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A real example and ATO audit outcome. Most businesses reach a point at which they need an extra pair of hands. This could be on either a short term or long-term basis. Hiring someone as a ‘contractor’ sounds like a simple and cost-effective solution: payment on invoice, no calculating tax, with...
In this, the third article in our series ‘Divide and Conquer’, we’ll look at the next scenario: Building to live in. If you haven’t read our first two articles, then I highly recommend that you do before diving into this one. Divide and Conquer Divide and Conquer … Tax implications of sub...
A common discussion around the dinner table with our kids is ‘who is the favourite child?’. We have three teenagers so the debating is intense about the virtues they all possess and why they should be named as the favourite. One night, about two years ago when the debate was memorably strong, t...
In our last article – Divide and Conquer … Tax implications of subdividing your property – we just scratched the surface of the tax implications of subdividing your property. If you haven’t read it, then I recommend you do before continuing. In this article I would like to explore two scena...
Read more: Divide and Conquer 2: Tax implications of subdividing your property
The ‘quarter-acre block’ may have been the great Aussie dream post World War II, but for many, this amount of land it too much to handle. The opportunity to subdivide and selling in order to pay down debt or fund other plans is therefore an attractive strategy to those burdened with too much lan...
Read more: Divide and conquer … Tax implications of subdividing your property
Congratulations! You made it through another financial year. I’m not sure how you feel, but I think they seem to go quicker each year. For many the new financial year will be a case of “same old, same old” … same old business methods, same old profit (or lack thereof), same old business...
Read more: Happy New (Financial) Year! 4 questions to ask to help make it your best yet.
One of the things I enjoy is running. In the past few years have taken up trail running and doing ultra-marathons (runs over 42.2km). Yes, my wife thinks that I am mad and there have been times that I also questioned my own sanity; both when entering and on the run itself. Having grown up in cou...
The ATO recently increased the instant asset write off to $30,000 for eligible assets purchased from 2 April 2019. But does this mean that you should rush out prior to 30 June 2019 and spend up to get a tax deduction? Before spending your money … or borrowing to spend money … there are a few ...
With the end of the financial year only weeks away, it’s a perfect time to review your situation, take advantage of any opportunities and ensure that your financial situation is maximised. Any successful tax planning strategy centres around three themes: 1. reducing income, 2. increasing dedu...
Read more: 30 June is approaching! Do you want to minimise your tax?
A wise man once said: “… in this world nothing can be said to be certain, except death and taxes.” Benjamin Franklin, 1789 People can manage to avoid taxes, however death proves a lot harder to avoid and, sadly, catches up with everyone. While Australia doesn’t have an inheritance ta...
Investing in property though a self-managed super fund (SMSF) is a hot topic in the media and in discussions around the BBQ with friends. SMSF’s are able to borrow and, just like you, can also borrow money in order to purchase a property. We’ve discussed how investing in property is an effectiv...
Read more: Buying a property through a Self Managed Superannuation Fund
The ATO has introduced changes for people selling property that may impact you if you sell a property that you have lived in, an investment property or a property development that you built to sell. Selling your house (Principal place of residence) If you’re selling your property, and it has a s...
Read more: Selling a property, even your house – taxes may apply
As some of you know, I recently took a three week holiday in Vietnam – the first holiday in eight years that I have been away from the office for more than 1 week. Unfortunately, a lack of long holidays is an all too common occurrence amongst business owners. In 2015 Xero undertook a survey o...
Property investment has been a fantastic tool that many of my clients have used to build their wealth where the actual cost of owning a rental property – particularly with low interest rates available – is very affordable, yet the question of if it’s affordable for ‘me’ is one of the most ...
Read more: How much does it REALLY cost to own a rental property and is it for ME?
If you owe money to the ATO, this currently doesn’t appear on credit checks and hence won’t affect your ability to get finance. BUT this is about to change! What is changing The Government has announced that it will allow the Australian Taxation Office (ATO) to disclose tax debt information of...
With the end of the financial year only 2 weeks away it is perfect time to review your situation to take advantage of any planning opportunities and ensure that your financial situation is maximised. Any successful tax planning strategy centres around three themes: reducing income, increasing d...
Television and news feeds were flooded with the proposed personal income tax cuts after the May 8 Federal Budget announcement, but there were a number of other measures included that received little mention that are important, and equally worth highlighting. First, let’s talk about th...
Read more: 2018 Federal Budget – the bits you might have missed
The ATO has recently been in the news and featured on Channel 9’s A Current Affairarticle ‘Tax Grab Scandal’ for the ‘unfair actions they were taking against 3 businesses. Here’s my take on the ‘scandals’ and the lessons we can learn from these cases from t...
Read more: The big ‘ATO Tax Grab Scandal’ — 4 take away lessons
Legislation is now in place from the May 2017 Budget where the Government announced a raft of proposals it hoped would relieve the pressure on residential property prices. Two of these measures are targeted at reducing the income tax deductions passive investors in rental residential properties can ...
Read more: The who, what and how of changes to deductions for residential rental properties.
Many people invest in property as a way of building wealth and, like all assets, there often comes a time when they need to be sold. And selling assets can cost you in the form of TAX! If you have lived in your own home – or principal place of residence (PPR) – for the entire time...
“Where did the profit go?” I hear it almost every day from the businesses I work with. Followed quickly by: “How did I make that much?” and “Why isn’t there more in the bank account?” You, like most business owners, are used to working hard and are good w...
Many businesses suffer the problem of tight cashflow in the post-Christmas period. It’s not only the expense of the festive season; people are away, customers are recovering from holidays, and work can’t be completed. If you plan correctly now, there is no need to suffer from tight cashflow. T...
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Business Income and Expenses Subject to cash flow requirements, consider deferring income until after 30 June, especially if you expect lower income for 2016/17 compared to 2015/16. Most businesses are taxed on income when it is invoiced. Some small businesses may be taxed only when income is rece...
With year-end fast approaching and people consider contributing funds into superannuation it is important to consider the changes that have been proposed in the 2016 budget. Whist the changes are only proposed and subject to amendment it is important that you consider them as there is little polit...