Posts

age pension

121 | Age Pension

Qualifying for the age pension is an arduous exercise as you need to pass four hurdles. Let's go through these one by one.

Property vs Shares

116 | Property vs Shares

Property vs shares - how are they taxed differently?  Bob Deutsch, Senior Tax Counsel of The Tax Institute, pursues this question.

Life and Remainder Interest

115 | Life and Remainder Interest

A life and remainder interest is often used in a testamentary setting. Here is Michael McCarthy of Tax & Super Australia with more.

Review of Small Business Tax Concessions

106 | Review of Small Business Tax Concessions

The Board of Taxation is currently reviewing Australia's small business tax concessions.  Here is Dr Mark Pizzacalla with more details.

Trust Structure

91 | Trust Structure

Choosing the right trust structure is an important step to effectively manage and administer wealth. Here is Paul Mackenroth of Cleary Hoare with more.

Actuarial Certificates

84 | Actuarial Certificates

Not every SMSF needs an actuarial certificate. Whether you do or don't depends on a range of things. Here is Melanie Dunn of Accurium with the details.

CGT Rollovers When Restructuring

78 | CGT Rollover

A CGT rollover might be a great option when you can't get your hands onto a small business CGT concession. Here is Adrian Bailey of Cleary Hoare with the details.

74 | Small Business CGT Concessions

The small business CGT concessions are one of the most generous tax concessions in Australia. Adrian Bailey of Cleary Hoare will guide you through the details.

Basic Conditions When Selling Shares or Units

71 | New Basic Conditions When Selling Shares or Units

The basic conditions for small business CGT concessions have tightened. Adrian Bailey of Cleary Hoare will walk you through the changes.

Earnout Arrangements

49 | Earnout Arrangements

Most professional practices sell with an earnout arrangement. Patrick Huang of Argyle Lawyers will tell you how to treat these for tax purposes.

35 | Improving the Small Business CGT Concessions ED

"Improving the Small Business CGT Concessions" is the title of a new exposure draft. Patrick Huang of Argyle Lawyers will walk you through the details.

The Great Debate

33 | The Great Debate

If you could change one thing about the Australian tax system, what would it be and how? Robert Deutsch of The Tax institute asked that question. 

family law

18 | Family Law

To sort out the tax side of a relationship breakdown, it helps to understand the legal side. Here is Angelina Torrisi of Family Law Practice.

Articles

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.
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

58 | Affiliates and Connected Entities

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

56 | Subdiv 328-G

The restructure rollover in Subdiv 328-G is a useful tool in the arsenal of tax concessions assisting small business.
transferor trusts

53 | Transferor Trusts

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

52 | 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

51 | 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.
control test

47 | 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

46 | 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.

45 | Pattern of Distributions Test

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

44 | 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.
Trust Losses

42 | 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

41 | Reimbursement Agreement

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

40 | 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

39 | 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

38 | 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

37 | 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

36 | 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

35 | 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

34 | 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

33 | 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

32 | 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

31 | Division 6 ITAA36

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

30 | 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

28 | 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.
Definition of Trust Income

24 | 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.
CGT discount

21 | 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.
Net Capital Gain

20 | 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

19 | 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. 
Tax Rulings

18 | Tax Rulings

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

17 | 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.