March/April 2019 Newsletter

FBT SEASON AGAIN – WHAT TO WATCH FOR WITH MOTOR VEHICLES AND ENTERTAINMENT! The ATO have stated that they are going to increase audit activity for FBT this year so it is important to be prepared now that the FBT year has come to a close. Our article goes into detail on business owned motor vehicles and meal entertainment. SHOULD YOU … Read More

Does Salary Sacrificing Superannuation affect your Employer SGC responsibilities?

Up till now, when an employee salary sacrificed some of their salary, the employer could work out what 9.5% Super Guarantee (SG) they had to pay for the employee on the net salary, after salary sacrificing is taken off. From 01st January 2020 this will change. From that date, salary sacrificed super contributions cannot be used to reduce the base on … Read More

Do you provide services to your SMSF?

The government reintroduced its Treasury Laws Amendment (2018 Superannuation Measures No.1) Bill 2019 into Parliament a few months ago, which has recently been passed into legislation. At the time, advisers were contemplating whether these measures would present problems for trustees who may be providing financial services to their own fund which they may not be allowed to charge for under … Read More

Removal of Main Residence Exemption for Foreign and Temporary Residents

The main residence exemption provides homeowners with an exemption from Capital Gains Tax (CGT) on their family home. Under the absence rule, the owner can elect for the main residence exemption to continue to apply to their former home for up to six years after they vacate the property if it is rented out, or indefinitely if they aren’t earning … Read More

Corporate Tax Residency in Australia

Following the decision in the Bywater case discussed in our September 2018 newsletter and the ATO’s subsequent release of Taxation Ruling TR 2018/5 and Practical Compliance Guideline PCG 2018/9, the Board of Taxation (the Board) is currently conducting a review of the operation of Australia’s corporate residency rules.  The Board will consider whether existing rules: Minimise commercial uncertainty and ambiguity; Are … Read More

Financial Reporting changes in Australia that will affect your clients!

The Australian financial reporting framework has a unique “reporting entity” concept which has often been the cause of much debate, and dilemma, particularly when considered on an international stage. Whilst public interest and disclosing entities are required to report in line with the International Financial Reporting Standards (IFRS) in full, Australia has had since 1990 a reporting entity concept which … Read More

Employers should be careful that you are not contributing to an Invalid SMSF!

Self-managed super funds that are failing to lodge their tax returns with the ATO (and therefore become an invalid SMSF) are not able to receive employer contributions. This can have a major effect on you, as an employer, when you try to contribute your quarterly superannuation contributions to the SMSF. In practical terms it can affect the whole batch payment … Read More

When did you last review your SMSF’s investment strategy?

You may be aware that the Australian Tax Office (ATO) has issued letters to nearly 18,000 SMSF trustees as part of a campaign to ensure trustees are aware of their investment obligations. Of key concern is ensuring that trustees have considered diversification and liquidity of their assets when formulating and executing their fund’s investment strategy. Importantly, it must be noted … Read More

Are the individual directors liable for the debts of a corporate trustee?

A trust can be a very good structure for asset protection and using a corporate trustee adds to this protection. In the event that a corporate trustee incurs a liability in excess of the assets of the trust, the corporate trustee can be placed into administration or liquidation without the directors or shareholders being personally liable. While the individual directors … Read More