I’ve been speaking to many clients recently about tax planning, and one option that comes up often is extra superannuation contributions. For some, this is a great way to save tax, but in this post I go through the other benefits.
You know your old tax returns need to be lodged, but you keep putting it off. Then a letter arrives from the ATO, demanding that you catch up. What if you owe money? Can you even find the paperwork you need? Which years have you missed? This post answers those questions and more.
When a small business starts, they usually earn too little to pay tax. Then as the business grows, more taxes are added, at increasing rates. The faster the growth of the business, the faster the tax bills grow, and it can be a demoralising shock. This post outlines a few tax thresholds to mentally prepare yourself for, […]
If you prepare your own tax return, it is due for lodgement by the 31st of October and payment within 21 days of that deadline. However, if you lodge through a Registered Tax Agent, you may automatically qualify for extensions. This post provides an overview of the main extensions for individual income tax returns.
Most property owners know that the sale of their main residence is free from capital gains tax (CGT). Normally, rental properties are liable for CGT, except in a few special cases. In this post, I discuss a useful exemption.
Australia runs a self-assessment tax system, which means that the ATO accepts your initial lodgement but may request evidence at a later date. If you can not provide the evidence, the ATO will disallow your claim and charge a penalty and/or interest. This post covers what records to keep, how long to keep them, and what […]
If you have a rental property, you can claim a tax deduction for the cost of repairs or improvements to the property. In previous years, the ATO have focused their audit activity on the difference between repairs and improvements, so this post contains an overview of the important concepts.
In a previous post, Overview of Legal Entities, I mentioned that the Pty Ltd company is increasingly common in certain industries, sometimes as an attempt to convert employees to contractors and avoid employee costs. However, many government departments are aware of this, and so each has their own test to determine who is actually an […]
In my last post, Overview of Legal Entities, I mentioned Pty Ltd companies. This post covers further details that you need to know about Pty Ltd companies.
It is quite simple to run your business in your own name, but there are four other types of legal entities to choose from: partnership, trust, self-managed superannuation fund, and company. Some entities may be more appropriate to your situation than others, but they can be complicated to understand initially. This post provides an overview […]