RSM Australia

Tax services

Often tax strategies that look good by themselves can be less sensible, even problematic in the context of your whole business. At RSM Australia we offer tax services that are proactive, so you don't miss a beat.​

Take a balanced and integrated approach with our taxation services.

We focus on your total business picture, not just your next return. Our tax solutions and services team help you define the right overall tax position, designed to save you money in complex tax environments, while at the same time meeting your larger business goals. Since we take a broad overview of a client's business, we can see opportunities that other tax consultants might miss.Tax services that are proactive, so you don't miss a beat

At RSM Australia, we believe tax planning is a year-round concern.

Yes, we're sticklers about deadlines and compliance, but our larger goal is tax solutions. Tax issues don't begin and end with tax returns, so we keep a constant eye on your company's overall obligations. We alert you to any changes that may affect you and help you to respond in a timely way. Our proactive approach to taxes sets us apart.

In addition to providing ongoing advice, we offer a number of specific tax services:

Income tax consulting

Tax advice isn’t a one size fits all solution which is why we take an integrated approach. Through our income tax planning and consulting, we’ll look at tax consolidation involving formation or acquisition of groups and any debt or equity issues your business may have.

Human resource tax solutions

A service that is used widely across many businesses, at RSM Australia we understand that a company is only as good as the people behind it. Through providing human resource tax solutions, you can ensure your business is attracting and incentivising the right employees.

Tax compliance

Ensure you are compliant with corporate laws by enlisting the taxation services of RSM Australia. Our 360-degree approach to tax compliance means you’ll never miss an important deadline as well as reducing the risk of your organisation being hit with unexpected penalties or additional tax.

International tax

If your business is trading or dealing internationally, you will need to rely on a firm that can help you understand how your business, its cash and any cross border transactions will be affected. Take the stress away and let RSM Australia handle your international tax planning needs.

See how the expert team at RSM Australia can help your business and find out more about our taxation services by contacting the team today.

 

Deductibility of labour costs related to the construction or creation of assets

Draft Tax Ruling TR 2019/D6 explains the Commissioner’s views as to when labour costs relating to the construction or creation of an asset is deductible for tax purposes under section 8-1 of the Income Tax Assessment Act 1997 (Tax Act). 

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.

Working holiday maker or Australian Tax Discrimination?

On 30 October 2019, the Federal Court handed down judgment in Addy v Commissioner of Taxation [2019] FCA 1768.

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.

Screws tightened on the taxation of Testamentary Trusts

Testamentary Trusts (trusts created under the effect of a will) have provided both control and tax advantages for many years.

'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.

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.

Accounting for the R&D Tax Incentive

The R&D Tax Incentive has been in place since 2011.  However, uncertainty remains over the appropriate accounting treatment for it in financial statements.  Ralph Martin, RSM’s National Technical Director, considers the matter:

The Moreton Resources Case - R&D tax incentive in Australia

The Moreton Resources Case – Finally certainty amongst the uncertainty for the R&D tax incentive in Australia, but only if you know how to find it.  

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.

Instant asset write-off – what can you claim?

The instant asset write-off is not available for all business assets and determining which assets are eligible may pose a challenge for many small and medium-sized business owners (SME) and their advisers.

What’s on the tax agenda post-election?

The recent Federal Election saw the Coalition led by Scott Morrison returned to government.  While this means that Labor’s controversial tax policies have been put on ice, it’s time to revisit the government’s tax agenda and what this means for you. 

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.

State Budget Analysis 2019-20

Here's a closer look at the key changes to come out of the 2019 State Budgets for ACT, VIC, NSW, SA and QLD.  From stamp duty reform to payroll tax changes, our experts determine how these announcements will impact you and your business.

2019-20 Victorian State budget tax analysis

Picking up the pieces after an uncertain 18 months After a somewhat surprising Liberal victory at the Federal Election, the state government has released its 2019-20 Victorian State Budget in the shadows of slumping stamp duty revenue and a forecasted reduction in federal financing. 

