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Tax planning is now more important than ever given the impact of COVID-19. The last thing you need in these uncertain times is to pay more tax that you are legally required. Many tax planning strategies require action before 30 June. Below are our top tips to improve your tax position for 2020. Superannuation Maximise […]
The COVID-19 pandemic is a crisis on a scale beyond any level experienced in recent history. The good news is this crisis is temporary. However, the challenge it created for business remains. Now is the time to future proof your business to recover, adapt and thrive. Below are our top 5 tips to improve your […]
The government has now passed legislation for the $130 billion JobKeeper Payment scheme to support businesses significantly affected by the coronavirus to help keep more Australians in jobs. Eligible employers will be reimbursed a fixed amount of $1,500 per fortnight for each eligible employee. Employers will need to pay eligible employees a minimum of $1,500 (before […]
The Morrison Government announced on 30 March 2020 a 3rd round of economic stimulus aimed to keep Australians in jobs, keep businesses in business and support households and the Australian economy as the world deals with the significant challenges posed by the spread of the coronavirus. Details of the update to the plan are below: JobKeeper […]
The Morrison Government announced an increase to their economic plan to keep Australians in jobs, keep businesses in business and support households and the Australian economy as the world deals with the significant challenges posed by the spread of the coronavirus. Details of the updated plan are below: Individuals & Households Income support for individuals The Government […]
Coronavirus has caused significant public health concern both in Australia and internationally. The virus is also impacting business activity. Australia is particularly vulnerable to the effects given our close trade relationship with China. This impact on business, particularly disruptions to supply chains, is expected to get worse. Disruption Business Supply Chains The first wave of […]
A business structure is generally right when it is set-up by an accountant; however, business like life is subject to constant change. This may mean that your business structure is no longer appropriate for you given the evolution in your business and personal affairs. This can result in bad outcomes as outlined in our case […]
As Australia returns to work in early January 2020, we are all aware of the devastation to our communities and environment due to the recent Bushfires across the country. The current bushfire emergency in Australia is a national disaster on a scale above and beyond any level experienced in recent history (and it continues) …. […]
The ATO announced on 18 December 2019 (just in time for Christmas) an extension to their insurance policy request from insurers for another 5 years to include the year(s) ended 2016 – 2019 as part of their ongoing taxation compliance profiling activities to identify those taxpayers who are not fulfilling their tax and superannuation reporting […]
The countdown to Christmas is now on and we’re amid the headlong rush to get everything done and capitalise on any remaining opportunities before the Christmas lull. Busy period or not, Christmas causes a period of dislocation and volatility for most businesses. This dislocation and volatility mean that it is not ‘business as usual’ and […]
Legislation that passed through Parliament last month prevents taxpayers from claiming a deduction for expenses incurred for holding vacant land. The amendments are not only retrospective but go beyond purely vacant land. Previously, if you bought vacant land with the intent to build a rental property on it, you may have been able to claim […]
The Government has resurrected the Superannuation Guarantee (SG) amnesty giving employers that have fallen behind with their SG obligations the ability to “self-correct.” This time however, the incentive of the amnesty is strengthened by harsh penalties for those that fail to take action. Originally announced in May 2018 and running between 24 May 2018 until […]
Question: Am I better off to do it myself or partner with someone? At Solve, we get asked this question a lot. And I have asked myself this question many times. This is a question with no easy answers. You will generally not know the answer until after the fact. I find that for most […]
In recent times there has been significant changes to the obligations on Licensees under the Queensland Building and Construction Commission (QBCC) due to the introduction of the Building Industry Fairness (BIF) Act. The two biggest impacts are: Changes to the Financial Reporting requirements; and Changes to the payment claim process compared to the previous BCIPA […]
Why is year end tax planning important? Tax planning helps you minimise the tax liability of your business. Paying tax isn’t a bad thing, it means you are profitable, but paying more than you should is! Most people like to save on tax and want to see their business working to its fullest potential. As […]
This time of year it seems like everyone is talking about year end tax planning, strategies to minimise tax, or top 10 tax tips, etc. These are all helpful but really miss the point. Tax is tax, and yes there are a few things you can do prior to year end, but as long as […]
Want to run your business and not waste time with accounting? We think Xero is the answer. We’ll help you switch to Xero and get online invoicing, live bank feeds, and any integrations you need all in a single platform. #Xero #accounting #smallbiz #startups Xero offers your business a simple, yet powerful, way to manage […]
