Selling up your business? Don’t forget the “going concern” GST exemption

Dianne KennedyBlog, Tax

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 (and the GST legislation … Read More

The CGT implications of subdividing and building on the family property

Dianne KennedyAccounting and Tax, Asset Protection, Blog, Tax

Given the state of the property market in Australia these days, a not-uncommon situation can arise where a residential property owner seeks to demolish and subdivide the block containing the family home and build residential units. If you have the available land of course, the above is a solid strategy. However it can cause headaches from a tax perspective — … Read More

What is your “total superannuation balance” and why does it matter?

Dianne KennedyBlog, Strategic Planning, Tax

Superannuation

Recent superannuation reforms introduced a concept of “total superannuation balance”, which on the surface may give the simple impression that it is the sum of the balances of a person’s superannuation interests. However, this is not the case. What is the total balance relevant for? The total superannuation balance is relevant in determining a super fund member’s eligibility for: making … Read More

Simplified depreciation and the small business pool

Dianne KennedyAccounting, Accounting and Tax, Blog, Expenses and Claims, Tax

The simplified depreciation rules are attractive for small businesses as they allow an immediate write-off for assets costing less than $20,000. In contrast, tax paying entities that do not qualify as a small business must use the general depreciation rules (also known as the uniform capital allowance rules), where assets costing more than $100 need to be depreciated over their … Read More

Gumtree or Facebook group sourced assets, and the realities of making a claim

Dianne KennedyAccounting and Tax, Blog, Expenses and Claims, Tax

A recent case before the Administrative Appeals Tribunal (AAT) brought into focus a growing phenomenon that you should keep in mind for work-related or business expense deduction claims, especially where the acquisition of claimable assets is made in a certain way. The engineer and his “invoice” The case involved a taxpayer’s attempt to make a claim for the cost of … Read More

Tax and the sharing economy

Dianne KennedyAccounting and Tax, Blog, Tax

The concept of a “sharing economy” has been around for long enough now to have had a very real impact on how we transact.  Think Uber, think Airbnb. By now, most people will have realised that the “sharing” part of the concept does not refer to an absence of any monetary exchange, but rather to the use and access of … Read More

PAYG Instalments: A beginner’s guide

Dianne KennedyBlog, Tax

Pay as you go (PAYG) instalments is a system for making regular payments towards your expected annual income tax liability. It only applies to you if you earn business and/or investment income over a certain amount. The Tax Office will notify you, or us on your behalf, if you need to start paying by instalments under the PAYG instalment system. … Read More

New small business CGT rollover relief

Dianne KennedyAccounting and Tax, Tax

Small businesses will be able to change their legal structure without triggering a capital gains tax (CGT) liability at that time based on legislation just passed. Eventual disposal of course is another matter. The measure is designed to provide greater flexibility for small businesses to change as the business changes. Small Business and Assistant Treasurer Kelly O’Dwyer said: “Small business owners who find they … Read More

3 Tips to Beat Bracket Creep

Dianne KennedyAccounting and Tax, Blog, Tax

3 tips to beat bracket creep

The government has said it is looking for ways to combat bracket creep – like making smaller brackets or adjusting them for inflation – but in the meantime, here’s how it affects the average working taxpayer. Jackie earned $179,000 a year (excluding super) during 2014-15. She sat in the $80,001 to $180,000 tax bracket, so her income in that bracket … Read More