Will Labor overcomplicate our already complicated tax environment?

Overwhelmed by the tax rhetoric delivered by the Australian Labor Party (ALP)? You are in the right place. The following commentary breaks down the ALP’s tax implementations and how they impact individuals.  

Australia's hybrid mismatch regime

In response to recommendations by the Organisation for Economic Co-operation and Development (‘OECD’) in Action 2 of it's Base Erosion and Profit Shifting (‘BEPS’) initiative in 2015, Australia has now enacted a new hybrid mismatch regime that generally applies to income years commencing on or after 1 January 2019.

2019 Federal Election - Comparison of policies

Ahead of the federal election on 18 May, we compare the policies impacting small business owners, as announced by the two major parties.

When similar is sufficient - new hope for deducting company tax losses

The ability for a company to recoup its prior year tax losses has always been a contentious topic. If a company wishes to recoup its tax losses, it’s required to pass the continuity of ownership test (COT), and failing COT, the same business test (SBT).

Federal opposition shadow budget comparison – Let the campaigning begin!

With the ‘ink’ barely dry on this week’s Federal Budget and an election looming, it is evident that tax policy and economic management is set to be a major factor as the ‘battle lines’ are drawn. 

2019-20 Federal Budget – an economic view

The Government’s 2019-20 budget sees a much-heralded return to budget surplus that has given the Treasurer the financial headroom to craft a budget that both appeals to voters as well as providing fiscal stimulus to an economy that could benefit from a bit of a boost to consumer spending.

Federal Budget 2019-20 Report

The 2019-20 Federal Budget was brought forward from May to 2 April with the unabashed motive of improving the Coalition’s election prospects in May 2019. Roy Morgan’s February 2019 poll puts the ALP at 52.5% and the Coalition at 47.5% of the two party preferred vote.

Proposed Labor negative gearing policies set to compromise the great Australian dream

If the great Australian dream is the purchase of your very own home, then the ability to negatively gear investment properties is an Australian institution. What will become of the Australian way if the Labor party is brave enough to challenge this iconic status quo?

Uncertainty prevails for taxpayers as election looms

As the Australian public await a date announcement for the upcoming Federal Election, uncertainty prevails for many taxpayers as they anticipate the outcome of many unenacted and proposed changes to tax legislation.

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

Budget "sweeteners" diminished by downside economic risks

The budget will be an opportunity to provide a suite of sweeteners to voters ahead of the expected May election.

Low wages growth revisited in Federal Budget

The upcoming Federal budget will once again provide the opportunity for the Federal Government to focus on the future needs of the Australian economy.  

Labor's proposed changes to franking credits

With a Federal election looming, now is the time to consider the impact of a Labor government and its proposed tax policies on Australian taxpayers. For corporate entities, a key tax change will be Labor’s proposed roll back of refundable imputation credits which was introduced by the Howard government. 

Instant asset write-off to ‘skip the line’ of legislation in the Senate

Doubt has been raised as to whether the recently announced increase to the Small Business Instant Asset Write-off threshold from $20,000 to $25,000 and effective 29 January 2019 to 30 June 2020 will be passed before the Federal election.  

GST nuances – from the world’s oldest profession to it’s newest

Almost 20 years on from the introduction of GST in Australia by then-Prime Minister John Howard and who’d have thought that robust deliberation on its application continues.

The devil in the detail – have you ‘used’ that mining, quarrying or prospecting right?

While Australia’s tax system rightly supports resource exploration by allowing deductions for depreciating assets first used in exploration, concerns that the deduction was being misused prompted an integrity approach to support genuine exploration.

Proposed R&D tax changes don't stand up to Senate scrutiny

The Senate’s Economics Legislation Committee report was tabled on Monday 11 February and in its collective wisdom, the committee has put on hold proposed changes to the research and development (R&D) tax incentive.

Q&A with a tax concierge: Steve Healey

 It was 1995 when Daniel Goleman suggested to the world that emotional intelligence matters twice as much in the workplace over IQ or technical expertise.

