To stimulate investment and risk-taking in new businesses, companies will be permitted to carry-back up to $1 million of losses annually, against taxable income arising in the prior two years. This enables the companies to receive a refund against tax previously paid. The measures will provide some relief for companies that suffer temporary losses. Whilst this may...

Each year the ATO identifies several industries where employers have a higher risk of not complying with their super obligations.  In 2012, the ATO will focus on the following high-risk industries: cafes and restaurants real estate services carpentry services. Typical mistakes that have been identified by the ATO include: paying insufficient super contributions missing the...

Trustees who distribute the income of a trust by resolution must comply with a new ruling from 30 June 2012. This ruling applies where distribution of trusts, through a resolution to beneficiaries must do so by the end of the income year (30 June). If the trustee does not make the resolutions, beneficiaries will not...

Small businesses that are suffering after the economic slowdown following the Global Financial Crisis and declining demand will benefit from a range of measures in the budget designed to stimulate investment spending. The changes directly impacting small businesses from 1 July 2012 relate to previously enacted or announced measures. These include: Allowing small businesses to...

The last few years have been financially tough on many businesses, increasing the temptation to cheat with their GST. This is clearly recognised with the Government’s renewed commitment to the ATOs compliance program. The Government continues the pressure for another two years with the announcement that it will provide $195.3 million to the ATO in...

A ruling on the 4 April 2012 has been passed clarifying the role of GST in regards to consumer loyalty programs. GST on loyalty programs has previously been frustratingly complicated for consumers and vendors. A loyalty program is an agreement between customers and vendors, where the customer benefits from remaining loyal to a brand,through either...

1    No standard deduction The Government will not proceed with the standard deduction for work-related expenses Increase revenue by $4269m  2    Family Tax benefit A Increase to payments for Families with children,as well as individuals living off welfare payments Expenditure $1844m 3    No company tax cut The proposal to lower company tax...

Changes to superannuation laws in the 2012 Federal Budget may cause some Baby Boomers to rethink their retirement plans. Increased contributions may now lead to cap breaches. From 1 July 2012 individuals with income exceeding $300,000 will have a tax concession on their contributions reduced from 30% to 15% . This is the governments “spin” on hiking tax...

Changes to the management of assets in relation to self managed superannuation fund’s (SMSF) have been announced. The new rules relate to insurance and the importance of having the right policy for fund assets. The regulations require all collectables to be insured in the name of the SMSF within seven days of acquisition. One of the consequences of not adequately insuring...

With the end of the Fringe Benefit Tax year upon us this month, it is critical that as an employer you understand your FBT obligations to avoid significant penalties from the Australian Taxation Office. FBT is a tax paid by employers, separate from income tax, and based on the taxable value of non-tax benefits provided to...