Need to get a grip on your cash flow? We’ll help you tailor your accounting set-up and cash flow forecasting tools to reveal your future cash position. #cashflow #forecasting #SmallBusiness #SmallBiz #SMB #finance #accounting Why you need to forecast your cash flow Cash flow is the lifeblood of your business. And when it comes to […]
Running a business is hard, but there’s no reason to go it alone. Setting up an advisory board or finding the right mentor to advise you, can help you grow your business. Talk to us about your advisory structure. #smallbiz #leadership #solveadvisory When you’re planning for success, it’s important to keep your eye on the […]
#superannuation #retirementsavings #selfemployed #tipsforcontractors If you are self-employed, you may not have a retirement savings plan sorted. Ensure you have a strong plan set up now. When you’re employed, your employer makes compulsory contributions to your superannuation. When you work for yourself as a sole trader, or you’re in a partnership, making super payments isn’t […]
When you’re running a business, it’s easy to get caught up in the day-to-day activity and lose sight of the big picture. Taking stock of the health of your business is important. Knowing where you’re allows for more effective planning, early warning about any issues, and the chance to better chart a course for success. […]
#xero #smallbusiness #accounting I must admit, I was a Xero skeptic, and now, I am a Xero convert. If you are a small, privately-owned or family business with less than 20 employees then, in my opinion, Xero will be the best option 99% of the time. It is user-friendly, fast, reliable and cheap. While we […]
#smallbusiness #tax #solveadvisory On 29 January 2019, the Prime Minister announced that the government will introduce legislation to increase the $20,000 instant asset write-off threshold to $25,000 from 29 January 2019 until 30 June 2020. While this proposal is not yet law, given the Federal election is around the corner you can bet that the […]
At Solve Advisory we thrive on helping people with great ideas build great businesses. Whether it be through strategy, financial modelling, tax or simply just honest, straight-forward advice. Below is is an extract of an article by Karen Lerner in Entreprenuer, for the full article go to: https://www.entrepreneur.com/article/324337 Over the years, many people have spoken […]
If your home is your principal place of business and you run your business from home, and a room is exclusively used for business activities. Examples are: the home is the main office of a small business operator a craftsperson or tradesperson who has a home-based workshop a dentist or doctor who runs their consulting […]
Also known as the unincorporated small business tax discount, the income tax offset for small business can reduce the tax you pay by upto $1,000 each year. The offset is worked out on the proportion of tax payable on your business income. Eligibility must be carrying on a small business as a sole trader or […]
Reportable Tax position (RTP) schedule is a schedule of the company income tax return which requires large companies to disclose their most contestable and material tax positions. The RTP disclosure requirement has been significantly broadened for income years ending on or after 30 June 2018. It includes companies in public and international economic groups with […]
A trial was conducted by the ATO in 2013 & 2017 in using external collection agencies for lodgement obligations but the focus at that time was for self-preparers. Apparently, the pilot did not have adverse impact on the ATO’s reputation, no complaints received and had helped to increase in clients engaging the assistance of intermediaries […]
ATO uses SMS and emails for important information and promotional purposes. Recently, the ATO announced that from 5-23 November 2018, they will contact all clients who are entitled for refund but have incorrect bank details provided on the filed tax returns. An email list of clients will be sent to tax agents the ATO has […]
Prior to 1 July 2017 an individual could (under certain conditions), claim a deduction for personal super contributions. One of those conditions is the “10% test” – less than 10% of their income was scoured from wages or salary. This meant that predominately only self-employed taxpayers were eligible to claim a deduction for any personal super […]
The Australian Taxation Office (ATO) is turning their attention to the significant number of errors and false claims being made by rental property owners who use their property for personal holidays or where the property is otherwise not genuinely available for rent for the full year. The ATO has also announced that it will focus […]
The Australian Taxation Office (ATO) is making a broader push to quash the “standard deduction” claims on work-related clothing and laundry claims. Over the last five years a 20% increase in work-related clothing claims has been recorded. Last year there was nearly $1.8 billion claimed in clothing and laundry expenses by over 6 million taxpayers. […]
Small businesses may find that they qualify for a variety of tax benefits this year. The following are just some of the tax tips that can help small businesses. 1) Seek independent advice on investment products that are being promoted as tax-effective The end of the financial year often sees the promotion of numerous investment […]