ATO broadens Reportable Tax Position lodgement requirements

In the quiet of the first week of February, as Australia is getting back to work after the holiday period, the Australian Taxation Office (ATO) announced sweeping changes to its Reportable Tax Position (RTP) Schedule criteria. 

Changes to Capital Gains Tax exemption for foreign residents

Controversial legislation enabling the removal of the capital gains tax (CGT) main residence exemption for foreign residents was originally scheduled for debate in the Senate on 16 October 2018. 

Single Touch Payroll Reporting – Clarity for small employers?

After considerable delays in the Senate, small employers now have some clarity surrounding the implementation date for Single Touch Payroll reporting (“STP”).  The Treasury Laws Amendment (2017 Enterprise Incentives No. 1) Bill 2017 was passed by the Senate on Wednesday 5 December 2018 with a proposed amendment.

How businesses can avoid being caught off-guard by payroll tax

Following high-profile cases of businesses failing to adequately pay their workers, some of those same businesses are being investigated for failing to pay their state payroll tax.

Bridging the governance gap

Having worked with companies to implement tax governance frameworks for over 15 years, I’m seeing the first signs that tax governance is truly going mainstream.

Why franchisees have to be proactive when it comes to payroll

Franchisees usually get a lot of help from franchisors when it comes to marketing, branding, and daily operations. One area where some franchisees seem to be left out in the cold is in managing payroll.

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.

Labor party updates policy - implications for negative gearing and CGT

Implications for negative gearing and capital gains tax concessions

Division 7A or Doomsday

Treasury Releases Consultation Paper

Satyam Computer Services v ATO: international tax war intensifies

Satyam Computer Services has returned to the Australian Courts to again contest Australia’s taxing rights over fees paid by Australian customers for IT/technical services performed by Satyam employees based in India.

Corporate tax rates – what lies beneath, a set of steak knives perhaps?

A joint media release by PM Scott Morrison and Treasurer Josh Frydenberg announces more changes to corporate tax rates.

Australia takes the next step to taxing the digital economy

The Australian Treasury released a discussion paper in early October 2018 to inform a consultation about whether, and if so, how Australia could introduce an ‘interim measure’ to tax sectors of the digital economy. 

Understanding the instant asset write-off for farmers and small business

Australian business owners rejoice – legislation extending the well regarded instant asset write-off program has been passed. 

Payment of employee bonuses

Recognising the hard work of employees is important to ensure morale remains high in the workplace and that quality workers are retained in your business. One of the easiest ways to reward employee excellence is through the payment of employee bonuses. 

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).

Junior Minerals Exploration Incentive - Get in quick!

The Exploration Development Incentive (EDI) was replaced by the Junior Minerals Exploration Incentive (JMEI) for the 2018 to 2021 years. JMEI applications for the 2019 year must be electronically submitted between 1 June and 30 June 2018.

R&D tax due diligence important for SMSF investors

With the leading businesses in the world now being technology and intellectual property-based rather than physical asset-based businesses, investors are looking more proactively for early-stage companies that have similar characteristics.

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.

Are you missing out on tax incentives?

If you’re the owner of a company that, unbeknown to you, conducts research and development (R&D) which could qualify for tax incentives – to the tune of 45 cents for every dollar spent – now’s the time to explore how much tax money you might be leaving on the table.

ATO extends lodgement date for Country-by-Country Reporting

The Australian Taxation Office (“ATO”) announced this week an extension of the due date for lodgement of the Country-by-Country report, master file and local file (collectively “CbCR”), from 31 December 2017 to 15 February 2018 for taxpayers with an income year ended on 31 December 2016.

New GST Legislation released - Developers and Home Builders beware

On 6 November 2017, Treasury published an Exposure Draft of legislation that will require purchasers of new residential premises and lots in new residential subdivisions to pay an amount equal 1/11th of the

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

Long-term construction contract ruling | Draft ruling issued

In 1987, Aretha Franklin finally got the respect she deserved by being the first woman inducted into the Rock ‘N’ Roll Hall of Fame. Also that same year, the Australian Taxation Office (ATO) released Income Tax Ruling IT 2450 to determine how to return income and recognise expenses on long-term construction contracts.

