Tax compliance

Key contact

Rami Brass
National Head of Tax

The startling tax ruling impacting GP and allied health practices

Following a shocking determination by the Chief Commissioner of State Revenue in NSW, owners of general and allied health practices have been left wondering what it means for them.

Tax & Technology – Cryptocurrency assets

An increasing number of Australian taxpayers are using technology in investments and wealth management.

Foreign income and capital gains being incorrectly classified as ‘gifts’ or ‘loans’

Are you an Australian resident for income tax purposes? The Australian Taxation Office (ATO) is concerned as foreign income and capital gains continue to be incorrectly classified as gifts or loans in a bid to avert or evade tax.

Family Law property settlements & extracting money from companies

With the increased use of private companies to hold wealth or operate businesses, parties in family law property settlements are more and more likely to find themselves in unchartered territory when dividing the net asset pool. Extracting cash or assets from private companies can trigger significant and unexpected tax issues.

R&D Tax Incentive: EOFY Summary

We have seen a number of developments to the Research and Development Tax Incentive (R&DTI) during the 2021 income year.

Further ATO guidance and proposed risk-rating framework for intangible arrangements

The Australian Taxation Office (ATO) has released a draft Practical Compliance Guideline on Intangible Arrangements (PCG 2021/D4) in which it details its compliance approach and the risk assessment framework it plans to employ when considering the risk profile of intangible arrangements (IAs) operating between interna

Victoria | State Budget Analysis 2021-22

What does the 2021-22 Victorian State Budget mean for you and your business?

Set up your start-up for success

Looking to set up a start-up? People create start-ups because of the passion they have for their project, the excitement of innovating, the allure of working on their own terms, and the prospect of high reward.

Family Law & Tax Advice – Tall Buildings

Family Law & Tax Advice – End of Financial Year Actions

The end of the financial year is fast approaching, highlighting some important tax compliance and administration matters that may have a significant impact on family law and tax matters.

Upcoming R&D tax deadlines

With the deadline for lodging company registrations that detail R&D activities from the last financial year 2020 (1 July 2019 – 30 June 2020) now approaching, the final date for lodgement is 30 April 2021.

How junior explorers can use tax incentives to boost cash reserves

There is no question that despite the past year’s wild COVID-19 ride, Australia’s junior mining explorers have flourished in a market hungry for new mineral discoveries.

Tax planning - making the most of a tax loss

If you recall a few weeks back, my colleague Jessie Johnson highlighted the importance of tax planning in her article ‘

Fringe Benefits Tax Changes

There have been major changes regarding the Fringe Benefits Tax (FBT) in the last year. Belinda Crowley - Senior Manager in our Tax division in Brisbane, explains the details of the changes including:

ATO’s compliance approach - allocation of profits

On 1 March 2021, the ATO released Draft Practical Compliance Guideline PCG 2021/D2 (‘the Draft PCG’) in respect of the ATO’s ‘swim between the flags’ compliance approach to the allocation of profits from professional service firms, including accounting and legal service providers and medical practices.

Tax alert | Fringe Benefits Tax

Beware the FBT trap – the myth surrounding FBT ‘exempt’ cars! Read our recent tax alert to learn more.

2021 Fringe Benefits Tax – Tips and traps for the new normal

The 2021 Fringe Benefits Tax (“FBT”) year is expected to be different from other years for a large number of employers.

Why Tax Planning for 2021 is Essential

As accountants in agribusiness, tax planning is arguably one of the most important conversations we have with our clients.

Cash flow boost denied – AAT ignores IGTO recommendations

In December 2020 the Inspector-General of Taxation and Taxation Ombudsman (IGTO) released the report on the aspects of the Australian Taxation Office’s (ATO) administration of the JobKeeper and Boosting Cash Flow (BCF) measure for new businesses.

The Modern Manufacturing Initiative (MMI)

The Modern Manufacturing Initiative (MMI) is a $1.3bn initiative targeted at all businesses growing Australia’s Manufacturing capacity, building scale, and supply chain resilience.

New ATO tool providing GST compliance assurance

In recent years, the Australian Taxation Office (ATO) has overhauled its broad-brush approach to undertaking tax audits – instead opting for a targeted risk-based approach.

