No business structure is perfect.  However, it is important that you have the correct structure in place at the correct time. There are four common types of business structures which include, Sole Trader, Partnership, Company and Trust. 

When considering the choice of structure, it is wise to consider commercial and risk related issues, tax related matters and succession/asset protection. As tax rules evolve over time, and as a business moves through its life cycle, the optimal choice of structure may change as well. It is therefore important that you review your structures regularly to ensure they are still fit for purpose.  

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.
 

The Australian Taxation Office (ATO) have highlighted that income and deductions from rental properties remain a key area of focus.  They have found that 90% of tax returns reporting rental income contain at least one error. 

Our team have collated the recent information from the ATO together with some of our recent articles covering various topics for consideration.
 

Every successful business begins with a simple thought, an inventive idea or identifying a niche in the market which grows into a viable and commercial operation. For those looking to start their own business, it can seem a daunting task with a seemingly endless web of information available. However, seeking appropriate professional advice and assistance early on will simplify the process and allow you to focus on turning your idea into a reality.

Whether it’s after being left a property, buying a new block of land, or realising that you’d be better off selling some of the acreage attached to your home, many people around Australia may at some point find themselves embarking on an exercise to leverage their real estate to its best advantage.
 

All directors of a company, registered Australian body, registered foreign company or Aboriginal and Torres Strait Islander corporation will need a director identification number (director ID).

From November 2021, company directors will be able to start applying for a Director Identification Number (DIN) through the Australian Business Registry Services (ABRS) website.

Moore Australia is pleased to announce Gary Ogden and his practice GROBUSINESS Chartered Accountants has joined the Moore Australia (WA) team.

Red tape relief that allows companies to hold their Annual General Meetings virtually has been extended until 31 March 2022

Managed Investment Trusts are registered schemes established and managed by sophisticated Trustees holding an Australian Financial Services License. They enable investors to pool capital to collectively acquire large scale commercial, retail and industrial properties. Operations are typically limited to passive investment income (leasing). Entities are typically set up as up as unit trusts which provides investors with clearly defined rights to income and capital, yet retaining access to Capital Gains Tax (CGT) concessions.
 

Self-managed superannuation funds are commonly used to purchase property. The superannuation environment provides a concessional tax environment on earnings and capital gains, so many find it attractive to invest in a specific property using their accumulated superannuation balance.

Following on from part 1 of our Property and Taxes – Commercial Property Considerations article, we will be exploring additional tax considerations for commercial properties. The tax rules surrounding commercial properties are quite complex and often not fully understood.  

Beyond its immediate impact, the COVID-19 pandemic also shook up the commercial real estate market. The long-term ramifications of this will be felt for a while. For example, with many employers incorporating flexible work from home policies, there has been a substantial shift in how businesses factor in the importance of and need for spacious offices. In addition to the impact the pandemic has had on the commercial office sector, a substantial impact can also be seen on the retail sector with the increasing number of vacancies in retail spaces over the last 12 months. With all these long-term issues engulfing the property market, owners of commercial properties will be considering offering generous lease incentives to attract prospective tenants.
 

Interest paid is usually the largest tax deduction against rental property income, and in a lot of cases creates an overall loss, which may lead to an overall reduction in income tax payable. Taking out a loan to buy an investment property and claiming the interest charged as a tax deduction seems to be a simple proposition, however, as with anything in relation to tax, there are some complications. It is crucial to be aware of a few rules, especially when the expectation of tax deduction creating tax savings is one of the main deciding factors in purchasing an investment property.
 

They say trust is hard earned but easily lost. The same can be said for a person’s wealth.
Death and taxes (the only two certainties in life) are topics not often discussed within family groups around the dinner table. However, I strongly advocate that family members have discussions regarding wills and wishes while they can, to avoid unintended tax implications eroding the asset pool upon succession due to a lack of communication or well considered advice.

The new Payment Times Reporting Scheme (PTRS) applies from 1 January 2021 and requires certain entities (including but not limited to) companies to publicly report on their payment terms and practices for their small business suppliers. This is achieved primarily through the imposition of a bi-annual reporting requirement whereby effected entities must provide details of their payment terms for small business. This information is then published on a public register which can then be accessed by any interested party.

2020 saw the Government enact the Treasury Laws Amendment (Registries Modernisation and Other Measures) Act 2020 (Cth). The legislation sets out the legal framework for the new director identification number (DIN) regime.

