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Trust Income Distribution Under Scrutiny

The Australian Taxation Office (ATO) has issued a stern warning to trustees, emphasizing the importance of carefully considering how and to whom trust income is distributed. In recent years, trust distribution

A Tax Professional’s Perspective on Wealth Transfer and Home Ownership

The ongoing transfer of wealth from the baby boomer generation is underscored by the pivotal role of homeownership, particularly as property prices soar, with

Federal Budget 2024-25 Tax Insight

We take insight here of the mainly tax changes in the Federal Budget 2024-25 announced in May 2024, in relates to the topics of Individual & Families, Superannuation & Investors, Business & Employers. As announced before, the government has made permanent

Crackdown on Misuse of Company Funds

Utilizing company resources for personal gain is a common practice among business owners, often blurring the line between their business and personal life. However, the Australian Taxation Office (ATO) is

Navigating Generational Succession: A Comprehensive Guide for Family Businesses

Transitioning a family business from one generation to the next is a complex process that demands careful planning and execution. While the idea of passing the

ATO Alerts SMSF Trustees on Crucial Asset Valuation Practices

The Australian Taxation Office has recently issued a stern warning directed at trustees of self-managed superannuation funds, underscoring a significant issue with the practices surrounding asset valuations.

Understanding Your Business’s Worth: Key Factors and Tips

For many small business owners, their business isn’t just a source of income; it’s their biggest investment, often meant to support their retirement. But figuring out exactly how much your business is worth

ATO cracks down on Professional Services Firms’ Tax Avoidance Tactics

The Australian Taxation Office (ATO) is tightening its grip on professional services firms suspected of diverting profits to evade taxes. Two recent cases brought before the Administrative Appeals Tribunal

Reminder from ATO: Australian Taxpayers’ Unpaid Tax Debt

In recent times, the Australian Taxation Office (ATO) has been sending shockwaves through the taxpayer community by alerting individuals and their tax agents to unpaid historical tax obligations.

Reclaiming Investments: Tax issue for business withdraw the initial injection

However, a recent case underscores the importance of understanding the tax consequences associated with withdrawing funds from a company for personal use.

Profit Intentions in Property Transactions: Lessons from a Tax Dispute

In a recent case before the Administrative Appeals Tribunal, the intricacies of tax law and property transactions came to the forefront as a taxpayer

Stage 3 of the personal income tax cuts significant adjustment

Originally set to commence on July 1, 2024, the Stage 3 of the personal income tax cuts will undergo a significant overhaul as proposed by the Federal Government.

Navigating 2024: Understanding Economic Changes, Tax Reforms, and Work Trends

hanges, and changing work dynamics taking centre stage. This article explores the key factors that will shape the year ahead, breaking down the complex

ATO’s warning in Investment Loan Reporting

related to rental properties, estimating an annual loss of approximately $1 billion in tax revenue. A significant contributor to this issue lies in the questionable practices surrounding the claiming of interest on

Addressing the Superannuation Guarantee Gap: A Closer Look at Hidden Wages, Late Payments, and Future Reforms

The Australian Taxation Office (ATO) reveals a concerning statistic: workers are owed an estimated $3.6

When does food become GST-free?

Chobani’s plain yogurt is exempt from GST, but their ‘flip’ range is taxable. A recent case before the Administrative Appeals Tribunal (AAT) highlights the fine line between GST-free and taxable foods. In 2000, when the Goods & Services Tax (GST) was initially introduced, basic food

Self-Education Expenses and Tax Deductions: What’s Allowable?

The Australian Taxation Office (ATO) has recently issued a draft ruling on self-education expenses which clarifies what can and cannot be claimed as deductions. If you pursue education related to your current job, you can

Empowering Your Business with Electrification: Unlocking the $20k Tax Deduction

Electricity is rapidly becoming the energy source of choice, supplanting traditional fossil fuels and natural gas in various industries. To encourage businesses to

Tax Implications for Content Creators on Platforms like OnlyFans

The rise of OnlyFans, YouTubers, TikTokers, and other content platforms presents lucrative opportunities for content creators to monetize their audience. However, the tax authorities are now paying attention to this

Australia’s Superannuation: Envisioning Retirement and Factors affect Your Needs

Australia’s superannuation system has come a long way, focusing on securing people’s finances in retirement. Recently proposed laws define the purpose of

The Crucial Role of Timing and Tax Residency for International Taxation

n a recent case heard by the Administrative Appeals Tribunal (AAT), the timing of employment income plays a significant role in determining an individual’s tax obligations, especially in the context of changing tax

Why this year tax refund is much smaller?

ticed a significant reduction in their expected tax refunds for financial year 2023, prompting questions about what’s behind this change. This article will tell you why.