Full expensing depreciation concessions

Full expensing of depreciating assets - does it work for you? As a result of the continued impact of the COVID-19 pandemic on the Australian economy, the Federal Government announced as part of the 2020-21 Budget a major overhaul to depreciation tax concessions.

Are you ATO “review ready”? | Justified Trust and Tax GST Compliance

As we predicted in our August 2020 Tax Insight (Release of ATO’s n

JobMaker Hiring Credit rules released

The federal government has registered the JobMaker Hiring Credit rules (‘JobMaker’). Complex but targeted to create employment opportunities, the rules provide some clarity for employers seeking to claim under the scheme.

Victoria | 2020-21 State Budget Analysis

What does the 2020-21 Victorian state budget mean for you and your business? The Victorian Treasurer, Tim Pallas MLA, recently handed down the Victorian State Budget for 2020-21. In line with the other Australian States and with the Federal Government, this budget was delayed from the usual May timing.

New South Wales | 2020-21 State Budget Analysis

What does the 2020-21 New South Wales state budget mean for you and your business?

Tasmania | 2020-21 State Budget Analysis

What does the 2020-21 Tasmanian state budget mean for you and your business?

Northern Territory | 2020-21 State Budget Analysis

What does the 2020-21 Northern Territory budget mean for you and your business? In its 2020-21 Budget, the Northern Territory (“NT”) Government is promoting the Territory as ‘Australia’s comeback capital’ and the future economic agenda as being ‘Jobs First’.

South Australia | 2020-21 State Budget Analysis

What does the 2020-21 South Australian state budget mean for you and your business? The South Australian State Budget is looking to restart the local economy by: providing a platform for businesses to grow; investing in local infrastructure; and

The Division 7A Quandary

The loss carry-back rules introduced as part of the 2020-21 Federal Budget measures to assist small and medium-sized business have been welcomed by eligible corporate entities impacted by COVID-19.

Payroll tax relief to entice international and interstate businesses to move to NSW

On 5 November 2020, the New South Wales (NSW) Government announced its new “Jobs Plus Program” (Program). The $250m Program directly encourages domestic and international businesses to move their head office or expand their operations into NSW through significant payroll tax relief.

COVID-19 Benefits come with risks - Beware!

As Victoria gradually emerges from lockdown and the economy is on the verge of coming out of a recession, it’s a clear sign that things are heading in the right direction, but we’re not out of the woods yet.

NSW land tax surcharges for foreign persons

Under current legislation, ‘foreign persons’ that acquire or own residential land in NSW may be subject to surcharge purchaser duty (additional 8%) and ongoing surcharge land tax (additional 2%).

Federal Budget implications for the Research and Development (R&D) Tax Incentive

Federal Budget implications for the R&D Tax Incentive

The Australian Federal Budget was handed down on 6 October 2020, and outlined various economic stimulus measures with the intent to support Australia’s economic recovery through the COVID-19 pandemic and beyond.

Webinar: JobKeeper 2.0 - What you need to know | 14 October 2020

There has been significant changes to the JobKeeper payments in the last few months.

New Queensland Stamp Duty Exemption for Eligible Small Business Restructures

On 9 October 2020, the Queensland Office of State Revenue (OSR) released Public Ruling DA000.16.1 (the Ruling), which introduces an exemption from duty for certain transactions relating to small business restructures.

Space: The final frontier for GST?

The Technology and Innovation team at RSM share practical GST insights from within the developing Australian Space Industry. Goods and services tax (GST) in Space - is the supply of new and developing technology taxable?

Western Australia | 2020-21 State Budget Analysis

What the 2020-21 Western Australian state budget means for you and your business

Connecting with the ATO via the Business Portal

One of the greatest initiatives rolled out by the Australian Taxation Office (ATO) would be the creation of the Tax Agent Portal.

GST treatment for banking products released

For a number of years, the Australian Taxation Office (ATO) has been revisiting long-held formal and informal positions it has taken with respect to the GST treatment of a range of banking products and financial services.

Hybrid Mismatch Amendments

Important technical amendments clarifying the operation of Australia’s hybrid mismatch rules received Royal Assent on 3 September 2020. Background

Rental properties: An ATO hotspot

Rental properties are a great investment to help build off farm assets, which can be used later in life as part of a great succession plan. In the meantime, you can enjoy earning a bit of off farm income and perhaps claiming a few deductions along the way, but it’s important to know what you can claim and how much you can claim.

