Despite 25 years since its inception in the Australian tax system, there is still a cloud of confusion surrounding the dividend imputation system or the “franking dividend”. With superannuation funds taxed at the rate of 15 per cent imputation credits can be a great tool to enhance your fund’s investments. Investing in shares directly or...

Proposed legislation that would provide the ATO with increased power to withhold tax refunds could potentially affect the cash flow of small to medium enterprises. The legislation, which was introduced into Government last month, would provide the ATO with the ability to retain refunds claimed by taxpayers for up to 60 days while authentication checks...

With tax time looming, the Australian Taxation Office has announced tough new measure to clamp down on tax evasion – specifically targeting the hospitality, and building and construction industries. The ATO has stated businesses that deliberately use cash transactions to hide income and evade tax obligations will be under the spotlight. Illegal behaviour included companies who...

It is the Year of the Dragon, the luckiest year in the Chinese zodiac. It should be a great year for small business owners, according to what is predicted to affect you and your business in the coming year. If you’re not a believer in astrology, it may be a good time to set some...

The new Personal Property Securities Register begins from the end of January 2012. Businesses are being advised to become as familiar as possible with the changes to avoid missing out on having their interests in securities properly registered. Experts have warned SME’s that any business supplying goods should be aware that the new register replaces...

Most businesses work on the basis that they are supposed to sell on value and not price. What happens when a business is faced with the prospect of a price-only buyer? First, make sure they really are in fact a price-only buyer. In most cases, salespeople are too quick to place a ‘price-only buyer’ label...

In December 2011, the ATO sent default assessment warning letters to taxpayers who have overdue income tax returns where there was evidence they received taxable income in the relevant financial years. These letters were titled ‘default assessment warnings’ and are part of their ongoing work to address non-lodgement. If the overdue returns are not lodged immediately,...

The ATO is under pressure to recover lost ground after relaxing its position during the global financial crisis. One of the areas it intends to improve revenue is by targeting contractors. The ATO has warned that it plans to use information from labour hire firms and increased auditing in attempt to improve compliance for contactors...

The Government recently released exposure draft legislation proposing to make several tax law amendments in relation to depreciation rules for small business. The proposed amendments will apply to small businesses that have an annual turnover of less than $2 million for an income year from the 2012- 2013 income tax year. Whilst these changes sound positive and...

There are limits on the amount you can contribute to super each financial year that are concessionally taxed. There are two types of contributions and the limits are different for both. These are referred to as concessional and non-concessional contributions. Any super contribution over the cap amount is subject to additional tax.  If you are looking...