Latest News2020-05-31T11:02:19+00:00

Utilising the Carry-Forward Cap Rule

Description 17–18 18–19 19–20 20–21 21–22 22-23 Standard Concessional Annual Cap 25,000 25,000 25,000 25,000 25,000 25,000 Less: Concessional Contributions made in this FY nil (6,000) (5,000) (3,000) (3,000) (45,000) Unused Concessional Cap accrued in this FY $0 19,000 20,000 22,000 22,000 (20,000)               Opening Accrued Unused Cap N/A $0 19,000 39,000 61,000 83,000 Plus: Unused Concessional Cap accrued in this FY   19,000 [...]

What Are Concessional Contributions?

Concessional Contributions is the term applied to taxable superannuation payments that are contributed into someone’s superfund and which are taxed, at 15%, by that superfund. The use of the term “concessional” indicates that superannuation payments are tax deductible to the payer of those contributions. They cover superannuation payments in the following guises:   The standard 9.5% superannuation guarantee (SG) payments that employers must pay employees when monthly wages exceed $450 [...]

Govt can’t regulate Bitcoin as a currency anymore? The Bitcoin Court Case against the ATO

We recently ran a Court case against the ATO regarding the tax treatment of bitcoin in the AAT. Sometimes Court cases look like they are about one topic, when they are actually exploring deeper and more significant issues that have far reaching consequences. The Bitcoin case was one of those – and the results are in. The heart of the question was how will the Court respond to new technology?  [...]

New Tax loop hole created? The Bitcoin Court Case against the ATO

We recently ran a Court case against the ATO regarding the tax treatment of bitcoin in the AAT. Sometimes Court cases look like they are about one topic, when they are actually exploring deeper and more significant issues that have far reaching consequences. The Bitcoin case was one of those – and the results are in. The heart of the question was how will the Court respond to new technology?  [...]

Tax tips on Borrowing from your own company

Division 7A is part of the Income Tax Assessment Act 1936 (ITAA ’36) that contains laws aimed at stopping small-medium enterprise (SME) company shareholders and their associates from avoiding taxation by accessing and benefiting from company assets and profits in a way that doesn’t result in these being included in their personal income-tax return. Why Division7A was introduced As a company accumulates cash from its entrepreneurial activity, there is an [...]

Government boosts funding for exporters

Update to EMDG On 1 April 2020, the Federal Government announced a $49.8 million increase in funding for the Export Market Development Grant (EMDG) scheme, allowing exporters and tourism businesses to get additional reimbursements for costs incurred in marketing their products and services around the world. What is EMDG? EMDG is designed to encourage small and medium sized Australian businesses to increase their exports. Reimburses up to 50% of eligible [...]

Government funding for Australian exporters

What is the Export Market Development Grant (EMDG)?   EMDG is a financial assistance program for future and current exporters provided by the Australian Government. The scheme: Encourages small and medium sized Australian businesses to increase their export promotional activities. Reimburses up to 50% of eligible export expenses above $5,000 up to a maximum of $150,000 in a financial year, provided that the incurred total expense is at least $15,000. [...]

Corona Virus Tax Grants and Incentives

The impact of the COVID-19 virus pandemic on Australian and the rest of the world have been profound. The social, economic and political impacts do not need repeating or embellishment in this article. This has been a tough situation for the world to adapt to. In response to this staggering event, which is without comparison in living memory, an equally seismic response was delivered by the Federal Government. Stimulus payments [...]

Do you owe Goods and Services Tax (GST) in Australia for Low Value Import Goods (LVIG)?

Do you owe Goods and Services Tax (GST) in Australia for Low Value Import Goods (LVIG)? Do you owe Goods and Services Tax (GST) in Australia for Low Value Import Goods (LVIG)? Do you owe Goods and Services Tax (GST) in Australia for Low Value Import Goods (LVIG)? There are a lot of letters being sent by the Australian Taxation Office (ATO) to companies outside Australia telling [...]

Claiming a tax deduction for expenses for a home-based business

  Claiming a tax deduction for expenses for a home-based business If you operate some or all of your business from your home, you may be able to claiming a tax deductions for home-based business expenses in these categories: occupancy expenses (such as mortgage interest or rent, council rates, land taxes, house insurance premiums) running expenses (such as electricity, phone, decline in value of plant and equipment, cost of repairs [...]

Tax office dirty tricks revealed

Tax office dirty tricks revealed Tax office dirty tricks revealed Tax office dirty tricks revealed If you are in litigation with the ATO, expect them to use dirty tricks on you. Below is a list of the dirty tricks that I have personally seen used on my clients: Muddying the issue – when you appeal the ATO will sometimes “defend” a claim you did not make, thereby [...]

