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Property development and tax

The ATO seems to be always looking over the shoulder of property developers to make sure they are complying with their tax obligations. The considerations facing the ATO are many and varied, but can include topics such as whether an agreement to develop and sell land is a “mere realisation” or a disposal either in the course of a business or as part of a profit making undertaking or plan. A “mere realisation” is a sale on capital account to which the capital gains tax (CGT) rules will ge...

September 15, 2019

Family trust distributions - what you need to know

What you need to know about trust distribution resolutions An essential starting point for consideration of trust income and how that income is to be distributed is to look at the trust deed. This very central document sets out the rules and expectations for the governance and operation of the trust and the powers that can be exercised by the trustee.Although it can be commonly assumed that the trust deeds of similar types of trusts (such as family trusts, fixed trusts, public unit trusts and so...

August 23, 2019

New financial year's resolutions for better business

Coming up to 30 June, it's good to stop and think about where you’re headed, where you want to be, and how to get there. Brush of your old business plan, review your finances and update some strategies. Consider ways to improve efficiencies and come up with new ways of doing things. Get help with something that's holding you back, so you can make a fresh start. As accountants who automate processes with cloud technology, our approach is future-focused around advice and puts business owners bac...

June 18, 2019

When can you claim a GST credit without a tax invoice?

Tax invoices serve both to collect taxation revenue related to the goods and services on which GST is levied as well as record the GST credits that are claimable by eligible businesses. A business registered for GST will generally be required to hold a tax invoice for any transaction in order for an input tax credit to be claimed. The tax invoice can usually only be issued by the entity that made the taxable supply, which generally must issue a tax invoice as a normal incident of transactions, o...

May 6, 2019

Company directors personally liable under director penalty regime

What you need to know about the beefed-up director penalty regime: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 not limited to, any debts incurred if the company becomes insolvent and losses arising from a director’...

May 6, 2019

ATO targeting crypto-gains with new data-matching program

The ATO are now data-matching with exchanges registered with AUSTRAC.  Click here for article on Accountants Daily: “They are talking about 500,000 to 1 million taxpayers, and in a country with a population of 25 million, that is quite astounding that it’s the number that it has grown to already.” Click here for the ATO Media Release: "The ATO will give taxpayers 28 days to clarify any information that has been obtained from the data provider, before any compliance action is taken."Pu...

May 1, 2019

Why you should book an appointment with your accountant every quarter

Business is getting more competitive by the day, and you cannot patiently wait for your accountant to look up from your tax return and ask you how things are going. A quarterly catch up appointment with your accountant will give you much deeper insights into your business. Year after year, you have sat through meetings about your tax returns. Sometimes, it's under sufferance because you know what they're going to say. You get more from an annual tax planning meeting because at least there's an a...

April 20, 2019

FEDERAL BUDGET 2019

The Treasurer Josh Frydenberg’s first budget has lots of goodies with few “baddies”. This was to be expected with the next federal election only weeks away and the Coalition Government trying to make up ground in the polls. The Treasurer’s “wow” factor was a return to a budget surplus of $7.1 billion for the 2019-20 fiscal year.  Without increasing taxes, the Coalition Government, if re-elected, promises to deliver on a mix of benefits for a majority of taxpayers ...

April 6, 2019

Single Touch Payroll rollout for smaller employers

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 to as “substantial” employers (those with 20 or more staff). Recently passed legislation extends STP to all employers, regardless of the number of staff, from 1 July this year. Using payroll or accounting software that offers STP, most emplo...

April 6, 2019

Sponsoring and donating from a business

Business owners are approached to contribute to local associations, clubs, charities and community organisations. You may ask whether sponsorships and donations are tax deductible.  To begin with, sponsorships and donations are not the same thing.  A donation is a genuine gift with no strings attached. You don't expect more than a "thank you" in return when you donate to a not-for-profit. Businesses, on the other hand, normally expect to be promoted in exchange for their contribution. ...

February 9, 2019

Tax deductible travel costs to visit your accountant and tax adviser

A visit to your accountant is tax deductible, the ATO agrees in TD 2017/8. It's an added bonus if your accountant is located in one of the most beautiful beach towns in Australia.  How is travelling for your tax return tax deductible? Tax agent's fees were already tax deductible. The ATO issued its Tax Determination TD 2017/8 last year to provide clarity on associated travel costs. If you visit your accountant the costs of travelling are tax deductible under section  25-5 Inc...

October 8, 2018

Crowdfunding and tax

Not so many years ago, the concept of raising funds via crowdfunding would more likely be seen as a way to fund community-based, local-issue or “help-your-neighbour” initiatives. But increasingly these days crowdfunding is viewed as a viable source of seed capital, and is no longer regarded as the shy little sister of venture capitalism. Some quite serious money can be raised through crowdfunding, using internet platforms, mail-order subscriptions, benefit events and other methods to find su...

October 3, 2018

FAQs about us and our services

Our Director, Alex, has provided business and tax consulting services since 2001 and became a Registered Tax Agent in 2007. She founded her sole practice Electra Frost Accounting in Sydney in 2008, and co-founded Newtown Tax and Business Services in 2010 which is still in operation.  Since moving to Agnes Water in 2016, Alex has continued to run Electra Frost Accounting online for many long-term clients around Australia and overseas who widely recommend her specialist advisor...