Is the ATO watching you and you don’t even know it?

The ATO is always keen to ensure that the tax system is fair and that all Australian taxpayers are paying the right amount of tax on their income.

Western Australian State Budget Announcement

A budget for Western Australians to be owned by Western Australians. This was the line the State Treasurer used as he released his first State Budget in office.  

Corporate Tax Rate reductions and the impact on shareholders

In the 2016–17 Budget, the Government announced its intention to reduce the corporate tax rate from 30% to 25% by the 2026-27 income year.  These changes were outlined in the Treasury Laws Amendment (Enterprise Tax Plan) Bill and after minor amendments by the Senate, received Royal Assent on 19 May 2017.

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”.

Foreign Resident Capital Gains Withholding Tax

The Federal Government recently announced changes to the Foreign Resident Capital Gains Withholding (“FRCGW”) rate and threshold.  The changes will apply to all contracts entered into from 1 July 2017 and include:

OECD releases revised Transfer Pricing Guidelines

On 10 July 2017, the OECD released its revised OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations  in order to formally incorporate the most significant body of work ever undertaken by the OECD and its member (and indeed some non-member) countries regarding harmful international tax practices – the Base

What are the GST implications of Retentions and Bank Guarantees?

While there have been no recent changes in this area, it is worth re-visiting as we have had a couple of queries on regarding Retentions and Bank Guarantees.

Should your SME start making R&D tax claims? | R&D Tax Incentive

In light of the disproportionate number of small and medium-sized enterprises (SMEs) lodging annual R&D Tax Incentive claims, there’s never been a better time for non-participating SMEs to consider their options, urges Dr Richard Wraith R&D Tax Principal with RSM Australia.

New 12.5 percent withholding tax on property transactions

To ensure Australia captures as much tax as possible from property transactions a new withholding tax has been introduced and will apply to contracts entered into on or after 1 July 2017. Under the new provisions where a foreign resident disposes of:

Signing the Multilateral Instrument

What happens if you threw a party and the guest of honour did not turn up? The international aspects of the G20/OECD’s Base Erosion and Profit Shifting (BEPS) project will become a reality at a treaty signing ceremony to be held in Paris, on 7 June 2017. 

Chevron Australia’s transfer pricing fight to go (at least) another round

Chevron Australia has lodged the necessary paperwork with the Australian High Court registry, to apply for special leave to appeal against the Full Federal Court’s decision, in the long running and ground breaking transfer pricing litigation.

ATO releases draft transfer pricing guidance on international related party financing arrangements

On 16 May 2017, the Australian Taxation Office (ATO) issued in draft form a Practical Compliance Guideline (PCG 2017/D4) outlining its proposed compliance approach to the transfer pricing implications arising from cross border ‘related party financing arrangements’ (RPFAs). 

Australian GST: low value threshold (LVT) changes a step closer

With a low value threshold (LVT) set at AUD$1,000, Australia has been very much at the ‘generous’ end of the global spectrum of GST-free imported goods, to the benefit of Australian consumers and the chagrin of Australian retailers.

The arguments and the Court's decision

Australia wins gold in the international transfer pricing games The Commissioner’s arguments The Commissioner made determinations under both Division 13 and Subdivision 815-A, totalling approximately A$340m, based on his view that:

Detailed discussion of the facts

Australia wins gold in the international transfer pricing games The facts

Australia wins gold in the international transfer pricing games

Australia has shot to international prominence in the transfer pricing world following the Full Federal Court’s recent decision, dismissing the taxpayer’s appeal against the first instance decision in favour of the Australian Tax Office (ATO): Chevron Australia Holdings Pty Ltd v Commissioner of Taxation [2017] FCAFC 62

Individuals

The 2% budget deficit levy on incomes over $180,000 will not be extended beyond its initial three years.  The levy will cease at the end of the 2016-17 year. The Medicare Levy will increase by 0.5% to 2.5% from 1 July 2019.

