Franchising and tax

The Australian Competition & Consumer Commission (ACCC) is the government body responsible for enforcing the Franchising Code of Conduct, and if you or someone you know are considering entering into a franchise arrangement, this will probably be a good starting point to get an idea of what to expect.  It imposes strict obligations on franchisors […]

Company directors: Do you REALLY know your responsibilities?

Risks and liabilities The corporate regulator, the Australian Securities and InAs though business owners and principals don’t already have enough on their minds, discussion about the ups and downs of the business environment is being heard around the barbecue again — just to add to the list of excuses for not sleeping well at night. […]

How testamentary trusts work

A testamentary trust works in tandem with a will, and is similar to a discretionary trust, with the major difference being it only takes effect upon the death of the person who made the will. The trust can be funded by some or by all of your assets, and by payments derived as a consequence […]

Tax invoice essentials

The status of the humble invoice took on immense significance in the year 2000 when the goods and services tax (GST) was introduced. It was a big year for the country, with Sydney hosting that year’s Olympics in the last half of September, as well as the introduction of the new tax on 1 July. […]

Having fun AND making money. But 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. Your client may be having fun AND making money. But is it a business or a hobby? For example, if you are not carrying on a business, the option to deduct losses from […]

Third party FBT danger – what to look for

Where some businesses have tripped up in the past is where the source of benefits provided is not clear cut — that is, where non-cash components of remuneration are sourced not directly from an employer, but from an associate, a related company or from a third-party provider. For fringe benefits tax (FBT) to apply, the […]

Starting out in small business? You may be able to use simpler trading stock rules

If you are operating a small business and at the end of the income year you estimate that your trading stock’s value has not changed by more than $5,000, remember (especially if you are new to business) that you can choose not to conduct a formal stocktake. By making a decision to do this, you […]

Is your business prepared for Single Touch Payroll?

Single Touch Payroll is a government initiative to streamline business reporting obligations, which is due to become compulsory from 1 July 2018. When a business pays its employees, the payroll information will be sent to the ATO via the business’s payroll software. Reporting under the Single Touch Payroll (STP) system removes the requirement to issue […]

Common errors with fuel tax credits, and how to avoid them

Fuel tax credit rates are updated every year (generally on 1 February, but for 2018 they changed on 5 February). It is therefore a timely that the ATO has made public some common errors that taxpayers make when calculating and claiming fuel tax credits. The tips that follow will help taxpayers avoid these errors, or […]

What you need to know about the luxury car tax

You can judge whether a car is luxury or not, according to the government, if it costs more than $65,094 for 2017-18 (and $75.526 for “fuel-efficient” cars). It was $64,132 for 2016-17 (with an unchanged fuel-efficient option). It’s not an over-the-top price tag if you’re considering true “luxury”, but it’s enough to cop an extra […]