Insights & Updates

Starting a new business is an exciting time.

If you're carrying an Australian Taxation Office (ATO) debt there is a good chance that it will cost you even more from 1 July 2025 onwards. This is because from 1 July 2025 two types of interest charges imposed by the ATO are no longer deductible.

This tax season, we’ve seen a surge in questions about whether interest on a loan can be claimed as a tax deduction. It’s a great question as the way interest expenses are treated can significantly affect your overall tax position. However, the rules aren’t always straightforward. Here’s what you need to know.

In support of young Australians and in response to the rising cost of living, the Australian Government has passed legislation to reduce student loan debt by 20% and change the way that loan repayments are determined. This should help students significantly more than the advice from outside of Parliament – cut down on the smashed avo.

As the urban sprawl continues in most major Australian cities, we are often asked to advise on the tax treatment of subdivision projects. Before jumping in and committing to anything, it is important to understand the tax liabilities that might arise from these projects. Unfortunately, many people make incorrect assumptions about the way that

The Fringe Benefits Tax (FBT) year ended on 31 March. We’ve outlined the hot spots for employers and employees. FBT exemption for electric cars Employers that provide employees with the use of eligible electric vehicles (EVs) can potentially qualify for an FBT exemption. This should normally be the case where: The car is a

With the end of the financial year fast approaching we outline some opportunities to maximise your deductions and give you the low down on areas at risk of increased ATO scrutiny Opportunities Bolstering superannuation   If growing your superannuation is a strategy you are pursuing, and your total superannuation balance allows it, you could

Global Google searches for the word “tariffs” spiked dramatically between 30 January and 2 February 2025, a +900% increase to the previous 12 months. We look at what tariffs really mean. Who pays for tariffs? Tariffs increase the price of imported goods and reduce trade flows of that good or service. Traditionally used to

The Government has announced its intention to introduce mandatory standards for large superannuation funds to, amongst other things, deliver timely and compassionate handling of death benefits. Do we have a problem with paying out super when a member dies?     The value of superannuation in Australia is now around $4.1 trillion. When you

“Succession planning, and the tax risks associated with it, is our number one focus in 2025. In recent years we’ve observed an increase in reorganisations that appear to be connected to succession planning.” ATO Private Wealth Deputy Commissioner Louise Clarke The Australian Taxation Office (ATO) thinks that wealthy baby boomer Australians, particularly those with

Beyond the difficult task of dividing up your assets and determining who should get what, it’s essential to look at the tax consequences of how your assets will flow through to your beneficiaries. When assets pass from a deceased individual to a beneficiary of the estate, the tax impact will generally depend on the

Australian voters tend to reject US style education favouring more egalitarian systems where income does not determine access. In the US, average student debt is USD $37,693 (public and private debt) taking an average of 20 years for individuals to repay. But, students often have a gap not fulfilled by loans. For Australian domestic

‘Payday super’ will overhaul the way in which superannuation guarantee is administered. We look at the first details and the impending obligations on employers. From 1 July 2026, employers will be obligated to pay superannuation guarantee (SG) on behalf of their employees on the same day as salary and wages instead of the current

Own an investment property or an expensive lifestyle asset like a boat or aircraft? The ATO are looking closely at these assets to see if what has been declared in tax returns matches up. The Australian Taxation Office (ATO) has initiated two data matching programs impacting investment property owners and those lucky enough to

You login to your myGov account to find that your activity statements for the last 12 months have been amended and GST credits of $100k issued. But it wasn’t you. And you certainly didn’t get a $100k refund in your bank account. What happens now? In what is rapidly becoming the most common tax

The main residence exemption exempts your family home from capital gains tax (CGT) when you dispose of it. But, like all things involving tax, it’s never that simple. As the character of Darryl Kerrigan in The Castle said, “it’s not a house. It’s a home,” and the Australian Taxation Office’s (ATO) interpretation of a

Generational succession - handing your business across to your kids or family - sounds simple enough but, many families end up in a dispute right at the point when the parents, business, and children are most vulnerable. It’s important that generational succession is managed as closely and diligently as if you were selling your

The great wealth transfer from the baby boomer generation has begun and home ownership is the catalyst. The average price of a home in NSW is $1,184,500, the highest in the country. Canberra is next at $948,500, followed by Victoria at $895,000, with the Northern Territory the lowest at $489,2001. With the target cash

