Have you applied for your director identification number? Time is running out to meet the 30 November 2022 deadline which applies to most directors. All existing directors of a company, registered Australian body, registered foreign company, or a director of corporate trustees of an SMSF are required to apply for a director ID. A director ID is a unique 15-digit identifier that all directors or people intending to become directors must apply for. It’s free to apply and you only need to apply once. A director must apply for their own director ID personally.
With the economy emerging from its COVID-related downturn, individuals may have made business losses that may be able to be offset against other income such as salary and wages. There are however a number of hurdles to clear. These include the non-commercial loss rules which determine whether the loss, or your share of the loss, is deductible in the current year.
Meanwhile, the latest ATO super statistics confirm that there is a significant superannuation gender gap – with women generally having far less super savings than men. There are a number of strategies that can be employed to close this gap including catch-up contributions, superannuation splitting, and spouse contributions.
Federal budget – business and individual taxation: It was a somewhat quiet budget on the business front, with it being notable for the burning issues that it did not address such as Division 7A reform, the taxation of trusts, the future of the loss carry back rules and current depreciation rules for business (both expiring in 2023). On the individual level though, lucrative future year tax cuts were confirmed.
Federal budget - superannuation: The retention of the existing contribution caps, leaving indexation undisturbed, reducing the downsizer contribution age to 55 (down from 60), and the delay in the SMSF residency rule changes were just some of the announcements on the super front.
Director ID’s – new campaign launched: The federal government has launched a last-ditch awareness campaign reminding those who are directors to obtain their ID by the 30 November deadline.
Do I have to pay myself super as a business owner?: The answer depends on a range of factors, principally your trading structure. Different rules apply for sole traders, companies, partnerships and businesses operated through a trust structure.
With interest rates rapidly increasing, homeowners are being encouraged to look around for a better deal on their home loan. ASIC has recently released some tips if you are doing so. These include asking your existing lender for a better deal, negotiating the length of your new loan, factoring in the cost of possible lender mortgage insurance, comparing a range of accompanying fees and charges, and more.
Rental property claims are being heavily scrutinised by the ATO this Tax Time. The ATO is urging rental property owners to ensure they carefully review their records before declaring income or claiming deductions.
Meanwhile, recent data from the government’s MoneySmart website and the Association of Superannuation Funds of Australia helps individuals answer the perennial questions: how much superannuation will you need to retire? And how much are you likely to spend in retirement?
Is your estate plan in order? Estate planning is ultimately about ensuring that you have the right mechanisms in place to ensure that, in the event of your death, your assets pass in the manner that you intend. The steps in the process involve identifying the assets in play – this could involve savings accounts, shares, collectibles, property, vehicles, superannuation, and more! – and then who owns them. Having done that, the next question is one that only you can answer: how do you want these assets distributed upon your death? An estate plan brings about this outcome.
The subdivision of land is as popular as ever. Where one of the subdivided blocks is then sold off, there may be GST and CGT consequences for the seller. These tax consequences are dependent on a range of factors unique to the particular case at hand.
Meanwhile, the results are in! 2021/22 saw super funds record their worst results since the GFC! Sit tight and have faith, change your super fund, start an SMSF…are just some of your options if your super balance has suffered a decline.
Year-end tax planning – both from a tax and superannuation perspective. This article details various strategies individuals and businesses can employ to optimize their year-end tax position as we head towards 30 June.
An ATO warning on the latest tax scam doing the rounds. The ATO has just recently reported an increase in fake websites offering to provide tax file numbers (TFNs) and Australian Business Numbers.
What the new government has foreshadowed on the tax and super front. This includes support for significant income tax cuts for individuals, a crackdown on multinational tax avoidance, lowering the age eligibility for the super downsizer scheme, and a home buyer subsidy - making it easier to buy your first home.
The four items under the ATO’s microscope as we head into Tax Time 2022. Record-keeping, work-related expenses, rental income and deductions, and capital gains from crypto are all on the ATO radar.
How downsizer super contributions can help older individuals provide for their retirement. Contribute extra money to your superannuation after you sell the family home. Did you know you could invest the proceeds of the sale of your family home to your superannuation, depending on your age and circumstances?
If you are a ride-sharing driver (such as with Uber) or if you are a rider, there is a raft of tax issues to be aware of from both standpoints. From GST, income tax, deductions, and PAYG withholding…we’ve got it all covered.
The STP regime is a government initiative that is designed to reduce an employer’s burden when reporting to Government agencies such as the ATO. STP phase 2 is now here, and employers must start reporting by 1 March 2022.
By consolidating your superannuation, you can potentially save tens of thousands of dollars in fees and charges, thereby boosting your retirement savings. Read about how to do so, and the other benefits of consolidation.
If you’re a small business owner, you’ll know that you’re required to pay your employees (and certain contractors) superannuation guarantee (SG) in addition to their salary or wages. But how do you pay your SG contributions in a simple and effective way? The answer is through a superannuation clearing house (SCH).