Changes to the Victorian State Revenue Office's application of the Foreign Purchaser Additional Duty may affect you from 1 March 2020
Before purchasing a property, you will need to amend your discretionary trust deed to ensure it becomes exempt from this surcharge.
What is the Foreign Purchaser Additional Duty (FPAD)?
Introduced on 1 July 2015, the FPAD is a surcharge payable by, amongst other entities, Foreign Trusts that acquire residential property in Victoria. As from 1 July 2019, the FPAD is an additional 8% of the dutiable value of the transaction.
Up until 1 March 2020, in determining if a discretionary trust...
Remember the old days, when you incorporated a company and were safe in the knowledge that your personal assets were less at risk. Well that has just changed, with the introduction of the Combatting illegal phoenixing bill.
There has been a lot of press recently, with a focus on dodgy directors rebirthing companies, and avoiding taxes.
According to ASIC, Illegal phoenix activity is where a new company is created to continue the business of an existing company that has been deliberately liquidated to avoid paying outstanding debts, including taxes, creditors and employee entitlements.
The ATO is warning businesses that they will have one last chance to come clean on unpaid super. The 'Recovering Unpaid Superannuation' bill passed through the House of Representatives last week, and is awaiting a review by the Senate this week. If passed, employers will have six months to disclose unpaid Super guarantee contributions, in order to avoid penalties.Currently, penalties for late payment include interest and late payment fees. With the introduction of Single touch Payroll, the ATO can track unpaid wages and super quickly, and follow up late payers.
The team at Seed Accounting have just come back from the Xerocon 2019 - the annual 'Coachella' for accountants held in Brisbane. Whilst it may seem ho hum for most normal people with a personality, we are pleased to report some game changing ideas and technology that will really help small business.
- Automated reporting using Spotlight or Futrli
- Debt funding in non traditional ways using products like Tyro
- There were 100 suppliers and services - clearly the app / add on market is huge. There are apps for doctors, tradies, etc. There is funding, super apps. And all on SAAS payment plans....
Single Touch Payroll is almost here. Businesses need to be prepared for big changes to the way they report employee tax and super obligations to the Australian Taxation Office (ATO).
Those who are not yet ready need to act now, as STP becomes compulsory from 1 July 2019 for all businesses – including those micro-businesses who’s only employees are members of the family group.
What is Single Touch Payroll?
Single Touch Payroll (STP) is a new way of reporting tax and super information to the ATO. This means you’ll now be required to report salaries and wages, PAYG withholding and superannuation information, every time you...
In a court of law you are 'innocent until proven guilty'? However, when it comes to an ATO audit, it's the reverse. The ATO do not have to prove you are in the wrong… effectively you are guilty until you prove yourself innocent.
Stage 1: Warning Letter
This is the most common letter - the ATO will send more than 1,000,000 of these this year. The ATO uses poweful data matching software, and automatically compares your deductions to other people in your industry … and it will notice if your deductions seem rather high. If so, they’ll send you one of these letters, warning you to keep an eye on your deductions, and that...
Some would say it was a boring budget..no surprises from a Liberal government in an election year.
Tax cuts, no changes to super, lots of feel good, and nothing too controversial.
Here are some of the relevant tax proposals that could affect you...
Economy is 'back in black'
Treasurer Josh Frydenberg last night handed down the Federal Budget, and predicted a budget surplus of $7.1 billion for the year-ending June 2020. Surpluses are then projected to increase to $11 billion in 2020-21 and $17.8 billion in 2021-22 before easing to $9.2 billion in 2022-23. The budget focuses on 'restoring the nation's finances', strength...
When a related party borrows from a company or other entity, this may be required to be treated as a Division 7A loan.
Discussion about reforms to Division 7A has been bouncing back and forth between Treasury and the ATO for many years — since the end of 2012 in fact, giving the impression they may have been stonewalling any moves on Division 7A.
But a definite crack appeared in that wall with the May 2016 Federal Budget. It was announced that “targeted amendments” were planned for two years hence from that date — in other words, 1 July 2018.
Well, as we know this time has come and gone. But just prior to that deadline...
Going into new business with other people is exciting and can be extremely rewarding. A formal agreement can set the ground rules and stop owners getting caught out if things don’t quite go as well as planned.
Whether your business is structured as a partnership or a company, you and your business partners need to agree on the terms of your professional relationship. This will be a partnership agreement, a shareholders’ agreement or, where you are operating a trading trust, a unitholders’ agreement.
There are many businesses out there that do operate without such an agreement , however if you decide that it would be...