Superannuation – preparing for Div 296 tax
Big balances, bigger tax: Is your super prepared for Division 296? Plan ahead with your Moore Australia advisor for tailored advice on navigating the change.
Foreign trusts – how Australia can potentially tax them
There are numerous issues to consider when you have an overseas trust and have migrated to or are already within Australia. Careful planning may be required to ensure a person’s migration to Australia does not trigger any unforeseen issues for the foreign trust.
Planning for death – obscure issues that may tax inheritances disproportionately
Planning for one’s death is not something that people are comfortable talking about, but having a decent understanding of what falls within your estate, or even knowing how your beneficiaries can potentially get taxed on their inheritances, may go a long way in setting up a plan for your wealth.
Personal Services Businesses – ATO risk guidance
The Australian Taxation Office (ATO) has released Draft Practical Compliance Guideline (PCG) 2024/D2 which considers the risk of Part IVA (general anti-avoidance provision) applying to personal services entities. This practical guidance is important for individuals trading through interposed entities (trusts and companies) in delivering their personal services to their clients.
Government makes changes to Stage 3 tax cuts
Prime Minister, Anthony Albanese, announced today that the Government will be amending the previously legislated Stage 3 tax cuts, which commence from 1 July 2024.
Tax Changes Are Coming
The Government released the Mid-Year Economic and Fiscal Outlook on Wednesday 13 December 2024, including a number of tax changes.
What is Capital Gains Tax (CGT) and who should pay it?
Australia has a comprehensive system for the taxation of capital gains. But what is it, and who should pay it?
ATO Audits and Tax Governance
In our second edition of our Risky Business Series our advisors look at Tax Governance, not just for the big guys anymore.
ATO Audits and Reviews
In this first edition of our Risky Business Series our advisors look at the risks associated with Australian Taxation Office (ATO) audits and reviews.
Employee vs contractor - the ATO's risk ratings
The Australian Taxation Office released a draft Practical Compliance Guideline (PCG) 2022/D5 which sets out their compliance approach for businesses that engage workers and classify them as employees or contractors. In 2022, the High Court handed down two decisions that impact how businesses distinguish between employment and contractor relationships.
Working from home deductions - ATO's revised fixed rate
The Australian Taxation Office (ATO) released Practical Compliance Guideline (PCG) 2023/1 which sets out the revised rate for taxpayers wanting to claim work from home expenses using a fixed rate. From the 2023 financial year onwards, taxpayers will only be able to claim working from home deductions based on either the ATO's revised fixed rate, or actual costs.
Training and technology investment boosts - draft legislation released
Treasury Laws Amendment (2022 Measures No. 4) Bill 2022 was introduced into Parliament yesterday. The Bill contains the requirements for the deduction boosts announced in the March 2022 Federal Budget aimed towards small and medium businesses.
Christmas parties and gifts - FBT issues
Consider the Fringe Benefits Tax issues associated with providing staff gifts and parties in the lead up to Christmas.
Queensland land tax - changes to be aware of
Queensland land tax assessments will be changing from 30 June 2023 onwards and property owners will need to consider this as their land tax assessments may increase next year.
Taxable Payments Annual Report: Due 28 August 2022
Businesses which provide certain services are required to report payments made to contractors and lodge a taxable payments annual report (TPAR) with the Australian Taxation Office (ATO). The TPAR for the 2021-22 income year must be lodged by Sunday 28 August 2022.
Extended Government support for your business cashflow
The SME loan recovery scheme has been extended for a further six months to 30 June 2022 (from 31 December 2021). Under the extended scheme, the amount guaranteed by the Government will reduce to 50% (previously 80%) from 1 January 2022 – 30 June 2022.
Increased risk of incurring FBT liability
As the festive season draws closer, we would like to remind businesses of the fringe benefits tax issues associated with this time of year.
Reporting of unpaid debts to credit reporting agencies
The Australian Taxation Office (ATO) will commence reporting unpaid business tax debts to credit reporting bureaus (CRBs) in certain circumstances.
ATO extends work from home shortcut method – here’s what you need to know
The ATO have extended the shortcut method for claiming home office deductions to the 2021-22 income year. Here's what it means if you work from home, what you need to do now.
