PCR and RAT tests to be tax deductible, FBT free

The Treasurer has announced that PCR and rapid antigen tests (RAT) will be tax deductible for individuals and exempt from fringe benefits tax (FBT) for employers if purchased for work purposes. There has been confusion over the tax treatment of RAT tests with the Prime Minister stating for some time that they are tax deductible, but in reality, the tests were probably only deductible in limited circumstances. If you have…  Read more

Year of the Tiger: Roaring or Bellowing?

The 2022 Luna New Year, Year of the Tiger, is courage and bravery. It is a year to drive out evil and one of momentum and change. The message; walk boldly with courage. And it seems the Reserve Bank Governor is aligned with this sentiment. The Tiger economy At a recent speech to the National Press Club, Reserve Bank Governor Philip Lowe was optimistic about Australia’s prospects in 2022. This…  Read more

Pandemic Leave Disaster Payments rules change

The rules for the Pandemic Leave Disaster Payment, the payment accessible to those who have lost work because they have had to self-isolate with COVID-19, or are caring for someone who contracted it, changed on 18 January 2022. The new rules change the definition of close contact in line with the harmonised national definition. The payment is now accessible if you are a close contact because you either usually live…  Read more

Cash injection for struggling businesses

Businesses struggling with the Omicron wave of the pandemic have been offered new grants and support in NSW, SA and WA. New South Wales The NSW Small Business Support package provides eligible employing businesses with a lump sum payment of 20% of weekly payroll, up to a maximum of $5,000 per week for the month of February 2022. The minimum weekly payment for employers is $750 per week. Eligible non-employing…  Read more

Professional Services Firm Profits Guidance Finalised

The Australian Taxation Office’s finalised position on the allocation of profits from professional firms starts on 1 July 2022. The ATO’s guidance uses a series of factors to determine the level of risk associated with profits generated by a professional services firm and how they flow through to individual practitioners and their related parties. The ATO may look to apply the general anti-avoidance rules in Part IVA to practitioners who…  Read more

Business Update – 2 February 2022

Welcome back to our Weekly Digest. Read on for the latest updates and some ideas to help us all move forward. NSW Unveils $1 Billion Support Package for Businesses The New South Wales government has unveiled a $1 billion support package for small- and medium-sized businesses hit by the Omicron outbreak. However, the payment will be capped at half of what was offered during the Delta wave in 2021, after…  Read more

Business Update – 28 January 2022

Welcome back to our Weekly Digest. Read on for the latest updates and some ideas to help us all move forward. Should You Mix or Match Your Booster Dose? In Australia, Pfizer and Moderna COVID-19 vaccines are recommended as booster shots, regardless of which vaccine you had for your first two doses. Some research has indicated that “mixing and matching” vaccines could give your immune system a bigger boost. Eligibility…  Read more

Business Update – 20 January 2022

Welcome back to our Weekly Digest. Read on for the latest updates and some ideas to help us all move forward. Pandemic Leave Disaster Payment People who are forced out of work to isolate themselves due to being infected or being a close contact are eligible for the Pandemic Leave Disaster Payment. You are also eligible if you are caring for a child under 16 years old who is a…  Read more

2022: The year ahead

2021 was to be the year we returned to a post-COVID normal however the pandemic has fundamentally changed the way many of us operate in our personal and work lives. Here is some of what we can expect this 2022: Federal Election The Federal election will be held between March and May 2022. Annoying text messages, robo messages and advertising are on their way! Federal Budget in March The timing…  Read more

E-invoicing: A Huge Cashflow Win for Australian Businesses

The Australian government has made some important announcements over the past few months with regard to e-invoicing. In the 2021-22 Budget, the government committed $15.3 million to increase the adoption of e-invoicing, which guarantees accelerated payment terms. In this article, we will look deeper into what e-invoicing is and how any type of business can benefit from it. What is e-invoicing? Over 1.2 billion Business to Business (B2B) and Business…  Read more

How to Choose the Right Software for Your Business

These days, businesses have plenty of options when it comes to choosing software. There are hundreds of developers creating and perfecting new products designed to help you more effectively and efficiently run your business. With so many options available, it’s important to focus so you know where to start looking and how to make the best decision. Here are some factors to keep in mind when you choose software for…  Read more

The ‘Backpacker Tax’ and the High Court

The High Court has ruled that the ‘backpacker tax’ is discriminatory. We look at the impact. Since 2017, the ‘backpacker tax’ has taxed the first dollar of income a backpacker earns in Australia – regardless of their residency status – at the working holiday maker tax rate of 15% up to: $37,000 in an income year for 2019-20 and earlier income years $45,000 for 2020–21 and later income years. When…  Read more

The top Christmas tax questions

Every year, we are asked about the tax impact of various Christmas or holiday-related gestures. Here are our top issues: Staff gifts The key to Christmas presents for your team is to keep the gift spontaneous, ad hoc, and from a tax perspective, below $300 per person. $300 is the minor benefits threshold for Fringe Benefits Tax (FBT) so anything at or above this level will mean that your Christmas…  Read more

If Santa was an Australian tax resident

A lighter look at the complexity of Australian taxation laws and the year that has been. Dear Mr Claus, Thank you for the opportunity to provide strategic business, tax and compliance advice for your operation. We’re pleased you have initiated this advice as the Australian Taxation Office (ATO) has instigated a number of reviews that may impact your operations and your team, and its relationship to contractors. Some of these…  Read more

Business Update – 1 December 2021

Welcome back to our Weekly Digest. Read on for the latest updates and some ideas to help us all move forward. International Border Reopening for Skilled Workers and Students Delayed Plans to reopen international borders to skilled workers and students have been halted due to concerns over the COVID-19 Omicron variant. The 1 December opening will be delayed by at least two weeks, including the plan to open the border…  Read more

Business Update – 26 November 2021

Welcome back to our Weekly Digest. Read on for the latest updates and some ideas to help us all move forward. Australia to Reopen to Foreign Visa Holders Australia will allow foreign visa holders to enter the country from the start of December in a bid to revive the economy. International borders have been shut since May 2020 and allowed only restricted numbers of citizens and permanent residents to enter…  Read more

How to set up your Director ID

Directors are now required to register for a unique identification number that they will keep for life. What is a director ID? A director ID is a 15 digit identification number that, once issued, will remain with that director for life regardless of whether they stop being a director, change companies, change their name, or move overseas. The introduction of the Director Identification Number (DIN) is part of the Government’s…  Read more

Business Update – 17 November 2021

Welcome back to our Weekly Digest. Read on for the latest updates and some ideas to help us all move forward. Australia Hits 90%, Single-Dose Mark Australia has hit a new milestone, with 90% of those who are 16 years old and above have received at least one dose of a COVID-19 vaccine. This makes every state and territory on track to hit 80% fully vaccinated by the end of…  Read more

Overseas gifts and loans in the spotlight

The ATO has recently issued an alert on gifts or loans from overseas. The ATO is particularly concerned about schemes and arrangements designed specifically to circumvent Australian tax laws. In general, Australian-resident taxpayers need to declare their worldwide income in their Australian tax returns. Some schemes however disguise offshore capital gains or income as a gift or loan. So, how does the ATO know if money from overseas is a…  Read more

Reasons why start-ups fail and how to avoid them

The start of a business is an exciting time. You’ve got a great idea for a business and are enthusiastic to get started. It’s important to plan ahead to give your business the best chances for success. Planning ahead means anticipating challenges and developing ways to successfully address them, so they don’t upend your start-up. Here are reasons why start-ups fail and ways you can avoid them Lack of market…  Read more

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