Business Finance

  • 099FederalBudget2018SpecialEditionOn Tuesday, 8 May 2018, Treasurer Scott Morrison handed down the 2018–2019 Federal Budget, his third. In what is widely perceived to be an election Budget (and certainly the last full Budget before the next Federal election), the Treasurer forecast a return to a modest deficit of $2.2 billion in 2019–2020 and an increase to surplus in 2020–2021. In the lead-up, the Treasurer signalled the need to “exercise the restraint that has been so important in ensuring that we bring that Budget back to balance”.

  • 101Budget2018WhatsInItForYouIt’s May, which means it’s Budget time. In the last full Budget before the next Federal election, the Treasurer delivered an election Budget with enough sweeteners for everyone including businesses, income tax relief for individuals, measures to boost superannuation, and help for older Australians.

    The 2018-19 Budget was handed down on 8 May by Treasurer Scott Morrison. In the last full Budget before the next Federal election, ScoMo delivered what was widely perceived to be an election Budget with lots of sweeteners for everyone. So what’s in it for you?

  • 023CashIsNoLongerKingMovingYourBusinessOutOfTheCashEconomyEFTPOS, payWave, Apple Pay, Android Pay, PayPal – electronic payment is increasingly the transactional method of choice. But cash still feels good in the hands, and is seen by many as the “real currency,” particularly in times of financial crisis.

  • 033CompanyTaxRateCutDecreasesValueOfFrankingCreditsRecent media coverage has been devoted not only to whether or not passive investment companies are eligible for the reduced company tax rate of 27.5%, but also to the consequent loss in value (2.5%) of franking credits by the shareholders of small incorporated businesses that qualify for the tax rate reduction.

  • Hunter Partners Corporate Tax Rates There’s finally some certainty about the corporate tax rate(s). Legislation has recently passed Parliament and the fate of other proposed changes has also been finalised. The law is settled, so it’s a good time to remind ourselves what the final state of play is concerning the dual rates of 27.5% and 30%.

  • Deemed dividend rules: new 10-year loan model

    003 NewDiv7ALoanModelThe government is acting to simplify the Division 7A rules that govern deemed dividends, proposing a new 10-year loan model for compliant loans. Significantly, companies with existing loans would be forced to transition to the new model

  • 093FBTWhatYouShouldBeAwareOfWith the FBT lodgement deadline fast approaching, we give you some tips on areas of FBT which may need particular attention, such as motor vehicles, employee contributions, the living-away-from-home allowance, car parking and the employer rebate. These are the areas that the ATO is focusing their efforts on in terms of compliance.

  • Franking rules and company tax rates

    Franking rules and company tax ratesReducing the corporate tax rate for small to medium businesses has great benefits, but it may bring some unintended consequences in terms of the franking rules.

  • Government tenders and tax compliance

    Government tenders and tax complianceBidding on Commonwealth government tenders could soon be more complex, with the government seeking to exclude businesses that do not have a satisfactory tax record from the tender process.

  • Greater flexibility for accessing company lossesThe government plans to give companies greater access to prior year tax losses in a bid to stimulate business innovation. A new alternative to the “same business test” – the “similar business test” – will make it easier for companies that have experienced a significant change in ownership or control to carry forward their losses.

  • 083InsolventTradingNewSafeHarbourDefenceInsolvent trading. If you’re a company director you know only too well that those two words are bad news. The good news is that the law that has held directors personally liable for corporate debt in cases of insolvency has recently changed, giving directors a “safe harbour” to encourage them to save their business from liquidation for the benefit of the company and its creditors before it’s too late. But only in limited circumstances.

  • Labor’s election policies: Part 2

    Labor’s election policies: Part 2Part 1 of Labor’s election policies examined the potential introduction of a cap for deduction for the use of accountants and the introduction of a minimum 30% tax rate on distributions from family trusts. Both of these measures will affect a wide range of taxpayers, including individuals and small businesses.

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  • 037PavingTheWayToInnovateInnovation is fundamental to drive future productivity in Australia. Readily available finance is critical to make this possible, especially if you plan a start-up, and absolutely vital if your venture is a new fintech (financial technology) company. Here we explore some of the recent changes to law, which could help pave the way to a successful fintech business or early-stage innovative start-up.

  • PAYG withholding: new penalties for non-compliance

    002 PAYGWithholdingPenaltiesCombating the black economy has been a key priority of the government in recent years. To reduce business activity that takes place “under the radar” of the tax system, new laws commencing on 1 July 2019 will prevent businesses from claiming deductions for payments

  • 094ProtectingCustomerDataDid you know that in Australia, any organisation that handles personal information could be captured under the notifiable data breaches scheme which requires organisations to notify individuals whose personal information is involved in a data breach that is likely to result in serious harm.

  • 075TaxDebtsToAffectYourCreditScoreTax debts could soon affect the credit scores of businesses, with the government’s introduction of draft legislation to allow ATO to share debt details of businesses to credit rating agencies. The proposal only applies to businesses that meet certain conditions and there are also safeguards to protect businesses that make an effort to resolve their debt.

  • 026TaxGetsSocialDigitalMarketingAndFinancialIncentivesForSmallBusinessOver the past year we’ve seen a number of tax incentives on offer for small business, including a reduction in the company tax rate, an increase in the instant asset write-off threshold and, in the digital arena, the tax deductibility of expenditure on intangible assets, such as commercial websites.

  • 100UberNotAnEmployerEmployer groups have been dealt a blow after a Fair Work Commission finding that Uber was not an employer and thus unfair dismissal laws did not apply. With the rise of the gig economy, employment conditions such as minimum wages and conditions, entitlement to annual, sick and long service leave, superannuation, and protection from unfair dismissal and unlawful termination could all be threatened.

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