Legislation currently being debated in Parliament will introduce a new criminal offence for intentional “wage theft”. If enacted, in
addition to the criminal offence, a fine will apply.
The fine is three times the underpayment and:
The reforms are not intended to capture unintentional mistakes and a compliance ‘safe harbour’ will be introduced by the Fair Work Ombudsman
for small businesses.
In addition to addressing wage theft, the Bill also seeks to:
What happens when a trust appoints income to a private company beneficiary but does not actually make the payment?
The tax treatment of this unpaid amount was at the centre of a recent case before the Administrative Appeals Tribunal (AAT) that saw a taxpayer successfully challenge the ATO’s long held position (Bendel and Commissioner of Taxation [2023] AATA 3074). For many years, the ATO’s position has been that if a trust appoints income to a private company beneficiary but does not actually make the payment, this unpaid amount can be treated as a loan. Under Division 7A of the tax rules, these loans can be taxed as unfranked dividends unless they are managed using a complying loan agreement with annual principal and interest repayments.
This AAT decision challenges an important ATO position, with the tax outcomes being potentially significant for trust clients that currently owe (or may have owed in the past) unpaid trust entitlements to related private companies.
But this is not the end of this story. On 26 October 2023, the Tax Commissioner lodged a notice of appeal to the Federal Court. There is no guarantee that the Federal Court will reach the same conclusion as the AAT. We will need to wait and see.
We want our people to be the best they can be.
Changes from 1 July 2021 will impact on how much money you can contribute to superannuation and how much you can have in your retirement phase superannuation account.
Builders, electricians, plumbers, architects, real estate agents, security guards and other workers who hold an occupational licence in their home state or territory will soon be automatically deemed to have the necessary licence in other states.
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What’s the magic amount you need in your super account to retire comfortably?
Rhino 4x4 directors had been previously working with another accountant using MYOB, but they just didn’t have the commercial knowledge that they needed nor the visibility into the numbers. Enter Shannon Smit and the team from Smart Business Solutions to take Rhino 4x4 to the next level.
Having an Estate Briefing Paper prepared by strategic tax advisors means that we can guide the structure of your Estate Plan to ensure your assets will be managed and transferred to your beneficiaries in the most financially efficient and tax effective way.
Australian inflation recorded at 0.9% in the 2020 calendar year, nearly double what the Reserve Bank of Australia forecasted in November’s Statement on Monetary Policy.
The tax impacts you need to know with divorce and relationship breakdowns including some of the areas that may impact you and where you may need assistance for your SMSF, Trusts and Estate Planning.
In the 2020-21 Federal Budget, the Government announced the introduction of a new JobMaker Hiring Credit to stimulate job
creation. This webinar helps you understand your eligibility for JobMaker credits so you can take appropriate steps to avoid missing
out on payments from the ATO.
With the borders between the State and Territories all but open and 2021 in sight, there is a hunger for a return to normal. With Australia's desire to ‘get on with things,' sentiment reached its highest level since November 2013 and Christmas spending is expected to be consistent with previous years.
As the holiday season winds up, it’s easy to be distracted from your financial goals. But this is actually the perfect time to put a few simple plans in place for a positive start to the new year.
The US election had earlier dominated attention. Donald Trump’s reluctance to concede diverted attention from possible policy changes under
the new Biden administration, but this will likely become an increasing focus for investors in the months ahead.
Stimulating investment is high on the Government’s agenda. To encourage spending, the 2021-22 Budget introduced a measure that allows businesses to immediately deduct the cost of new depreciable assets and the cost of improvements to existing assets in the first year of use.
We’ve had quite a few questions about the JobMaker hiring credit announced in the 2020-21 Federal Budget. The legislation enabling the JobMaker scheme has not passed Parliament as yet and until this occurs, the JobMaker rules are not certain and may change.
You've got a big block with big plans to subdivide in order to make big bucks. But do you know the ins-and-outs of property development from a TAX perspective? Before you jump in and commit to anything, it is important to understand the tax liabilities that might arise from your projects that will affect your overall profitability.
The idea of insuring against loss of income is one that has clear value. The idea of insuring against loss of income is one that has clear value. Yet many neglect to insure their most valuable asset. Income protection could be the answer – so how does it work?
Prossor Town Planning is dedicated to help people obtain planning permits across industrial, commercial residential and green wedge developments. Jackie Prossor tells us why engaging Shannon Smit as her business accountant, in addition to being her financial planner and business coach, makes perfect sense.
Director and owner Jon Robbins first engaged SMART Business Solutions as their accountant in 2014. Jon was looking for a proactive accountant and business advisor who would listen to him, take the time to understand his business, and work together collaboratively.
The 2020-21 Federal Budget is a road to recovery paved with cash. Some of the measures are aimed at addressing the harsh lessons COVID-19
has taught us and seek to centralise production back in Australia to ensure our industries can be self-reliant.
Reflecting on the past 6 months, particularly since the effect of Coronavirus on financial markets, I am concerned that many investors do not have a clear and tailored investment strategy. My observations are that investors seem to be failing to understand one basic investment principle; 'The higher the return the higher the risk’.
The updated alternative tests released by the Commissioner of Taxation are broadly similar to the alternative tests that were released in connection with the original decline in turnover test. However, there are some key differences.
In this pragmatic webinar we help you identify arrangements at risk of triggering significant superannuation guarantee liabilities and explore the steps to minimise that risk. This is an issue that is not going away any time soon.
The release of Australian-listed company earnings gave local investors something other than virus-related news to focus on. Earnings rose ~15% in the June quarter compared to the first three months of the year. This was ahead of consensus expectations, but overall the results were underwhelming as anticipated.
To access JobKeeper payments from 28 September 2020, there are three questions that need to be assessed:
Is my business eligible? Am I and/or my employees eligible? and What JobKeeper rate applies?
We’ve summarised the key details in this update.
In this practical webinar we help you identify arrangements at risk of triggering significant superannuation guarantee liabilities and explore the steps to minimise that risk. This is an issue that is not going away any time soon.
| Received an ASIC renewal or company review notice in the mail? Before you pay, here's how to spot third-party correspondence and avoid unnecessary costs. |
| Planning to buy property through your SMSF? A key rule change from 10 August 2026 could impact your options. Understanding the deadline now may help you avoid missing an important opportunity. |
