99 | Trust Resettlement

Trust resettlement scares many, but is actually quite rare to occur. A trust resettlement is a CGT event and hence triggers capital gain tax.
tax treatment of food and drink

97 | Tax Treatment of Food and Drink

Whether you can tax deduct food and drinks depends entirely on whether those expenses count as entertainment or a business expense.
gst for Air BnB property managers

96 | GST for Air BnB Property Managers

GST for Air BnB property managers can be confusing. So here is a quick overview that hopefully makes it less so.
Payroll tax

95 | Do I Have To Pay Payroll Tax?

Payroll tax is often your blind spot. You hire more staff and contractors as the business grows. And suddenly payroll tax is an issue..
gifts and contributions

94 | Gifts and Contributions

Every donation of money or property to a charity is either a gift or contribution.
minor benefit rule

93 | Minor Benefit Rule

The minor benefit rule is the one exception that turns a non-deductible contribution into a tax-deductible gift. 
deduct travel expenses

91 | Deduct Travel Expenses

When you deduct travel expenses from your income you save tax. That is a good thing. But you are also more likely to get audited.
legal structure for a charity

90 | Legal Structure For a Charity

The legal structure for a charity in Australia entails a long list of options, but most non-profit organisations in Australia are unincorporated associations. 
small business CGT concession overview

89 | Small Business CGT Concession Overview

This small business CGT concession overview will give you a rough map of the most generous concessions for small business in Australia. 
Lodge a tax return

88 | When to Lodge a Tax Return

Do you need to lodge a tax return for individuals? Usually YES but often NO. The rules can be confusing at the best of times.
small business tax concession

87 | Small Business Tax Concessions

Small business tax concessions are an important feature of the Australian tax system. Here is a summary of the top 21.
setting up bank feeds

85 | Setting Up Bank Feeds

Setting up bank feeds sounds complicated but is easy to do. Easy in theory. In practice sometimes confusing. And it just takes time and involves waiting.
GST Codes

81 | GST Codes

GST codes have a direct impact on your net GST position and hence your cashflow, so it is important to get this right. Unfortunately, getting it right is not always that easy.
allied health services GST-free

79 | Allied Health Services and GST

The GST status of allied health services will take you on a long journey up and down Subdivision 38-B of the GST Act.
medical reports GST-free

78 | Medical Reports and GST

Medical reports are GST-free if covered by Medicare. If not covered by Medicare, a specific ATO rule applies.
medical service gst-free

77 | Medical Services and GST

Medical services are almost always GST-free with a few exceptions. But the all-deciding question is what qualifies as a medical service.

76 | Remission of GIC and Penalties

When you ask the ATO for a remission of your clients' GIC and penalties, follow these 20 steps and have a fair chance of success.

75 | Tax Positions in Class

Tax positions in Class Super - or any accounting software for that matter - can be confusing. So here is a short overview for Class Super.
Passively Held Assets

74 | Passively Held Assets

Passively held assets can still qualify for the small business CGT concession. They may if used in the business of a related entity.
Div 43

73 | Div 43

The deductions under Div 43 make up the bulk of a property investors deductions. And the good news is that the changes to Div 40 don't affect Div 43.
Div 40

72 | Div 40

Div 40 is about the deprecation of plant and equipment. Since 2017 significantly curtailed but still better than nothing.
Income Tax Payable and Provision for Income Tax

71 | Income Tax Payable and Provision for Income Tax

Your Statement of Financial Position usually shows an income tax payable and a provision for income tax. What is the difference?
Div 7A UPE

70 | Div 7A UPE

The scenario of a Div 7A UPE can result in a huge tax bill.  UPE stands for unpaid present entitlement.
UPE in the Maximum Net Asset Value Test

69 | UPE in the Maximum Net Asset Value Test

How do you treat a UPE in the maximum net asset value test? Do you include it? And if yes for which entity?
The 4 Small Business CGT Concessions

68 | The 4 Small Business CGT Concessions

The 4 small business CGT concessions are a huge tax concession. They can save our clients a lot of tax, hence money. They can change a life. 
Active Asset Test

67 | Active Asset Test

The active asset test is an important part of the basic conditions to qualify for the small business CGT concessions. 
Subdiv 152-E

66 | Subdiv 152-E

The rollover relief in subdiv 152-E is often overlooked. After all, it isn't an exemption but only a rollover. But 152-E deserves more attention.
Subdiv 122- B

65 | Subdiv 122-B

Subdiv 122-B is the equivalent to Subdiv 122-A. 122-B provides rollover relief when changing from a partnership to a company.
Subdiv 122- A

64 | Subdiv 122- A

Subdiv 122-A ITAA97 is about changing a business from a sole trader or trust to a company. 
Div 7a