JobKeeper V2.0 - complexity redefined

The long-awaited legislative instrument setting out the key amendments to the JobKeeper scheme to take effect from 28 September 2020, dubbed JobKeeper V2.0, has been registered by Treasury.

LinkedIn advertising changes for contractors

Recent decisions reached by the Full Federal Court in FCT v Fortunatow [2020] FCAFC 139 have put a spotlight on the ‘unrelated clients test’ for contractors providing personal services.

Fringe Benefits Tax in a COVID-19 world

The ATO have recently updated the guidance published on their website on the treatment of the provision of certain Fringe Benefits to employees, in light of the current pandemic. Two of the key items covered are:

ATO reverses JobKeeper position on calculation of turnover

Further to our article on 31 August 2020, the ATO have now reversed their position on the inclusion of JobKeeper income in the calculation of aggregated turnover. It has been confirmed that JobKeeper payments will not be included in calculating aggregated turnover.

New JobKeeper 2.0 legislation has been passed by Parliament

JobKeeper 2.0 legislation passed

Legislation has been passed by Parliament extending the JobKeeper wage subsidy scheme until 28 March 2021. The current JobKeeper rules will cease to have effect from 28 September 2020.

What deductions can you claim when working from home?

Claiming deductions for working from home - with a twist

Many of us have been working from home recently and are continuing to adopt hybrid versions of working between the office and the home.

JobKeeper Income – Wolf in sheep’s clothing?

ATO reverses opinion on JobKeeper and calculation of turnover. Click here for the update.

The case of employee underpayments

Several large companies, including Westpac, Woolworths, Bunnings, and the Commonwealth Bank, have made front-page headlines for employee underpayments.

Arm’s length debt test – New ATO position finalised

The ATO has simultaneously published two documents which now represent the ATO’s views on the application of the arm’s length debt test (“ALDT”) in determining borrowing capacity.

Rental property FAQ's and common issues tackled

During these uncertain times of COVID-19, some clients have used the time to assess their finances and plans for the future.

COVID-19 Lessons for Primary Producers

The COVID-19 Pandemic has presented great challenges across the globe and will continue to do so for the foreseeable future as governments tread a fine line between the very real public health concerns and trying to jumpstart faltering economies.

Urgent action required by employers | JobKeeper Update

The government has introduced further changes to the JobKeeper Payment, designed to include as many employees as possible.

The transformational joint venture Thunderbird Mineral Sands Project will bring together Sheffield Resources and Yansteel

RSM Australia brings together Sheffield Resources and Yansteel in joint venture

RSM Australia brings together Sheffield Resources and Yansteel in a transformational joint venture for the Thunderbird Mineral Sands Project.

Changes to JobKeeper – what do employers need to do now?

With all the changes the Australian government announced around the JobKeeper extension (JobKeeper 2.0 and 2.1), there has been some confusion around the Government changing the employee eligibility date from 1 March 2020 to 1 July 2020.

JobKeeper 2.1 - Treasury announces further changes to JobKeeper payment

In response to the significant impact of coronavirus restrictions on business owners in Victoria, and likely impacts to follow in NSW, Treasury has announced further changes to the JobKeeper V2.0 proposals originally announced in July.

Accounting for government assistance during COVID-19

COVID-19 Financial Reporting: Accounting for government assistance

As the COVID-19 pandemic continues to have a serious impact on the economic environment, governments continue to provide different forms of assistance to affected entities.

GST and tax governance back on the agenda for boards and management

Release of ATO’s new “GST Governance, Data Testing and Transaction Testing Guide” Summary

Taxation Determination TD 2020/D1 release creates issues

In a move that is sure to cause headaches for companies claiming the R&D Tax incentive, the ATO published draft Taxation Determination TD 2020/D1 Income tax: notional deductio

Accounting for changes in tax rates

Corporate Tax rates for smaller Australian companies are set to fall over the next few years. How should the changes in tax rates be reflected in financial statements?

RSM’s multidisciplinary Family Law Support team are experts in untangling the financial web in family law matters.

Case Study: Untangling the financial web

Understanding financial statements and their underlying supporting documents can feel like interpreting a foreign language, but they contain a wealth of important information for property settlements.

JobTrainer- help for apprentices and trainees

On the 16th of July, the government announced an investment of $2 bn in a bid to help people get into work post the

With new changes to the JobKeeper program, what does it mean for business owners?