Property and Taxes: vacant land deductions - ATO releases new ruling
The Australian Taxation Office (ATO) has released draft taxation ruling TR 2021/D5 which considers the ATO’s view on non-deductible expenses associated with vacant land. From 1 July 2019, certain taxpayers are denied a tax deduction for outgoings in relation to vacant land unless the land is used in a business, or another exclusion applies. Deductions which are denied by the operation of these provisions include interest expenses, council rates, land taxes and maintenance costs. Importantly, certain entities are not impacted by these provisions including (but not being limited to) companies and managed investment trusts.
Time to Cash Flow Forecast in NSW
As NSW will soon start to exit lockdown, business owners need to plan for the Government’s announcement to reduce and end the JobSaver payments. Cash flow is going to be one of the key issues many businesses will face over the coming months.
Preparing for Single Touch Payroll Phase 2
The Australian Taxation Office has announced that it will be deferring the start date for the Single Touch Payroll (STP) expansion which was intended to commence from 1 January 2022. Under the STP expansion – Phase 2, employers are required to provide additional information as part of the STP lodgement process.
Changes to employee superannuation fund choice rules
Superannuation fund rules will change from 1 November 2021. Under the new rules, employers will have to refer to the ATO to check an employees stapled fund before making payments into their default fund.
Proposed changes to the tax residency provisions for individuals explained
Recently, the Government announced that it would “modernise” the individual tax residency provisions in the 2021-22 Federal Budget. Whilst we are yet to see any draft legislation in relation to this, the Government did mention that the rules will be based on the recommendations made by the Board of Taxation.
QLD COVID-19 Business Support Grant
The Queensland Government have announced financial support for businesses impacted by the lockdown order which commenced at 4pm on Saturday 31 July 2021 for local government areas in Southeast Queensland.
Superannuation Guarantee: Employer considerations
The superannuation guarantee rate will increase from 9.5% to 10% from 1 July 2021. We look at how this impacts businesses and give practical tips for employers to consider in the lead up to the change.
Fringe Benefits Tax changes - what to look out for
When it comes to Fringe Benefit Tax, not a lot has changed in recent years. However, from 1 April 2021, a few additional concessions and exemptions have been afforded to taxpayers.
New SME Recovery Loan Scheme
On 11 March 2021, the Government announced a new SME Recovery Loan Scheme which will assist eligible businesses to access finance to maintain and grow their businesses when JobKeeper concludes at the end of March 2021.
The Scheme builds on the framework established in the two phases of the Coronavirus SME Guarantee Scheme, and is specifically targeted at SMEs currently receiving JobKeeper (i.e. the scheme is only open to certain recipients of the JobKeeper payment between 4 January 2021 and 28 March 2021).
Tips for the FBT year end - car fringe benefits
With the Fringe Benefits Tax (FBT) year ending on 31 March 2021, here are a few issues in relation to car fringe benefits to look out for during the 2020-21 FBT year.
Allocation of professional firm profits - the compliance approach
Following several years of deliberation, the ATO has finally released draft Practical Compliance Guideline - PCG 2021/D2 that sets out the ATO's proposed compliance approach to the allocation of profits by professional firms.
The guideline explains how the ATO intends to apply compliance resources when considering the allocation of professional firm profits or income in the assessable income of the individual professional practitioner (‘IPP’). It also assists the IPP to self-assess against the risk assessment factors set out.
The JobMaker Scheme
The Economic Recovery Package (JobMaker Hiring Credit) Amendment Bill 2020 received Royal Assent on 13 November 2020. Final Rules governing JobMaker will be released after public consultation, therefore the information provided in this document is based on the draft rules.
Loss carry back rules for companies
The loss carry back rules for companies which were announced in the 2020-21 Federal Budget are now law. The Treasury Laws Amendment (A Tax Plan for the COVID-19 Economic Recovery) Bill 2020 (the Bill) received Royal Assent on 14 October 2020.
