Unsure of what may cause the Tax Office’s spider senses to tingle? Small and medium-sized enterprises (SMEs) can unravel the mysteries of the Tax Office’s compliance regime now that it has released detailed information that confirms what they should and should not do. The Tax Office’s attention may be drawn to your business if there...

There’s no doubt that the internet can be a crucial tool for small business, and many businesses are essentially just ‘online’ enterprises (no web, no business). But no website is a ‘one-size-fits-all’ proposition, as the purpose behind having an online presence varies greatly depending on the business involved. Is it just for promotions and marketing,...

The government’s newly legislated Dad and Partner Pay provides fathers – including adopting parents and parents in same-sex couples – with two weeks paid paternity leave at the pre-tax rate of $606-a-week minimum wage. Effective from January 1, 2013, the payment is an extension to the Paid Parental Leave scheme that began on January 1,...

Individuals and self-managed superannuation fund (SMSF) trustees alike are embroiled in a race to finish their annual returns, but for the latter the race is one that is more difficult and involved. As we explained in our last edition, SMSFs have to appoint an ‘approved auditor’ at least 30 days before the due date of...

As of August 7, SMSF trustees have to adhere to a raft of new measures which are intended to address potential risks and strengthen the SMSF regulatory framework. These measures mean SMSF trustees are: •    required to conduct a review of the fund’s investment strategy on a regular basis •    required to consider insurance for...

The Tax Office’s business performance benchmarks provide a snapshot of an average business by providing a measure of costs and income (expressed as a range) that the Tax Office would normally expect a business to report when operating in a particular industry. So far, benchmarks have been developed for small businesses in more than 100...

Start up businesses need to make one important decision from the outset – what type of business set-up will suit you best? You’ve got a choice of four basic business structures – sole trader, partnership, company or trust. Of course, there are also more sophisticated structures out there, but most possible structures are essentially hybrids...

The government’s broad reform of the taxation of trust income has been delayed yet again, from July 1, 2013, with a likely commencement date of July 1, 2014, which would coincide with the intended commencement date for a new tax system for managed investment trusts. A landmark High Court case highlighted the legality or otherwise...

Will new loss carry-back scheme rules mean less can claim? Proposed rules contained in a recently released discussion paper about the new loss carry-back scheme could potentially restrict more businesses from using the benefit. The discussion paper outlines plans to prevent “loss trafficking”, which would stop directors from buying companies that already have losses in...

Because of the way that tax is applied to superannuation, savvy employees can actually turn what would have been a tax liability into extra super by making use of a salary sacrifice arrangement. By way of example, let’s consider the case of Bill, who earns an annual salary of $65,400 (including the 9% super guarantee)....