n • nIndividuals who wish to take advantage of thenconcessionally taxed superannuation environment should keep track of theirncontributions. n • nIndividuals with salary sacrifice superannuationnarrangements may want to have early discussions with their employers to help ensurencontributions are allocated to the correct financial year. n • nIndividuals earning above $300,000 are subjectnto an additional 15{256a07afe6cf75b7e23500f37551d0affdf8bab65b8226b57f0b6b9aa6c8fc70} tax on concessional […]
Small Business Entities
n • nFrom 2015–2016, the tax rate applicable to smallnbusiness entities that are companies is 28.5{256a07afe6cf75b7e23500f37551d0affdf8bab65b8226b57f0b6b9aa6c8fc70} (rather than the standard 30{256a07afe6cf75b7e23500f37551d0affdf8bab65b8226b57f0b6b9aa6c8fc70}nrate) and other types of small business entities are entitled to a tax discountnin the form of a tax offset. n • nSmall business entities are entitled to annimmediate deduction for certain pre-business expenditure incurred after 30 […]
Companies
n • nCompanies should ensure that all dividends paidnto shareholders during the relevant franking period (generally the income year)nare franked to the same extent to avoid breaching the “benchmark rule”. n • nLoans, payments and debts forgiven by privatencompanies to their shareholders and associates may give rise to unfrankedndividends that are assessable to the shareholders and their […]
Trusts
n • nTaxpayers should review trust deeds to determinenhow trust income is defined. This may have an impact on the trustee’s taxnplanning. n • nTrustees should consider whether a family trustnelection (an FTE) is required to ensure that any losses or bad debts incurrednby the trust will be deductible and that franking credits will be available tonbeneficiaries. […]
Maximising deductions
n Business taxpayers n • nTaxpayers should review all outstanding debtsnbefore year-end to identify any debtors who may be unable to pay their bills.nOnce a taxpayer has done everything in their power to seek repayment of thendebt, they may consider writing off the balance as bad debt. n • nThe entitlement of corporate tax entities tondeductions in […]
Deferring assessable income
n • nIncome received in advance of services beingnprovided is generally not assessable until the services are provided. n • nTaxpayers who provide professional services maynconsider, in consultation with their clients, rendering accounts after 30 Junenin order to defer the income. n • nA taxpayer is required to calculate thenbalancing adjustment amount resulting from the disposal of a […]
Tax Planning
n There are many ways in which entities can defer income,nmaximise deductions and take advantage of other tax planning initiatives tonmanage their taxable income. Taxpayers should be aware that they need to startnthe year-end tax planning process early in order to maximise thesenopportunities. Of course, those undertaking tax planning should be aware of thenpotential application […]
Tax law changes to treatment of earnouts
The Government has recently amended the tax law concerning the capital gains tax (CGT) treatment of the sale and purchase of businesses involving certain earnout rights. n Specifically, the changes provide for a “look-through” treatment. Under the amended tax law, capital gains and losses that arise in respect of look-through earnout rights will be disregarded. […]
Small business restructures made easier
The Government has made changes to the tax law to provide tax relief for small businesses that restructure. The tax law changes provide an optional rollover for small business owners who change the legal structure of their business on the transfer of business assets from one entity to another. The effect of the rollover is […]
Individual not a share trader
The Administrative Appeals Tribunal (AAT) has found that a taxpayer (a childcare worker) was not carrying on a business of share trading, and accordingly was not entitled to claim a loss resulting from her share transactions. In the year in question, the taxpayer turned over approximately $600,000 in share transactions (including both purchases and sales). […]
