If you have a division 7A (Div 7A) loan, you may be wondering, how it arose, what this means, and what your obligations are. This article will explain Div 7A in clear terms and outlines what you need to know to remain compliant. What is Div 7A? Division 7A is an anti-avoidance rule designed to […]
READ MOREWhat’s changing on 1 July 2022
A series of reforms and changes will commence on 1 July 2022. Here’s what is coming up and how it will affect your business. 1 July 2022 changes for business Superannuation Guarantee increase to 10.5% The Superannuation Guarantee (SG) rate will rise from 10% to 10.5% on 1 July 2022 and will continue to increase […]
READ MORETemporary immediate full expensing of assets
Temporary immediate full expensing of assets means businesses can immediately deduct the purchase cost of eligible new and second-hand* assets. Is your business eligible to immediately deduct assets? Businesses that are eligible need to have an aggregated turnover of less than $5 billion. For businesses with an aggregated turnover of less than $50 million, temporary […]
READ MORETax Deductible Superannuation Contributions
There are some excellent tax benefits from superannuation contributions – you can take advantage of these by making your own voluntary superannuation contributions. We want you to take advantage of all opportunities available to you to help minimise the amount of tax you have to pay. Tax benefits from Superannuation Contributions Money invested in super […]
READ MOREWhat is a Bucket Company and how will it help you save tax?
A bucket company is one of the most effective tax management tools available to business owners with consistently strong profit. It is a private company that sits alongside your family trust and receives distributions of trust income at the company tax rate of 25% – rather than that income flowing through to individuals at personal […]
READ MOREAre your contractors actually employees?
Employers can have problems identifying whether a worker is an independent contractor or if they’re actually an employee for tax and superannuation purposes. Two landmark cases in the High Court last month have shone a light on how determinations are made specifically in relation to the totality of relationships. Many business owners assume that if […]
READ MORECost of Goods Sold (COGS) or Cost of Sales – for your industry
Understanding the Significance of Cost of Sales or Cost of Goods Sold (COGS). Cost of Sales (also referred to as Cost of Goods Sold [COGS]) is a very important financial performance metric, as it tracks your ability to manufacture/deliver goods and services at a reasonable cost. It represents the direct costs related to the manufacturing […]
READ MOREProfits guidance finalised for professional services firms
The ATO has finalised its position on the allocation of profits from professional services firms – starting 1 July 2022. For some time, the ATO has been concerned about how professional services firms are structured – specifically, professional practices such as lawyers, accountants, medical practices, architects, engineers, etc., operating through trusts, companies and partnerships of […]
READ MOREGuidance for trust distributions – the ATO cracks down
The ATO has updated guidance for trust distributions made to adult children, corporate beneficiaries and entities with losses. Depending on how arrangements are structured, there is potential for significant level of risk. Released in February 2022, the updated guidance directly targets how trusts distribute income. As a result of the ATO’s more aggressive approach, many […]
READ MOREQueensland Financial Flood Support
If you’re based in Queensland and affected by the recent flood disaster, the government has made available financial support packages and grants. Torrential rain and flood waters have impacted communities along the east coast from Maryborough in Queensland all the way to Grafton in NSW. Across south-east Queensland, at least 33 areas were inundated by […]
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