Claiming a tax deduction for self-education expenses depends on whether the course or training directly relates to your current work or business. To qualify, the expenses must improve your skills or knowledge in a way that helps you perform your current job duties more effectively, and they may even result in a promotion or pay increase.
Starting 1 July 2025, new parents will receive superannuation contributions alongside their government-funded Paid Parental Leave (PPL).
To help you effectively manage your payments and avoid tax debt, we have outlined some practical strategies and resources below.
Tax debt arises when tax payments are not made in full or on time. The ATO applies interest charges on overdue amounts, so staying on top of
your obligations is critical.
Self-managed superannuation funds (SMSFs) and super wrap accounts are popular alternatives to retail and industry super funds for individuals seeking greater control over their investments and potentially lower fees.
The recent spate of cases before Australian courts and tribunals has highlighted questions around the Superannuation Guarantee Charge (SGC) payments: specifically, when a payer might be responsible for SGC contributions for services rendered.
In Australia, you typically need to keep receipts for expenses you intend to claim as a tax deduction.
How Taxable Is That Side Hustle?
As Australians grapple with the high cost of living and persistent interest rates, many are turning to side hustles to bring in additional
income. But it’s important to be aware of the tax requirements associated with earning extra money on the side.
The Australian government has provided more details on its new “payday super” scheme, set to take effect from 1 July 2026.
The interaction between Capital Gains Tax (CGT) and trusts is notoriously complex. Albert Einstein himself once remarked on the difficulty of understanding tax law, and this area certainly fits that description
Personal Services Income (PSI) is income primarily derived from an individual’s skills or efforts, whether earned directly or through a business structure. The PSI rules, however, do not apply to income earned as an employee.
Many SMSF trustees wonder if they can sell or transfer assets from their fund to a related party, such as themselves or a family member. While regulations restrict certain asset purchases from related parties, there is no rule preventing an SMSF from selling or transferring its assets, like property or shares, to a fund member or a related party under certain conditions.
When buying a new home before selling your existing one, there are several factors to think about, such as financing, storing your belongings, and the timing of everything. A key tax consideration is that, under capital gains tax (CGT) rules, you generally can't have two homes exempt from CGT at the same time.
The Capital Gains Tax (CGT) small business concessions are incredibly valuable for small business owners who make a capital gain when selling their business. These concessions can eliminate or reduce the taxable gain, and even make it CGT-free if the gain is contributed to a superannuation fund. One key benefit, often overlooked, is the ability to roll over the gain.
Superannuation laws have become more flexible in recent years, making it easier for older Australians to add to their superannuation later in life. Here’s a summary of the key points about making super contributions.
All superannuation funds aim to provide retirement benefits, but there are key differences between Self-Managed Super Funds (SMSFs) and other super funds. It's important to compare it with other options before deciding.
Choosing the Right Business Structure: Legal and Tax Considerations for Small Businesses. Choosing the right business structure is a key decision for anyone running a business, whether it’s small or large. This decision doesn’t just apply when you start the business but can also be important throughout its operation, as there may be advantages to changing structures over time.
Failing to declare all your income or not lodging tax returns can lead to serious problems. The ATO uses advanced technology to track information, including data from banks, insurance companies, and other sources, to find people who aren’t complying. This process is often automated, so it’s harder to avoid detection.
Selling a property that has been used for both rental and residential purposes involve several capital gains tax (CGT) considerations.
Let’s talk about the Pay As You Go (PAYG) Instalment system in Australia. This system is a helpful way for taxpayers—especially businesses and individuals with investment income—to manage their tax bills by making smaller payments throughout the year. This means you can avoid those huge tax bills when the financial year wraps up!
A key responsibility that SMSF trustees must adhere to is to keep accurate tax and superannuation records.
When inheriting a home, most people are aware that if it is sold within two years of the deceased’s passing, no capital gains tax (CGT) is payable. There are also other circumstances where an inherited home can be sold without incurring CGT. However, when it comes to other inherited assets—such as cars, shares, vacant land, jewellery, or artwork—no such exemption applies if these assets are sold by the beneficiary or by the executor during the estate’s administration.
With many marriages and relationships ending in separation or divorce, it's important to understand the capital gains tax (CGT) roll-over rules, which can help delay paying CGT when assets are transferred between separating partners.
"Debt recycling" is currently a popular strategy being promoted by financial advisers and institutions. A quick online search reveals it’s being marketed as a way to convert non-deductible home loan interest into deductible investment interest, helping homeowners pay off their loans faster while building an investment portfolio or generating additional income. While it may seem appealing, it's important to understand the details.
An SMSF (Self-Managed Super Fund) can be established by almost anyone, with a maximum of six members. Typically, SMSFs are set up by individuals or couples, but other arrangements, such as involving family members or business partners, are also common.
If you're planning to leave Australia after living here for many years and you want to sell your home, it's crucial to sell it before you leave. Once you become a foreign resident for tax purposes, you will lose the capital gains tax (CGT) exemption on your home, except in a few specific situations.
Don't let fluctuations in the share market derail your superannuation investment strategy.
