Latest black economy targets

Cleaners, couriers latest black economy targets

Detail of Government's crackdown on cleaning and courier companies revealed.

clean sweep broomFrom 1 July 2018, the taxable payments reporting system will extend beyond the building industry to cleaning and courier businesses. This means that these businesses will need to report payments they make to contractors (individual and total for the year) to the ATO. By 'payment' the ATO means any form of consideration including non-cash benefits and constructive payments.

The building industry has had this form of "enhanced reporting" since 2012-13. The result was an additional $2.3 billion in income tax and GST liabilities collected through voluntary reporting in the first year alone.

What is a cleaning and courier service?
The terms 'cleaning service' and 'courier service' take their ordinary meaning. Read more…

Factors to consider before buying your first home

Borrowers Guide to Buying Your First Home

Preparation and factors to consider before deciding to buy:

saving for a homeSAVINGS
What savings do you currently have? 

Most lenders will want to see that you are able to save consistently and will usually require your last six months savings history prior to considering you for a loan. 

If you are able to afford the repayments some lenders will loan you up to 95% of the property purchase price. This may even allow you to add mortgage insurance costs to the loan as well-meaning you may be able to borrow up to 97% of the property value. However even in this situation the lender will require you to have at least 5% of the property value in genuine savings as well as enough money available to cover the other costs of purchasing a property.  Read more…

Directors Roles

Directors' Role in a Small / Medium Business

Board of Directors with Mentor

directorSome Board of Directors find it beneficial to appoint a mentor to assist in corporate governance training for the directors.  The mentor's role is to advise the directors on corporate governance processes.  The mentor is only present to give advice and should not participate in a decision made by the Board of Directors.

There are some government grant programs which may contribute to the cost of companies appointing a mentor.  Read more…

Tax Office Rulings

What Makes a Genuine Business?

Tax Office Rulings

checklistA common question that arises during the course of each year is someone talking about the fact that they are carrying on a genuine business and do they have to pay tax on their earnings or can they claim tax deductions on a host of various items. 

This topic can get pretty finicky, but the usual starting point for discussions to determine if someone is carrying on a business is set out in "Tax Ruling 97/11 Am I Carrying on a Business of Primary Production".

Although the title talks about primary production, this ruling is the key ruling often used by the Australian Taxation Office and sets out the indicators that the courts have stated are relevant:

  • Whether the activity has a "significant commercial purpose or character". 
  • Whether the taxpayer has more than "just an intention to engage in business".  Read more…

Crowd-Sourced Funding Update

Crowd-Sourced Funding Update

ASIC has announced that it is now processing applications from businesses with Australian Financial Services Licenses that have applied to be a Crowd-Sourced Funding Intermediary.

checklistASIC has indicated that the first of the intermediary appointments should be finalised by around the end of October 2017.

If a proprietary limited company wishes to convert to an unlisted public company, so as to take advantage of the Crowd-Sourced Funding legislation, the company will need to lodge a Form 206 "Application for Change of Company Type".

ASIC is required under the Corporations Act to publish a notice in the ASIC Gazette stating it intends to alter the details of the company registration.

One month after the notice is published, the change of company type will take place.  Read more…