A fact sheet has been released by the ATO (Australian Taxation Office) in relation to employer superannuation guarantee obligations explaining its compliance and penalty approach, which was set out in the Superannuation Guarantee (Administration) Act 1992 (SGA Act). The ATO explained that this approach will apply to employers who are unwilling or unable to meet […]
During the conference held last February, Deputy Commissioner of Superannuation James O’Halloran discussed the changes and other plans that the ATO has set out for Self-Managed Superfunds (SMSFs). The commissioner opened his statement by assuring that the ATO will continue to support SMSFs, not only by providing ongoing certainty and practical support but also by […]
Australia is proposing to reduce the insolvency discharge period from three years to one year. The proposal was endorsed by the Senate’s Legal and Constitutional Affairs Legislation Committee in March under the Bankruptcy Amended (Enterprise Incentives) Bill 2017. One of the critics of these changes, CPA Australia, says that proposed changes could result in more […]
According to Australian Taxation Office (ATO), the top 100 population consists of entities that have substantial economic activity related to Australia and form the largest contributors to corporate income tax, excise, GST, and other tax revenue sources. Consisting predominantly of public and multinational businesses and superfunds, they have a significant impact on the health of […]
Due to the large number of claims seen last year for clothing & laundry expenses, the Australian Taxation Office (ATO) will focus with the WRE claims for this coming tax time 2018. According to Chris Jordan, the ATO Commissioner, almost half of the population claimed the $150 for laundry expenses which has to be related […]
As part of Stay Smart Online week, The Australian Taxation Office (ATO) is guiding taxpayers with some simple measures to help protect themselves from scammers. It is important for taxpayers to remember to stay attentive and cautious of phone calls, emails, and text messages (SMS) during tax time that claim to be from the ATO, […]
The government has announced a range of reforms to crack down on illegal phoenix activity. The Phoenix Taskforce will comprise over 20 State, Territory and Federal government agencies, including the Australian Taxation Office (ATO), Department of Employment, Australian Securities & Investments Commission (ASIC), and the Fair Work Ombudsman. Sophisticated data matching tools have been developed […]
In the 2016–17 Budget, the Government announced that it intended to progressively reduce the corporate tax rate from 30 per cent to 25 per cent. These changes to the corporate tax rate for small business entities have resulted in the necessity to re-consider whether your company is in fact carrying on a business. The Australian […]
From 1 July 2017, the Australian Taxation Office (ATO) is reducing the amount of information required for the business activity statement (BAS) to simplify GST reporting. Simpler BAS will be the default GST reporting method for Small Businesses Entities (SBE’s) with a GST turnover of less than $10 million. From 1 July 2017, SBE’s will […]
The Australian Taxation Office (ATO) has issued a warning that it will be paying extra attention to people claiming higher than expected deductions during tax time this year. It will focus on taxpayers claiming work-related deductions that are higher than usual compared to other taxpayers in similar industries, particularly deductions for travel, car expense claims […]
Tax time can be daunting; it’s that time of year when you look at income for the last year and think- did I really earn that much? The term ‘you gotta spend money to make money’ can often be more apparent than ever during tax season. The Australian Taxation System luckily enough does align itself […]
The Australian Taxation Office (ATO) and DIIS (Department of Industry, Innovation and Science) have collectively released 2 new taxpayer alerts as a caution to taxpayers who are incorrectly claiming or intentionally exploiting the R&D (Research & Development) Tax Incentive program. The R&D tax incentive program provides a tax offset for eligible R&D activities, and encourages companies to […]
The Australian government has revealed enhancements to the WET (Wine Equalisation Tax) rebate to assist wine-making, grape growing and tourism associated with regional Australia. These reforms come after extensive discussions with the wine industry. The WET rebate was originally intended to support small wine producers in rural and regional Australia. However, the wine industry claims […]
In most situations, you can claim a deduction for work-related expenses when you incur the expense in doing your job and that the expense is not private. You must also have incurred the expense in the year you are claiming the deduction. There are two commonly known types of truck driver’s short-haul and long-haul drivers. […]
The Australian Taxation Office (ATO) has outlined the behaviours of privately-owned groups that attract its attention in relation to a wide range of tax issues, including Capital Gains Tax (CGT), private company profit extraction (including Division 7A), consolidation, and Fringe Benefits Tax (FBT). The ATO will focus on a number of tax aspects of entities […]
The Australian Taxation Office (ATO) has identified that businesses in the supermarket, car retailing, bakery and computer system design industries are often lacking or need more help to meet their tax and super obligations. The ATO is currently running an education campaign for business owners in these industries to help them better understand their responsibilities, […]
