Discretionary trusts and corporate beneficiaries
Tax treatment of deemed dividends When a trustee of a trust makes a decision to create an entitlement to income of the trust in favour of a corporate beneficiary (i.e., a privately held company), certain steps need to be taken to ensure that if the entitlement to the distribution remains unpaid (that is, no cash […]
Decision in disclaiming interest in trust distribution
High Court rejects attempt to disclaim interest in trust distribution The High Court has rejected a taxpayer’s attempt to disclaim an interest in trust income that arose as a result of a default beneficiary clause being triggered. This decision is significant, because it backs the proposition that disclaimers of trust income cannot be effective if […]
2022/23 Federal Budget
Federal Budget Highlights In this summary: Personal income tax changes (please scroll down) Changes affecting business taxpayers Other Budget announcements 1. Personal income tax changes 1.1 Increase to low and middle income tax offset (‘LMITO’) The Government has announced a once-off $420 ‘cost of living tax offset’ for the 2022 income year, which will be […]
Director ID regime
Preparing for the new Director ID regime As part of its Digital Business Plan, the Government announced the full implementation of the ‘Modernising Business Registers’ program. This included recently enacted legislation introducing the new director identification number (‘director ID’) regime. The director ID is a unique identifier that a director will need to apply for […]
Export Market Development Grant
From 1 July 2021, the Export Market Development Grant underwent some major changes This grant is available to any Australian exporter operating in any type of business entity – Sole Traders, Partnerships, Trusts or Companies. Over 4,000 Australian businesses participate in this grant program each year and may be particularly relevant for business exporters or […]
Company tax changes
Changes to company tax rates There are changes to the company tax rates. The full company tax rate is 30% and the lower company tax rate is 27.5%. The ATO has outlined when to apply the lower rate and how to work out franking credits. Company tax rates apply to: companies corporate unit trusts public […]
Family trust elections
Review your family trust elections to get your tax right A family trust for tax purposes is one whose trustee has made a valid family trust election (FTE). The FTE entitles the trust to access certain concessions, however family trust distribution tax (FTDT) is imposed when distributions are made outside the family group. The ATO’s […]
Tax treatment of JobKeeper Payments
Broadly, JobKeeper Payments received by an employer are assessable income to the employer Likewise, the payments an employer subsequently makes to an employee that are funded (in whole or in part by the JobKeeper Payment) are generally allowable deductions to the employer. The ATO has recently issued some guidance for employers in receipt of JobKeeper […]
Testamentary trusts and minors
Treasury Laws Amendment (2019 Measures No 3) Bill 2019 Treasury Laws Amendment (2019 Measures No 3) Bill 2019 has passed both Houses of Parliament and is now law. Testamentary trusts and minors This legislation contains amendments to ensure the tax concessions available to minors in relation to income from a testamentary trust only apply in […]
Business structure set up
Setting up a business structure If you are starting a small business you will need to work out which type of business structure to use. We explain the benefits and disadvantages of different types of business structures. Sole trader A sole trader is the simplest business structure and it is inexpensive to set up because […]