For healthcare professionals and businesses, grasping the intricacies of tax laws is essential, particularly when it comes to defining who qualifies as a spouse under Australian tax law. Although Australia doesn’t offer a joint filing option for married couples, certain aspects of your individual tax assessment are influenced by your spouse’s income. This distinction carries significant implications for your financial planning, especially in the healthcare sector where income structures can vary.
So you've decided to sell your business. Do you sell the shares or the assets? What's the difference?
Whether you are a resident or non-resident of Australia for tax purposes has significant consequences for you.
Since 1 July 2024, the age at which individuals can access their superannuation increased to age 60. So what does this mean for those planning on accessing their superannuation upon reaching this age?
Splitting superannuation contributions to your spouse can be a great way to boost your combined superannuation balances which can benefit you both in retirement.
A recent decision by the Full Federal Court around a man’s tragic death by suicide clarified the standing of a de facto spouse in the context of a non- lapsing death benefit nomination on a life insurance policy made by the deceased person.
overview of the criteria and considerations for classifying workers, essential for understanding their rights and obligations in the workplace
It's tax time, and you are likely hunting for receipts everywhere. We know you want to maximize your deductions, and we want to help you claim everything you’re entitled to. However, it's important to clear up some common misconceptions about records, deductions, and work-related expenses. Please remember that having proper records to support your claims is crucial—no record, no deduction.
In the 2023-24 Budget, the Australian Government announced an energy incentive for small businesses
How to pay zero or minimum tax on the sale of your house.
There are typically four main tax structures to choose from when you launch a new business in Australia. What is the right structure for your business?
What is Fringe Benefits Tax?
Fringe Benefits Tax (FBT) in Australia is a tax employers pay on certain benefits they provide to their employees or their employees'
associates (typically family members). This tax is separate from income tax and is based on the taxable value of the fringe benefits
provided.
The Hon Dr Jim Chalmers, the Federal Treasurer, delivered the 2024-25 budget earlier this month. Here are the key measures affecting Australian small to medium businesses.
On the 9th Of May 2023, the Treasurer delivered the Federal Budget. Its main focus is alleviating inflation’s impact on the cost of living. Interestingly, although inflation peaked as high as 7.8% in December 2022, the government is expecting inflation to fall to 3.75% by June 2024 and further to 2.75% by the June 2025 […]
When everyone at your business or practice is overworked or you struggle to keep up with incoming work for some time, and you notice the consequent increase in customer complaints, maybe it’s time to increase the size of your workforce or outsource some of the work to a contractor. Hiring contractors You have a choice […]
Your business’ income tax return for the 2021–22 income year must be lodged by 31 October 2022, unless you have a substituted accounting period. If your business’ tax return is lodged through a registered tax agent, the due date for lodgment is likely to be later than 31 October, possibly even as late as May […]
The ATO understands that taxpayers, particularly small business operators and sole traders, sometimes have cash flow issues meaning they can’t pay their whole tax bill on time. If you have a problem, the ATO encourages you to engage with them early so they can help you deal with your debt while it’s manageable. Therefore, contact […]
ATO urges vigilance following new scams approach The ATO is urging taxpayers to be vigilant during this 2022 tax time following an increase in reports of fake websites offering to provide tax file numbers (TFN) and Australian business numbers (ABN) for a fee but failing to provide the service. The fake TFN and ABN services […]
The end of the current income year (2021–22) is approaching. There are a few tips on what you can do before 30 June 2022 to reduce your tax bill. Key threshold amounts for tax offsets If you are an individual taxpayer, including a sole trader or a partner in a partnership, or your business is […]
The 2022 Fringe benefits tax (FBT) year ended on 31 March 2022, so it’s a good time to start preparing what you need to do to lodge your business’ FBT return and pay FBT. You’ll need to work out if the business has an FBT liability for any fringe benefits provided to employees (or their […]
The annual budget was announced on 29 March 2022. The tax and superannuation highlights in the Budget include: ▪ the Low and Middle Income tax offset (LMITO) will increase for 2021–22 by $420 (but will not be extended beyond 2021–22); ▪ the 50% reduction in the minimum drawdown requirements for superannuation pensions will be extended […]
Review your superannuation reports now for your quarterly superannuation guarantee contribution. Need help? We can assist with reviewing your super setup or preparing the lodgement. #smallbiz
A business cash flow forecast will give you vital business intelligence to help you scenario-plan, search for cost-savings and look for strategies that will preserve your cashflow position.
Let’s talk.
Are you spending too much time on SMSF management? It’s not easy to get all the details right, especially if your fund has changed operations over time. Talk to us about managing your SMSF investments, assets, compliance, administration, and reporting.
Want to make sure you’re not paying too much capital gains tax? Keep all your asset records to make tax calculations easy. We’ll make sure you receive any exemptions, discounts, or small business concessions allowed and check for special circumstances.
New laws mean company directors need to get a unique director ID number. Start gathering your identification documents now in preparation for applying in November.
Talk to us if you have any questions about the new registration requirement.
Do you know the difference between your P&L and your balance sheet? We can explain exactly what each report means – and how it reflects your current performance as a business
#businessadvice #accounting #PandL
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