Federal Budget 2017-18

The Rocky Horror Budget: “It’s just a jump to the left, and a step to the right.” Credit Dr Frank N Furter

Government announces changes to 457 visa

Temporary Employer Skilled Migration Programme – 457 visa to be replaced

Fringe Benefits Tax Spotlight

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

Increase of the Small Business Entity Turnover to $10m

The Government has announced that it will accept changes made by the Senate to the Treasury Laws Amendment (Enterprise Tax Plan) Bill 2016. The Bill will likely be passed by the House of Representatives in the next parliamentary session.

Employee or Contractor - Busting the Myths

Determining whether your worker is an employee or a contractor is a complicated issue and one that in which business owners often make mistakes.

Small business tax cuts pass Parliament, but no relief for larger corporates

On Friday 31 March 2017, following an extended sitting of the Australian Senate, the Government achieved another political victory in the face of the brinksmanship which passes for the current Parliamentary process; a deal was struck with the Senate crossbench to pass a watered down version of the Government’s key economic policy initiative –the reduction of the c

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.

Software Based R&D Claims – Uncertainties From ‘Agile Development’

Recent examples of ‘agile development’ from the R&D Tax Incentive administrator have brought uncertainty to the start-up sector. Taxpayers must be more vigilant than ever in how Software R&D claims are prepared. What Is the R&D Tax Incentive?

Australia broadens the tax ‘resident’ test for foreign incorporated companies

ATO gets a powerful new weapon, as Australia broadens the tax ‘resident’ test for foreign incorporated companies. ATO issues draft ruling on central management and control (CM&C) of foreign incorporated companies.

Payroll Tax - How you can avoid the common errors

The cash flow impact of not complying with payroll tax reporting Understanding the complex rules surrounding payroll tax can sometimes be difficult to manage. Not planning for your payroll taxes can cause serious consequences for the cash flow of a business  

Deductions for Mining & Petroleum Exploration Expenditure

The Australian Taxation Office (“ATO”) have recently issued Taxation Ruling TR 2017/1 to provide guidance on the application of both section 8-1 and section 40-730 of the Income Tax Assessment Act 1997 (“ITAA1997”). 

ATO alert sparks concern for software development R&D Tax Incentives (TA2017/5)

The recent alert issued by the ATO (TA2017/5), has raised some fears and concerns among innovators in established technology firms  as well as the start-up community.  

Making sense of eligible Research and Development tax incentives

Does your company conducts Research & Development (R&D)? Did you know: you may qualify for tax incentives (45 cents per $1 spent!) View our tax concession examples.  

Backpackers Tax explained - employers take note!

A collective sigh of relief could be heard across the country on 5 December 2016 when the Federal Government finally passed the Working Holiday Maker Reform Bill 2016. 

Small Business Income Tax Concessions - Am I small enough?

It is a well-known fact that small to medium businesses drive the majority of the Australian economy. The ATO has made certain income tax concessions available for small entities in particular, since at least 2002 with the introduction of the Simplified Tax System which then transitioned into the now known Small Business Concessions. 

Payroll Tax and Medical Practices - a Potential Game Changer

The NSW Civil and Administrative Tribunal in Winday International Pty Ltd v Chief Commissioner of State Revenue has found that radiologists working at an imaging facility were employees of the facility provider for payroll tax purposes under the “employment agent” provisions.

Fuel tax vs road user charge - what has history taught us?

This a story in two parts. The first is the history of this plan, the second the (longer) history of the Fuel Tax scheme.

Fringe Benefits Tax – Simplified Approach to Log-Books

The ATO have taken steps to lessen the administrative burden for employers with a fleet of more than 20 cars with the release on 19 October 2016 of Practical Compliance Guideline 2016/10.  

Australian GST: Compliance savings for non-residents

Australia has been hastening slowly to reduce the GST compliance burden on non-residents, and after 6 years of ‘deliberation’, the measures finally came into effect on 1 October 2016.