63 | Div 7A Basics

Div 7a is one of the most common issues we run into when working with private companies. How does Div 7A actually work? 
15-Year Exemption

62 | 15-Year Exemption

The small business 15-year exemption is the most generous of the four small business CGT concessions.
Structuring Business and Wealth

61 | Structuring Business and Wealth

When structuring business and wealth, tax is just one part of the equation. It is a balancing act of many objectives. And a question of priorities.
Small Business Participation Percentage

60 | Small Business Participation Percentage

The small business participation percentage plays a crucial role when you sell shares or units and want to qualify for the small business CGT concessions.
CGT Concession Stakeholder

59 | CGT Concession Stakeholder

The concept of a CGT concession stakeholder is fundamental to claiming a small business CGT concession involving a company or trust. 
Affiliates and Connected Entities

55 | Affiliates and Connected Entities

The concept of affiliates and connected entities plays a crucial role around the small business CGT concessions.
Subdiv 328-G

54 | Subdiv 328-G

The restructure rollover in Subdiv 328-G is a useful tool in the arsenal of tax concessions assisting small business.
Ryan Wealth v Baumgartner

53 | Ryan Wealth v Baumgartner

Ryan Wealth v Baumgartner is the latest calamity in the new practice by trustees to get the SMSF auditor to pay for dumb investment decisions.
transferor trusts

52 | Transferor Trusts

If Australia didn’t have rules around transferor trusts, you could ‘park’ assets and income in overseas trusts.

51 | Trusts as Companies

Corporate unit trusts and public trading trusts are trusts in a legal sense but treated as companies for tax purposes.
taxation of deceased estates

50 | Taxation of Deceased Estates

The taxation of deceased estates can be easy and it can be tricky.  It depends on what goes in, what happens while it is in there and how it leaves.
joint tenants or tenants in common

49 | Joint Tenants or Tenants in Common

You got married and just bid on a house. Should you buy the house as joint tenants or tenants in common?
Super is Not Part of Your Estate

48 | Super is Not Part of Your Estate

Super is not part of your estate. Here is the story of David Mandie's SMSF that set the precedent.
what goes into deceased estates

47 | Deceased Estates

When you die, everything you own will go into your deceased estate unless specifically excluded. And the devil is in these exclusions.
control test

46 | Control Test

A non-fixed trust can only deduct tax losses and debt deductions if there is continuity of control of the trust. So here comes the control test.
50% Stake Test

45 | 50% Stake Test

The 50% stake test is all about who has been holding more than a 50% stake in the trust and whether that has changed from the loss to the income year.

44 | Pattern of Distributions Test

The pattern of distributions test only applies to non-fixed trusts without a family trust election.
Income Injection Test

43 | Income Injection Test

The income injection test applies to all fixed and non-fixed trusts including family trusts. The only exception are excepted trusts that are not family trusts.
unit trusts fixed

42 | Are Unit Trusts Fixed

A unit trust is a very common feature in Australia. Most widely held trusts are unit trusts. But when are unit trusts fixed trusts and when not?
Trust Losses

41 | Trust Losses

Trust losses are not subject to the Division 35 non-commercial loss rules.  Instead the trust loss provisions in Schedule 2F ITAA36 apply.
reimbursement agreement

40 | Reimbursement Agreement

A reimbursement agreement is an arrangement, where the trustee channels trust distributions via beneficiaries to a third party. 
Revocable trust

39 | Revocable Trust

A revocable trust is a pretend game.  So the Commissioner can put an end to the charade and tax the trustee instead.
CGT Event E4

38 | CGT Event E4

A CGT event E4 can only happen in relation to a fixed or hybrid trust interest. The non-assessable part results in a cost base adjustment per s104-70 ITAA97.
CGT Concessions in an Asset Sale

37 | CGT Concessions in an Asset Sale

How do the small business CGT concessions in an asset sale actually work out? Let's go through an example. 
Basic Conditions

36 | Basic Conditions for an Asset Sale

The basic conditions are the biggest hurdle to take before you can claim the small business CGT concessions. If you get over these, you are on the home run.
how to stream trust income

35 | Streaming Trust Income Example

How to stream trust income sounds confusing enough in theory but gets even more confusing when you drown in numbers. But here is a simple example.
streaming of trust income

34 | Streaming Trust Income

Streaming of trust income is a good way to tax-effectively channel income to the right beneficiaries.
Who Pays the Income Tax for a Trust

33 | Who Pays the Income Tax for a Trust

Beneficiaries and/or trustee pay the income tax for a trust. But who pays how much?
Unpaid Present Entitlement

32 | Unpaid Present Entitlement

The issue of unpaid present entitlements comes up pretty much every time you deal with a trust.
Taxation of Minors Div 6AA