From 1 July 2016, the small business restructure rollover will allow small businesses to transfer active business assets, trading stock, depreciating and revenue assets from one entity structure to one or more other entity structures without incurring an income tax liability. The new law provides the ability to alter legal structures to suit the circumstances […]
2016 – eBay sellers, ride-sourcing, card payments The Australian Taxation Office (ATO) has advised that it will be collecting seller data from eBay Australia and New Zealand Pty Ltd to ensure that taxpayers are correctly meeting their tax obligations. The data matching will include information relating to registrants that sold goods and services of $10,000 […]
The end of financial year is nigh, which imposes a number of responsibilities on businesses. Wrapping up accounts for the end of Financial Year can be messy, with many reports to be generated and deadlines to meet. With all of this in mind, it is important not to forget your employees. We have developed a […]
This can be a tricky question for many individuals, sometimes it can be such a chore to remember all of the odd jobs you have done along the way. It is important for this reason that you keep track of all earnings. While having a tax agent lodge your tax return is a helpful reminder, […]
FBT Exemption on Devices It was announced in the 2015–16 Budget that the Government will allow a FBT exemption from 1 April 2016 for small businesses with an aggregated annual turnover of less than $2 million that provide employees with more than one qualifying work-related portable electronic device, even if the items have markedly similar […]
The government has announced that from 1 July 2017 Australians who have moved overseas for more than six months will be required to repay the same amount of their HECS debt as they would if they were residing in Australia. The government will introduce legislation that requires all Australian graduates living overseas to start making […]
The final report of the Financial System Inquiry has been released. The 320-page document is the end result of the inquiry headed by David Murray, the former CEO of the Commonwealth Bank. The Inquiry made 44 recommendations relating to the Australian financial system. Murray stated that sustaining confidence in the Australian financial system, and funding […]
The government has announced that, in an endeavour to support innovative Australian start-up companies and to bolster entrepreneurship, it will reform the current tax treatment of employee share schemes. Employee share schemes give employees a financial share of the company’s potential success and can be used as an incentive by start-up companies to attract and […]
Project DO IT is an opportunity for taxpayers who have engaged in previously unreported offshore financial activities to get their tax affairs in order. Increased international collaboration means the net is closing in on tax evaders around the world. In recent years, information sharing between countries has improved significantly. Banking data is being exchanged regularly […]
The Australian Taxation Office (ATO) has identified that employers in the following industries have a higher risk of not meeting their super obligations: hairdressing and beauty; clothing retailing; and management advice and consulting. The ATO is currently running an education campaign for business owners in these industries to help them better understand their super obligations. […]
Australian taxpayers are being cautioned to make sure they declare income sourced in Japan, with the exchange of tax information and cooperation increasing between the two countries. The Australian Tax Commissioner met with the Commissioner of the Japanese National Tax Agency this month to discuss the use of a bilateral treaty to undertake joint compliance […]
The Australian Taxation Office (ATO) is warning people to be careful when using share trading transactions known as dividend washing. The ATO is concerned that some entities are trading listed shares on a Special Market operated by the Australian Securities Exchange (ASX) with the sole purpose of obtaining additional franking credits. The Special Market operated […]
If you have an adjusted taxable income of $37,000 or less in a year, you may be eligible to receive a boost to your super of up to $500 a year. The low-income super contribution (LISC) is a government super payment of up to $500 per financial year to help low-income earners save for their […]
As part of the 2011-12 Federal Budget, the government announced the introduction of taxable payments reporting for businesses in the building and construction industry. The aim of the system is to improve compliance with tax obligations by those contractors who are currently not doing the right thing. From 1 July 2012, businesses in the building and […]
The Christmas Work Break-up Party The Christmas break is on the way, and many businesses will be planning their annual year-end break-up party. However, an important issue for businesses to consider is the possible FBT and income tax implications of providing ‘entertainment’ (including Christmas parties) to staff and clients. Under the Tax Act, employers must choose […]
The ATO has issued a taxpayer alert warning people to be cautious about arrangements promoting a tax deduction for gifts of pharmaceutical items to charities for use overseas. With these schemes, the taxpayer makes a cash deposit for a vendor to purchase pharmaceuticals from a low-cost overseas supplier. They are then valued for gifting purposes […]