Temporary Full Expensing Provisions
The temporary full expensing (TFE) of depreciating assets measure announced in the 2020-21 Federal Budget is now law. The Treasury Laws Amendment (A Tax Plan for the COVID-19 Economic Recovery) Bill 2020 (the Bill) received Royal Assent on 14 October 2020.
The TFE provisions allow eligible businesses with an aggregated turnover of less than $5 billion to claim a tax deduction for the full cost of an eligible depreciating asset purchased between 6 October 2020 and 30 June 2022 (the relevant period).
Updated PAYG Withholding Tax Tables
The Australian Taxation Office (ATO) have updated the PAYG withholding tax tables to reflect the income tax cuts announced in the Budget last week.
Should the Stamp Duty rules be reformed?
Stamp duty (or transfer duty) is a financial burden that may deter individuals and families from entering the property market and acts as a barrier to investment opportunities. It raises the issue of whether stamp duty is still appropriate in the modern economic landscape and calls for replacing stamp duty with a broad-based land tax are getting louder. This issue was considered by NSW Treasury in a recent report NSW Review of Federal Financial Relations -Supporting the road to recovery (the NSW Report).
Should a review of GST be on the table?
Last week we asked about the future of GST in Australia and as we expected, more than 65% of the respondents felt that change is required.
As we come out of COVID-19, revenue collection will be high on the Government’s agenda, primarily to fund the cost of stimulus funding. On numerous occasions, our leaders have stated that they are against increasing taxes and want to encourage consumer spending in Australia. There are media reports of personal tax rate cuts being brought forward to reinvigorate the economy.
Our GST system is complex and needs improvement. There have been some minor adjustments, such as making certain foreign suppliers of goods and services in Australia being liable for GST, but there is scope to make some targeted changes to improve the efficiency of the GST system. Read more about our thoughts and the options available.
JobKeeper 2.0: The rules explained
The Coronavirus Economic Response Package (JobKeeper Payments) Amendment Bill 2020 was recently passed by Parliament to facilitate the extension of the JobKeeper Scheme to 28 March 2021. The Treasurer has subsequently released amended Rules for the Scheme, which were registered on 15 September 2020.
Is it time to 'fix' corporate tax rates once and for all?
Last week we asked what the future of the corporate tax system of Australia should look like. More than 64% of respondents felt that Australia should have a single corporate tax rate set at 25%.
The upcoming Federal budget is going to be important for business. Hopefully the Government will carefully consider some issues which in our view require immediate reform. Read more about our thoughts on the complex dual corporate tax system is complex, and why we should be moving towards a single lower corporate tax rate.
Issues company directors should be aware of during COVID-19 and beyond
The last few months have had far reaching implications for many businesses across Australia. Whilst some businesses are starting to show signs of recovery, there are a few ‘ticking’ timebombs you need to be aware of as a company director.
Directors may be personally liable for certain actions by the company including situations of insolvent trading and failure to meet employee (PAYG and superannuation guarantee), or GST obligations (in certain scenarios). The Government has provided some relief for directors in relation to insolvent trading due to the impact of COVID-19, but it is important to look out for issues not necessarily covered by the relief.
JobKeeper 1.0: Changes you need to be aware of
The Federal Government recently announced the expansion for the eligibility of the current JobKeeper Scheme.
As part of the changes announced, the Federal Government introduced changes for employees eligible for the JobKeeper Scheme from 3 August 2020. On Friday 14 August, the Coronavirus Economic Response Package (Payments and Benefits) Amendment Rules (No. 7) 2020 (the Rules) were registered which commence from 15 August 2020.
Revenue vs Capital: two sides of the coin
The ongoing debate of capital vs revenue was recently raised in a Full Federal Court case - Greig v FCT [2020] FCAFC 25. The case highlights the continuing difficulty in the capital vs revenue distinction. This area of law falls within a grey zone where the outcome turns on the facts of each situation.
Taxable payments annual reporting obligations
Businesses who make payments to contractors in relation to certain services may be required to prepare and lodge the Taxable payments annual report (TPAR) which is due for lodgment by 28 August 2020.
JobKeeper 2.0 and the next phase of stimulus activity
The Government has released some further detail on what the future of stimulus will look like in Australia.
