Steve M.

I wish to share that Robyn Jacobson, Senior Advocate at The Tax Institute, has just written the following two articles for the Australianbiz website.   Robyn’s quarterly articles on taxation and superannuation matters are practical, comprehensive, easy to read, and an excellent reference guide for accountants and tax advisors.   Superannuation   The small business CGT concessions can provide generous concessional treatment of capital gains made on the sale/disposal of a business or business asset. They also enable contributions to be made to superannuation that do not count towards the non-concessional contributions cap. While getting it right can boost superannuation balances, there are a few considerations to make it work without adverse tax consequences.   In this article, Robyn, explains what you need to consider to get it right, including:   - Eligibility for the small business 15-year exemption and the retirement exemption - Making a valid choice to use the CGT cap - Making the contribution - Consequences of getting it wrong.   Click on the link to view all the articles written by Robyn on superannuation matters: https://lnkd.in/gs5h33VN   Taxation   The $20,000 instant asset write-off (IAWO) is available for eligible small businesses for 2023–24 and is proposed for 2024–25. With all the changes year in and year out, understanding the fine print and ensuring your business and your clients get it right is important.   In this article, Robyn explains which businesses are eligible for the IAWO and what to watch out for including:   - The temporary increase in the IAWO threshold - What assets are outside the scope of the IAWO - What are the tax implications when a fully expensed asset is disposed of or sold? - Will we continue to see annual changes to the IAWO?   Click on the link to view all the articles written by Robyn on taxation matters: https://lnkd.in/gZM_esEH   ABOUT AUSTRALIANBIZ   www.australianbiz.com.au is an on-line tax & financial management tools platform developed by accountants for accountants.   The site provides an extensive range of small business focused tax and management articles (including monthly SME tax updates), tax and finance calculators, tax checklists, business templates and other practical information.   Click on the link https://lnkd.in/gdpfpFkJ for details of our subscriptions and the benefits of becoming a member. 

29

2 Comments

Step-by-Step Guide: Applying Small Business CGT Concessions 🧮📊 Offshore accountants let's walk through a practical example of how to apply Small Business CGT Concessions. This step-by-step guide will help you maximize benefits for your clients. Scenario: Client: John, 60 years old Business: Melbourne bakery, owned for 20 years Action: Selling the bakery (business + property) Capital Gain: $800,000 Step 1: Check Basic Eligibility ✅ Aggregated turnover < $2 million OR net assets < $6 million ✅ Asset actively used in business Step 2: Identify Applicable Concessions 15-Year Exemption 50% Active Asset Reduction Retirement Exemption Small Business Rollover Step 3: Apply Concessions in Order 3.1 Check 15-Year Exemption: Owned asset for 15+ years? Yes Client 55+ years or permanently incapacitated? Yes Client retiring/permanently incapacitated? Yes ➡️ 15-Year Exemption applies! Entire $800,000 gain disregarded. 3.2 If 15-Year Exemption Didn't Apply: a) Apply 50% general CGT discount: $800,000 → $400,000 b) Apply 50% active asset reduction: $400,000 → $200,000 c) Apply retirement exemption (up to $500K lifetime limit): $200,000 → $0 Step 4: Advise on Superannuation Contributions Can contribute up to $1.78M to super (CGT cap amount) Must be done within specific timeframes Lifetime CGT cap election form required Step 5: Document and Report Ensure choices are declared in tax return Keep detailed records of calculations and exemptions applied 💡 Pro Tip: Always check for updates to thresholds and rules. The ATO website is your best resource for the latest information. What's your process for applying these concessions? Any challenges you've faced? Share your experiences below! 👇 #TaxPlanning #CGTConcessions #AccountingTips #AustralianTax

10

What stops Australian small and medium enterprises (SMEs) from business structuring? Prior research has revealed advisors’ perceptions that most SMEs had not adopted an appropriate business structure due to an absence of advice at the inception stage of the business. There are many reasons why business structuring may be considered necessary by advisors and operators of SMEs. These can include facilitating new investors, facilitating a business succession plan, allowing access to generous tax concessions only available to certain business structures, and to address legacy issues (such as a complicated structure). Our research found a difference between the factors that impact an established business compared to a new business. Our analysis demonstrates that for established businesses, transfer costs such as capital gains tax (CGT) and stamp duty are more frequently mentioned by advisors as inhibitors. Whereas for new businesses, the more frequently mentioned inhibitors are establishment costs and client understanding. For more details see: https://lnkd.in/ewY8bNUu Barbara Trad Craig Cameron

32

6 Comments

While there are tax laws preventing individuals accessing profits or assets of the company in a tax-free manner, mistakes are being made and the Australian Taxation Office (ATO) has had enough. Read more 👉 https://lttr.ai/AaOGS #BusinessOwners #Accountant #asbconsultingandtax

2

#ATOAUSTRALIAUPDATE 15th May2024 “Reforming treatment of transfer balance cap for SFTs” New measure announced reforming the treatment of the transfer balance cap for successor fund transfers. On 26 October 2023, the Assistant Treasurer and Minister for Financial Services announced a measure to reform treatment of the transfer balance cap (TBC) provisions for successor fund transfers (SFTs) in a media release. Then on 13 December 2023, the Australian Government re-announced the measure as part of the Mid-Year Economic and Fiscal Outlook 2023–24. The measure is not yet law. The measure will ensure individuals with a capped defined benefit income stream are not adversely impacted in the event of a successor fund transfer between superannuation funds. Currently, for recipients of capped defined benefit income streams, the balance of their transfer balance account can be unintentionally affected as a result of the original income stream being treated as ceasing and a new one beginning. This measure is intended to be retrospectively applied from 1 July 2017. Treasury released the exposure draft and explanatory statement for consultation from 3 April to 24 April 2024. Visit the link: https://lnkd.in/dzsHAw_h

