DECEMBER 2024
This month’s newsletter is packed with helpful articles for the festive season and beyond.
As year-end celebrations approach, our first article explains the tax rules around Christmas expenses for business owners. We cover FBT, GST credits, and what’s tax deductible, so you can avoid any surprises.
Next, we explore claiming self-education expenses. While these costs are usually tax deductible if they relate to your work, there are some exceptions to be aware of.
We also share “12 super tips for a merry and bright retirement.” These simple steps can help you get the most out of your super and build a more secure future.
For anyone dreaming of small-scale farming, we outline key tax considerations, like non-commercial loss rules, that could affect your plans.
Finally, we look at how your super compares to others your age. Find out where you stand and how much you might need for retirement.
December 2024 Newsletter link
OCTOBER 2024
This month’s edition includes an article on making contributions later in life. Changes to superannuation laws have been simplified over recent years to allow older Australians more flexibility to top up their superannuation. We provide a brief summary of what you need to know about making contributions to benefit you in retirement and beyond.
This is followed by an item about what may be the right structure for your business. There are four major ways in which you can carry on a business, each with their own advantages and disadvantages. The key point we seek to make is that you can change the structure of your business at any time in its operation – and in regards tax, you can do so usually without any adverse tax consequences because of the various concessions and roll-overs that allow you to do so.
Our next article covers the scenario where you may be selling a property that may have been used for mixed rental and residential purposes. There are capital gains tax (CGT) issues to consider, so its important to exercise good judgement as to how best use the relevant CGT concessions to reduce any potential liability.
Also an article that highlights the differences between self-managed superannuation funds (SMSF) with other superannuation funds. So if you’re thinking about setting up an SMSF, we compare the main differences which may help you make your decision.
Finally, we provide an item on the dangers of failing to declare income or lodge returns. With the ATO’s sophisticated technology to track such matters and ability to catch people out, we highlight why it’s important not to omit assessable income or fail to lodge a return.
NOVEMBER 2024
This month’s edition of our client newsletter includes an article on whether income from ‘side hustle’ activities are subject to tax. This article provides a brief summary of the types of side hustles that exist, whether such activities are considered a business or a hobby and the tax issues to consider if you’re looking at ways to create additional cash flow to make ends meet.
This is followed by an item about the interaction of the capital gains tax (CGT) laws and trusts. We highlight instances when the interaction of CGT and trusts may need closer scrutiny.
Our next article addresses what we know so far about the government’s proposed payday super plan. With a start date of 1 July 2026, the government has shared more details about its proposed new payday super plan which will require employers to pay super contributions to their employees at the same time they pay their salary and wages.
There is also an article which explains what tax receipts you need to keep in order to claim a tax deduction when you lodge your tax return.
Finally, we provide an item on paying super on the government-funded paid parental leave (PPL) scheme. This measure was recently legislated and will allow eligible parents with babies born or adopted from 1 July 2025 to receive an extra 12% of their PPL payment as a super contribution to their nominated super fund.
AUGUST 2024
The importance of “tax residency” and whether you are a tax resident of Australia or not can have significant consequences for you so if you find yourself in any such circumstances (eg, you undertake a foreign posting for a period or you decide to move overseas for some time but still maintain connections here). This article summarises some of the key tax implications to consider.
The next item explains the recent changes to preservation age, which is the age at which individuals can access their superannuation. As preservation age has now increased to age 60, this article summarises what the changes mean for those people who maybe planning on accessing their superannuation benefits upon reaching this age.
Our next article ties in with our first article on the importance of tax residency. This article highlights how Australia’s capital gains tax rules to foreign residents can be complex, especially given the variable nature of some of the rules.
Read about selling a small business operated through a company and whether you should sell the shares or sell the business assets themselves. This article may be of interest to you if you run a small business through a company and you a decide to sell it.
Spouse contribution splitting is another article which explains how splitting contributions to your spouse can be a great way to boost your combined superannuation balances and also benefit you both in retirement.
We also provide a short item on a recent court case which clarified the standing of a de facto spouse in the context of a non-lapsing death benefit nomination on a life insurance policy made by the deceased person. This case and article highlight the importance of ensuring death benefit nominations are up to date and being clear about spousal relationships, especially when couples live apart.
Finally, we provide an article on the small business energy incentive and briefly summarise the key eligibility criteria that must be met to make a claim.
SEPTEMBER 2024
Who is a spouse under the tax laws and why it matters. Whether you have a spouse or not can impact your individual tax assessment as your spouse’s income can impact your eligibility for certain tax rebates and offsets. Although it may sound simple enough, we also address some commonly asked questions that get asked about spousal relationships.
Next we look at share market volatility and how to not let the ups and downs of financial markets get you off course with your superannuation investment strategy. The key takeaway is to stay patient, adhere to the fundamental principles of diversification and asset allocation, and as always, don’t hesitate to seek advice if you need it.
Why you should take care if you sell your home after leaving Australia. It's important to get the timing right to avoid any unnecessary and unwanted liabilities down the track.
We look at separation and divorce and the capital gains tax (CGT) consequences and relief that may be available. Fortunately, some of the impact of divorce or separation can be alleviated by making sure that the CGT rollover relief is used most effectively – because like death, divorce affords certain tax planning opportunities.
