Serving Sydney’s Inner West
Many small business owners invest not only financial resources in their business but also significant time, blood, sweat and tears not to mention emotional energy in building their business. When it comes time to sell, it’s good to know that tax concessions are available so that the capital gains you’ve worked hard to achieve aren’t all eaten up by tax. Continue reading “Small business and capital gains tax”
We all know Benjamin Franklin’s quote “In this world, nothing is certain except death and taxes.” But as only an accountant can be macabre enough to find amusing, tax continues after death – even once you’re dead, the Australian Taxation Office (ATO) still requires you to lodge a tax return! Ok, so clearly not the deceased person, but their legal representative (usually the Executor) must assume that responsibility.
I won’t go through the entire legal process of how an estate is administered – I’m an accountant not a lawyer after all. But from a tax point of view, there are a few specific requirements. Continue reading “A guide to administering deceased estates”
Back when Bank Managers roamed bank branches, finance was far less complicated. (yes, it’s true, there were these people who you could meet IRL at the local bank!) You would have visited your bank branch to apply for your home loan or credit card or to open a new savings account. There wasn’t too much more to think about and often people banked with the same bank for their entire working life (I know, a crazy concept!). Now, we have to deal with student loans, “buy now pay later” options, whether we want tap and pay through our watch, should we have a credit card with a low rate or rewards points, how to get bonus interest on our savings every month and everything can be done online without ever talking to a person. And that’s before we even think about superannuation (don’t worry, I won’t go down that rabbit hole – I know we don’t have time!)
Last week we talked about young adults and tax. This week we take a look at finance and more specifically, debt and loans. Continue reading “What young adults need to know about debt”
Over the last few weeks, I’ve had the pleasure of chatting to a few of my daughters’ friends. It’s so great to watch these people who you knew as “kids” turn into responsible, thoughtful and amazing young adults. Just where did the time go? But it did get me thinking that although they’re intelligent and educated adults, there’s a lot about tax and finance that we “oldies” have learned over the years and that we take for granted as something everyone knows. So for the next couple of weeks, I’m going to focus on tax and finance for young people. Today I bring you my top 4 things I think every young adult should know about tax. Continue reading “What young adults need to know about tax!”
In the last couple of weeks, I’ve had conversations with several clients about what to do with customers who don’t pay their bills either on time or at all. No one likes doing all the work and not getting paid. In small business, keeping a good cash flow is absolutely critical. If you have significant funds tied up in your accounts receivables, you have less working capital to fund the business, more stress, sleepless nights and less time to do the good stuff. And the longer debts remain outstanding, the harder they are to collect. So, what can you do to stay on top of your debtors, maximise your cash reserves and minimise the risk of not getting paid. Continue reading “Tips for managing your debtors”
Superannuation guarantee is legislated to increase from July 1, 2021 and last week the Treasurer announced a review into retirement incomes. Superannuation is on the economic agenda and the rate at which superannuation is paid could be changing in the future. It’s an important part of the Australian economy – it’s estimated that at June 2019, assets totalling $2.9 trillion were held in superannuation funds! So I thought it timely to go back and do a refresh of exactly what superannuation guarantee is, what your responsibilities are as an employer and what are your rights as an employee. Continue reading “Superannuation guarantee – the basics”
Today let’s talk about housework – working from the house that is, not cleaning the house!
Working from home has never been easier or more convenient – super fast broadband (for some!); reliable technology and long commutes mean that for many employees, it’s an attractive option. And with the rise of the gig economy and many choosing to go solo with the benefits of being your own boss, it’s super important to maximise your home office expenses and not fall on the wrong side of our friends at the Australian Taxation Office (ATO). Today, we will aim to do all that and leave you with more time to relax (who cares about the housework!). Continue reading “Housework & tax deductions”
We’re in our 20th year of the Goods & Services Tax (GST) in Australia, so it’s only old timers like me who can remember the angst within the business community before it came into being! Largely, there have been very few changes to the system (helped I’m sure by any major changes needing to be approved by state governments) but I often get GST questions from people about to embark on their small business adventure. So, today is a refresher on some GST basics. Continue reading “A quick guide to navigating the GST”
Earlier this year the Australian Taxation Office (ATO) announced that they would double the number of audits being conducted into rental properties. In 2017/18 more than 2.2 million taxpayers claimed $47 billion in deductions. Assistant Commissioner Gavin Siebert advised that in order to target potential overclaiming they would:
“use a range of third party information including data from financial institutions, property transactions and rental bonds from all states and territories, and online accommodation booking platforms, in combination with sophisticated analytics to scrutinise every tax return. Where we identify claims of concern, ATO staff will investigate and prompt taxpayers to amend unjustifiable claims. If necessary, we will commence audits”
What can you do this tax time to make sure that if you are one of the “lucky” 4,500 taxpayers who will get a please explain letter from the ATO, you have the confidence that you are claiming everything you’re entitled to without falling foul of the law? Continue reading “Rental income & deductions: How to get it right!”