Investors must consider a range of tax laws dealing with income, assets and deductions. Investment returns can be on revenue or capital account. Similarly investment expenditure could also be on revenue or capital account. The distinction between revenue and capital is not aways clear and characterisation of a receipt will ultimately depend on the circumstances…
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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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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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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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