BLOG

Scroll down for informative articles about tax, business and superannuation. Contact us for advice.

Back to Blog

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

Employee or Contractor? 12 common myths

The Tax Office says that it has encountered several myths and assumptions that workers and employers rely upon when trying to decide the tax status of a job arrangement. It found that employers continually make incorrect distinctions about what makes a worker an employee or contractor — and therefore the tax treatment that applies in these cases. Here are 12 common myths the Tax Office says can often get both businesses and workers into hot water. 1. Having an Australian business number (A...

March 4, 2018

Business Partnership Facts and Foibles

Starting a business with your closest friends can be very rewarding. However, always protect your personal finances when starting a business partnership. You want to stay friends. Ensure that you have a proper agreement and good financial practices in place, to make sure there's no mismanagement of joint funds. Partnerships can be less expensive and simpler to set up as a business structure than starting business with a company. A partnership may also be preferable to starting out...

February 5, 2018

Is it a Business or a Hobby?

It may seem fairly obvious whether a person is in business or not, but the distinction can be important for other reasons. It's important to establish, from a tax point of view, whether your “activity” is more than a hobby, and is in fact a bone fide business. Hobbies are activities which lack a profit motive, amongst other factors, and just as you don’t have to pay tax on hobby income you cannot claim hobby expenses as losses against other income. However, some hobbies can display certain...

February 1, 2018

Preparing for a Business Sale

Business succession is a long process, not an event. If you deal with your business succession as something to be decided upon when the time comes, you'll deny yourself the chance to increase the value before then. If you are developing or growing a business you should do it with the view that it will one day be sold.So wherever possible, business succession should be mapped and planned at least three to five years before selling. When assessing the value of a business, most purchasers will look...

January 15, 2018

What is your company worth?

There are many reasons owners seek business valuations - buying out a partner, death of a partner, a divorce, or for estate planning. Quite often it's because they plan to sell. The process of working out a selling price is not simple, though, and for small businesses it often proves to be more complicated than expected. Ultimately your business is only worth what someone else is willing to pay. However, here are some approaches to valuations: 1. Capitalisation of future maintainable earni...

January 14, 2018

January is the time to create your business budget

Unpredictable factors and events can positively or negatively affect your business. An increase or decrease in clients, fluctuating income, competition, staffing issues, changing suppliers or new technology can make you change your business processes or shift your focus to different market niches, products or services. All of this volatility can discourage a business owner from creating a budget. Really, how can a budget predict the unpredictable? It's true that budgeting for the future isn’t ...

January 6, 2018

Why you should look at the Financial Reports

The more you understand your business, the better decisions you can make.  Once your bookkeeping entries are up to date and reconciled, you can generate useful Financial Reports from your accounting software. If you maintain your books in Excel, it’s still possible to prepare these Reports manually but it will be more difficult and take longer than simply pressing a "Report" link.   We recommend using Xero or MYOB and having your system professionally set-up with training by an ...

January 5, 2018

Top 10 tips for rental property owners to avoid common mistakes

Below is a list of tips from the Australian Taxation Office (ATO) that should help rental property owners avoid what it has found are the 10 most common tax errors made by rental property investors. The ATO says that avoiding these tax mistakes will save many taxpayers both time and money. 1. Claiming the right portion of expenses The ATO is adamant that you can’t claim deductions for rental property expenses when family or friends stay free of charge, or for periods when you use the property...

December 16, 2017

Selling your business? Don't forget the "going concern" GST exemption

The concept of a “going concern” exemption for the purposes of the goods and services tax (GST) can still cause confusion when businesses are sold.  The sale of a business may be GST exempt if the enterprise is deemed to be a “going concern” — which refers to an enterprise’s ability to continue trading. The ATO says a supply of a going concern occurs when: “a business is sold, and that sale includes all of the things that are necessary for the business to continue operatin...

December 12, 2017 Posts 1-25 of 44 | Page next
 

This product has been added to your cart

CHECKOUT