Australia: how we are faring during COVID-19
We're lucky to be in Australia and even more so in these times with a global pandemic of COVID-19. Businesses have struggled, people have self-isolated and the Government has done its best to prop up businesses with the Jobkeeper payment and other stimulus measures. The economy has suffered greatly, and it will take time to revert to pre-COVID times. Due to our geographical isolation and quick actions of Governments, we were able to contain the number of cases of Coronavirus to a degree, however, with the recent spike in Victoria, we need to remain vigilant. A second wave is occurring, and it is up to states and territories to contain this and keep strategising to reduce the detrimental impact on our economy.
Planning for the worst - what happens when the stimulus runs out?
Businesses who are currently in receipt of stimulus payments have less than three months to get their cashflow in order.
Superannuation contributions – don’t leave it too late
With 30 June fast approaching, it is necessary to be aware of the timing issues that may impact superannuation deductions and your contribution caps. In general, provided the relevant conditions are met, superannuation deductions can only be claimed in the year the superannuation fund receives the contributions.
Protecting capital losses – common issues with related party loans
The last few months have been tumultuous for Australia and within the tax world, we have seen a raft of new legislation being introduced to save the Australian economy. However, in trying to stay agile and keeping up to date with the changes, we may lose sight of the usual hidden issues contained within our complex tax system. One of these is the personal use assets provision and its impact on the capital gains tax (CGT) treatment of loans advanced by individuals (or any other entity) to prop up struggling businesses.
Extension of the Instant Asset Write Off and how it applies to motor vehicles
The Government has announced that it will extend the instant asset write off (IAWO) to 31 December 2020 for asset purchases below $150,000. Businesses with an aggregated turnover of less than $500 million are currently eligible for the write off and it is intended that this announcement will be legislated soon.
HomeBuilder – the Government’s new $25,000 grant
The Government has announced a new $680 million HomeBuilder package designed to spark life into the residential construction industry by encouraging the building of new homes and substantial renovations.
Rental Assistance – Code of Conduct for commercial tenancies
The Federal Government released a code of conduct (the Code) for commercial tenancies and its purpose is to impose a set of good faith leasing principles for application to commercial tenancies.
JobKeeper payments update
The Coronavirus Economic Response Package Omnibus (Measures No. 2) Bill 2020 (the Bill) was passed by Parliament to introduce the JobKeeper payment.
Government’s Third Stimulus Package designed to save Australian jobs impacted as a result of COVID-19
On 30 March 2020, the Government announced a $130 billion wage subsidy to combat the impact of COVID-19 on the Australian economy. The Government has provided further support to Australian businesses and encouraged businesses to keep their workers employed by providing a “JobKeeper” payment to eligible employers for eligible employees.
COVID-19 Economic Response Package receives Royal Assent
The Coronavirus Economic Response Package Omnibus Bill 2020 received Royal Assent on 24 March 2020 and is now law. The package included various changes which were announced in the two stimulus packages released recently by the Government.
Government’s 2nd Stimulus Package Announced
The government announced a second stimulus package worth $66 billion in an attempt to deal with the impact of COVID-19 on the Australian economy.
Superannuation Amnesty – six months to get your employer obligations in order
The Bill introducing the superannuation guarantee (SG) amnesty received Royal Assent on 6 March 2020 and employers have until 6 September 2020 to correct any historic non-compliance with their SG obligations.
Reduction in Corporate Tax Rate
Changes, changes and more changes - Bringing forward the company tax cuts
Following on from the various changes to company tax rates earlier in the year, the Treasury Laws Amendment (Lower Taxes for Small and Medium Businesses) Bill 2018 was introduced and passed by the Senate relatively quickly last week. The Bill proposes to bring forward the tax cuts for small and medium businesses. The Bill is currently awaiting Royal Assent.
Moore Stephens Tax Alert - Redundancies and ETPs
Redundancies are, unfortunately, a part of doing business. Over the last year or so, there has been a lot of movement within the Western Australian job market with employments being terminated or being made redundant. As an employer, it is critical that you understand what your responsibilities are. To help you, we have undertaken various reviews of calculations for Employee Termination Payments (ETP) and genuine redundancies