Tax Insight: Tech Mahindra Ltd - An Equine Trilogy

When you are on a good thing, stick to it – never look a gift horse in the mouth and never change horses in mid-stream.

So you think you can restructure?

The government recently introduced the Treasury Laws Amendment (Enterprise Tax Plan) Bill 2016 which will seek to increase the aggregated turnover threshold for access to most small business tax concessions to $10m (previously $2m).

The government’s enterprising tax plan

The Coalition Government has recently introduced the Treasury Laws Amendment (Enterprise Tax Plan) Bill 2016 into Parliament which will increase the aggregated turnover threshold to small business tax concessions from $2m to $10m. 

1.5% Cuts to the R&D Tax Incentive in the Omnibus Bill

The Omnibus Bill passed by parliament has cut the rates available under the Refundable and Non-Refundable R&D Tax Offsets by 1.5% for the first $100m of eligible expenditure.

How much tax will you pay on your profits?

It’s estimated a million small and medium-sized businesses were given some tax relief last financial year and from July 1 this year are benefiting from an additional tax cut. Are you one of them and taking advantage of it? How the tax cuts works
Local firm merges with our RSM Wagga Wagga office

RSM Wagga Wagga Merges with Local Firm

It’s a time of growth for the local Wagga Wagga office of RSM Australia, who is merging with JP Pallister & Associates as of 1 July 2016.

Tax planning 2016

As it is coming close to the end of the financial year, it is again time to review your tax position and consider your end of year tax planning options.

Budget 2016 - Corporate Tax Rates

Income Year Annual Aggregated Turnover Thresholds Rate 2016/17

Budget 2016 - Summary of tax rates and thresholds for individuals

Resident taxpayers The current 2015/16 tax rates (including the 2% temporary budget deficit levy, but excluding the 2% Medicare levy) are: 2015/16 Income Year

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 SMEs

Key announcements Increase in small business entity turnover threshold from $2 million to $10 million; Increase the unincorporated small business tax discount; Amendment to Division 7A to allow self-correction for inadvertent breaches.

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.

Tax Reform Discussion and a State Income Tax

This issue deserves some real consideration. Of course, the devil is in the detail (which we haven’t seen yet) but the concepts are worth looking at. The idea of a State Income Tax does not appear out of nowhere, and it is worth looking briefly at the history of this issue.

Industry insight - Milk powder manufacturing

A snapshot of the key statistics and current industry performance in the milk powder manufacturing sector.

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?

Taking a bite out of new FBT meal benefit rules

Are you part of a not-for-profit (NFP) health organisation that offers benefits to its workers in exchange for lower wages? If so, you need to know that the Federal Government has introduced changes to fringe benefit rules from April 1.

Tax Reform – Improving the Building Blocks

Nothing in this world can be said to be certain, except death, taxes, and calls for tax reform. When elected in 2013, the Coalition Government promised to deliver a White Paper on tax reform during its first term, which it would use as a tax policy platform to take to the 2016 election.

Where to with the Wine Tax?

Anyone working with the wine tax on a day-to-day basis would agree it is not a simple tax. The basics are straightforward, it is around the edges where it gets difficult. 

NSW payroll tax rebate scheme extended - 23 November deadline

The payroll tax rebate scheme has been extended to 30 June 2019. Payroll tax rebates can be up to $5,000 per employee in situations in which a business’s full time employee numbers have grown and in which new employees are retained for a two year period.

BEPS project final reports released: OECD calls ‘paradigm shift’

Pascal Saint-Amans, Director of the Centre for Tax Policy and Administration at the OECD, released the 2015 BEPS reports during a global webcast on Monday 5 October 2015.  Consisting of 13 Final Reports and an explanatory statement, the package of measures has been adopted by the OECD Ministerial Council, and must now be adopted by the G20 finance ministers (8 Octo

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.

Multinational anti-avoidance law for real: Australian legislation introduced

In introducing the ‘Combating multinational tax avoidance’ bill to the Australian Parliament on 16 September 2015, the government has taken another unilateral step in its fight against international base erosion and profit shifting (BEPS).  The new bill contains three changes, all of which have been the subject of earlier exposure draft legislation.

