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Building a bridge to recovery In what has been billed as one of the most important budgets since the Great Depression, and the first since the onset of the COVID-19 pandemic dragged Australia into its first recession in almost 30 years, Treasurer Josh Frydenberg said...
Many small business owners and sole traders will be breathing a sigh of relief following the extension of the JobKeeper scheme until March
next year. At the same time, however, the ATO is stepping up its compliance activities. Here’s a roundup of some of the key...
2020 has challenged businesses on a global scale. With restrictions, shutdowns, and a global financial crisis changing many businesses
operating conditions, business owners are struggling to keep up with the increased speed of change that 2020 has brought about. So...
In summary August saw restrictions maintained in a number of countries to contain second waves of Covid-19. Progress was made in Australia and the US in reducing infection rates, but the US still has a long way to go before they really get the virus under control....
When the inflation rate fell into negative territory in the June quarter, it was so unusual it begged the question of what this means for the economy. Are we facing deflation or even stagflation and what is the difference? In the June quarter the annual inflation...
Self-managed super funds (SMSFs) have had a challenging year, with COVID-19 linked market uncertainty affecting income and returns. But SMSF trustees haven’t been sitting on their hands. One of the main reasons people give for wanting to establish an SMSF is to have...
After a year when even the best laid plans have been put on hold due to COVID-19, people who were planning to retire soon may be having second thoughts. You may be concerned about a drop in your super balance, work security, or an uncertain investment outlook....
Receiving an inheritance is always welcome, but people often forget the tax man will take a keen interest in their good fortune. There are numerous situations whereby when ownership of an asset is transferred or disposed of it may incur a capital gain or loss with...
Many people like to invest in property. In these uncertain times, investing in listed shares or managed funds can often seem too risky. In contrast and although they have increased recently, the returns from term deposits or other fixed interest securities is relatively low.
Most of us understand the importance of saving for a rainy day, but sometimes it takes a crisis like the current pandemic to make us act on
it. With so many jobs lost and the outlook unknown, having a cash buffer means you are more able to manage unexpected expenses...
July saw second waves of Covid-19 infections around the world with cases per week in a number of countries, including Australia, the US and Japan, exceeding previous peaks. Some countries have responded by reinstating national restrictions, while others, including...
Selling a business you have spent so many years building up can be a difficult process, but getting the best price is not the only consideration. Tax has a big role to play in the financial result. That means the ATO will be paying close attention.
Under AASB 15 Revenue from Contracts with Customers, revenue is recognised so that promised goods and services are transferred in an amount that reflects the consideration to which their provider expects to be entitled. AASB 15 requires the application of a five-step...
AASB 16 Leases has been amended to exclude rent holidays caused by COVID-19 from being assessed as lease ‘modifications’. The amendment provides a practical expedient that permits lessees not to assess whether rent concessions such as rent holidays and temporary rent...
COVID-19 is having an unprecedented impact on the economic outlook for Australian and global economies. For the first time, many entities will be required to consider in more detail their solvency and ability to continue operating as a going concern.
Law changes have been introduced to reduce red tape and improve internal governances for the 22,900 incorporated associations in Queensland, including 3750 registered as charities. Associations Incorporation and Other Legislation Amendment Bill 2019 was passed by...
With Australia in a COVID-induced recession, residential property is not immune to falling economic activity. Yet housing prices are proving surprisingly resilient. Only months ago, economists were forecasting a housing price slump of 20 per cent or more. Now, most...
The start of the financial year is always an excellent time to take stock of your current situation and visualise where you’d like to be in the future. It’s fair to say this year hasn’t been ‘business as usual’! While no-one could have predicted the first six months...
The May 2018 Federal Budget announced a number of changes to the superannuation work test and contributions for over 65s. These changes have recently come into effect and will impact the way many people contribute to their or their partners’ super fund as they near...
With the financial year ending just over a week ago and people starting to think about completing their tax returns, we thought that we
should spend some time covering home office deductions. For the first time, many clients have been forced to work from home and as...