New announcement and changes to JobKeeper 2.0 - What it means for business owners

The government has today released more detail surrounding much anticipated changes to the JobKeeper program.

Queensland may offer you ex gratia relief from a land tax liability.

Queensland foreign owner land tax surcharge: Ex gratia relief guidelines

In last year’s State Budget, the Queensland Government unexpectedly announced an immediate 2% surcharge on the Queensland land tax liabilities of foreign companies and trustees of foreign trusts (collectively, “foreign owners”).

What does the future of JobKeeper hold for Australian businesses?

A better approach to JobKeeper?

With speculation rife over the future of the JobKeeper scheme, we explore what has worked with the scheme, what hasn’t and possible changes to the scheme that may be considered when the Treasurer releases his economic update and the results of the Treasury review into the scheme.

OECD's Annual Corporate Tax Statistics Publication

The OECD has released the 2nd edition of its annual Corporate Tax Statistics publication.

Will your JobKeeper records sustain an ATO review?

JobKeeper - Will your records sustain an ATO review?

The ATO have recently updated their ‘Keeping JobKeeper Fair’ guidance and have provided examples of the type of activity they are targeting when reviewing eligibility.

ATO’s assurance initiatives - Top 1,000 Tax Performance Program

Established in July 2016, the ATO's Top 1,000 Tax Performance Program is in its fourth year of establishing greater assurance that large public and multinational taxpayer groups are paying their ‘fair share of tax’.

Division 7A minimum yearly loan repayments and COVID-19

The ATO has released long-awaited guidance on Division 7A minimum yearly loan repayments and COVID-19. However, given the late release of the guidance and the onerous requirements to be satisfied in the application form it is arguably too little, too late.

Discretionary trusts, non-TAP gains, and foreign beneficiaries

The foundations of a sound tax system are built on the notions of efficiency, equity and simplicity.[1] Put simply, this means that the tax system should minimise distortion, apply fairly, and be clear and concise in its application.[2]

June 30 - The date the gate shuts!

In business and tax world, June 30 is a critical day of the year. In the lead up to this date, there is much planning, strategising, executing, restructuring, implementing and spending. All of this activity is for a good reason, as after June 30 many opportunities are closed for another year.

Under the Director Penalty Regime, the Commissioner of Taxation is empowered to make Directors of a company personally liable for specific tax related liabilities of companies they represent.

The ATO Director Penalty Regime

The ‘corporate veil’ separates the rights, obligations and liabilities of a company’s Shareholders / Directors from those of the company itself.

Employee Home Office Expenses

Due to the spread of COVID-19 and Government lockdown measures, most employees across Australia are relishing in the flexibility of being able to work from home.

The R&D Tax Incentive and Your Business

The Research and Development Tax Incentive is a Federal Government initiative to encourage companies to invest in innovation that benefits Australia.

Jobkeeper deadline - extended again?

A “systems issue” at the ATO’s end on the last day of enrolment caused frustration for entities that tried to log in but were locked out and could not access the portal.

The Federal Government has announced an extension of the instant asset write off to 31 December 2020.

Instant asset write off extended

In an effort to promote further investment by Australian business, the Federal Government has announced an extension of the instant asset write off to 31 December 2020. Legislation is expected to be introduced shortly.

Do you have the evidence ready for a JobKeeper claim review by the Australian Taxation Office?

Do you have the evidence ready for a JobKeeper claim review by the ATO?

The first of June is traditionally the start of winter but, for the tax-minded amongst us, 1 June 2020 also marks the official start of the next phase of the JobKeeper scheme.

As is with the common cliché, the reality is that taxes are still a prevailing issue for everyone despite challenges they may be facing.

Tax planning considerations in a COVID-19 world

In times of crisis, it is normal to overlook certain aspects of life as health and safety become a focus. As is with the common cliché, the reality is that taxes are still a prevailing issue for everyone despite the challenges they may be facing.

JobKeeper and record keeping – what you need to know about projected GST turnover

JobKeeper payments are now trickling in to give a much-needed boost to the cashflow of eligible businesses which is a cue to remind businesses of the compliance and that it is critical to ensure records are reasonable enough to substantiate any future queries.

