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Explaining The New Reporting Regime For The Sharing Economy

Posted on February 12, 2024 by admin

The Sharing Economy Reporting Regime (SERR) represents a significant development in Australia’s tax landscape, requiring certain businesses operating in the sharing economy to report specific transactions to the Australian Taxation Office (ATO). Commencing from 1 July 2023 for selected industries and expanding further from 1 July 2024, SERR aims to enhance tax compliance, increase transparency, and gather valuable insights into sharing economy activities. Let’s dive into the key aspects of SERR and outline what small businesses need to know to ensure compliance. Scope and Purpose of SERR: SERR applies to transactions facilitated through Electronic Distribution Platforms (EDPs), encompassing activities such as ride-sourcing, short-term accommodation, and the hiring of assets or services. The regime aims to collect information on transactions connected with Australia to enhance tax integrity, identify non-compliant participants, and inform compliance strategies. What Is An Electronic Distribution Platform  (EDPs) Under SERR, an EDP refers to a service that enables sellers to offer supplies to buyers through electronic communication channels. This encompasses various online platforms such as websites, internet portals, applications, and marketplaces. EDPs play a crucial role in facilitating transactions within the sharing economy and are central to the reporting requirements under SERR. Reporting Obligations for EDP Operators EDP […]

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Understanding Non-Assessable Non-Exempt (NANE) Income Through Disaster Grants

Posted on January 22, 2024 by admin

The recent spate of extreme weather events during the summer in various parts of Australia has presented unprecedented challenges for small businesses. As a result, the pressing concerns they face may not necessarily revolve around their tax obligations. However, amidst these trying times, business owners must be aware of the tax implications associated with the grants they may have received for support. This may include knowing whether their grants are deemed assessable or non-assessable income and the implications of either for their tax returns. Non-Assessable Or Assessable Income? In the wake of challenging times, many businesses have been fortunate enough to receive grants aimed at helping them navigate through financial difficulties. As businesses gear up to file their tax returns, a fundamental question arises – is the received grant considered assessable or non-assessable income? In general, grants are treated as assessable income, adding to the taxable revenue of the business. However, a subset of business support grants is formally declared as non-assessable, non-exempt (NANE) income. This distinction is crucial as it determines whether the grant needs to be included in the tax return or can be excluded under specific eligibility criteria. Understanding Non-Assessable Non-Exempt (NANE) Income Non-assessable non-exempt income refers […]

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Unlocking the Secrets of Deductions: A Holiday Home Owners’ Essential Checklist

Posted on December 4, 2023 by admin

It’s essential for property owners to understand the intricacies of deductions associated with their cherished holiday retreats. However, as the holiday season approaches, they may find that their holiday retreats become a valuable source of income. To ensure you make the most of your potential deductions, it’s crucial to navigate the rules surrounding holiday home expenses and be aware of potential pitfalls. What Do You Need To Know? The primary rule is simple: you can only claim deductions for holiday home expenses if they are incurred with the aim of generating rental income. This means that any personal use of the property must be carefully considered to avoid discrepancies in deductions. One key consideration is whether the holiday home is used or reserved by you during peak periods when it could reasonably be rented out. Deductions should be adjusted accordingly during these periods to reflect the reduced potential for rental income. Likewise, if there are unreasonable conditions placed that hinder the likelihood of their property being rented, deductions should be reevaluated. This might include restrictive terms in advertising or setting rents significantly above market values. To help determine the validity of your claimed deductions, here are a few essential questions […]

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Claiming Motor Vehicle Expenses On Your Tax Return

Posted on November 13, 2023 by admin

As a business owner, one of the perks is the ability to claim tax deductions for expenses related to motor vehicles used in your business operations. This includes cars and certain other vehicles that play a role in running your business smoothly. The good news is that claiming motor vehicle expenses can help reduce your tax liability. Let’s explore how you can maximise this opportunity, particularly if you’re a sole trader or part of a partnership. The Logbook Method: A Simple Way to Claim Tax Deductions Sole traders and those operating in partnerships can claim tax deductions for vehicles used in their businesses using the logbook method. It’s a relatively straightforward approach, but it does require diligent record-keeping of your vehicle-related expenses. The expenses you can claim when using your vehicle for business purposes typically include: Fuel and oil Repairs and servicing Interest on a motor vehicle loan Lease payments Insurance cover premiums Registration Depreciation (decline in value) Calculating Your Claim with the Logbook Method To make the most of the logbook method and ensure you’re accurately recording your expenses, consider enlisting the help of a registered tax agent. To work out the amount you can claim using this method, […]

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Claiming The Small Business Technology Investment Boost

Posted on October 23, 2023 by admin

Could your small business claim a 20% bonus deduction on technology expenditure that supports their digital operations or the digitisation of their operations? The small business technology investment boost is a broad measure intended to cover a wide range of business expenses and assets; however, questions may arise when you go to claim. Can I Claim The Boost?  To access the small business technology investment boost, your business needs to meet the standard aggregated annual turnover rules (with an increased $50 million threshold). The expenditure must: already be deductible for your business under taxation law be incurred between 7:30 pm AEDT 29 March 2022 and 30 June 2023. If the expenditure is on a depreciating asset, the asset must be first used or installed ready for use for a taxable purpose by 30 June 2023. What Can I Claim With The Boost?  A good indicator of eligibility is to consider if the small business would have incurred the expense if they didn’t operate digitally. That is if they hadn’t sought to adopt digital technologies in the running of their business. Using this rule of thumb, the costs below are eligible: advice about digitising a business leasing digital equipment repairs and […]

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Providing Affordable Housing? You Could Be Eligible For A CGT Discount