September 16, 2018

Vacant land deductions to be denied

The Government already announced, as part of the 2018-19 Federal Budget in May, that it will decrease the scope of allowable deductions for expenses stemming from holding vacant land that is intended to be used for residential or commercial purposes. The measure will apply from 1 July 2019. (See page 42 of the federal budget paper.) The announcement was couched as an integrity measure to address concerns that deductions are being improperly claimed for expenses, such as interest costs, related t...

September 3, 2018

Tax deductions for your insurance premiums

The combination of insurance and tax can lead to complicated situations. Don't slip up in your tax return. It's highly advisable for taxpayers to seek specialist advice in this area. As a general guideline, the ATO will allow a deduction for certain insurance premiums if it can be shown that the insurance cover relates to earning assessable income. In other words, life insurance, trauma insurance or critical care insurance are generally out. Income protection insurance is one example of the...

July 16, 2018

Tax Time Tips || Using our Online Tax Questionnaire before your meeting

By preparing beforehand, our meeting time is focused on improving your outcomes. Before we sit down with you to go over your tax return, we send you our Online Tax Questionnaire which helps you gather and securely send us all the records needed for your tax return. You can save your information in stages, and submit the questionnaire to us when you're ready to book your meeting.   Our clients love how efficient we are at finding ways to save them more tax.  Our Online Tax Que...

July 8, 2018

Share Investor or Trader? Cryptocurrency Implications

Are you a share investor or a share trader?  This is a pertinent question for people who deal with cryptocurrencies too. There’s a saying that many sharemarket investors may have already heard: Don’t let the tax tail wag the investment dog. In other words, the best advice for your share portfolio is to base your decisions on investment merit, not on trying to save tax. Even so, there are taxation consequences for everyone with an investment portfolio, so when a “grass is greener” t...

June 26, 2018

Auditing and Assurance Services

Everything under one roof.   For convenience and peace of mind this financial year, you can have all your Audit & Assurance requirements taken care of through our office. We handle the Tax & Accounting, and the Auditors independently report on the truth and fairness of the financial information prepared by us on behalf of Directors and those charged with the responsibility of governance.  To meet local demand we have developed a referral relationship with a highly reputable audit ...

June 25, 2018

One Week to Go! Year End Tax Tips.

Run through our list of tips to make the most of your tax deductions in the next few days. Whether you're in business, an employee, a property investor, share trader or Bitcoin enthusiast - there could be something here for you to look into. 1.     SUPERANNUATION CONTRIBUTIONS – PAY BY 26 JUNE! Whether you are self-employed or an employee, the tax benefits of investing surplus funds into super are hard to beat if you want to reduce tax on a higher income in 2018. The ...

June 23, 2018

ATO crackdown on individuals and small businesses

The ATO expects to receive more funding this year to investigate individuals who claim excessive and incorrect deductions. The difference between how much the ATO collects and how much it would if all tax returns were compliant, is called the tax gap. Treasury will expect a return on their investment into closing this tax gap. To avoid an audit, it is important to know what can or cannot be claimed, and to seek professional help if unsure. Deductions are only allowable if the expense has been pa...

May 24, 2018

Tax Planning for Super before 30 June

As 30 June approaches, more taxpayers and SMSF members are taking advantage of the new tax deduction rules for personal superannuation contributions. Wage and salary earners can now contribute personally to their fund and claim their contribution as a tax deduction. In previous years, the deduction was limited to substantially self-employed taxpayers who passed the “10% rule”. The new measures can assist eligible Australians under 75 who may be partly self-employed and partly employed, or in...

May 23, 2018

FEDERAL BUDGET FOR 2018-19

The stand-out of this year’s federal budget for most people will be the increase to the 32.5% tax bracket, and an expansion of the Low-Income Tax Offset. Small businesses will be pleased to know that the under $20,000 asset immediate deduction has been extended to 30 June 2019. Cash businesses and the black economy are under the spotlight - a limit will be imposed on cash payments made to a business and deductions disallowed for untaxed wages and payments to contractors who don't provide ABN's...

May 9, 2018

Claiming deductions for interest on a business loan after the business ceases

An issue that sometimes arises for business owners is whether interest expenses incurred on borrowed funds used in a business remain deductible after the business’s income earning activities have ceased. As a general rule, in order for interest expenses to be deductible in the relevant income year, a taxpayer is generally required to demonstrate that the expense was either incurred in gaining or producing assessable income, or necessarily incurred in carrying on a business for the purpose of g...

May 7, 2018

SMSF investment strategy and Bitcoin

The dramatic rise in value (and then fall) of bitcoin and other cryptocurrencies has sparked interest among SMSF trustees on its potential as an investment, particularly in a marketplace of low-interest rates, erratic sharemarkets and an easing in property. But its relatively short history makes it hard to predict, and there is uncertainty what (if any) future regulation will be placed on it. There are also uncertainties on how to manage cryptocurrencies within the tightly regulated SMSF space. ...

April 4, 2018

Bitcoin - some tax and record keeping tips

As more investors get into Bitcoin and other cryptocurrencies, the ATO and the public are keen to understand digital assets. Tax is often an afterthought for new investors. With Bitcoin values and popularity on the rise, people jump in wanting make money now and worry about the tax later. However, keeping good records from the beginning can save you from paying more tax than necessary. Bitcoin has the largest market capitalisation, however there are currently over 1200 different cryptocurrencies...

March 19, 2018 Posts 1-25 of 53 | Page next
 

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