefits provided by employers to...

Entertainment FBT

What is Entertainment for FBT Purposes?Entertainment for Fringe Benefits Tax (FBT) purposes includes the provision of...

Loan Fringe Benefit

Loan Fringe BenefitWhat is a loan fringe benefit? A loan fringe benefit involves an employer (or an associate or...

Living Away From Home Allowance (LAFHA)

CONTENTS What is a Living Away from Home Allowance? Living Away From Home Allowance Versus Travel Allowance...

Housing Fringe Benefit

A housing fringe benefit occurs when an employee is offered a place to live without charging them rent or at a lower...

Car FBT

A car fringe benefit occurs when an employer offers an employee the opportunity to use a vehicle for personal reasons,...

Non Arm’s Length Income

Under the law, SMSFs must transact on an arm’s length basis. The purchase and sale price of fund assets should reflect...

How to Live in Your SMSF Property

Investing in property through an SMSF has grown in popularity in recent years, particularly since it became possible...

SMSF Insurance

Is SMSF insurance something you should be considering? The discussion in this article will help you decide. Read now.

SMSF Property Investment

With SMSF property investment, you can buy residential or commercial property. But before you do, what do you need to know? This article provides a discussion.

SMSF Borrowing for Property

What do you need to know about SMSF borrowing for property purposes? This article provides some insights. Read now.

SMSF Pension

If you are considering SMSF pension, then you need to know your options, the standards, and rules. This article discusses all of those and more. Read now.

SMSF Trustee

For one to become a SMSF trustee, there are considerations as to eligibility requirements, ownership, and succession planning. Read about these in this short article.

SMSF Investment Strategy

It’s a legal requirement to have an SMSF investment strategy. But before you plan for it, what do you need to know first? Find out in this article.

SMSF Audit

You may not be allowed to audit but there are options available to you as a trustee when it comes to SMSF Administration. Learn what these are in this article.

SMSF Bitcoin

SMSF bitcoin is now becoming a more popular choice for investors. But what do you need to know before investing? Read this article.

ACN vs ABN

When starting a business, it is important that you understand the things that need to be done. You need to register...

Corporate Collective Investment Vehicle

Contents What is a corporate collective investment vehicle? The deeming principle CCIV Sub Fund Trusts as Separate...

Joint Venture

What is a joint venture?A joint venture is a cooperative business arrangement formed by two or more entities with the...

Partnership

Contents What is a partnership? Types of partnerships Who can be a partner? Steps to start a partnership Pros and cons...

Pty Ltd Company

Contents What is a pty ltd company? Advantages of a pty ltd company Disadvantages of a pty ltd company Steps to set up...

Director Penalty Notice

Contents What is a Director Penalty Notice? Why is a DPN issued? A DPN must be given Types of DPNs Corrective action –...

Company Liquidation Process

Contents Roles – directors, creditors, liquidators Proceed distribution What happens next? If a liquidator seeks to...

Australian Business Number (ABN)

What is an Australian Business Number (ABN)? An Australian Business Number (ABN) is a unique 11 digit identifier...

Asset Protection

Contents Bankruptcy Marriage breakdown Separating assets from risk Protective structures Asset protection is one of...

Business Structures

Contents Sole Trader Partnership Company Trust Combination of entities This article is an overview of the most common...

GST and Health Services

CONTENTS GST free Medical Services Non-Medical Health Services: GST Implications Identifying the Recipient in Health...

GST on Food

To determine the GST status of a food or beverage, it's important to initially establish whether it falls within the...

GST and Cars

Contents   What is a Car for GST purposes? GST and Car Purchases GST and Car Sales GST and Car Expenses Record...

Financial Supplies

If you engage in financial supplies, it is important that you actively report relevant information about these...

GST on Exports

GST is a 10% tax applied to most goods, services, and other items sold or consumed within the country (the indirect...

GST on Imports

GST (Goods and Services Tax) applies to most goods imported into Australia, making them taxable importations....

GST Withholding

Contents Which transactions? How much to withhold? When to withhold and remit? Seller reporting obligations Buyer...

GST Accounting Methods

When it comes to accounting for GST (goods and services tax), there are two options: cash basis and non cash basis...

BAS

Your BAS, or Business Activity Statement, is a necessary requirement for businesses registered for GST (Goods and...

GST Adjustment

Contents   Reporting GST Adjustments  GST Adjustments for Sales GST Adjustments for Purchases Unaccounted Sales...

Bring forward non concessional contributions

Contents The bring forward rule for non concessional contributions What is total super balance? Tax planning...

Transfer balance cap

Contents What is the transfer balance cap? What is a retirement phase account? What is an individual’s transfer...

Income stream

Contents Minimum standards applicable to an income stream Tax outcomes When does the income stream end? Super fund...

Superannuation tax

A superannuation fund that is a complying superannuation fund will be taxed under the regime primarily contained in...

Super Death Benefit

A superannuation death benefit is a payment from a super fund to a person or to a trustee of a deceased estate after...

First Home Super Saver Scheme

The First Home Super Saver Scheme (FHSS Scheme) was launched to help individuals save for their first home by allowing...

Super Fund

What is a super fund? A superannuation fund is a type of trust designed to provide retirement or death benefits for...

Ordinary Time Earnings

What is Ordinary Time Earnings?OTE is the amount paid to employees for their ordinary hours of work. OTE includes...

Super Contributions

Making extra superannuation contributions is a great way to boost your retirement savings. Even small amounts add up...

Departing Australia Superannuation Payment

What is a Departing Australia Superannuation Payment (DASP)?Special taxation arrangements exist in Australia for...