Posted on October 6, 2023 by admin

An additional 10% capital gains tax (CGT) discount may be available when you sell an Australian residential rental property that you used to provide affordable housing. This will increase the potential maximum capital gains discount percentage on your sale from 50% to 60%. What Is Affordable Housing? For the affordable housing CGT discount purposes, affordable housing is any dwelling (house, unit or apartment) where the following conditions are satisfied: The dwelling is both a taxable Australian real property (TARP) and residential premises that you rent out or genuinely make available for rent. Caravans, mobile homes and houseboats are not residential premises. The dwelling is not a commercial residential premises. Management of the tenancy or its occupancy is done exclusively by a registered community housing provider (CHP). Each entity that holds an ownership interest in the dwelling has a certificate from the provider showing that the dwelling was used to provide affordable housing. No entity that has an ownership interest in the dwelling is in receipt of an incentive from the National Rental Affordability Scheme (NRAS) for the NRAS year. If a managed investment trust (MIT) has an ownership interest in the dwelling, the tenant does not have an interest in […]

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Why Are My “Connections” Important To Know During Tax Season?

Posted on September 11, 2023 by admin

In the realm of tax law, a critical concept revolves around understanding the notion of “entities connected with you.” This concept serves as a linchpin in several aspects of taxation, from determining one’s status as a Small Business Entity to ascertaining the value of assets when seeking eligibility for Small Business Capital Gains Tax (CGT) Concessions. Furthermore, it holds significance when an individual has sold an asset and claimed it was used by an ‘entity connected with them.’ In various tax scenarios, having an entity connected to you can either prove beneficial or burdensome. A prime example of the former is when you sell a factory unit, and a company affiliated with you operates a mechanics business within that unit. In this case, you become eligible to claim the Small Business CGT Concessions on the sale of the factory unit, potentially leading to substantial tax benefits. Conversely, connected entities can have adverse consequences, particularly in specific asset tests. When evaluating certain asset-related criteria, the value of assets connected entities hold is aggregated with your own. Consequently, having entities connected with you in such situations may not be advantageous. Consider a scenario involving a family trust and a distribution made to […]

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Doing A Final Tax Return For A Deceased Loved One

Posted on August 21, 2023 by admin

At the worst time of your life, the last thing you want to think about is tax. However, when a loved one dies, their affairs must be dealt with at some stage. This includes their tax obligations. You must lodge a date of death tax return if any of the following apply to the deceased person in the income year in which they died: they had tax withheld from their income, including from interest or dividends their taxable income was above the tax-free threshold they lodged tax returns in the income years before their death or had outstanding tax returns. To deal with a deceased loved one’s affairs, the help of a solicitor is highly recommended. Someone will be granted the role of executor or administrator of the deceased person’s estate (usually stipulated in a will). From a tax perspective, there are a few things that the executor or administrator has to do. The Australian Taxation Office (ATO) must be contacted and informed that your loved one has died. When you notify them of the death, they can tell you if the person had any outstanding tax returns for prior income years. All their financial documents must be compiled, and […]

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The Tax Implications Of The Sharing Economy: What You Need To Know

Posted on July 31, 2023 by admin

In Australia, any income earned by a job may be considered taxable income. Those who receive their income via the sharing economy are no exception to the rule. In fact, further complications can result from incorrect understandings of how the income tax and goods & services tax may apply to those individuals. ‘ The sharing economy is a socio-economic system built around sharing resources, often through a digital platform like a website or an app that others can purchase the right to use for a fee. Popular sharing economy services and activities that could be subject to income tax include Being a Driver for popular ride-sharing/ride-sourcing services and obtaining fares for those services Renting out a room, whole house or a unit on a short-term basis Sharing assets (such as cars, parking spaces, storage space or personal belongings) through platforms such as Camplify, Car Next Door, Spacer, Toolmates or Quipmo. Creative or professional services provided by individuals through online platforms to fill a need of others (also known as the gig economy) You need to remember some things about the income and goods & services tax for these popular sharing economy services, including: Ride-Sourcing/Ride-Sharing If you’ve ever caught an Uber […]

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Maximising Your Tax Deductions As A Home-Based Business

Posted on July 11, 2023 by admin

Small business owners may be able to claim deductions for the costs of using their home as a principal place of business when filing their income tax returns. A home-based business is one where an area of your home is set aside and used exclusively as a place of business. If you do not have an area set aside and used exclusively as a place of business, but you do some work from home, you may still be able to claim a deduction for some of your expenses relating to the area you use. Tax deductions may be claimed for the business portion of household expenses; however, ensuring you are claiming expenses you are entitled to can be challenging. How you operate the business out of your home will determine the expenses that may be claimed. Your business structure will also affect your entitlements and obligations when claiming deductions on home-based business expenses. Generally, three types of expenses can be claimed: running expenses, occupancy expenses, and in some cases, the cost of motor vehicle trips between your home and other locations (if the travel is for business purposes). You can claim occupancy and running expenses if you have an area […]

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Closing The Gap: Gender & Superannuation

February 19, 2024

There exists a persistent and concerning gender gap in superannuation.

Women often find themselves disadvantaged compared to their male counterparts when building wealth for their golden years. Superannuation plays a crucial role in this narrative, whether via income, career breaks or even Australia’s retirement savings system.

Let us explore the factors contributing to the gender gap in superannuation and discuss actionable steps to empower women to bridge this divide and secure their financial futures.

Understanding The Gender Gap

Closing The Gap

Closing the gender gap in superannuation is a multifaceted challenge that requires concerted efforts from individuals, employers, governments, and society.

By addressing income disparities, supporting women’s career progression, increasing financial literacy, implementing supportive policies, and fostering equitable partnerships, Australia can empower women to bridge the superannuation gender gap and achieve financial security in retirement.

Together, we can create a future where all women have the opportunity to retire with dignity and independence.