It can be a rare thing to have all the assets of a business held by one entity. Often the business structure contains various entities that own different elements of the business such as the intellectual property or the business premises. The use of service entities has waned in recent
Private groups frequently encounter situations where company payments, loans or benefits are provided to shareholders, directors, or their associates. In such cases, both the Fringe Benefits Tax (FBT) regime and Division 7A of the Income Tax Assessment Act 1936 (ITAA 1936) may potentially apply. To prevent overlap and double taxation,
March 2026 Newsletter The ATO has issued Draft Taxation Ruling 2025/D1 that sets out its position on income and deductions for rental properties and holiday homes. This replaces a ruling from July 1985 and also comes with two Draft Practical Completion Guidelines that sets out the ATO’s compliance approach. PCG
March 2026 Newsletter As the property market continues climbing to new heights, the key question facing clients engaging in property activities is whether their property activities constitute an enterprise and if they are ‘required to register for GST’. Whilst this appears to be an innocuous question, the impact of getting
The ATO are again taking aim at how Professional Services Firms allocate their profits to the owners with the announcement late last year that they will start contacting Professional Service Firms to “assist” them in managing those risks. You might recall that in December 2021 the ATO issued PCG 2021/4
As we begin another eventful year, it is worth noting that there are specific time limits unique to the application of indirect taxes. Specific provisions were inserted into the Tax Administration Act (TAA) to reflect the distinctive nature of the indirect tax laws. The assessment system for indirect tax laws
If you operate a private company you would have heard of Division 7A and how it applies to loans from private companies. Section 109R in Division 7A is an integrity measure aimed at targeting ‘non-genuine loan repayments’. In summary, a repayment must be disregarded if a “reasonable person” would conclude
The ATO has now finalised its guidance on when they will seek to apply section 100A to trust distributions made to beneficiaries who don’t receive or enjoy the benefit of that distribution. Whilst the timing of this release may not suit many with the Christmas break fast approaching, it does
Legislation has recently been passed with regards to making electric vehicles exempt cars (albeit with two Senate amendments). These new rules provide an FBT exemption for electric vehicles made available to employees for private use. This “car fringe benefit” is an exempt benefit if it meets the following conditions: the
From November 2021, all company directors will be required by law to verify their identity as part of a new director identification number requirement (director ID). This has been introduced to prevent the use of false or fraudulent director identities. The director ID confirms your identity and traces your relationships
With Christmas just around the corner, employers are planning their Christmas party and Christmas gifts to employees. With careful consideration given to Income Tax and Fringe Benefits Tax (FBT) law, employers may be able to successfully mitigate fringe benefits tax payable and / or gain an income tax deduction. The
Sigh… this is the response we get when introducing ourselves as the auditor of the SMSF from both trustees and administrators. “What is the point?” “I already pay an accountant or advisor to look after my SMSF” and “Where is the value?” are usually the next comments. This article will
1) Make sure you are not holding more stock than you need Holding more stock than you need is never a good idea. Excess stock can literally be dead money taking up space and locking up your cash flow. As interest rates increase it can also be very expensive to
Poor performing products or services can be a serious detriment to your business, diverting valuable resources and finances from more successful ventures and pulling down the overall profitability of your entire business. So knowing when to pull the plug on a poor performing product or service is important. Some signs
Many business owners think you need to increase sales to make more money. But often this is the more difficult path. A minimal increase to your profit margin can have a much more profound effect. Watch our video How to improve your business profitability to explore why this is the
There are two types of accounting methods accrual and cash accounting. Which type your company uses can have a major impact on the total revenue and expenses that appear in your financial reports. Typically cash-basis accounting is used by smaller businesses who prioritise simplicity. Using cash-basis accounting a company records
One of the most common questions we get asked is “Am I making enough money” or to put it another way “How much profit should I be making”. This video shares a simple but powerful process to assess the financial performance of your business. So what is the financial performance
Last week marked the biggest change to depreciation legislation in 15 years. As part of the government’s efforts to claw back negative gearing parliament passed the Treasury Laws Amendment (Housing Tax Integrity bill) into legislation. This legislation means that you can no longer claim income tax depreciation for plant and
A common question that we often get asked by our clients is “How can I protect assets left to my children from in-laws if their marriage breaks down?” The best way to achieve greater control over the distribution of the assets in your will is to establish a testamentary trust.
In my work advising business owners I’m often asked the following question – “how much profit should I be making?” Or to put it another way, “how much profit is enough?” Often a business owner will advise me that they’re making a certain gross profit margin (GP margin) or certain
In my work dealing with business owners, I’m often asked how to increase sales. Often, lifting sales can be viewed as too daunting, particularly if your current sales are already significant. I think this is because people don’t often break sales down into its component parts. Invariably I focus on
Corporate beneficiaries are a popular and effective strategy for delaying tax. However if you use a corporate beneficiary it’s important that you remember just that; it is a delaying strategy. Recently I have noticed a number of new clients telling me that their previous accountant saved them a fortune through
Unless you’re running your business as a sole trader, the time will come when you must decide how you will remunerate yourself for your time, efforts and entrepreneurship. The profits of your business belong to the company operating that business, not to you. But there are various ways in which
Measuring the right financial metrics is key to the ongoing health of your business. They can provide important insights into how well your business is doing, and allow you to make informed decisions to maximise your growth into the future. If you want to keep your business on track, you
Managing the cash flow of a business is definitely one of the most important tasks of being a business owner. Prudent business owners regularly look at updating vital business equipment to take advantage of efficiencies that are created by newer technology. Choosing the right type of asset finance to fund
When you’re busy growing your business it can be easy to neglect managing your debtors – but good debtor management is critical to ensuring your business has enough working capital to reinvest and grow. Here are six simple steps to help you effectively manage your debtors. 1. Have a credit
Formulating a strategy for your business means defining and setting your business’ mission, objectives or goals, and stating how you plan to achieve them. But while many organisations commit time and money to formulate great strategies, they often fail to turn ambition into reality. If the execution or implementation of
The best way to create wealth will depend on your personal and business circumstances – and the same is true when it comes to protecting that wealth for the long term. There’s a lot to think about when you’re deciding on a strategy for building and managing your wealth. Here
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