Challenges of Successful Generational Succession

Transitioning a family business to the next generation is not just a theoretical legacy; it’s a practical endeavour that goes beyond wealthy clans. This process involves passing on the business operations, ownership, and

Exploring the Tax Implications of Small-Scale Subdivisions

You possess a piece of land that is ideal for a subdivision. All the necessary arrangements have been sorted out with the Council, builders, and the bank. However, a crucial aspect has been overlooked: the tax

The 120% Technology and Skills ‘Boost’ Deduction for SMEs – 2

The 120% technology and skills ‘boost’ deduction is a tax incentive introduced in the 2022-23 Federal Budget for small and medium-sized businesses (SMEs) in Australia. The boost allows eligible SMEs to claim a 120% tax

What changed in FY2024

Employers & Business:
• The Superannuation Guarantee has been raised to 11% from its previous rate of 10.5%.
• National and Award minimum wage increases have been implemented.

The 120% Technology and Skills ‘Boost’ Deduction for SMEs – 1

investments and skills and training expenditure by small and medium businesses (SMEs) has finally become law. People who follow our social media has been informed to record these types of expense into a separated

Changes to Working from Home Deduction in Australia: Financial Year 2023 vs. 2022

For the financial year 2023, taxpayers have the option to choose one of two methods to claim their deductions for working from home: the “fixed rate” method or the

Crypto Taxes in Australia: A Guide for Investors and Traders

To help you along the way, this article will outline the implication of tax on crypto assets in two aspects, which is Capital Gains Tax (CGT) for crypto investors and income tax for crypto traders.

Federal Budget 2023-24 Tax Insight

The Australian Federal Budget 2023-24 is announced on 9 May 2023. As usual, in this article, we mainly look into the details of the business and super fund tax changes given there isn’t much individual tax changes in this budget including any amendment on the controversial

What’s New Tax Rules to Electric Cars?

The Australian Taxation Office (ATO) has released updated information on electric vehicles just in time for the Fringe Benefits Tax (FBT) year that began on April 1.

The ATO’s conclusive stance on precarious trust distributions

The ATO has recently published its final position (TR 2022/4) on trust distributions that pose a risk to the integrity of the tax system. Specifically, the ATO has clarified how section 100A, an integrity rule that aims to

Working from home tax claim rule has been changed

The Australian Taxation Office (ATO) has updated its approach to claiming expenses for working from home. Taxpayers can now claim 67 cents per hour for all expenses related to working from home, including

Law Firm Trust Account External Examination

As a law firm in New South Wales or Victoria, one of the obligations is to have your trust account examined every year between 1 April and 31 May.

How capable is ChatGPT in terms of Australian taxation?

Not to be overly skeptical, but we are just curious about the ability of this latest AI software ChatGPT – in dealing with the Australian tax system, so we conducted a simple test.

Last chance – Director ID due on 14 Dec 2022

have been set out by the Australian Taxation Office (ATO) for Australians who are the directors of companies and now have less than two weeks to take action to avoid a big fine of $13,000.

Federal Budget 2022-23 2.0 Tax Insight

We take insight here of the mainly tax changes in the Federal Budget 2022-23 2.0 announced in October 2022, in relates to the topics of Individual & Families, Superannuation & Investors, Business & Employers, and

NSW Business Support 2022

The NSW Government has announced a $1bn support package for the NSW small businesses affected by the Omicron outbreak.

The NSW Treasurer Matt Kean, acknowledging the difficulties that NSW small business are facing due

2021 NSW COVID-19 Support – Business

We summarise the NSW COVID-19 main government supports: 2021 COVID-19 business grant; JobSaver payment; 2021 COVID-19 micro-business grant; Payroll tax concessions; Land tax relief.

