Choosing the right business structure to maximise the return and to minimise the legal and economic risk for the owner(s) is important. Choice of structure can significantly affect the tax liability arising from various transactions. Sole traderA sole trader is subject to income tax on all sources of assessable income whether from business, salary and…
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Superannuation funds must meet the ‘sole purpose test'(s62 SIS Act) to be eligible for the tax concessions available to a complying superannuation fund. This means a superannuation fund needs to be maintained for the sole purpose of providing retirement benefits to its members, or to their dependants if a member dies before retirement. A superannuation…
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Negative gearing is the term given when interest paid on funds borrowed to finance the acquisition of an income-generating investment (eg a rental property, shares which generate dividends, or any other investment that generates assessable income) exceeds income received in the short-term, ie the investment produces a net tax loss for the year. There is…
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The past few years have been challenging for many small businesses with the COVID-19 pandemic and natural disasters having a significant impact on their businesses. With the announcement of tax penalty amnesty scheme in the May 2023-2024 federal budget, the Australian Taxation Office is encouraging small businesses which have overdue income tax returns, fringe benefit…
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ITAA97 Subdiv 118-B A dwelling that is owned by an individual and qualifies as their main residence throughout the period they own it is generally exempt from CGT. However, if the dwelling is also used for income earning activities or it has not always been the taxpayer’s home throughout the period they owned it, then…
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The Personal Service Income (PSI) rules are a set of ATO provisions designed to prevent persons who derive income from their personal services from “splitting” or “alienating” that income with other persons and therefore minimising the overall tax payable. If you cannot pass one of the tests within the PSI rules and do not have…
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Self-education includes courses undertaken at an educational institution (whether leading to a formal qualification or not), attendance at work-related seminars or conferences, self-paced learning and study tours (overseas or within Australia). For self-education expenses incurred before 1 July 2022, you generally can’t claim the first $250 of expenses. TR98/9 details the ATO’s views on the…
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A self-managed superannuation fund (SMSF) is a superannuation fund with no more than six members (increased from four members from 1 July 2021) that satisfies the requirements outlined in s17A SIS Act. The SMSF sector emerged on 8 October 1999 from the former ‘excluded superannuation funds’, following a government’s inquiry into the Australian financial services…
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“You don’t have to be great to serve, but you have to serve to be great” Our team are very humble to be named the Winner of “Outstanding Accounting Services” in the City Suburbs Local Business Awards 2023 We couldn’t make it to the Awards’ Night because CPA Australia City Taxation Discussion Group was on…
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Our office will be closed on Good Friday and Easter Monday. Reopen Tuesday 11 April 2023. On behalf of MaxGrowth and team, we would like to wish you a Happy and safe Easter break!
