The Government increases the burden on small business
The Government has removed the tax deduction for ATO General Interest Charges, from 1 JUly 2025.
The Australian Taxation Office (ATO) has recently announced a significant change that will significantly impact small businesses from July 1, 2025. From this date, General Interest Charges (GIC) will no longer be tax deductible.
This change has potential to significantly impact small business given how difficult it can be for small business to access finance. This also makes one wonder if the Government really wants to support small business, particularly given the current economic conditions and the substantial increase in small business insolvencies.
2025 Fringe Benefits Tax year
The 2025 Fringe Benefits Tax (FBT) year is coming to a close, read our article to see what employers should be doing, it is important for employers to review any fringe benefits they may have provided to employee and record vehicle odometer reading for the FBT year. FBT pertains to any non-cash benefits employers provide to their employees. The ATO have an aggressive compliance stance when it comes to FBT, employers need to be on the front foot to avoid any potential penalties.
Is your contractor an Employee!
From today there are changes to the way you determine if a contractor is an employee.
The new test: Whole of Relationship Test:
Constitutionally covered businesses use the whole of relationship test to determine if a worker is a contractor or an employee starting from 26 August 2024.
The Problem When The Evidence Doesn’t Match What The Taxpayer Tells The ATO
A recent case before the Administrative Appeals Tribunal (AAT) highlights the importance of ensuring that the evidence supports the tax position you are taking.
The case involves heritage farmland originally purchased for $1.6m that sold 7 years later for $4.25m and the GST debt that the ATO is now pursuing on the sale.
In 2013, the taxpayer purchased Sutton Farms in Western Australia – 1.47 hectares consisting of an uninhabitable homestead, large barn and quarters.
Contractor or Employee?
Just because an agreement states that a worker is an independent contractor, this does not mean that they are a contractor for tax and superannuation purposes, new guidance from the ATO warns.
Where there is a written contract, the rights and obligations of the contract need to support that an independent contracting relationship exists.
The fact that a contractor has an ABN does not necessarily mean that they have genuinely been engaged as a contractor. The ATO says that “at its core, the distinction between an employee and an independent contractor is that:
Can My SMSF Invest in Property Development?
Australians love property and the lure of a 15% preferential tax rate on income during the accumulation phase, and potentially no tax during retirement, is a strong incentive for many SMSF trustees to dream of large returns from property development. We look at the pros, cons, and problems that often occur.
Stage 3 Personal Income Tax Cuts Redesigned
The personal income tax cuts legislated to commence on 1 July 2024 will be realigned and redistributed under a proposal released by the Federal Government.
After much speculation, the Prime Minister has announced that the Government will amend the legislated Stage 3 tax cuts scheduled to commence on 1 July 2024. Relative to the current Stage 3 plan, the proposed redesign will broaden the benefits of the tax cut by focusing on individuals with taxable income below $150,000. If enacted, an additional 2.9 million Australian taxpayers are estimated to take home more in their pay packet from 1 July. It's not how Stage 3 of the 5 year plan to restructure the personal income tax system was supposed to work, but a sharp escalation in the cost of living has reshaped community sentiment. As the Prime Minister said, “we are focused on the here and now” and by default, not on long term structural change.
Why is my tax refund so small?
The low and middle income earners offset delivered up to $1,080 from 2018-19 to 2020-21, and up to $1,500 in 2021-22 for those earning up to $126,000, is gone. This was a significant boost for many people each tax time and bolstered the tax returns of millions of Australians. For many, the end of this offset has meant that their tax refund has reduced dramatically compared to previous years.
Important: 1 July 2023 wage increases
For employers, incorrectly calculating wages is not portrayed as a mistake, it’s “wage theft.” Beyond the reputational issues of getting it wrong, the Fair Work Commission backs it up with fines of $9,390 per breach for a corporation. In 2021-22 alone, the Fair Work Ombudsman recovered $532 million in unpaid wages recovered for over 384,000 workers.
The 120% technology and skills ‘boost’ deduction
The 120% skills and training, and technology costs deduction for small and medium business have passed Parliament. We’ll show you how to take maximise your deductions.
Almost a year after the 2022-23 Federal Budget announcement, the 120% tax deduction for expenditure by small and medium businesses (SME) on technology, or skills and training for their staff, is finally law.
How do I open a protected message?
How to access encrypted emails sent to you by Acumen. We use office 365 to send the emails.
A Broken Promise for Broken Super
OK, lets start by getting one thing clear. Saying things like “We’ve said we have no intention of making any super changes” during an election campaign, and then making changes less than 12 months later, is clearly a broken election promise.
ATO announces changes to working from home deductions
Work from home deductions changing for the 2022/23 financial year. The fixed rate amount is increasing and some of the record keeping rules are easier to comply with.
Paid - Family and Domestic Violence Leave, New Rules
Employees of non-small business employers can now access 10 days of paid family and domestic violence leave in a 12-month period.
Employees of small businesses can access the leave from 1 August 2023.
Employees have had an entitlement to unpaid family and domestic violence leave (FDVL) for some time as part of the National Employment Standards (NES). But as of 1st February this is a paid leave entitlement for employees of larger employers and 1 August 2023 for employees of small employers (fewer than 15 employees).
January PAYG withholding statement (IAS) is due on the 21st
January activity statement due on the 21st, don’t forget to lodge yours.
Am I taxed on an insurance payout?
Australia has had its fair share of disasters over the last few years – drought, bushfires and floods – that have ramped up the volume of insurance claims. Most people would assume that if and when they need to claim on their insurance, the insurance payout covers the damage and is not income assessed for tax purposes - but this is not always the case.
Acquiring collectables inside your SMSF
Clients with self-managed superannuation funds (SMSF) often ask what assets the SMSF can acquire.
‘Why’?
The golden rule for acquiring assets inside your SMSF is why? To be compliant, your fund must be maintained for the sole purpose of providing retirement benefits to members, or to their dependants if a member dies before retirement. The sole purpose test (section 62 of the Superannuation Industry (Supervision) Act 1993), is your starting point. If the collectible you are looking to acquire does not fulfil this purpose, then you have an immediate problem.
Do you have your Directors ID yet!
In October 2021 the Government introduced a new identification system for company directors, a Directors ID. A number of transitional measures were put in place to make it easier for existing directors to comply with the new regime. The last of those transitional measure is fast approaching on 30 November 2022. If you are a director and have not applied for your Directors ID by 30 November 2022 you could face stiff penalties.
How to sell your business
We’re often asked the best way to sell a business.
There are two key components at play in the sale of a business: structuring the transaction; and positioning the business to the market. Both elements are important and can significantly impact your result.