Authoritative and technically accurate information and guidance on all areas of tax

Interest deductibility after income-producing activity ceases

  An issue that sometimes arises for business owners is whether interest expenses incurred on borrowed funds used in a business remain deductible after the business’s income earning activities have ceased. As a general rule, in order for interest expenses to be deductible in the relevant income year, a taxpayer is generally required to demonstrate

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R&D tax incentive changes: Better focus, or misguided?

by Simon Dorevitch Proposed changes to the research and development (R&D) tax incentive are the most significant to the incentive since it replaced the R&D tax concession in 2011. The bill containing these changes is named the Treasury Laws Amendment (Making Sure Multinationals Pay Their Fair Share of Tax in Australia and Other Measures) Bill

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The shake up that’s coming to Division 7A

  Discussion about reforms to Division 7A has been bouncing back and forth between the tax practitioner community and Treasury/ATO for many years — since the end of 2012 in fact. And while it’s been tempting to conclude that the powers-that-be perhaps don’t really want change, and were stonewalling us all along, a definite crack

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Personal services income: A refresher

  The introduction of the personal services income (PSI) regime in 2000 changed the way income from personal effort earned by contractors, consultants, and individual practitioners such as doctors is dealt with. There are a number of significant tax consequences for clients caught by these rules. Introduction Personal Services Income (PSI) is income that is

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Clarity at last on company tax rates

  After much delay, Treasury Laws Amendment (Enterprise Tax Plan Base Rate Entitles) Bill 2017 was finally passed by the Senate into law on 23 August 2018. This provides certainty for corporate clients as we head into the lodgment and compliance season. The new legislation introduces a new “bright line test” to determine eligibility for

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