Family trusts have stood the test of time as a means of protecting family and business wealth, and managing the distribution of trust income in a tax-effective way. But the misuse of these tax benefits by a small minority periodically puts trusts in the firing line of...
As COVID-19 restrictions came into effect in March of this year, changing the way businesses operated across the country, many small businesses adopted out of the box techniques to keep their businesses moving despite the many challenges and roadblocks thrown their...
After successfully navigating our initial response to the COVID-19 (coronavirus) health crisis, backed up with $285 billion in government support to individuals and businesses to keep the economy ticking over, thoughts are turning to how to get the economy back on its...
Equity markets pushed higher in May, taking valuations to very expensive levels, as markets took an almost exclusively optimistic view of declining infection rates, reports of progress towards a vaccine and the benefits of economies re-opening. In addition,...
The two cash flow boosts provided by the federal government to help businesses deal with the COVID-19 emergency have largely been overshadowed by the JobKeeper program, but they could provide valuable financial support to organisations that qualify. Some businesses...
As this financial year draws to a close, it will be viewed as a year like no other. COVID-19 (coronavirus) has impacted everybody’s life, albeit in different ways for different people. For some, staying at home has meant you have greater savings; for others, the virus...
With COVID-19 dominating everyone’s thoughts, employers are being offered a brief window of opportunity to get their tax affairs in order with the new Superannuation Guarantee (SG) amnesty. There is also a range of virus related assistance on offer to help affected...
The Morrison Government’s mind-bogglingly large support packages to get Australians through the COVID-19 shutdown have dominated headlines,
and rightly so. Only months ago, the Australian economy was in relatively good shape and headed for a Budget surplus. Behind the...
If you have been out of routine this year, you have probably realised how easy it is to lose track of the days. To help keep you up to date, we have put together a list of dates you will not want to forget. The end of financial year in Australia is looking a little...
In summary Markets embraced a risk-on mood in April with a strong rally in equities as investors welcomed declining virus infections and reports of possible medical treatments. Support from governments and central banks also helped. However, as the month went on, the...
In order to ameliorate some of the economic impact of the coronavirus on landlords and property owners, the Queensland Government has provided some land tax concessions, which apply in the 2019/2020 and 2020/2021 financial years. The concessions are: A rebate of 25%...
The recent sell-off on global sharemarkets due to the economic impact of COVID-19 has highlighted the risks of depending too heavily on a single asset class. Even before the current crisis, the ATO was concerned about a minority of self-managed superannuation funds...
At a time of uncertainty about the economy, not to mention unexpected social isolation, people are rethinking their personal and financial priorities. Whether you are spending less by necessity or because you are living more simply at home, this could be a good time...
Many charities’ operations are affected by COVID-19. This might mean that some or all of them might need to be modified or even temporarily
halted. The Australian Charities and Not-for-profits Commission has stressed the importance of charities keeping stakeholders...
In recognition of unique challenges brought about by COVID-19, the ACNC has ruled out investigating certain breaches of governance and external-conduct standards from 25 March until 25 September. This approach is explained below. The commission believes that this...
The ACNC is urging charities with deductible-gift-recipient endorsement to check their registration details. In July, the commission will begin reviewing DGR reforms announced by the federal government in 2017. The DGR review is designed to strengthen governance...
In summary March was the most turbulent month for global financial markets since the onset of the GFC. Evidence of Covid-19 spreading into Europe triggered a sharp fall in equities and other risk assets, combined with a liquidity squeeze as demand for US$ cash...
Over the past few weeks, the Government has announced numerous measures to support the economy during the COVID-19 crisis. A number of those measures specifically relate to the superannuation industry. Temporarily reduce superannuation minimum drawdown rates...
Over the past week, there has been mounting concern with regards to the coronavirus (COVID-19) outbreak. With restrictions in place for travel and gatherings across Australia, and schools and workplaces braced for closures, it is increasingly important to be aware of...
The ATO is providing concessions to businesses affected by Coronavirus (COVID-19), but at the same time is getting tough on employee car parking benefits and investigating lifestyle assets owned by wealthy taxpayers. Here’s a roundup of some of the latest developments...
