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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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When refinancing, loan interest can be deductible to a partnership

When refinancing, loan interest can be deductible to a partnership

February 2, 2018

A general law partnership is formed when two or more people (and up to, but no more than, 20 people) go into business together. Partnerships are generally set up so that all partners are equally responsible for the management of the business, but each also has liability for the debts that business may incur. PARTNERSHIP…

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Beware Division 7A when borrowing from your business

November 2, 2017

Business owners of private companies often borrow money from their own companies for all sorts of reasons. However there is an area of the tax law that seeks to sanction against situations in which private companies dole out money to those within a business, in a form other than salary or dividends, that needs to…

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Immediate deductions for start-up costs

Immediate deductions for start-up costs

October 12, 2017

Historically taxpayers may have been able to claim a deduction for the costs associated with setting up a business or raising finance, including the costs incurred in: establishing a company or other business structure converting a business structure to a different structure raising equity for the business defending it against a takeover unsuccessfully attempting a…

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Small business car parking FBT exemption

Small business car parking FBT exemption

October 12, 2017

A business becomes liable for car parking fringe benefits tax where it provides parking for more than four hours on its premises to its employees, and is situated within one kilometre of a commercial car park where the minimum all day cost is more than the current parking fringe benefit threshold ($8.66 a day for…

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Substantiation for mobile, home phone and internet costs

Substantiation for mobile, home phone and internet costs

July 4, 2017

The ATO has issued guidance on making claims for mobile phone use as well as home phone and internet expenses, and says that if you use any of these for work purposes you should be able to claim a deduction if there are records to support claims. But the ATO points out that use for…

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