The end of the financial year is fast approaching. We outline the areas at risk of increased ATO scrutiny and the opportunities to maximise your deductions. For you Opportunities Take advantage of the 1 July 2024 tax cuts by bringing forward your deductible expenses into 2023-24. Prepay your deductible expenses where possible, make any

Author: Karina Heydon The Fringe Benefits Tax year (FBT) ends on 31 March. We explore the problem areas likely to attract the ATO’s attention around the Fringe Benefits Tax exemption to electric vehicles. In late 2022, the Government introduced a concession that enables employers to provide some electric vehicles to employees without incurring the

Author: Shaun Allen From 1 July 2024, the amount you can contribute to super will increase. We show you how to take advantage of the change. The amount you can contribute to superannuation will increase on 1 July 2024 from $27,500 to $30,000 for concessional super contributions and from $110,000 to $120,000 for non-concessional

Author: James Sanguanchati The revised stage 3 tax cuts have passed Parliament and will come into effect on 1 July 2024. This will mean that more Australian taxpayers will receive a personal income tax cut and take home more in their pay packet from 1 July, but for some, the impact will be less

Author: Shaun Allen Workers are owed over $3.6 billion in superannuation guarantee according to the latest Australian Taxation Office estimates – a figure the Government and the regulators are looking to dramatically change.  Superficially, the statistics on employer superannuation guarantee (SG) compliance look pretty good with over 94%, or over $71 billion, collected without

Author: James Sanguanchati The Australian Taxation Office have released a new draft ruling on self-education expenses. We revisit the deductibility of self-education expenses and what you can and can’t claim. If you undertake study that is connected to your work you can normally claim your costs of that study as a tax deduction -

Author: Rohan Toon Electricity is the new black. Gas and other fossil fuels are out. A new, limited incentive nudges business towards energy efficiency. We show you how to maximise the deduction! The small business energy incentive is the latest measure providing a bonus tax deduction to nudge the investment behaviour of small and

Author: Karina Heydon What is the end game for your business? Succession is not just a topic for a TV series or billionaire families, it’s about successfully transitioning your business and maximising its capital value for you, the owners. When it comes to generational succession of a family business, there are a few important

Author: James Sanguanchati You’ve got a block of land that’s perfect for a subdivision. The details have all been worked out with Council, the builders, and the bank. But, one important aspect has been left out; the tax implications. Many small-scale developers often assume that their tax exposure is minimal – but this is

Author: Shaun Allen The tax refund many Australians expect has dramatically reduced. We show you why. There is a psychology to tax refunds that successive Governments have been reticent to tamper with. As a nation, Australia relies heavily on personal and corporate income tax, with personal income tax including taxes on capital gains representing

Author: James Sanguanchati It’s that time of year when we all look at what last minute things we can do to maximise tax savings. In the wise words of the late Kerry Packer to a Senate estimates committee, “Of course I am minimising my tax. And if anybody in this country doesn’t minimise their

Author: Karina Heydon Tax deductions for topping up super You can make up to $27,500 in concessional contributions each year assuming your super balance has not reached its limit. If the contributions made by your employer or under a salary sacrifice agreement have not reached this $27,500 limit, you can make a personal contribution

Author: Shaun Allen From 1 January 2023, those 55 and over can make a ‘downsizer’ contribution to superannuation. Downsizer contributions are an excellent way to get money into superannuation quickly. And now that the age limit has reduced to 55 from 60, more people have an opportunity to use this strategy if it suits

Author: Rohan Toon The ATO has released its final position on how it will apply some integrity rules dealing with trust distributions - changing the goal posts for trusts distributing to adult children, corporate beneficiaries, and entities with losses. As a result, many family groups will pay higher taxes because of the ATO’s more

Author: Karina Heydon The Australian Taxation Office (ATO) has updated its approach to how you claim expenses for working from home. The ATO has ‘refreshed’ the way you can claim deductions for the costs you incur when you work from home. From 1 July 2022 onwards, you can choose either to use a new