Elgibility of JobKeeper 2.0 has been further relaxed

On 7 August, the Government modified the eligibility of JobKeeper Payment 2.0 (extended JobKeeper 1.0 to 28 March 2021), aiming to embrace more people and businesses who have been affected by the ongoing crisis. The change is in response to the undeniable second COVID-19 wave in Victoria,

JobKeeper and JobSeeker have been extended

Later last month, the government announced to extend JobKeeper Payment by six months to 28 March 2021 and the JobSeeker Payment to 31 December 2020. The extension is aiming to build up the confidence for economy recovery and continue to support the business and community.

Key Tax Changes for the New Financial Year 2021

2020 is already halfway and we are all heading into the new financial year. Despite there are quite many changes from the government stimulus package, there are still some key changes that we can take a look at for Financial Year 2021.

Happy New Financial Year

A new financial year is an important time for all kinds of businesses, from sole traders to big corporate. It is not only to meet your tax obligations with the Australian Taxation Office, but also the perfect time to plan for the next 12 months of your business.

Don’t Miss Out the $25K HomeBuilder Grant

Given the impact of Bushfire and COVID-19, Australia has entered into an economic recession first time in the last 30 years. Last a couple of weeks, we have witnessed the Federal Government announced that they have been working with States and Territories to offer a $25,000 HomeBuilder Grant

Don’t let coronavirus sink you and your business

The last few months have shown a constant display of obscure challenges related to maintaining business during the COVID-19 pandemic for business owners and leaders everywhere. The latest obscure challenge is possibly the trickiest yet: how to cautiously recommence businesses after the government announced the major easing of coronavirus restrictions.

How SME get recovered after the COVID-19

As the lockdown has been gradually lifted, how would SME self-adjust their business and catch up with the changing market in order to bring their business back to normal or even beyond?

It’s ‘TAX’ time again

Tax time is fast approaching and for some of you this might be the last thing on your mind. There might be other things that are more important for you to get through this uncertainty. However, now is the best time to get your tax affair in order and avoid last minute planning that can cost you.

The Second and Third Stimulus Package Plan – Which One Suits You

Followed by the first Stimulus Package plan announced on 12th March 2020, the federal government has rolled out the second and third Stimulus Package plan with a total amount of up to 200 billion dollars in last two weeks aiming at helping small and medium business

Simplifying deductions for working from home

As the coronavirus outbreak grows, more people are forced to work from home. While working from home can come with its benefits like getting to sleep in longer, avoid the daily commute and work from bed in your pyjamas, it can also hurt your hip pocket if you’re having to fork out for expenses your employer would normally cover, like increase utility bills, phone and home internet bills.

The Tax-Free Payments to Employers

With the announcement from Federal Governments Economic Response to the COVIC-19 Coronavirus, the cash flow grant for employers measure is designed to support employing small and medium sized businesses and to improve business confidence. The measures also supports the activities of not-for-profits (including charities) at a time where they are facing increased demand for services.

COVID-19 Business Continuity Plan

The COVID-19 situation is bigger than any of us have ever faced. Our clients, professionals, mum’s and dad’s don’t understand how badly they need accountants and advisors’ help. They are scared and don’t know what to do, and most probably haven’t really thought through what the consequences will be for them.

How small and medium business benefit from the Stimulus Package

Hit by the bushfire, Coronavirus (COVID-19) and global economy downturn, the Federal Government has announced a $17.6 billion Stimulus Package on 12 March 2020 to maintain Australians in jobs,

COVID-19 and your business

With the development of COVID-19 from epidemic to pandemic status, businesses across Australia are facing the possibility of harmful effect. We are all aware of the impact and potential expansion of Coronavirus on the world, but what are the potential…

ATO and other authorities’ support for bushfire victims

The country is suffering billions of dollars’ loss during the bushfire season. Returning life to normal is a long way to go for most of us. Therefore, we summarize some assistance available offered by the ATO and other

CGT exemption on Main Residence is not any more to Foreign Resident

The proposal in 2017-18 Federal Budget for stopping foreign residents from claiming CGT main residence exemption has passed by the Parliament before Christmas 2019 and takes effect retrospectively from 9 May 2017.

