Tax Articles

Taxable Australian Property

Taxable Australian Property

A foreign resident of Australia for tax purposes is generally only subject to Australian tax on Australian sourced income. However, when it comes to capital gains tax, a foreign (tax) resident will...

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TOFA

TOFA

What is TOFA?TOFA (Taxation of Financial Arrangements) is a tax framework that focuses on taxing the gains and losses from financial transactions based on their actual economic impact, rather than...

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NANE Income

NANE Income

What is NANE income? Non assessable non exempt income (NANE) refers to specific types of income that are defined by tax laws or other Commonwealth legislation in Australia as being neither subject...

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Exempt Income

Exempt Income

What is Exempt Income?Exempt income means any amount of ordinary income or statutory income that is not subject to taxation due to specific provisions in the Income Tax Assessment Acts (Acts) or...

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Contractor vs Employee

Contractor vs Employee

When hiring workers, it is critical to classify if a worker is an employee or contractor. If an employer classifies them incorrectly, they may face fines and penalties. However, classifying workers...

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Employee Share Scheme

Employee Share Scheme

What is an Employee Share Scheme?An employee share scheme (ESS) is a scheme under which shares, stapled securities or rights to acquire such shares or securities in a company (known as ESS...

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Intellectual Property

Intellectual Property

What is Intellectual Property?Intellectual property IP encompasses a range of intangible assets and rights held by a taxpayer. This includes rights held by a taxpayer as the owner or licensor of...

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Testamentary Trust

Testamentary Trust

What is a Testamentary Trust?A testamentary trust is essentially a trust that is established through a person's last will and testament. Unlike discretionary or family trusts, which are typically...

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Taxable Australian Property

A foreign resident of Australia for tax purposes is generally only subject to Australian tax on Australian sourced income. However, when it comes to capital gains tax, a foreign (tax) resident will not recognise a capital gain or loss on a CGT event which occurs to a...

TOFA

What is TOFA?TOFA (Taxation of Financial Arrangements) is a tax framework that focuses on taxing the gains and losses from financial transactions based on their actual economic impact, rather than just their legal structure. In simpler terms, it ensures that the...

NANE Income

What is NANE income? Non assessable non exempt income (NANE) refers to specific types of income that are defined by tax laws or other Commonwealth legislation in Australia as being neither subject to tax (non assessable) nor exempt from tax. This classification has...

Exempt Income

What is Exempt Income?Exempt income means any amount of ordinary income or statutory income that is not subject to taxation due to specific provisions in the Income Tax Assessment Acts (Acts) or other Commonwealth laws.Exclusion of Ordinary Income from Assessable...

Contractor vs Employee

When hiring workers, it is critical to classify if a worker is an employee or contractor. If an employer classifies them incorrectly, they may face fines and penalties. However, classifying workers is not as simple as one may think as there are multiple factors to...

Employee Share Scheme

What is an Employee Share Scheme?An employee share scheme (ESS) is a scheme under which shares, stapled securities or rights to acquire such shares or securities in a company (known as ESS interests) are provided to an employee, a person in an employee like...

Intellectual Property

What is Intellectual Property?Intellectual property IP encompasses a range of intangible assets and rights held by a taxpayer. This includes rights held by a taxpayer as the owner or licensor of patents, registered designs, copyrights and so forth. The definition of...

Allocation of Professional Firm Profits

The distribution of profits made by professional firms to the controllers of a business and their associates may present tax complications. Professional firms here refers to professional practices such as accounting firms, architectural firms, engineering firms,...

Testamentary Trust

What is a Testamentary Trust?A testamentary trust is essentially a trust that is established through a person's last will and testament. Unlike discretionary or family trusts, which are typically created separately during an individual's lifetime through a trust deed,...

Hire Purchase Agreement

What is a hire purchase agreement?A hire purchase agreement commonly refers to a contractual arrangement whereby a person or entity (the lessee) acquires from another person or entity (the lessor), the right to use an asset and a subsequent right or obligation to...

Unit Trust

A trust is a legal relationship established through a trust deed, involving two essential parties: a trustee and beneficiaries. Within this framework, the trustee is entrusted with the responsibility of managing and legally owning the assets placed within the trust....

Family Trust

What is a Family Trust?A family trust, also known as a discretionary trust in Australia, is a legal arrangement designed to manage and hold the wealth and assets of a family or serve as a structure for family businesses. It operates on the principles of trusts, where...

Tax on Compensation

Compensation PayoutsThere are many forms of compensation payouts which may be awarded to taxpayers. This can include compensation in relation to personal injury or illness, damage to reputation, damage to property, lost employment, lost opportunity, or loss of income...

Tax Consolidation

If your business is a company that owns 100% of another company, trust or partnership, tax consolidation is an option you should consider. A consolidated group generally consists of a head company and subsidiary members. Throughout consolidation, subsidiary members...

Working Holiday Maker

Who is a Working Holiday Maker?To be considered a working holiday maker (WHM) in Australia, a person must hold one of two specific visa subclasses: 417 Working Holiday Visa 462 Work and Holiday (Backpackers) Visa Verification of one's visa status can be done through...

Temporary Resident

In Australia, there are specific tax rules that apply to individuals classified as temporary residents. These rules govern how income earned by temporary residents, particularly income from sources outside Australia, is taxed.Who is a Temporary Resident?Temporary...

Minor Tax Rates

Tax payable on income you receive, if you're under 18 years old and not an excepted person with excepted income.How tax applies if you're under 18 years old Special rules apply and you pay tax on certain income types at a higher rate on income you receive if you're...

Transfer Pricing

Transfer pricing includes the pricing of goods, services, or intangible assets exchanged between different entities. It involves determining the prices for these transactions, taking into account the possibility that the relationship between the involved entities...

Permanent Establishment

What is a Permanent Establishment?A permanent establishment is a fixed place of business where an enterprise (a company) conducts its business activities. This place can be a building, office, factory, workshop, mine, oil/gas well, quarry, agricultural land, or...