Author: Shaun Allen The Bill containing the FBT exemption for electric cars passed through Parliament on 28 November 2022 and has passed Royal Assent. Electric vehicles (EV) represent just under 2% of the new car market in Australia but it is a rapidly growing sector with a 62.3% jump in new EV registrations between

Queensland backs down on Australia wide land tax assessment The Queensland Government has backed away from an amendment that would have seen the land tax rate for investment property in Queensland assessed on the value of the investor’s Australia wide land holdings from 1 July 2023, not just the value of

In September, amid a climate of startling interest rates, UK Chancellor Kwasi Kwarteng announced a series of tax cuts, including the reduction of the top personal income tax rate that applies to those earning more than £150,000 from 45% to 40%. Just ten days later, following market turmoil that saw the

Every year, we are asked about the tax impact of various Christmas or holiday related gestures. Here are our 4 top issues: Staff gifts The key to Christmas presents for your team is to keep the gift spontaneous, infrequent, and from a tax perspective, below $300 per person. $300 is the

The ATO has released updated information on claiming cryptocurrency losses and gains in your tax return. The first point to understand is that gains and losses from crypto are only reported in your tax return when you dispose of it - you sell it, convert it to fiat currency, exchange it

We’re often asked the best way to sell a business. There are two key components at play in the sale of a business: structuring the transaction; and positioning the business to the market. Both elements are important and can significantly impact your result. Structuring the transaction covers areas such as pricing

Everyone knows you don’t pay tax on your family home when you sell it…right? We take a closer look at the main residence exemption that excludes your home from capital gains tax and the triggers that reduce or exclude that exemption. Capital gains tax (CGT) applies to gains you have made

It’s a great headline isn’t it? Spend $100 and get a $120 tax deduction. Days after the Federal Budget announcement that businesses will be able to claim a 120% deduction for expenditure on training and technology costs, we started receiving marketing emails encouraging us to spend now to access the deduction.

The ATO has flagged four priority areas this tax season where people are making mistakes. With tax season almost upon us the Australian Taxation Office (ATO) has revealed its four areas of focus this tax season. Record-keeping Work-related expenses Rental property income and deductions, and Capital gains from crypto assets, property,

A series of reforms and changes will commence on 1 July 2022. Here’s what is coming up: For business Superannuation guarantee increase to 10.5% The Superannuation Guarantee (SG) rate will rise from 10% to 10.5% on 1 July 2022 and will continue to increase by 0.5% each year until it reaches

Directors will be required to register for a unique identification number that they will keep for life, much like a tax file number under a rewrite of Australia’s business registers. ASIC does not currently verify the identity of directors and Elvis Presley and Bob Marley could “quite possibly” be registered. Or

Landmark cases before the High Court highlight the problem of identifying whether a worker is an independent contractor or employee for tax and superannuation purposes. Many business owners assume that if they hire independent contractors they will not be responsible for PAYG withholding, superannuation guarantee, payroll tax and workers compensation obligations.

From 1 July 2021, the maximum number of members a Self Managed Super Fund can have increased from four to six. Why would you have a fund with six members and what are the implications? Recently enacted laws increased the maximum number of allowable members in an SMSF and small APRA

The 1 November superannuation rule changes could affect your business. When your business hires a new employee, the Choice of Fund form is used to identify where they want their superannuation to be directed. If the employee does not identify a fund, generally the employer directs their superannuation into a default

Australia has had its fair share of disasters over the last few years – drought, bushfires and floods – that have ramped up the volume of insurance claims. Most people would assume that if and when they need to claim on their insurance, the insurance payout covers the damage and is

In early November, the Commonwealth Bank announced that it is now Australia’s first bank to offer customers the ability to buy, sell and hold crypto assets, directly through the CommBank app. You know when the banks come on board, cryptocurrency has become normal. But cryptocurrency is only one part of the

If you worked from home during lockdown and spent money on work related items that were not reimbursed by your business, you might be able to claim some of these expenses as a deduction – but not everything you purchase can be claimed. The ATO has stated that it is looking

Running a business can be an isolating experience. And, with COVID-19 lockdowns and disruptions to trade, the pressure can be intense. NewAccess for Small Business Owners is a free and confidential mental health program developed by Beyond Blue to give small business owners the support they need. Whether you’re just feeling