When setting up a self-managed superannuation fund (SMSF), a question that often gets asked is who can join the fund. Although the most common setup is you and your partner running the fund together, or just you if you’re single, other setups are possible, such as children joining your fund, as well as business partners who decide to set up an SMSF together.
Finally, we provide an item on “debt recycling” which is the flavour of the month among financial advisors (and some financial institutions too). We touch on what this strategy entails and the tax impacts of implementing such a strategy.
September 2024 Newsletter link
JUNE 2024
This month’s edition of our client newsletter includes an article on the importance of making your superannuation last in retirement. Superannuation is often a key source of income when you retire so it’s important to ensure your investment strategy makes your retirement savings last for as long as possible.
This is followed by an item that explains the personal services income rules that apply to income that is earned mainly from the personal efforts or skills of a person. Included is a handy flowchart which explains the rules depending on the different circumstances. It is worth noting that these rules do not apply to income earned from being an employee.
Our next article covers the different types of amounts that you may receive which are not considered as “income” by the ATO. Although such amounts may not be assessable, they may need to be included elsewhere in your tax return for other purposes.
There is also an article about being on the lookout for scammers who may contact you about your superannuation. This is an important reminder as the number of cold callers is on the rise and many people are falling victim and losing their superannuation to scammers.
Finally, we provide an article which explains the steps you should follow when on-boarding new employees, as there are a number of tax, workplace and superannuation obligations you must adhere to as an employer.
JULY 2024
This month’s edition includes an article on the extra 15% “Division 293 tax” which applies to high income earners who have income and concessional superannuation contributions exceeding $250,000 in 2023/24. The article explains how the extra tax works and how you can pay for it if you’re liable.
The next item discusses the fine line between carrying on a business of property development and merely realising an asset. This article may be of interest to you if you are contemplating carrying out such an activity as there are different tax implications depending on the nature of the activity and property involved.
We also explore how useful the CGT main residence exemption concessions are, particularly for individuals who are considering buying or selling a home. Depending on your particular circumstances, these concessions can be used to allow you to access a full (or at least partial) CGT main residence exemption in a way that was probably never originally envisaged.
The article on tax file numbers (TFN) provides some insights on how TFNs are verified in tax return software.
Finally, we provide an article which explains why you cannot add further money to a superannuation pension once it has commenced, and the alternative options to consider if you find yourself in this situation.
APRIL 2024
This month’s edition of our client newsletter sets out six different strategies for boosting your superannuation nest egg while potentially saving on tax. This is followed by an item that explains what happens to your tax status on leaving Australia to live or work somewhere else in the world. You might be surprised to learn how long after heading off some people have to continue to call Australia home for tax purposes.
For those who run their business through a corporate structure there is a must read article on the pitfalls of treating the company’s bank account and other assets as your own – the ATO has its eye on this area. There is also an item on the tax issues that can potentially arise when deciding to sell the family home.
We have included a piece on the receipt of compensation for various events, including damage to property, wrongful dismissal or work injuries. In some cases, it may pay to obtain tax advice before settling on an amount with the insurer.
Finally, we offer a perspective on the question of where to put your spare cash (assuming you have any) – on the mortgage or into superannuation?
April 2024 Newsletter link
MAY 2024
This month’s edition of our client newsletter includes an article on being aware of a partial capital gains tax (CGT) liability that may apply to you if you sell your main residence.
This is followed by an item that explains why you should be wary of timing when making superannuation contributions this financial year. You may not realise it, but a contribution is deemed to be made at the time it is received by your superannuation fund, not when you process the transaction. For this reason, it’s best to allow plenty of time to make your superannuation contributions well before 30 June for your contribution to be received by your superannuation fund this financial year.
For those who have rental properties, there is an important article which summarises the traps and pitfalls to be aware of as the ATO is currently on the lookout. This is because majority of residential rental property investors who have been audited have been getting their returns wrong.
There is also an item on succession planning for family businesses. This may be of interest for families who plan on transferring their business onto the next generation.
Finally, we provide an article which helps explain how myGov can help you keep track of your superannuation balance.
FEBRUARY 2024
With Christmas a distant memory, life and tax obligations are returning to a familiar routine. In this issue we look at a variety of tax issues, including a consideration of the tax consequences if you receive compensation when your bank or financial institution hasn’t acted as ethically and correctly as they could have; the tax issues and obligations surrounding volunteers; whether that family heirloom you inherited from grandma came with a tax sting in the tail; the circumstances in which you may be able to use your super to pay your mortgage; and the super consequences of returning to work after retirement.
We trust that this newsletter will provoke some thoughtful discussion around these issues as we launch into 2024.
MARCH 2024
Our March newsletter includes a run down on what taxpayers can do to maximise the benefits of the Stage 3 tax cuts that have recently been passed by Parliament. It explores some options for shifting taxable income from this year (2023-24) to the next (2024-25) by bringing forward deductions or deferring income.
The capital gains tax concessions that are potentially available for small business owners on the sale of their business is must read for anyone contemplating such a sale in the coming years.
Also included is the ins and outs of briefing a barrister. Did you know that you can brief a barrister directly (ie. without engaging a solicitor)?
Finally, an informative piece on super contributions in light of increases in various contributions caps that apply from 1 July 2024.