News

Your claim for a business tax loss can be denied

Your claim for a business tax loss can be denied

August 2, 2018

Business owners are naturally keen to be able to absorb a business loss as a tax deduction, but it also pays to not stray too far from the generally accepted rules regarding tax losses — there are circumstances where the ATO is legitimately able to deny such claims. The ATO has the discretion to disallow…

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Let a GST credit slip through the cracks

Let a GST credit slip through the cracks? All is not lost!

August 2, 2018

Most small business owners stay on top of their GST refunds, mainly because of cash flow concerns, but it’s not all that uncommon to now and then lose track of a credit. What quite a few small business owners may not know is that you have four years to claim any GST credit you’re entitled…

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Are you Division 7A compliant?

Are you Division 7A compliant?

July 19, 2018

Division 7A is an integrity measure that was designed to prevent companies from making tax-free distributions to shareholders or their associates. This can occur where distributions of profit are disguised as loans or other transactions. This effectively allows the shareholder or their associate to have access to the corporate tax rate. A consequence of Division…

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2 minute quiz: Partnerships

2 minute quiz: Partnerships

July 19, 2018

How well do you understand the taxation of partnerships? Try these questions to find out. Question 1 Which of the following is the definition of a tax law partnership? An association of persons (other than a company or a limited partnership) carrying on a business in common with a view to profit An association of…

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Builders: Get your taxable payments report ready before August 28

Builders: Get your taxable payments report ready before August 28

June 7, 2018

Businesses in the building and construction industry, take note – the deadline is August 28, 2018 to report the total payments you made to each contractor you enlisted the services of in 2017-18. You will need to report these payments to the ATO on the Taxable payments annual report. The taxable payments reporting system was…

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Franchise businesses and tax

Franchise businesses and tax

May 4, 2018

The Australian Competition & Consumer Commission (ACCC) is the government body responsible for enforcing the Franchising Code of Conduct, and if you or someone you know are considering entering into a franchise arrangement, this will probably be a good starting point to get an idea of what to expect. The code imposes strict obligations on…

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2-minute quiz: Business deductions

2-minute quiz: Business deductions

May 4, 2018

How well do you know your business deductions? Try these questions to find out! Answers below. Question 1 A company’s financial accounts show the following information in relation to its bad debts and doubtful debts for the year: Closing balance for doubtful debts from the previous year: $172,000 Doubtful debts provided for (but not written…

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Single Touch Payroll

Is your business prepared for Single Touch Payroll?

March 2, 2018

Single Touch Payroll is a government initiative to streamline business reporting obligations, which is due to become compulsory from 1 July 2018. When a business pays its employees, the payroll information will be sent to the ATO via the business’s payroll software. Reporting under the Single Touch Payroll (STP) system removes the requirement to issue…

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Starting out in business? You may be able to use simpler trading stock rules

Starting out in business? You may be able to use simpler trading stock rules

March 2, 2018

If you are operating a small business and at the end of the income year you estimate that your trading stock’s value has not changed by more than $5,000, remember (especially if you are new to business) that you can choose not to conduct a formal stocktake. By making a decision to do this, you…

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Key factors for rescuing a bad debt deduction

Key factors for rescuing a bad debt deduction

February 2, 2018

It is very often the case that unpaid debts owed to a business can have a significant impact on cash flow and the ongoing profitability of a business. In a taxation context the characterisation of a particular debt as either “doubtful” or “bad” is key as to whether or not the writing off of that…

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