Latest News
Is it a Hobby or a Business?
If you are accepting money in the form of a sale for a product or service, it is important you determine whether you are running a business or if it is simply a hobby. We’ve listed below the important details to help you understand them. Running a Business The below characteristics generally indicate you are running […]
How Does Capital Gains Tax Work?
Capital gains tax is the tax paid on the gain of the sale of a capital asset. Capital assets such as real estate or shares, when sold, need to be declared in your tax return. The gain or loss is determined by the selling price of the asset less the purchase price. If there is […]
How to Get the Most Out of Your Day
Time Management & Self-Management is extremely important to ensure you are getting the most out of your day. Whether it be at work or home, you can apply the same principles to be your best version of YOU every day. There are a few ways you can get the most out of your day […]
Understanding the Division 293 Tax
Division 293 tax is an additional tax on super contributions which reduces the tax concession for individuals whose combined income and contributions are greater than the Division 293 threshold. Why do I have to pay this? Normally, contributions into a superannuation fund are taxed at 15% immediately. This is so when you turn 65 you will […]
How Much Tax Do I Need To Pay?
We often receive phone calls from our Clients asking us whether they are being taxed correctly in their wages. If you are unsure whether you are being taxed correctly, the ATO has an online calculator where you can answer a series of questions relating to your wages which will determine what tax should be withheld […]
What is the Medicare Levy
Quite often we are asked about the Medicare Levy. Common questions are “What is it?”, “Why do I have to pay it” and “Is there a way I can avoid paying it”. So we’ve broken it down for you below. What is Medicare Levy? Australian Residents are entitled to Medicare benefits which is access to […]
Work-related expense claims rejected by Administrative Review Tribunal (‘ART’)
The Administrative Review Tribunal (‘ART’) recently disallowed a taxpayer’s claims for many different types of work-related expenses. The taxpayer was employed full-time as an engineer, working from home two days a week. For the 2023 income year, he claimed deductions totalling over $61,000, in relation to (among other things) car expenses, travel expenses, clothing expenses, […]
Check GST credit claims before lodging BASs
Taxpayers who are registered for GST can get GST credit claims (or ‘input tax credits’) for the GST included in the price of goods and services they buy for their business. However, if they buy something for both business and private use, they need to apportion their GST credit to only claim the business use. […]
Government payments programs
The ATO is reminding taxpayers that receive government payments for delivering services under a Commonwealth program, such as healthcare, disability support or child care, that they have an obligation to: keep accurate records; and report any such income they receive in their tax return. The ATO recently advised that it would be contacting taxpayers and […]
Contractors omitting income
Through data matching, the ATO is seeing some contractors incorrectly reporting or contractors omitting income. Contractors need to report all their income in their tax return, including payments made by businesses for their contracting work. Note that, as part of the taxable payments reporting system (‘TPRS’), certain businesses must lodge a ‘Taxable payments annual report’ […]
Businesses using cash to dodge obligations
The ATO is ‘cracking down’ on businesses that use cash to dodge obligations on their tax, employer and business. Businesses that do this may: – fail to report all sales transactions and fail to issue receipts; – avoid paying GST, income tax, PAYG withholding, super guarantee, insurance and work cover protection; – report their income […]
$20,000 instant asset write-off extended
Editor: The Government recently passed legislation to extend the $20,000 instant asset write-off for small businesses by 12 months to 30 June 2026. Taxpayers should note that if their business has an aggregated annual turnover of less than $10 million, they may be able touse the instant asset write-off (‘IAWO’) to immediately deduct the business […]