Employee or independent contractor?

Over the past couple of decades there has been a clear shift away from 'traditional employment' and towards people acting as independent contractors. This is particularly so in the building industry.

National Innovation and Science Agenda

A detailed analysis of what you need to know about Prime Minister Malcolm Turnbull's highly anticipated $1.1 bn innovation strategy The Federal Government has released its much anticipated Innovation Agenda but what does this mean for business and individuals. 

R&D expenditure - is it really incurred?

Last week, the full federal court in Commissioner of Taxation v Desalination Technology Pty Ltd [2015] FCAFC 96 overturned the decisions of the Administrative Appeals Tribunal and the single judge of the federal court in denying the taxpayer a research and development (R&D) deduction for amounts incurred by an associate party on behalf of the taxpayer.

RSM’s response to Vision for a Science Nation: Australia's future

While the R&D Tax Incentive is one of the effective mechanisms for stimulating innovation in Australia, Science Technology, Engineering and Mathematics (STEM) competitiveness can be improved by enhancing and developing new incentives to increase Australia’s investment in innovation, according to RSM.

Foreign ownership of agricultural land register

As you have seen in the media over the past six months, the level of foreign ownership in Australian real property, and in particular agricultural land has been a hot topic of debate.

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

Managing change at board and executive level

RSM recently held a lunch featuring a panel including Paula Dwyer, Professor Judith Sloan and Fiona McGauchie with Catherine Walter as MC to discuss how to manage change at board and executive level. This is a synopsis of the event.

Australia increases the pressure on multi-national tax avoidance

On 6 August 2015 several further steps were taken in Australia in the move to generate additional tax from multinational corporations.

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.

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.

The 'Netflix' tax: a wing and a prayer

A GST integrity measure announced in the recent federal budget seeks to ensure that there is a level playing field for the suppliers of digital products and services in Australia in relation to the GST.

Employee share scheme (ESS) changes

From 1 July 2015, ESS changes allow taxing points to be deferred and introduce a significant new concession for 'start-up' companies. Tax deferral The maximum period of tax deferral increases from 7 years to 15 years.

Australia introduces a 'Google tax' after all

Snapshot The proposed multinational anti-avoidance tax integrity measure (Australia’s version of the ‘Google tax’) will:

2015-16 budget for research and development

There was minimal content in the Budget that will have an impact on Australian innovation. The following are the relevant key Budget announcements: Crowd funding

2015-16 budget for superannuation

Contrary to the announcements made by the Labor Party in April, the government confirmed in the Federal Budget that no tax changes will be made to superannuation this year.

2015-16 budget for individuals

Personal tax rates There will be no change to personal tax rates however the Treasurer has confirmed that the Temporary Budget Repair Levy of 2% which was introduced from the 2015 year will not be extended beyond its initial 2 years.  The levy will cease at the end of the 2016-17 financial year.

2015-16 budget for SMEs

Immediate Deductibility for professional start-up expenses

2015-16 budget for GST

GST and digital service providers A GST integrity measure announced in tonight’s budget seeks to ensure that there is a level playing field for the suppliers of digital products and services in Australia in relation to the GST.

2015-16 budget for corporations

Targeted Anti-avoidance for Multinationals Part IVA and permanent establishments

New major integrity measures announced ahead of 2015-16 Federal Budget

You call that a diverted profits tax? This is a diverted profits tax… Australia’s Federal Treasurer Joe (‘Crocodile Dundee’) Hockey announced on Monday 11 May 2015 that the Federal Budget will contain two new major integrity measures.

Australia changes horses: drops the ‘Google tax’ option but chases the ‘Starbucks effect’

It is ‘silly season’ in Australia at present – that twilight period ahead of the release of the annual Federal Budget, scheduled this year for Tuesday, 12 May 2015. The media is, as usual, awash with speculation regarding what is ‘hot’ and what is ‘not’ in the world of tax.

