Category Archives: Taxation Strategy

As the director of a company, you might consider a director’s loan (also called a shareholder loan) when you need money urgently but are unable to get a loan from the bank. You may consider taking a dividend from your company but this may not be possible if your company is not profitable. You might then consider a director’s loan which is money taken out from your company’s accounts that are not used for salary, dividends, or expenses. With this comes risks and legal issues which you need to be aware of.

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In this article, we’re going to be taking a look at the difference between cash and accrual accounting. We’ll cover the pros and cons of the two methods and by the end of this article, you should have a clearer view of whether cash or accrual accounting best suits the needs of your business. Continue reading →

Tax planning is a legitimate way to try to reduce the amount of tax you pay and increase your tax deductions by making use of investments, tax exemptions, rebates and benefits as much as possible.

Tax planning is not the same as tax avoidance. Tax avoidance involves the deliberate exploitation of the tax and superannuation systems and is illegal. Tax avoidance typically involves not declaring your full taxable income, incorrectly classifying revenue as capital, illegally increasing deductions, etc. Continue reading →

Cryptocurrency is virtual or digital money that takes the form of tokens or “coins.” Transactions are generally carried out virtually independently of a central bank, central authority or government. Cryptocurrencies such as Bitcoin can be used to purchase goods in the real world.

As cryptocurrencies are becoming more mainstream, governments around the world are now monitoring the movement of this virtual money across borders and are imposing regulations. Continue reading →

Unfortunately, due to Covid-19, many businesses have struggled to stay afloat. Business owners have struggled to pay staff, suppliers, and general running costs such as rent and electricity. One area which is not focussed on as often is tax debt. Owing money to the Australian Tax Office (ATO) can happen at any time, but it has become much more prevalent due to the pandemic. What happens if you find you owe the ATO money? Fortunately, there are some options for you. Continue reading →

There are numerous types of business structures and it can be difficult to figure out which one to choose when you are starting your business or expanding it. Your choice will depend on the size, type, and needs of your business and how you want to run it. Continue reading →

As a business person, you understand the value of hard work and dedication. Your employees are the lifeblood of your business, whether it’s a small enterprise or a large corporation. Without those dedicated people, you would have serious issues filling orders and carrying out day-to-day tasks. That’s why it’s important to keep them well paid and incentivise the workplace. How can you incentivise? Through fringe benefits for your employees!

While giving your employees benefits throughout the year is a wonderful gesture, they must always be accounted for in the end. Specifically, there will be a tax involved with these benefits that you may not know about. Your accountants will need to know about these fringe benefits as they are given to the employees. If you are a new business owner, here is an easy guide to help you navigate the taxation of fringe benefits. Continue reading →

These are exciting times. You are just about ready to open your new business. You’ve been busy setting up all of the systems that you need for your business to work – including the bookkeeping. You know that proper bookkeeping will give you the best perspective on how your business is performing. It’s not glamorous, but it’s very important. It can also be very confusing for first-time business owners.

This is where many owners succumb to pitfalls while setting up their business. Because there are many forms to file and BAS regulations to follow, things can sometimes be missed. One such thing is GST registration. It’s surprising how many Gold Coast start-ups fail to register for GST. If you are just starting your business, it could be very beneficial to register for GST. Let’s look at a few reasons why that is. Continue reading →

Debts of any sort are a burden. Whether it be personal, business, school, or in the form of a loan, debt can quickly go from manageable to out of control and stressful. For your business, getting behind on taxes, lodgements and debt repayment is probably not written into your business plan. In order to avoid letting debts get out of control, it’s important to understand the deadlines for lodgement obligations. It’s also important to have a plan in place in case you do get behind in your debts and lodgements. Here is some information to help you wade through the murky waters of the Australian Tax Office. Continue reading →

If you’re one of the business owners who operate in the building and construction industry, and you pay contractors for providing building and construction services, you need to make some preparation for the Taxable Payments Annual Report (TPAR) which is due 28^th of August each year.

The Taxable payments annual report summarizes every payment you have made to each contractor for the previous year. Through TPAR, compliance of contractors is being observed. Data matching is done to detect contractors who have failed to lodge tax returns or failed to disclose their income.

There’s no reason to dread the TPAR. We’re here to help you prepare and lodge your taxable payments annual report, and save you from some stress and confusion. Continue reading →