Superannuation Guarantee Amnesty

The Government has restored the Superannuation Guarantee (SG) amnesty aiming to provide employers who have fallen behind with their SG obligations the one-off opportunity to “self-correct”. However, this time those continually fail to take any action will be heavily

Managing Cash Flow

Cash flow is one of the most important components of success for a SME business. Without cash, profits are meaningless. Organisations that don’t implement good cash management may not be able to make the investments needed to compete, or they…

Deduction Changes of Vacant Land Affecting Small Property Development

A new law has come into effect through the Parliament last month, denying the deductions for holding expenses associated with vacant land, which currently would be deductible in the ordinary course. The legislation is not only retrospective but also go beyond purely vacant land. Before, the old law allows those who hold vacant land with an intention to build a rental property on it to claim the tax deduction for costs of holding the land

Guide to Low and Middle Income Tax Offset (LMITO) of $1,080

We have received questions from our taxpayers wanting to know the recent tax relief of $1080. Although the immediate relief has been introduced in the 2019 Federal Budget, this article will explain in more detail aiming to provide you with a better understanding about this tax cuts. Firstly, tax offset of $1080 will not automatically come to you when you lodge your tax return. So what is the Low and Middle Income Tax Offset?

PAYG Withholding Tax Deduction Denial

Government has passed a legislation right before Christmas 2018 which will prevent a deduction from being claimed for salary and wages (and certain other payments) by a business that fails to meet its PAYG withholding obligations. This change will apply to payments made from 1 July 2019 onwards. The existing penalties for failing to comply with PAYG withholding obligations are already significant, this adds another financial incentive for businesses to ensure that they are compliant with PAYG withholding obligations.

For All Business – Single Touch Payroll

From 1 July 2018, ATO has enforced a new legislation on the payroll reporting system. The new legislation requests business with 20 or more employees to use the Single Touch Payroll (STP) enabled software to report employees’ payroll information including superannuation. Business with less than 20 employees has to implement Single Touch Payroll system too by 1 July 2019 (this hasn’t been lawed yet). Under the new Single Touch Payroll reporting system, payroll information will be instantly sent to ATO at each pay run.

Ebay and Amazon overseas sellers are hammered by the new GST legislation

Recently, the Australian government has introduced a new GST legislation on the imported low value goods. The new legislation will be effective from 1 July 2018 and it will affect thousands of online platform overseas sellers whose annual GST turnover is over $75,000,

Find Your Suitable Business Structure

If we metaphorize a business to a building, structure to the business will be as important as foundation to the building. A suitable structure can provide tax effectiveness and assets protection to a business. Contemporarily, sole trade, company and trust are common structures used in business. 

Investment property tax return

Investment property tax return can be very tricky and complicated, especially new laws will be enacted according to the recent federal budget. No matter you are in Australia or an overseas investor, you will have to lodge the tax return by 31 October every year if you are having an investment property and earning rental income or capital gain in Australia.

Income tax return and tax deduction

Along with the closing of financial year 2017, here comes the tax return time again. During the years, we have seen many clients made mistake with their tax return and led to either ATO penalty or hundreds and thousands dollars losing in tax payment

NSW will raise Surcharge Purchaser Duty and Land Tax Surcharge again to foreign persons

Recently, the NSW government has announced that the surcharge purchaser duty and land tax surcharge will be raised again to foreign person investing in residential

Federal Budget 2017 Tax Highlights

The Australian government has just announced 2017 Federal Budget tonight. At Pitt Martin, we closely keep update our knowledge with government tax legislation and economy changes. Here is some key points we think can be relevant to the tax payers and business owners.

Land Tax Surcharge

From 1st January 2017, if you or your family and associates are a foreign person, your NSW residential land might be subject to 0.75% land tax surcharge charged by Office of State Revenue.

Tax Planning – Super

Are you a high wages owning employee or a self-employed business owner who paid too much tax last year? There is an effective way to reduce the tax liability by directing the income into your super.

Individual or Corporate Trustee for Self Managed Super Fund

In Pitt Martin, we specialized to help clients set up SMSF and manage the super fund tax affairs. Call us today on 02 9221 3345 or email to connect@pittmartingroup.com.au.