After a period of optimism, global investment markets have hit the panic button on fears about the possible economic impact of the coronavirus (COVID-19). At times like these, it’s good to get some perspective. Australian shares rose 24 per cent last year, touching...
At the recent Self-Managed Superannuation Fund Association (SMSFA) National Conference, Dana Fleming from the Australian Taxation Office (ATO) outlined the regulatory approach for SMSFs going forward. Since 2014, the ATO has had enhanced powers for dealing with SMSF...
In summary The first three weeks of February saw further good performance by global equity markets. The news from China about Covid-19 seemed to be getting better and the latest economic data was still quite positive. However, all this changed very quickly from 21...
In summary January was a dramatic month for the world economy and financial markets, starting with hostilities between the US and Iran and ending with fears about the new coronavirus (2019-nCoV) from China. Here in Australia, we had the extra difficulties from the...
With a property market recovery underway, most notably in Sydney and Melbourne, Australian investors are once again pursuing their love
affair with property investing. For many investors, a popular way to invest directly in residential or commercial property is...
With interest rates at historic lows and likely to stay that way for some time, retirees and other investors who depend on income from their investments are on the lookout for a decent yield. Income from all the usual sources, such as term deposits and other fixed...
The start of a new year is always a good time to check whether your insurance policies are still serving your needs. But this year there is even more reason to review your cover. If your super balance is less than $6000 or you are under 25 and are a new fund member,...
As a tradie, you are largely dependent on your physical ability to earn a living. So, what would happen if you fell ill or had an accident? Would you be able to continue your current lifestyle? Most tradies work in a far more dangerous environment than any...
Do you claim fuel tax credits for fuel you use in your heavy vehicle, farm equipment or other machinery for your business? The Australian Taxation Office recently announced an increase to fuel tax credit rates on 3 February in line with fuel excise indexation. Fuel...
The way you access the ATO Business Portal is changing. From the end of March this year, you will no longer be able to use AUSkey as it is being retired by the ATO. If you are currently accessing the Business Portal using your myGov details (via Manage ABN...
As you might expect, the current bushfire crisis has many Australians reaching for their wallets or purses to help emergency service organisations and those in need. For people with self-managed superannuation funds (SMSFs), there may be the temptation to use money...
What better year to have your financial health in tiptop shape than the one requiring 20/20 vision! The start of any year is always a good time to assess your financial situation and make sure you are on track to achieving your dreams, but the start of a decade is...
In summary December closed out 2019 on a positive note with equities, bonds and commodities all rallying as key economic data steadied and the US and China agreed to sign the Phase One trade deal. Central banks, including our Reserve Bank, flagged their intention to...
Running a business keeps you pretty busy, so it’s easy to overlook the help that’s available. Many small businesses don’t realise the government offers a range of valuable concessions that can make a real difference to their annual tax bill. Depending on your annual...
Ever look back on past New Year’s resolutions and notice they failed, not with a bang, but with a whimper? There was no dramatic quitting of that new class and no midnight burger binge. Instead, time just gets away from us. Other priorities come into our life. We just...
It was a year of extremes, with shares hitting record highs and interest rates at historic lows. Yet all in all, 2019 delivered far better returns than Australian investors dared hope for at the start of the year. The total return from Australian shares (prices and...
In summary November was a good month for equity markets as the broad risk-on theme continued. Both the local and US equity markets reached new highs. In contrast, the performance of bond markets was mixed, especially for the global bond markets, where expectations of...
Australians delight in their nation punching above its weight. But there’s little to celebrate in being the world’s silver medallists – we’re a nose behind the Swiss – when it comes to household debt. With the present-buying, holiday-taking season nigh, millions of...
You could be forgiven for thinking Australia’s superannuation system is a mess. Depending who you talk to, fees are too high, super funds lack transparency and Governments of all political persuasions should stop tinkering. Yet according to the latest global...
As part of the 2018-19 Federal Budget, the Government announced that it would limit deductions for expenses associated with holding vacant
land for the intended purpose of earning assessable income. This change is now law and applies to expenses incurred on vacant...