In an attempt to reign in undeclared income, proposed new laws will require platform providers in the sharing economy to report all transactions through their platforms. Traditional employment models have shifted in favour of more flexible options including contracting, self-employment and use of labour hire. Consumers are increasingly paying to ‘use’

Is your business operating in an industry potentially subject to the Taxable Payments Annual Reporting (TPAR) regime? We have developed a checklist to identify whether you are required to report your TPAR as well as a guide on how to prepare and lodge the report. You can access the guide here. If you find

We often get questions from clients about what they can and cannot do in their SMSF. Often the questions relate to related party transactions – that is, interactions between the SMSF, its assets, and its members (or relatives of members). We’ve set out some of the common

Updated 28/10/2021 From 1 November 2021, directors will be required to register for a unique identification number that they will keep for life, much like a tax file number under a rewrite of Australia’s business registers. As director, you must apply for your director ID yourself as you will need to

With the 2021 financial year coming to a close we’ve summarised the key 1 July 2021 changes and their implications for the next financial year. Super guarantee rate increase to 10% On 1 July 2021, the Superannuation Guarantee (SG) rate will rise from 9.5% to 10% -

Are you ready for the end of the financial year? With only a few days left in the 2021 financial year, we have one last tax strategy to share with you. In this episode, Ryan Sheppard discusses superannuation deductions. What are superannuation deductions? Watch episode 6 now and find out!

Are you ready for the end of the financial year? The 2021 end financial year is just around the corner, have you contact us yet to see how we can help you? In this episode, Ryan Sheppard discusses closing your books in relation to end of year prepayments. So, what are

Are you ready for the end of the financial year? With less than 2 weeks until the end of the 2021 financial year, there’s no better time than now to put plans in place to make the new year shine. In this episode, Cassie Weston discusses carry forward concessional contribution rules.

Are you ready for the end of the financial year? Making sure your books are in order is a crucial part of the EOFY process. In this episode, Ryan Sheppard discusses closing your books in relation to end of year accruals. So, how could this save you tax? Watch episode 3

Are you ready for the end of the financial year? The end of financial year can be stressful enough, why not let us help you strategise ways to start the new year on a high? In this episode, Shaun Allen discusses rental property depreciation reports. So, what is a rental property

Are you ready for the end of the financial year? As accountants, we’re in the business of helping people so we decided to develop a series of videos to discuss strategies you can use to finish the 2021 financial on a high. In this episode, Ryan Sheppard discusses major asset purchases,

Fringe benefits tax (FBT) is one of Australia’s most disliked taxes because it’s cumbersome and generates a lot of paperwork. The COVID-19 lockdowns have added another layer of complexity as many work patterns and behaviours changed. A fringe benefit is a ‘payment’ to an employee or an associate (an associate is

On 1 January 2021, new laws came into effect that introduce a new, simplified debt restructuring and liquidation framework for small business. Drawing on key features of the Chapter 11 bankruptcy model in the United States, the new system aims to speed up the insolvency process, reduce costs and where possible,

Sometimes the difference between a good business and a great business is simply having sufficient capital to execute your business plan.  For many businesses, the owners have put everything they have into growing the business but there is still a gap.  Investors offer an opportunity to close that gap but at

If your company has made a loss, you may be able to claim a tax refund for tax previously paid on profits. In the 2020-21 Federal Budget, the Government announced that businesses with turnover under $5bn* will be able to offset any losses made between 2019-20 and 2021-22 against previously taxed

Stimulating investment is high on the Government’s agenda. To encourage spending, the 2020-21 Budget introduced a measure that allows businesses with turnover under $5 billion* to immediately deduct the cost of new depreciable assets and the cost of improvements to existing assets in the first year of use. This means that

The legislation enabling the JobMaker scheme has not passed Parliament as yet and until this occurs, the JobMaker rules are not certain and may change. More details should be available soon and we’ll let you know as soon as we have some certainty. Here’s what you need to know about the

FBT liabilities can trap unwary businesses, some of whom don't recognise that there can be a tax consequence from providing benefits to staff such as entertainment. It is essential to understand there can be implications from seemingly straight-forward business activities across income tax and GST, as well as FBT. For some

For a while now, the Australian Taxation Office (ATO) has been concerned about tax deductions individuals have been claiming for a whole host of expenses. The latest on their ‘hit list’ are home office expenses. We will guide you through what you can and can’t claim if you work from home.