The ATO’s booby trap exposed

The ATO’s booby trap exposed The ATO’s booby trap exposed The ATO’s booby trap exposed The ATO runs a record keeping hustle which you are already on the wrong side of.  However, if you know about it you can, at least, not be surprised when it happens.  A bit like knowing that you will probably get your pocket picked in Rome.  It might happen anyway but if you know [...]

The ATO tax litigation process

The ATO tax litigation process The ATO tax litigation process The ATO tax litigation process After you’ve been through the hell of an audit and the ups and downs of an objection the last remaining ground of appeal is to the Courts.The ATO tax litigation process-there are two options – the Administrative Appeals Tribunal and the Federal Court.The Administrative Appeals Tribunal is a non-cost jurisdiction, which means that [...]

What is GDPR and do I need to care about it?

What is GDPR and do I need to care about it? What is GDPR and do I need to care about it? The European Union has introduced a General Data Protection Regulation (the GDPR).  It is the EU equivalent of the Privacy Act and the Australian Privacy Principles. The GDPR came into force on 25 May 2018. The GDPR is about privacy and data protection. It is about the “personal data” of individuals in the EU through its [...]

GST and online shopping: demystifying the matrix

GST and online shopping: demystifying the matrix GST and online shopping: demystifying the matrix It used to be that if you bought something online from an overseas retailer and it had a value of less than $1,000, you wouldn’t have to pay GST. Naturally Australian retailers were upset by this because if they sold the same product online it would incur GST.  It put Australian retailers at a [...]

Online shopping in Australia is about to become more expensive

Online shopping in Australia is about to become more expensive Online shopping in Australia is about to become more expensive The Australian government has announced that from July 1, 2018, clothing, electronics and furniture (and other online shopping) purchased from overseas retailers with a value of under AU$1,000 will also incur a 10 per cent GST. Up until now goods bought online in Australia from foreign retailers were [...]

Procedural fairness and natural justice: what the ATO does not want you to know

Procedural fairness and natural justice: what the ATO does not want you to know Procedural fairness and natural justice: what the ATO does not want you to know For most people, unfortunately, an audit by the ATO can turn into a life or death battle for your business. This can be due to any number of factors but usually will be due to time constraints on the part [...]

5 tips for successfully objecting against ATO decisions

5 tips for successfully objecting against ATO decisions 5 tips for successfully objecting against ATO decisions You’re probably at this page because you’ve felt your heart sink after the friendly ATO auditor just sent you a massive tax bill based on something nebulous. This is how ATO decisions are usually made: The ATO usually forms a theory and works backwards from it. You probably got triggered for [...]

The LAW on buying property with your friends using a trust

The LAW on buying property with your friends using a trust The LAW on buying property with your friends using a trust You’re probably at this article because you’re looking at the property market, seeing the potential, but realising you’re not going to be able to do it on your own. You might be thinking of setting up a trust with a few others to buying property. [...]

4 ways to stop the ATO bullying you

4 ways to stop the ATO bullying you 4 ways to stop the ATO bullying you Do you feel you are being bullied by the ATO?  Did you know that you can bully them back? Want to know how? Read on. When you get an audit letter or scary phone call from the ATO the first instinct of most people is to tell them: how you know what [...]

Single Touch Payroll reporting

Single Touch Payroll reporting: ATO urges employers to get ready Single Touch Payroll reporting: ATO urges employers to get ready The ATO has called on employers with 20 or more employees to start preparing now for the Single Touch Payroll (STP) reporting regime which will be mandatory from 1 July 2018. Assistant Commissioner, John Shepherd, said STP will allow employers to meet their ATO reporting obligations for [...]

R&D Tax Incentive At a Glance

R&D R&D Tax Incentive At a Glance Is your business innovative and looking to grow? If your business is doing research and development then the Australian Government’s R&D Tax Incentive may help offset some of the costs. Provides a tax offset for some of a company's cost of doing eligible research and development (R&D) activities by reducing a company's income tax [...]

Export Market Development Grants at a glance

Export Market Development Grants at a glance Export Market Development Grants at a glance The Export Market Development Grants (EMDG) scheme is designed to help businesses that have customers who are foreigners. It encourages businesses to increase international marketing and promotion expenditure to achieve more sustainable international sales. WHO CAN APPLY? An Australian individual, partnership, company, association, cooperative or statutory [...]

Small Business Grant

Small Business Grant  Small Business Grant (SBG) The Small Business Grant is New South Wales Government initiative,designed to encourage the nearly 650,000 small businesses in New South Wales that do not pay payroll tax to hire new employees and expand their business. The grant amount is $2,000 payable per full time equivalent (FTE) position (pro rata for part time) one year after [...]

Easements Made Easy!

Easements Made Easy! Easements Made Easy! What is an easement? An easement is generally a right given by one land owner (the burdened land) to an adjoining land owner (the benefited land) to use the burdened land in a way consistent with the terms and conditions of the easement. Types of easements The most common types of easements are: right of carriageway (usually to drive vehicles [...]

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