Learn more about DIN as Noé Vicca outlines the requirements and action required.

The Australian Taxation Office (ATO) state that "the most common capital gains tax (CGT) event happens when you sell or give away a CGT asset such as real estate, including your family home, holiday home, investment property, hobby farm or vacant block of land". Nearly all investors are aware of CGT in relation to investment properties, but the situation is different in relation to other properties, especially family homes.

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.
 

Moore Australia expands Brisbane operation, confirming merger with Vicca Chartered Accountants.

Businesses who are currently in receipt of stimulus payments have less than three months to get their cashflow 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.

If you are that person who thinks to be innovative your business needs to create the next great thing in the form of a new product or a new service, you are missing the whole point. Every business can bring innovation into its corporate culture just by adopting a ‘do better’ or aka incremental approach to innovation. Small changes in processes, service delivery and products can add huge value to your business with minimal impact on the expense items in your P&L. In fact, when done well, incremental innovation can be extremely profitable.

You’ve worked really hard for a long time, made big sacrifices…family time, early mornings, late nights, taken risks and it has paid off. Time for you to enjoy the fruit of your labour that has been made possible by your sacrifices.
 
Unexpectedly something comes out of the woodwork and you find yourself in a legal battle. You didn’t expect this and suddenly everything you’ve worked so hard for could be gone. Have you done everything you can to protect your assets?

Rental property investors have access to a range of tax strategies. One such strategy, which is often underutilised, is claiming depreciation as a tax deduction.

Property expenses, such as depreciation and capital works expenditure, can be deducted over a number years, adding to a significant return for property investors come tax time.
 

Moore Stephens is proud to announce that we have been shortlisted for the prestigious Australian Accounting Awards, partnered by Thomson Reuters.
 

Over the past month soaring property values have seen landlords hit by steep increases in landlord taxes.

A number of landlords, property owners and lessors have been shocked when confronted with sharp increases in land tax bills this month.

The State Revenue Office (SRO) argues that 2016 was a revaluation year, which means your site value will most likely increase in 2017.
 

Individuals and businesses with cash flow difficulties sometimes use the ATO like a bank overdraft. They deliberately don’t pay their taxes on time and whilst they may incur interest in doing so, it allows them to use the monies owing to the ATO for other purposes.

Up until now, the ATO have been very slow at chasing outstanding monies owing to it but this may change. Soon they will be able to disclose tax debt information to credit reporting bureaus which may have serious and inescapable consequences.
 

Trump’s election campaign had many focus areas with some radical ideas and all eyes will now be on which of these come to fruition. So, what will Trump mean for Australia? To a large extent, it will be business as usual. 

End of Year Tax Planning Checklist 2016
This paper summarises various items that may need consideration, prior to 30th June 2016, for effective tax planning. 

 

For many employers, it can be easy to forget the responsibility of managing your superannuation obligations amidst the busy lifestyle of operating a business.

However, those who fail to meet their super obligations risk facing severe and even damaging liabilities.
Employers who pay their workers $450 or more before tax in a calendar month must pay superannuation on top of the employee's wages. If an employee is under the age of 18 or is a private or domestic worker, they must work for more than 30 hours per week to qualify. The minimum an employer must pay is called the super guarantee (SG)

Recent changes were made to the CGT treatment on the sale and purchase of businesses involving ‘look-through earnout’ rights.

On 25 February 2016, a new law was enacted to deal with the tax treatment of earnouts for vendors and purchasers.

My previous article about the Moore Stephens Victoria Corporate Finance team was on work we had been doing during winter on Initial Public Offerings (IPO), reverse takeovers (RTO) and an expert witness report.  Some of that work carried over into Spring with a successful outcome for a number of those clients. 

In this article I am writing about some of the interesting work we have been doing with financial forecast modelling – primarily for financiers.  I also find this somewhat encouraging that a number of our clients are out there getting finance for expansion and new businesses. 

Moore Stephens New South Wales’ Audit Partner Elizabeth Perez makes no apologies for asking some hard, pointed – sometimes even uncomfortable – questions of clients and this one is a regular.

Upcoming Changes to Contributions and Leasing Standards. The Australian Accounting Standards Board (AASB) is currently considering the responses it has received from constituents regarding its proposals in ED 260: Income of Not-for-Profit Entities.