NOVEMBER 2021
They say the two inevitable things in life are ‘death and taxes’, and in this newsletter we cover off both – as well as several updates on superannuation.
In the world of tax, we examine how the CGT retirement exemption works where a gain has been made by company or trust – and why it’s best to seek the advice of a professional instead of attempting a DIY!
We also address why the common question ‘Are you an Australian resident for tax purposes?’ is such an important one. (Spoiler alert: the main reason is that if you are, you’re obliged to declare all income earned both in Australia and overseas!)
Becoming the executor of a deceased estate is often seen as an honour, but it’s also a huge responsibility: our third article looks at what’s involved should you ever find yourself appointed to execute the wishes of a deceased loved one.
Over in the superannuation world, we explain the new ‘stapling super’ mechanism, effective as of 1 November, that will automatically carry over an employee’s super fund to their new job with a view to reducing to the old problem of multiple super accounts.
In good news for SMSF trustees financially impacted by COVID-19 lockdowns, our second super article outlines some of the relief that will be available in certain States and Territories in the 2021-22 financial year.
DECEMBER 2021
As part of the Federal Government’s bid to modernise the Australian Business Register (ABR), all company directors – including directors of family trusts and SMSFs with corporate trustees – must apply for a “director ID”. Find out what dates to meet to avoid fines and penalties.
A raft of new measures designed to help boost Australians’ retirement balances have been introduced into Parliament. The changes are due to start on 1 July 2022 – take a look to see if you might benefit.
SEPTEMBER 2021
This issue contains the following articles:
How to treat work-related travel and living away from home costs;
SMSFs and property development - emerging risks;
Claiming GST credits for employee reimbursements;
Buying a new house before selling the old one;
Trust distributions to non-residents;
and 'Stapling super' - reducing multiple accounts for employees.
OCTOBER 2021
2021 has been, even more so than 2020, the year of working from home for so many of us – but what are the tax implications of using your home as a place of business? Turn to page 3 of our October newsletter to find out.
On the subject of homes, we also cover off what happens when multiple children inherit multiple rental properties – and how to solve the issue of co-owning a property with others. We’ve also got two articles on superannuation – our leading story examines the implications of compensation payments for super fund trustees, while on page 6 we outline the process for SMSFs having to use SuperStream from 1 October for certain contributions and rollovers.
Finally, October means that it’s almost that time of year again – Christmas, as your local supermarket will no doubt be reminding you soon – and our final story looks at the tax treatment of gifts and events in the workplace context.
JULY 2021
The ATO has seen a lot of mistakes being made on business tax returns over the years, but has kept a record of these so we can all learn from other people’s errors. Laundry expenses can be a legitimate tax deduction, but claims need to follow certain rules, which we sketch out.
Every SMSF will come to the end of its functioning life at some stage, but the way in which a fund is wound up can leave members with differing retirement benefit outcomes. And if this tax time’s end result is a tax bill, not a refund, there may be a straightforward explanation.
AUGUST 2021
With reforms to superannuation – including for SMSFs – on the horizon, our leading article covers what’s coming, including more accountability for funds and flexibility for super holders.
We’ve got two articles to help you understand how trusts work: ‘Trust distributions’ goes through the different roles involved in a trust, while ‘Trust losses’ explains what constitutes a family in the context of a family trust election.
If you’re one of Australia’s two-million-plus rental property investors, our article on capital works deductions is a must-read, and if you’re among the 90% of Aussies who participate in a rewards program, our final article clarifies some of the rules that apply to your points collection.
Federal BUDGET 2021-22
It is hoped that the Federal Budget 2021-22 will boost business and economic recovery badly needed as a result of the global pandemic. The Government has decided to put its foot on the accelerator with the hope that the growth in the economy over a long period of time will help to pay down the debt that has been central to the Government’s response to COVID-19.
JUNE 2021
Bitcoin and cryptocurrencies have had a bit of a resurgence, which may even have something to do with the pandemic. But the implications for your tax outcomes is something even the ATO is wary about.
We also look at “personal services income” and the ATO’s refreshed guidance, the qualifications that are expected for SMSF trustees, and how to best go about briefing your barrister if you or your business need to face court.
APRIL 2021
When it comes to selling property and CGT liabilities, the timing of the transaction can be more important than many expect. We also look at the fact that not every type of income is taxed, with some money escaping tax altogether.
There are new insolvency reforms that could help some small businesses in their climb out of the COVID-19 bunker. We cover the deductibility or otherwise of the costs of re-financing a partnership, and provide some tips on managing your super fund’s transfer balance account.
MAY 2021
It’s getting very close to the business end of the financial year, so we have gathered some tax planning tips that could set you up for a better tax outcome. And as that outcome can be ruined by having to deal with an excess super contribution charge, we look at how best to avoid it.
The ATO has tightened the evidence requirements for real property valuations for SMSFs, so we look at how to keep your fund compliant, and also bring some good news with the recently launched SME Recovery Loan Scheme, plus an expansion of the ATO’s independent review service.
FEBRUARY 2021
One of the economy-boosting measures initiated to help in a post-COVID recovery is the JobMaker scheme. We run over what you need to know. And especially for this time of year, we look at tax and dealing with natural disasters.
Getting a valuation is sometimes required when managing tax affairs, so we cover the basics in case you need to have an asset valued. We also touch on the realities when a business ceases reporting by single touch payroll.
MARCH 2021
Government agencies sometimes use ABN registration to contact businesses for emergency help or even grants of support, so it’s important to keep your business’s ABN details current. And the perennial problem of dealing with cash flow gets some advisory help from the ATO.
A new Director Identification Number regime is something companies may need to get familiar with very soon, and we re-visit the changes that COVID-19 has made to FBT. There’s also details about the unstoppable SMSF sector, and the tax treatment of unexpected lump sums.