Tax impacts of subdividing the family home
If you are dealing with large amounts of money, taxation will always be on your radar. In Perth, the subdivision of the family home is a large financial transaction, so the tax impact of subdividing the family home will always be front of mind for a successful business-focused family and their tax advisors. Does income […]
Tax consolidation: 7 benefits and downsides for Perth SME’s
The tax consolidation rules in Part 3-90 of the Income Tax Assessment Act 1997 offer Perth SME’s and their business accountants a range of benefits. This is especially so for private groups, family businesses, and small to medium enterprises (SMEs). The article will address the following topics: A. Pro’s and Con’s of Forming a Consolidated […]
6 Options to Close an Australian Company
Closing a company in Australia is a decision that requires thorough planning and strict compliance with legal requirements. Whether driven by part of a succession of the family business, financial difficulties, taxation, strategic realignments, or other factors, understanding the available options that a Perth business accountant can employ will make a more streamlined process for […]
Managing Australian Death Taxes: Essential Insights for Estate Planning
A common misconception is that Australia has no inheritance tax. While that is technically true, it is not the case in practice. The death of a loved one almost always raises a raft of tax issues and triggers events that have a tax implication or trigger a tax event. As Perth tax accountants, tax planning […]
Loan Funded Share Plans for Succession
Tax law structuring options for employee share schemes are generally not attractive to medium-sized businesses and their accounting advisers in Perth. The ATO-endorsed employee share scheme incentives are good on scale, but the tax-free discount of $30k ($1,000 for others) for start-ups is ordinarily too small compared to the accounting advice and valuations needed for […]
Everything you Need on the 50% Capital Gains Tax Discount
When it comes to capital gains tax, the 50% CGT tax discount is a powerful tool. The knowledge that you can potentially enjoy half of your profits tax-free is common among Perth tax accountants and business families, but it’s also a key advantage that can significantly impact your financial decisions and how you go about […]
Tax Restructuring Away from a Trust
Traditionally, many family businesses in Perth structured their business through a trust, as tax reasons made trust the “go-to” tax vehicle. However, as tax law has changed and the tax advice given by Perth tax accountants evolves, operating a business through a trust is becoming increasingly difficult. How a Trust is Not Great for Operating […]
What is Rentvesting?
Rentvesting is a tax strategy many Perth tax accountants use to eliminate private debt on the family home while maintaining the main residence exemption for capital gains tax. While the tax advice on the strategy is complex, it is worthwhile to understand the full range of tax implications and financial implications many Perth tax accountants […]
What is a Permanent Establishments for Australian Taxation?
When conducting international business operations in Australia, it is essential to understand the concept of a Permanent Establishment (PE) under Australian tax law. A PE is a critical element that can have far-reaching consequences on the international tax impact of your operations in Australia. Why is a permanent establishment critical? As international tax accountants in […]
Understanding Capital Gains and Taxes
You generate a taxable capital gain when you sell an asset, like property, for more than you paid. Conversely, you incur a capital tax loss if you sell the asset for less than your original investment. These gains or losses need to be reported on your income tax return, and you’ll usually owe taxes on […]