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Lifetime Director ID to thwart phoenixing

From mid 2021, all current and new company directors must apply for a unique lifetime identification number under a rewrite of Australia’s business registers. This follows last year's new anti-phoenixing laws passed by Parliament.. ASIC does not currently verify the identity of directors so the process of acquiring this ID, much like applying for a tax file number, will prevent the registration of officeholders, as was the view of former ASIC Commissioner John Price at a 2020 Parliamentary inq...

May 4, 2021

CGT and Granny Flats

Treasury is introducing a CGT exemption to encourage people to formalise granny flat contracts to protect the rights of the elderly. Link: To avoid CGT on these granny flat arrangements, the Board of Tax indicated that people would not formalise granny flat arrangements, and this could lead to elderly paying for the granny flat and then getting kicked out of the flat. Historically, granny flat arrangements have tended to be purely private and domestic in nature, based on concepts of tr...

April 26, 2021

A guide for company directors

Being a director is hard work. “Only be a company director if you are willing to put in the effort.”, ASIC states on its website.  Directors who fail to keep themselves adequately informed about the company’s affairs risk facing legal liability if the company gets into trouble.  A director must keep fully up-to-date on what their company is doing. To achieve this, ASIC recommends that directors (among other things): find out for themselves how any proposed action will affect the...

April 23, 2021

New Director Identification Number regime could be just around the corner

The Director Identification Number (DIN) regime may have been lost in many business owners’ peripheral vision, or even dropped off the radar completely, as it has been on the horizon for some time. But it is worth keeping in mind the ramifications of the measure, as the details could become important sooner than many realise, even before this year is out. The legislation putting the regime in place has already been passed in June last year, but the scheme is not yet in operation. This is initi...

March 11, 2021

Taken goods for private use? Here are the latest values

Taking stock home is common practice that can occur in businesses such as butchers, bakers, corner stores, cafes and more. The Tax Office regularly issues guidance for business owners on the value it expects will be allocated to goods taken from trading stock for private use. The table below shows these values for the 2019-20 income year....

March 2, 2021

Make sure you update your ABN: It can be vital

Government agencies regularly access data contained in the ABN registration, and where this is not up-to-date the taxpayer may be missing out on stimulus measures, grants, and other government support. This became painfully evident during the 2019-20 bushfires, and is now re-surfacing during COVID-19 when it was found that a concerning amount of ABN data was out-of-date. The ATO and the Australian Business Register are making efforts to remind businesses and relevant taxpayers that it is essen...

February 25, 2021

JobMaker hiring credit: What you need to know

The JobMaker Hiring Credit scheme was passed into law in mid-November 2020. JobMaker was part of the 2020-21 Federal Budget, and will operate until 6 October 2021. It is designed to improve the prospects of young individuals getting employment, by incentivising employers to hire them, following the devastating impact of COVID-19 on the labour market. The scheme will be backdated to commence on 7 October 2020 and provide eligible employers with the following payments for up to 12 months for new j...

February 3, 2021

Single touch payroll: When your reporting can cease

A business may no longer be required to lodge single touch payroll (STP) reports for a number of reasons. These are if your business no longer has employees, has ceased trading, has changed structure, is not paying employees for the rest of the year, or has paused due to COVID-19. Depending on your business’s situation and circumstances, what you need to do may be different. No longer employing staff If you cease employing staff and continue trading without employees, you must submit a finalis...

February 3, 2021

Getting a tax valuation from the ATO

Not every individual situation fits neatly with the tax laws as they stand — sometimes a taxable item’s known value (and therefore the tax that applies to it) may need to be determined. Many tax laws require the taxpayer to determine the market value of something. Common instances include: for individuals – transfers of real estate or shares between related parties, such as family membersfor employees – non-cash benefit transactions, such as gifts or other benefits such as car parkin...

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