Junior Minerals Exploration Incentive – Explained for 2020/21

The Junior Minerals Exploration Incentive (JMEI) was introduced in 2018 to allow junior mining exploration companies (JMEC) that are undertaking greenfield exploration in Australia, to convert tax losses into exploration credits for investors.

The hidden payroll tax and WorkCover costs of JobKeeper payments that employers need to be aware of.

Employers to beware of hidden payroll tax and WorkCover costs of JobKeeper payments

By and large, the JobKeeper Payment scheme is a much-welcome lifeline for employees and employers alike, especially now that the payments have started to flow. However, from an employer’s point of view, they need to be aware that they may be forced to bear some of the costs of administering the scheme.

JobKeeper changes for ACNC registered charities

On 1 May 2020, Treasury released amendments to the JobKeeper rules, which have effect from the start of the JobKeeper scheme.

R&D tax claims in the resources and mining sector

Change, risk and opportunity: R&D tax claims in the mining and resources sector

With so much change impacting business, we present a summary for the mining and resource sector highlighting issues that could impact (some positive) their current and future R&D tax claims.

Latest jobkeeper changes - sovereign entities redefined

On 30 March 2020, the Australian Government announced the JobKeeper payment wage subsidy for entities that have been significantly affected by the economic impacts of the coronavirus.

WA State Government relief for commercial tenants and landlords

Financial Relief – WA Commercial Tenants and Landlords

WA State Government relief for the building and construction industry

Support Package – Building and Construction Industry A $154.5m relief package to support tenants, landlords and the construction industry has been announced, of which the WA Government has set aside $24.5m for the construction workforce.

WA State Government relief for residential tenants and landlords

Financial Relief – WA Residential Tenants and Landlords

JobKeeper – Service entities, schemes and more complex rules

The legislative instrument setting out the modified rules for service entities, among other things, was registered by Treasury late in the evening on Friday 1 May 2020.

The Substantial Increase in Turnover Test has differing views on how the test may be applied.

Demystifying the substantial increase in turnover test

The legislative instrument and associated guidelines around the alternative decline in turnover tests that can be applied by an entity in order to qualify for the JobKeeper scheme have recently been released.

Potential JobKeeper Payment Implications of COVID-19 transfer pricing issues

COVID-19 and transfer pricing issues: Potential JobKeeper Payment Implications

COVID-19 has had a very adverse impact on the cash flows of many Australian businesses, who will be looking closely at the JobKeeper Payment regime and whether their turnover has declined by the requisite percentage.

COVID-19 and transfer pricing issues: Financing

COVID-19 has had a pervasive effect on business and one of the most salient is its impact on a company’s cash flow and funding arrangements.

Calculating GST turnover for the JobKeeper Payment scheme

Calculating GST turnover for the JobKeeper Payment scheme – cash, accruals, or something else? One of the critical aspects for an employer to consider and satisfy as part of the JobKeeper Payment Scheme is whether it has satisfied the decline in turnover test.

Land tax relief for landlords and tenants

Land tax relief for landlords and tenants following the release of the Mandatory Code of Conduct The National Cabinet recently signed off on the Mandatory Code of Conduct (“the Code”) for commercial landlords and tenants, which included a set of “good faith leasing principles”.

JobKeeper Payment - new ways to prove decline in turnover

The Commissioner of Taxation (the Commissioner) has now issued the much-anticipated legislative instrument setting out the alternative decline in turnover tests that can be applied by an entity as part of satisfying the eligibility criteria for the JobKeeper payment scheme.

JobKeeper payment enrolment applications have now opened.

The JobKeeper payment for your SME business

Enrolment applications for the JobKeeper payment have now opened and for many business owners, the program will provide a much needed lifeline.

Assisting commercial tenants with the impact of COVID-19

With the recent release of the Mandatory Code of Conduct (the Code) governing commercial leasing arrangements, landlords and their tenants are required to engage in good faith negotiations in respect of rental reductions in the form of waivers and deferrals to help mitigate the financial stress and hardship s

Increasing instant asset write-off to items under $150,000

RSM is pleased to provide this information sheet with details of the increased instant asset write-off available to small and medium-sized businesses.

Emergency Cash Grants for VIC small businesses

On 21 March 2020, the Victorian (VIC) State Government announced a one-off $10,000 emergency cash grant for small businesses impacted by COVID-19.