31 | Taxation of Minors Div 6AA

The taxation of minors in Division 6AA is an anti-avoidance provision. Anybody channeling certain income to minors is hit with punitive tax rates.
Division 6 ITAA36

30 | Division 6 ITAA36

Division 6 ITAA36 is the foundation for the taxation of trusts. Everything else wraps around Division 6.
Trust

29 | What is a Trust

There are more than 800,000 trusts in Australia with assets totalling more than $3 trillion. But what is trust?
tax audits

27 | Tax Audits

Tax audits frighten most taxpayers and tax agents. They cost time and money. And you never know for sure how it will end.
GST for Psychologists

25 | GST for Psychologists

Psychology is an 'other health service' in the GST Act, hence GST-free. But it isn't as easy as that. Some services you provide are subject to GST.
smsf need abn

24 | SMSF need an ABN

An SMSF needs an ABN and TFN. A corporate trustee as a special purpose company only needs an ACN. That is the answer in a nut shell but here is more.
Definition of Trust Income

23 | Definition of Trust Income

The definition of trust income in your deed determines who gets what income and as important who pays tax on what income. So you need to get this right.
are tolls car or travel expenses

21 | Are tolls car or travel expenses

Tolls are travel expenses and subject to GST (just in case you were wondering). And it makes sense when you think about it.
CGT discount

20 | 50% CGT Discount

The 50% CGT discount in Div 115 has saved millions of taxpayers billions of dollars since it was first introduced on 20 September 1985.
Tax Rulings

19 | Tax Rulings

 Tax rulings form an important part of Australia's tax framework. They plug the holes that our tax laws leave behind.
Net Capital Gain

18 | Net Capital Gain

Calculating your capital gain or loss is only the first part of the exercise. The second part is working out the amount of your net capital gain.
ATO Penalties and Interest

17 | ATO Penalties and Interest

The Commissioner has the power to levy administrative penalties against taxpayers. ATO penalties and interest are some of the Commissioner's powers to keep taxpayers in line. 
Lodging an Objection

16 | Lodging an Objection

Lodging an objection is a first step. When you don't agree with the ATO and want to do something about it.
Tax evasion

14 | Tax Evasion

Tax evasion is a heavy word. Accuse somebody of tax evasion and you surely get their attention. But what is tax evasion?
Amendment Periods

13 | Amendment Periods

Amendment periods can work for or against you, depending on who wants to change what and when.
Payment Arrangement

12 | Payment Arrangements

Payment arrangements with the ATO are expensive due to high interest rates. So best to avoid using the ATO as a bank.
Director Penalty Notice

11 | Director Penalty Notice

A director penalty notice allows the ATO to cut through the corporate veil of a company and go for the individuals behind it - the directors. Here is more.
Taxpayer's Charter

10 | Taxpayer’s Charter

It might feel at times as if you have no rights against the ATO. But you do. They are listed in the Taxpayers' Charter.
lodging income tax return

9 | Lodging Income Tax Returns

The Commissioner of Taxation decides who needs to lodge tax returns in what form and by what date. The law itself is relatively silent on the matter.
Tax Collection

8 | Tax Collection

Tax collection is an essential function of our tax system. Imagine if that wasn't working. It would undermine everything.
Minimum Pension Payments

7 | Minimum Pension Payments

When you start a pension, you need to make minimum pension payments. Otherwise your fund loses its tax exempt status.
withdraw from accumulation

6 | Withdraw from Accumulation

Can you withdraw from accumulation accounts in your SMSF? If you have met a condition of release, the answer is Yes. If you haven't, the answer is a big No.
tax deduction for entertainment

5 | Tax Deduction for Entertainment

A business expense is tax deductible. Entertainment is not. Unless subject to FBT. So the all deciding question is: What is entertainment?
Tax Deduction for Conference Travel

4 | Tax Deduction for Conference Travel

How much can you claim as a tax deduction for conference travel? You might have to reduce the claim for any private portion. Here is how.
Tax Deduction for Fundraising Events

3 | Tax Deduction for Fundraising Events

If a charity event passes the Minor Benefit Rule, the DGR charity can issue a tax receipt for parts of the ticket price and auction proceeds. Here is more.
tax deduction for gifts and donations

2 | Tax Deduction for Gifts and Donations

The tax deduction for gifts and donations sits in Division 30 of ITAA 97 Deductions for Gifts and Contributions. There is a lot in that title. Let's dissect it.
Commissioner's Effective Life of Depreciable Assets for 2019

1 | Commissioner’s Effective Life of Depreciable Assets for 2019

The Commissioner publishes a Taxation Ruling each year listing the effective life of depreciable assets. Here is a handy overview for small operators.