Victorian state budget review 2015

The bottom line The Victorian budget 2015-16 continues the prudent management of Victoria’s budget and the key goal of maintaining our AAA credit rating. The budget shows a projected surplus of around $1.2bn for 2015-16. This is on the back of an expected surplus of around $1bn for 2014-15.

New tax rules for earnout arrangements

On 23 April 2015, the government released exposure draft legislation to implement the long awaited changes to the treatment of ‘earnout arrangements’ connected with the sale of a CGT asset (typically shares/units in a company/trust, or the sale of business assets).

What is tax planning?

Often accountants can be heard talking about and encouraging taxation planning to our clients. It is an oft used catchcry in the business world that ‘failing to plan is planning to fail’, this may well be an accurate statement, but how much taxation planning and strategy is acceptable before you raise the ire of the ATO? 

WA state tax exemption for charitable bodies or organisations

How will the changes affect your organisation?

International tax update - Australia

Australia is making plenty of noise on the international tax scene at the moment, which is notable given the current state of global tax turmoil. Of present note:

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.

Exploration development incentive - should mineral explorers opt in or out?

The Exploration Development Incentive (EDI) was enacted with the passing of the Tax and Superannuation Laws Amendment (2014 Measures No. 7) Act 2014 in March 2015. Mineral explorers will need to determine whether the exploration expenditure they have incurred since 1 July 2014 will qualify for the EDI.

'Stopping multinational tax avoidance': ALP policy launch

The Australian Labor Party (ALP) has outlined proposed measures to combat multinational tax avoidance in a 2 March 2015 policy launch.  The proposed measures expect to raise $1.9bn over three years, and comprise:

Fringe benefits tax – tax tips for year end

With 31 March just around the corner, many businesses are focusing on ways to reduce their fringe benefits tax (FBT) liability. We have therefore provided the following strategies that may help in reducing FBT.

Practical applications of BEPS Action 13: transfer pricing documentation and country-by-country (CbC) reporting

The organisation for cconomic co-operation and development launched the base erosion and profit shifting (BEPS) project in September 2013 to develop an action plan to standardize and modernize global tax policy.  This is the second in a series of webcasts offering insight and analysis into how the BEPS initiative might be implemented and the effects of that impleme

Countdown to tax reform - 2015 Intergenerational Report

Joe Hockey, Australia’s treasurer, released the 2015 Intergenerational Report (IGR) on Thursday 5 March 2015, and in so doing has taken a step closer to kicking off the stalled tax reform process.

OECD to hold public consultation on several transfer pricing related BEPS action points

On March 19 and 20 the OECD will hold its public consultation on action points 8, 9 and 10 of the base erosion and profit splitting (BEPS) project. Topics on the agenda include:

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!).

Base erosion & profit shifting (BEPS) - OECD webcast 12 February 2015

The OECD’s senior tax leadership delivered a rapid-fire 1 hour webinar from Paris on 12 February, 2015.  The presentation provided an update on BEPS development since late 2014, and outlined the (very heavy) 2015 work program as the BEPS project enters its second and final year.

Proposed changes to the taxation of employee share schemes

Following the release of its Industry Innovation and Competitiveness Agenda in October 2014, the Federal Government has now released exposure draft legislation proposing changes to the income tax treatment of employee share schemes (ESS). The changes are intended to apply from 1 July 2015.

Legislative developments and progress on transfer pricing documentation

The reformation process of Australia's transfer pricing regime that commenced in November 2011 has continued apace in 2014. 2015 is also likely to be a year of significant change.

Informed and holistic approach needed for GST debate

The recent debate around the broadening of the GST base to include either fresh food versus private health and private education feels a little like introducing bandaids when major and painful surgery is required.

G20 / OECD BEPS project - the end of the beginning ushers in the beginning of the end game

On 5 October 2015, the OECD has announced it will release the final package of measures for a co-ordinated international approach to the reform of the global tax system under the G20/OECD Base Erosion and Profit Shifting (BEPS) Project.