Emergency Cash Grants for NSW small businesses

On 3 April 2020, the New South Wales (NSW) State Government announced a one-off $10,000 emergency cash grant for small businesses impacted by COVID-19.

New announcements to the 'JobKeeper Payments'

In recent days, the Federal Government has made updates to the JobKeeper payment Fact Sheet, providing clarity surrounding eligibility for certain individuals and consolidated groups, and extending the eligibility criteria for eligible charities.

Greig’s deduction allowed; but will this be the final judgment?

Early in March 2020, the Full Federal Court handed down a decision in Greig v Commissioner of Taxation [2020] FCAFC25 (Greig’s Case), which was a reversal of the Fede

Employee Share Trust - ATO Provides Guidance on Definition

You’re the CFO of an ASX listed company that has established an Employee Share Trust (EST). The EST has been setup in order to hold shares or rights to shares for the company’s employees who participate in an Employee Share Scheme (ESS).

State governments recognising need for tax relief during natural disasters

State governments unveil tax relief during natural disasters

The oft-quoted maxim is that the art of tax is to pluck the goose so as to maximise the amount of feathers but minimise the amount of hissing.

Fringe Benefits Tax - Tips and Traps for the 2020 FBT year

With most employers now using Single Touch Payroll (STP), the Australian Taxation Office (ATO) has access to real-time information about employers and their employees.

Active Asset? Small Business CGT Concessions characterised by ‘use’

On 20 December 2019, the Federal Court handed down its decision in the case of Commissioner of Taxation v Eichmann [2019] FCA 2155. The case considered the meaning of an ‘active asset’ for the purposes of the small business capital gains tax (CGT) concessions.

RSM Australia appoints Sam Mohammad as national head of indirect tax practice

RSM Australia (RSM), one of the largest mid-tier accounting firms in Australia, has announced the appointment of Sam Mohammad as national head of its indirect tax practice.

Superannuation Guarantee (SG) Amnesty Passes Parliament

The Treasury Laws Amendment (Recovering Unpaid Superannuation) Bill 2019 has been passed by both Houses of Parliament and now awaits Royal Assent.

A super second chance for tax deductions

When it comes to tax matters we plan and often rush madly to put things in place by the end of the financial year. If we don’t it’s usually a missed opportunity that has passed never to return, leaving us to bemoan “If I could turn back time”.

Beware of purchasing Victorian residential land in a trust

The Victorian Duties Act 2000 imposes a stamp duty surcharge of 8% on the acquisition of Victorian residential property by a foreign purchaser. This surcharge brings the top stamp duty rate to 13.5%.

Changes may see Aussie expats taxed on disposal of their Australian home

The Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures) Bill 2019 (the Bill) was re-introduced to the House of Representative on 23 October 2019 despite widespread criticism of the retrospective nature of the legislation and unresolved issues surrounding the impact on certain Australian residents.

Western Australian payroll tax thresholds to increase

On 28 November 2019, the Payroll Tax Assessment Amendment (Thresholds) Bill 2019 (“the Bill”) was introduced to the Legislative Assembly.

Employee parking could cost you FBT

The November release of Draft Ruling TR2019/D5 (the draft ruling) may prove to be a cause of concern for employers.

Private groups on notice – the Tax Avoidance Taskforce is coming

Born out of various anti-avoidance reforms announced in the 2016-17 Federal Budget, the Australian Taxation Office (“ATO”) established a Tax Avoidance Taskforce to pursue tax avoidance activities of multinationals and high wealth individuals.

Changes to the Thin Capitalisation Legislation

In a response to concerns raised around asset revaluations for the purpose of calculating an entity’s thin capitalisation ratio, the Government announced in the 2018-19 Federal Budget that they would be proposing legislation to tighten the Thin Capitalisation rules.

Grain Marketing - A Tax Guide for Common Grain Contracts

Harvest in the West Australian wheatbelt is well and truly here, we think you (the hard-working farmers) all deserve a cold beer.

'Exempt' Motor Vehicles Caught Under Fringe Benefits Tax

Fringe Benefits Tax (FBT) arises when an employer provides a benefit to an employee (including Directors) in place of salary or wages and may include the provision of a benefit to an employee’s associate.

Farmers set to lose tax deductions for vacant land

Farmers are set to lose tax deductions for vacant land – despite calls to Government to change the proposed legislation. The Government provided assurances “…farmers will be fully protected from any unintended consequences of the bill”.

