Why write a business plan?

Many people dream of being their own bosses and starting their own business for a better lifestyle.   The unfortunate reality is 90% of start-up businesses fail. Business plans are not just created if you're seeking finance for your business, it's a tool for understanding how your business is put together.  A business plan should question [...]

Budget changes effective 1 July 2018

From 1 July 2018, the government will make targeted amendments to improve the operation and administration of Division 7A of the ITAA 1936, as a result of a number of recommendations from the Board of Taxation’s Post-implementation Review into Division 7A. These changes will provide clearer rules for taxpayers and assist in easing their compliance [...]

Tax Integrity Package–Better protecting whistle-blowers

  From 1 July 2018, the government will introduce new arrangements to better protect individuals who disclose information to the ATO on tax avoidance behavior and other tax issues. Under the new arrangements, individuals, including employees, former employees and advisers, disclosing information to the ATO will be better protected under the law.

Applying GST to low value goods imported by consumers

  From 1 July 2017, GST will be extended to low value goods imported by consumers. The intent of this measure is to ensure that low value goods imported by consumers face the same tax regime as goods sourced domestically. Overseas suppliers that have an Australian turnover of $75,000 or more will be required to [...]

Tax Integrity Package–Establishing the Tax Avoidance Taskforce

  The government will provide $678.9 million to the ATO over the forward estimates period to establish a new Tax Avoidance Taskforce.  This will enable the ATO to undertake enhanced compliance activities targeting multinationals, large public and private groups and high wealth individuals. The Tax Avoidance Taskforce will conduct operations to improve tax compliance in [...]

Reducing the company tax rate over 10 years

  The government will reduce the company tax rate to 25% over 10 years (i.e., by 1 July 2026). This measure will commence from 1 July 2016, whereby the government will cut the small business company tax rate to 27.5%, and make this tax rate available to small companies with an annual aggregated turnover of [...]

Small Business Income Tax Offset (‘SBITO’)

From 1 July 2016, the government will increase the current 5% tax discount (referred to as the SBITO) to 8%. The discount is currently available to an individual in receipt of income from an unincorporated small business entity (‘SBE’) (i.e., basically, an entity with an aggregated turnover of less than $2 million), and applies to [...]

Budget’s Personal Income Tax Relief

  From1 July 2016, the government will increase the 32.5% personal income tax threshold from $80,000 to $87,000. This measure will reduce the marginal rate of tax on incomes between $80,000 and $87,000 from 37% to 32.5%, preventing around 500,000 taxpayers facing the 37% marginal tax rate.

Income tax relief for Australian Defence Force

  Income tax relief for Australian Defence Force personnel deployed overseas The government will provide a full income tax exemption for Australian Defence Force personnel deployed on Operation PALATE II in Afghanistan.  This income tax exemption has effect from 1 January 2016, and will remain in effect until 31 December 2016. The government will also [...]

Medicare levy low income thresholds – Budget Announcement

Medicare levy low income thresholds for 2015/16   For 2015/16, the Medicare Levy low income thresholds will be as follows: • Individuals $21,335 (previously $20,896) • Families$36,001 (previously $35,261) The family income threshold (i.e., $36,001) will be increased by $3,306 (previously $3,238) for each dependent child or student. • For single seniors and pensioners with [...]