News

Is it just a hobby or are you in business

Keeping busy: but is it just a hobby, or are you in business?

August 7, 2019

It is important to understand the differences between a hobby and a business for tax, insurance and legal purposes among other things. For one thing, there will be certain tax and other obligations that start once you are in business. However it’s a myth that there is a dollar threshold to be in a business…

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Small businesses need to get active to pay less tax

Small businesses need to get “active” to pay less tax

August 7, 2019

For small business owners who are disposing of assets that have risen in value during the time they have owned and used them in their business, accessing one or more of the available small business capital gains tax (CGT) concessions can greatly reduce any consequent tax liability. Indeed, many small business owners find they can…

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The small business income tax offset

The small business income tax offset

August 7, 2019

The small business income tax offset (also known as the unincorporated small business tax discount) can reduce the tax a sole trader business pays by up to $1,000 each year. The offset is worked out on the proportion of tax payable on business income. To be eligible, a taxpayer must be carrying on a small…

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Business trading structures

Business trading structures: What’s best for your business?

July 4, 2019

When you have plans for starting a new business, one of the central decisions is which business trading structure will work best for your venture. The general problem however can be that there are both pros and cons with the main options available, so considerations need to be given with regard to the overall situation…

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Businesses get increased access to losses

Businesses get increased access to losses

July 4, 2019

In the first quarter of this calendar year, legislation was passed that will supplement the ATO’s current “same business test” for losses with a more flexible “similar business test”. The new test will expand access to past year losses when companies enter into new transactions or business activities. The similar business test allows a company…

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Essentials on taxable payments annual reports

Essentials on taxable payments annual reports

June 7, 2019

Operators in some Australian industries as well as select government entities are required by the ATO to lodge a taxable payments annual report (TPAR). The information provided in these reports provides the ATO with the information that allows it to identify contractors who have: not included all their income on their tax return not lodged…

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Alternatives to a tax invoice for certain GST credit claims

Alternatives to a tax invoice for certain GST credit claims

May 2, 2019

Tax invoices are an essential element of Australia’s taxation system, and serve both to collect taxation revenue related to the goods and services on which GST is levied as well as record the credits that are claimable by eligible businesses. A business registered for GST will generally be required to hold a tax invoice for…

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What you need to know about the beefed up director penalty regime

What you need to know about the beefed-up director penalty regime

May 2, 2019

Being a director of a company, as with any elevation of status, is a role that also brings with it added responsibilities and duties. Company directors need to keep in mind that the Corporations Act holds directors personally liable for many of the legal and financial obligations expected from a company. These include, but are…

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The approach to tax when youre working from home

The approach to tax when you’re working from home

April 2, 2019

Photo by Roberto Nickson on Unsplash If you produce assessable income at home, or some of it, and you incur expenses from using that home as your “office” or “workshop”, the ATO will generally allow that a taxpayer could be in a position to be able to claim some expenses and make some deductions. Otherwise…

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Single touch payroll rollout for smaller employers

Single touch payroll rollout for smaller employers

April 2, 2019

Photo by Kelly Sikkema on Unsplash A major change in the way employers report the tax and super information for their employees to the ATO has been on the way for a while now. The single touch payroll (STP) system started to be rolled out gradually from 1 July 2018 for what the ATO refers…

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