Reportable Tax Position (RTP) Schedule for Private Companies Delayed

After a brief consultation period on the expansion of the Reportable Tax Position (RTP) Schedule to include private companies, the Australian Taxation Office (ATO) has deferred the commencement of these measures until the 2021 financial year.

Australia individual tax residency rulesp

The Harding Case | Australia individual tax residency rules

Australia’s individual tax residency rules have been a subject of debate for many years, with numerous calls for change.

Superannuation Legislation for High Income Earners

The Government has passed superannuation legislation for high income earners (with income exceeding $263,157 per annum) which allows employees with more than one job to choose not to have the 9.5% superannuation guarantee paid by all their employers.

Superannuation Guarantee Amnesty - A case of deja vu

On Wednesday 18 September 2019, the Assistant Treasurer, Mr. Michael Sukkar, introduced an unexpected but welcome Bill to the House of Representatives.

Simplified Transfer Pricing Record Keeping (STPRK) options for loan

On 11 September 2019, the ATO released an update to Practical Compliance Guideline (“PCG”) 2017/2, in respect of Simplified Transfer Pricing Record Keeping (“STPRK”) options for lower-risk transactions.

Employee or Independent contractor - What happens when it goes wrong?

Negative Gearing of Vacant Land - is this the beginning of the end?

The Treasury Laws Amendment (2019 Tax Integrity and Other Measures No. 1) Bill 2019 was introduced to Parliament on 24 July 2019. One significant measure of the Bill is the introduction of proposed legislation to limit deductions for losses or outgoings incurred in relation to holding vacant land.

Tax time for individuals

With tax time fast approaching, no doubt there are many individual taxpayers eagerly counting down the days until they can lodge their 2019 Income Tax Return and hopefully receive a much-anticipated tax refund.

What to consider when tax planning for EOFY

With the end of the financial year looming, it’s time to think about your tax planning options before 30 June hits. We’ve curated a list of top things to focus on when organising your tax affairs for year-end, applicable to businesses, primary producers, trusts and individuals.

Fringe Benefits Tax – Tips and Traps for the 2019 FBT year

With the introduction of Single Touch Payroll (STP), the Australian Taxation Office (ATO) now has access to real-time information about employers and their employees. If you have employees, the more likely it is you are providing some form of fringe benefit and the higher the risk the ATO will expect to see you lodge a Fringe Benefits Tax (F

New black economy measures target withholding obligations and tax deductions

An extra layer of complexity is added for small businesses as new measures to tighten grip on the black economy targets withholding obligations and tax deduction.

ATO denies deduction: The case for critical comparisons when establishing precedent

When landmark ATO cases come to mind there is no doubt that the decision handed down by the High Court in FCT v Myer Emporium Ltd (1987) 18 ATR 693 (Myer) would make the top ten.

What foreign owners of residential property need to know about lodging their annual return

In late 2017, the Australian Federal Government introduced an annual vacancy fee to be levied on foreign owners of residential property, where the property is not occupied or generally available on the rental market for at least 6 months in a 12 month period.

How the PM’s defeat impacts corporate tax rates

Following the proposal for reduced tax rates for corporate entities in 2016, the Treasury Laws Amendment (Enterprise Tax Plan No 2) Bill 2017 (the Bill) was ultimately defeated in the Senate on 23 August 2018 by a vote of 36 to 30.

Foreign incorporated companies and changes to the tax ruling - What you need to know.

Most will remember the 2016 High Court ruling in the case of Bywater Investments Limited.

Reduced corporate tax rates - what rate of tax will my company pay?

While the legislation is transitioning, some have been left confused about the application of reduced corporate tax rates and the details of eligibility criteria during this state of limbo. To provide some clarity, we take a closer look.

Fringe Benefits Tax – ATO finalise their position on private use of vehicles.

New guidelines for private use exemptions of eligible motor vehicles for Fringe Benefits Tax (FBT) - ATO says yes to making a quick stop to grab a coffee (as long as it doesn’t add more than 2kms to your trip to work and is infrequent) but no to heading to cricket practice after work.

R&D Tax Incentive Reform - Call for submissions

R&D tax reforms, as announced in the 2018-19 Federal Budget, are steps closer to implementation with the Treasurer and Minister for Jobs and Innovation releasing draft legislation proposed to enact the changes.

