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Closing a Small Business
Unfortunately, some businesses may need to close their doors – either temporarily or permanently – due to the COVID-19 pandemic. The ATO has called on such businesses that are closing temporarily to “do their best to keep up with tax and superannuation obligations”. If you are in this situation and…
The Benefits of E-Invoicing
The ATO has been promoting the benefits of e-invoicing – by simplifying and automating the exchange and processing of invoices. According to the ATO, the benefits for business include cost savings, fewer errors and reduced payment times. In addition: a business will save time by not having to re-key or…
Calculating Aggregated Turnover
Whether a business is entitled to certain tax concessions – e.g. the simplified depreciation rules and the small business CGT concessions – depends on the business’s “aggregated turnover”. Aggregated turnover is generally the business’s annual turnover plus the annual turnovers of affiliates of the entity and entities connected with the…
Small Business CGT Concessions
The small business CGT concessions (aggregated turnover under $2 million – not $10 million) are important, but very complex. Disputes with the ATO about the concessions are not uncommon. In good news for small business, the Full Federal Court recently found that as the small business CGT concessions are intended…
Working Out If You Have To Pay Superannuation For Your Workers
It is not always easy to work out when you have to make contributions under the superannuation guarantee (SG) scheme. Generally, if you pay an employee $450 or more (before tax) in a calendar month, you have to make SG contributions on top of their wages. This includes a family…
Closely Held Trusts
A “closely held trust” is a discretionary trust or a trust where 20 or fewer individuals have between them, directly or indirectly, and for their own benefit, fixed entitlements to 75% or more of the income or capital of the trust. Family trusts and trusts that are interposed entities are…
Need An STP Exemption?
The ATO will consider granting an exemption for reporting through STP for: a financial year; and/or a particular employee or group of employees. Small employers with 19 or fewer employees may be exempt from STP reporting if they meet any of the following criteria: no or low digital capability; no…
Varying Your PAYG Instalments
You can vary your PAYG instalments throughout the year if you think you will pay too much tax, compared with your estimated tax for the year. To assist businesses affected by the COVID-19 pandemic, the ATO won't apply penalties or interest for the 2020–21 income year for excessive variations when…
Restructuring a Small Business
If you are a small business owner and you restructure the business, capital gains or losses that would arise from transferring the business assets to another entity are deferred where there is no change in the ultimate economic ownership of the asset. This is called the small business restructure roll-over.…
JobKeeper Update
New Alternative Decline in Turnover Test To claim JobKeeper, you must have suffered a significant decline in turnover. Generally, this is measured by comparing a relevant quarter in 2020 (called the turnover test period) with the equivalent quarter in 2019. However, there are alternative decline in turnover tests that…