The JobKeeper subsidy has progressed beyond the rush for eligibility into the second round. Along with the new eligibility thresholds that will carry through until March next year, the ATO is beginning to focus attention on compliance. Late last month, the Australian Taxation Office (ATO) released guidance highlighting where the regulator

The new financial year is just around the corner – and it’s going to be a little different this time around. A raft of new changes is due to kick in which will affect almost everyone, including individuals, families, workers, business owners and even retirees. Here is the list of changes

About this time every financial year, it's an excellent time to review any super contribution opportunities. However, since March 2020, there has been high volatility in investment markets, which may have created extra potential for clients to benefit. There have also been changes to super contribution rules over the last few

The Government has resurrected the Superannuation Guarantee (SG) amnesty giving employers that have fallen behind with their SG obligations the ability to “self-correct.” This time, however, the incentive of the amnesty is strengthened by harsh penalties for those that fail to take action. The super guarantee amnesty is a one-off opportunity

In light of the current COVID-19 outbreak, we have seen Fair Work Australia implement 20 years’ worth of changes in a few short weeks which has resulted in large scale changes to the employment landscape. We have summarised the details for you below. Changes to Fair Work Act With the introduction

The start of the new decade has been dramatically affected by the rise of COVID-19 and the ensuing economic fallout. In March, following social distancing requirements from the Australian government, AH Jackson & Co took steps to set up staff to work remotely. As a result, we at AH Jackson &

The JobKeeper payment has been established to assist businesses impacted by the COVID-19 as a subsidy from the Government to continue paying their employees. Eligible employers will be able to claim a fortnightly payment of $1,500 per eligible employee from 30 March 2020, for a period of 6 months. Eligibility for

The rise of cryptocurrencies have grown in popularity with Bitcoin trading just under US$7,400 - up from just US$1,000 at the beginning of 2017 which is why a number of rules and regulations have been introduced. Cryptocurrencies have been with us for a while now and there are a number of

Legislation that passed through Parliament last month prevents taxpayers from claiming a deduction for expenses incurred for holding vacant land. The amendments are not only retrospective but go beyond purely vacant land. Previously, if you bought vacant land with the intent to build a rental property on it, you may have

Last financial year, more than 8.8 million taxpayers claimed $21.98 billion in deductions for work-related expenses. It’s an area under intense review by the ATO. AH Jackson & Co partner Emmanuel Georga said tax deductions must take into consideration the direct connection to your income, the private portion of the expense

In the 2017-18 financial year, more than 2.2 million Australians claimed more than $47 billion in deductions and the ATO believes that is too much – one in ten is estimated to contain errors. AH Jackson & Co partner Ben Odgers said what you can claim for your rental property has

A lot of people do some sort of work from home. It might be simply answering emails on the couch or working from home a few days a week. If you do work from home, you might be wondering what you can claim come tax time. AH Jackson & Co partner

Significant changes to the way small businesses report salary and wages, taxation and superannuation contributions to the Australian Tax Office are set to take effect on 1 July 2019. AH Jackson & Co partner Ben Odgers said the new single touch payroll system allowed for direct reporting of information to the

As partners, we have had many clients let down by poor customer service from banks, either by prolonging the application process or not reducing loans when interest rates have come down considerably. AHJ Lending Services was founded to provide a service that would eliminate the frustration, confusion and wasted time that comes with obtaining

What do a pastry chef, a construction project manager and a creative design director have in common? As small-business owners, each followed their passion and interest so they could spend their careers doing what they love (which does not include hours of accounting and bookkeeping). Traditionally, businesses install an accounting program locally on their

Recent changes to the superannuation monitoring and reporting regime means that self-managed superannuation funds (SMSF) will increasingly be required to provide real time and up-to-date data throughout the year as opposed to the more traditional annual reporting. AH Jackson and Co partner, Elias (Leo) Manicaros said the complex changes which came into effect on

When obtaining finance, the benefits of seeking out a qualified mortgage broker over an everyday potential borrower can be hefty. AHJ Lending Services director, Grant Bielenberg said there are a large number of people that go directly to their existing bank when deciding to apply for a home loan. “However, if this is your