2

ATO monitoring crypto tax reporting June 6, 2024 Todd Wills - SMSF MAGAZINE The ATO is conducting a data-matching project to ensure SMSFs and investors accurately report cryptocurrency sales in their annual returns. SMSF trustees should accurately document the sale of digital assets in their fund’s annual return as the ATO is using data from cryptocurrency providers to ensure they are complying with their reporting requirements. “The ATO has mentioned they are going to acquire data from crypto-designated service providers for the 2023/24 financial year right up until the 2026 financial year and they are going to match it against their own systems to identify clients who fail to report a disposal of crypto-assets in the income tax return,” Institute of Financial Professionals Australia head of superannuation and financial services Natasha Panagis said during a webinar held by the body today. “If clients are using any entity to invest in crypto, the ATO is on the lookout and is going to be data-matching between those crypto data platforms and their own platforms to make sure that tax is recouped if people are selling their crypto-assets. “Be aware for clients of yours that might have an SMSF [and have invested in cryptocurrencies] that change is going to happen.” Panagis noted the ATO took this course of action because no framework exists to regulate the asset class and SMSFs continue to report substantial losses from investing in cryptocurrencies. “These losses are attributed to a whole range of factors, including scams, theft, collapsed crypto trading platforms, lost passwords and scammers impersonating the ATO,” she said. “There’s quite a lot of sophisticated scams going on at the moment and the ATO has noted that many crypto-assets are not classified as financial products. “The platforms that are used for buying and selling crypto are often unregulated, which can leave investors unprotected in the event of platform failures or security breaches that could occur and could result in the loss of digital assets.” According to the latest ATO quarterly statistics, SMSFs now hold $1.044 billion in cryptocurrencies, falling from a peak of $1.613 billion in the June quarter 2021.

15

My latest column for The Currency looks at some of the #CGT reliefs that are available to #entrepreneurs. It is based on the theoretical disposal of a business in the IT Managed Services sector. Engaging a tax expert early is the best way to maximise your post-tax position. And don’t take this article as tax advice, I wrote it one Saturday morning between games of Mario Kart. How to maximise your exit – Part 2: The significant benefits of detailed tax planning

40

2 Comments

A reminder for you that to claim a tax deduction for personal super contributions SMSF members must complete a Notice of intent to claim or vary a deduction for personal super contributions. Once received, a fund trustee must send a written acknowledgment, confirming they have received a valid notice of intent to claim a deduction. The ATO emphasised that members must receive the acknowledgment from their fund before they can claim the deduction on their tax return. #supercontributions #smsf #accountants #advisors #virtualcfoservices

1

How to Invoice in your business if you have an ABN. Invoicing is a critical component of running a successful business. It ensures you get paid on time and maintains a clear record of your financial transactions. If you have an Australian Business Number (ABN), there are specific guidelines you need to follow when issuing invoices. This article will guide you through the process of creating and managing invoices to keep your business operations smooth and efficient. It is generally not advisable to invoice under one Australian Business Number (ABN) and get paid into the bank account of another ABN unless there is a legitimate reason for doing so and the parties involved are aware and in agreement with this arrangement. #smallbusinesstips #smallbusiness #abn

13

4 Comments

ATO Spotlight on Next 5,000 private groups Australia’s largest private groups have once again been put on notice about the consequences of not maintaining fit-for-purpose tax governance and reporting frameworks. Yesterday, 22nd April 2024 the Australian Taxation Office had announced a key focus on compliance with tax governance and reporting for family groups that together with their associates, control wealth of more than $50 million. ACTION: ✔️ Prepare early and seek professional advice on how to ensure your family and business entities are review ready and proactively managing the key risk areas outlined in the ATO next 5,000. #ato #taxation #next5000 #wealth #HNWI #compliance #familyoffice #privatewealth #$50million

6

Are you an Australian business owner? 💸 Struggling to pay your salary bills? 🔍 In need of top-tier talent at half the expense? 👉 We have the solution! Download our FREE guide, The Secrets to Outsourcing Success, and discover how you can build a world-class team without breaking the bank. Comment "Smart" below and get your guide today! #OutsourcingSuccess #CostSavings #SmartWorkforceSolutions #BusinessGrowth #TopTalent #SWS

1

🌍 Topics that are particularly important for the profession include sustainability, AI, and the evolution of the profession itself, including ethics. In this video, CPA Australia CEO Chris Freeland AM talks about what we are focusing on in 2025 to provide value to our members. 📈✨ For more highlights from 2024 👉 https://bit.ly/404vtHc

10

Debt Inherit - Tips to Protect your Family from Inheriting your Debt in Australia #AMadvisory #maheshthapa #investmentproperty #tax #CA #accounting #financialgrowth #Business #EstatePlanning #wealthcreation #lifeinsurance #mortgage #repayments

53

1 Comment