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Federal Budget 2016 – General Business

Reducing the company tax rate to 25% The government will reduce the company tax rate to 25% over 10 years. The rate will firstly be reduced to 27.5%, and then it will be reduced progressively to 25% in 2026-27. Dividends will be frankable in line with the rate of tax paid by the company. The […]

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Federal Budget 2016 – Small Business

Increasing the small business entity turnover threshold The government will increase the small business entity turnover threshold from $2 million to $10 million from 1 July 2016. The current $2 million threshold will be retained for access to the small business CGT concessions. The eligibility threshold for the unincorporated small business tax discount will be […]

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Federal Budget 2016 wrap up

The budget has a few sweeteners, but not so much that will turn anyone hyperactive. The welcome news is that the turnover threshold for classifying a “small business entity” will increase from $2 million to $10 million. This will allow a further 90,000 to 100,000 businesses to access a range of small business tax concessions, […]

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ATO Data Matching – Department of Human Services

There have been a number of legislative changes (and confusion!) surrounding the invalid and invalid carer tax offsets and for exemptions from paying the Medicare levy and surcharge. The Australian Taxation Office is concerned that a number of people continue to claim these offsets and entitlements incorrectly. As a result, the ATO have announced it […]

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Inactive Trusts – ABNs to be cancelled

  Starting in February, the ATO have advised that they will begin cancelling the ABNs of approximately 220,000 trusts, where there is evidence that those trusts are no longer carrying on an enterprise. How do they determine if  a trust is inactive? If, for the last 2 years, the trust has not lodged BAS’s and/or […]

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3 reasons why Uber drivers need tax professionals right now

As far as the Tax Office is concerned, Uber drivers are taxi drivers. They’ve just enforced rules that lump the disruptive ridesharers in with a special class of independent contractors who have to pay GST and withhold tax from all their takings. That’s only the beginning of their obligatory gauntlet, though. Many Uber drivers have […]

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Is franchising still worth it?

7-Eleven and the franchising sector have been in the headlines lately, but for all the wrong reasons. Allegations of wage theft have surfaced, and further claims that a “half-pay scam” had the complicit involvement of senior management. The claims include fiddling with time sheets, “ghost” workers, nil penalty payments and alleged rates of as little […]

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R&D Tax Incentive claims: The good, the bad, the dodgy

The Tax Office warns that it is working closely with AusIndustry to identify taxpayers involved in aggressive R&D Tax Incentive arrangements. It says some claims made for the R&D incentive have been negligent on the compliance requirements generally expected when making a claim, with some other instances even bordering on tax avoidance and fraud. The […]

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Cash economy: The ATO has its own idea about your living expenses

The ramifications of Australia’s “cash economy” is a pebble in the Tax Office’s shoe that it is constantly looking to dislodge. One of the tools that it has developed to achieve this is a set of guidelines looking at an average taxpayer’s household expenses. The Tax Office has made these guidelines available to the public […]

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The deductible cuppa

  Did you know…. ?? Providing morning and afternoon teas and light refreshments to employees (or their “associates”) at the employer’s business premises or worksite is tax-deductible to the employer. The same applies if the business provides such refreshments to visitors. The Australian Taxation Office has ruled that this is not “entertainment”. If the business […]