New GST withholding rules - what property purchasers and developers need to know

The Federal Government has passed legislation that will require purchasers of new residential properties to remit the GST directly to the Australian Taxation Office (ATO) as part of settlement. The measures were first announced in last year’s Federal Budget. The legislation specifies:

Budget falters on R&D tax (and how this impacts startups)

It’s the third budget handed down by Treasurer Scott Morrison and for those of us in the innovation space, a whole lot to digest. After poring over the detail, I’ve created a summary of notable items for your reading pleasure (disclaimer: it’s not all pleasant).

Fringe Benefits Tax – ATO Focus Areas

With Fringe Benefits Tax (“FBT”) returns due for lodgement in May, the Australian Taxation Office (“ATO”) has highlighted common FBT errors that may attract further scrutiny.

Will passive income affect your entitlement to be taxed at 27.5%?

The Parliament recently introduced legislation that seeks to tax corporate entities at the full 30% tax rate where more than 80% of the company’s income for the year is base rate passive income. A recap of the current law

New requirements for Significant Global Entities

There are new requirements for Significant Global Entities to prepare General Purpose Financial Statements. Recent guidance from the ATO has clarified the effect of changes made last year to Section 3CA of the Tax Administration Act 1953.

Government Crackdown on Rental Property Deductions

The Government announced in the 2017 Federal Budget that it would be making changes to the legislation regarding Rental Property Deductions under the guise of “reducing pressure on housing affordability”.

Fringe Benefits Tax Spotlight

Customer Loyalty Programs Do you provide employees with a business credit card associated with a customer loyalty program?

Australia’s Diverted Profits Tax now a reality

The Bill introducing Australia’s version of the Diverted Profits Tax (DPT) completed its passage through the Parliamentary process on Monday, 27 March 2017, and now awaits Royal Assent before becoming law.

Budget 2016 - Corporate Tax Rates

Income Year Annual Aggregated Turnover Thresholds Rate 2016/17

Budget 2016 for International Businesses

Key announcements The Government has announced it will strengthen the anti-avoidance measures for multinationals recently legislated and previously announced in the 2015/16 Federal Budget by introducing the following additional measures:

Budget 2016 for Corporations

Cuts to Company Tax Rate The company tax rate will be reduced to 25% over the next 10 years. The company tax rate will be progressively reduced to 25% between the 2016/17 and 2026/27 income years.

Corporate interest deductions to be reduced?

Issue: News leaks that the Government will further reduce interest deductions for multinational groups. Action: Prepare for the worst, but perhaps with a reduced company tax rate to soften the blow?

Five areas corporate Australia should be aware of in 2016

The introduction of new tax measures, increasing insolvencies, and the growing incidence of digital disruption in the corporate sector in Australia means there are a number of key areas that CEOs, executives, directors, and boards should be aware of in 2016, according to RSM Australia.

Don’t let taxes spoil your Christmas

Company taxpayers: are you ready for the public disclosure of your tax data?

Since tax was first collected, a fundamental feature of tax law has been the unconditional secrecy surrounding taxpayer data. In Australia that position changed in June 2013 when Australia’s tax secrecy laws were amended, directing the ATO to publicly report certain large company tax data.

Tax reform 2016: what’s it all about?

Some in the political media would have us believe Tax Reform 2016 is dead before it starts, and that because Australia currently faces a failure of political leadership – meaningful tax reform is difficult at the best of times, but at present, there simply is not the depth of character, or belief, in Canberra or the state capitals to push through the necessary chan

Tax and your investment property

When purchasing an investment property, the choice of ownership structure is important to ensure you minimise the effects of taxation. Available structures include self-managed superannuation funds (SMSFs), family or unit trusts and companies, as well as holding the property individually or in joint names.

WA state tax exemption for charitable bodies or organisations

How will the changes affect your organisation?

Tax reform 2015 – a background

The Abbott Federal Liberal-National Party Coalition Government was elected in September 2013 on a platform of 'economic repair' which included promises to conduct two related white paper processes leading into the next federal election: a white paper on tax reform, and a white paper on the reform of Australia’s Federation.

Payroll tax update for WA

Payroll tax threshold The Western Australian payroll tax threshold went from $750,000 to $800,000 on 1 July 2014. Plans to raise it to $850,000 have been delayed to 1 July 2016 (at this stage!).

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