Subdivision of Land
By Alisa Sainoski It is becoming increasingly popular for people who own a large block of land to subdivide and either sell the subdivided land or build a house on each of the subdivided blocks and then sell one or both houses. The attraction of doing so can be the often large profits which can […]
Rentals: Are They Worth the Hype and Effort?
By Alisa Sainoski Rental properties. Long considered a wonderful tax-saving plan and contribution towards retirement. However, in times of falling property markets, increasing rental vacancy rates and tighter restrictions on borrowing, are they really worth the effort? In the first instance, when deciding whether to purchase or make an existing home into an income-generating asset, […]
Raising Capital for Growth
Last month we had a look at structuring a business for growth, this month we’re going to take a quick look at how a business goes about raising funds to help facilitate that growth. Depending on how quickly a business is growing, capital from within the business may suffice in facilitating growth. More often however, […]
Business Valuation
You had an extra child…and you didn’t realise it…or perhaps you did. Your business, it’s been the joy and pain of your life for a number of years. You guided, fought for and watched it grow. And now the next chapter has arrived and you are looking to see how much it is worth. You […]
Personal Services Income
By Alisa Sainoski Personal Services Income (‘PSI’) is income which is mainly a reward for a person’s personal efforts or skills. The fact the income is payable under a contract does not stop the income being mainly a reward for personal efforts or skills. Income is classified as PSI when more than 50% of the […]
Phoenix Activity
I am extremely proud to admit we have never had a situation within the practice whereby phoenix activity has been considered by a client. Unfortunately though, in the broader community, and certain industries are more susceptible to it than others, it is certainly prevalent. A report issued by the Phoenix Task Force estimated the direct […]
Expansion
There comes a time in every business’ life where it it goes through a period of growth. Whether it be at the start of the business lifecycle, the middle or perhaps towards the “plateau”. Generally speaking, a cash surplus is required to help provide for the growth and expansion of the business. The problem especially […]
Contractors v Employees
By Alisa Sainoski What is the shifting line between a “contractor” and an “employee”? With the advancement in the digital economy the question is becoming trickier to answer. As more companies use consultants, contractors or freelancers on a project basis rather than to hire full time staff, the line seems to shift. The simple distinction […]
Tax Consolidation and Small Business
Is Tax Consolidation for YOU? Tax consolidation. It has historically been viewed as a tax structuring mechanism really only applying to bigger businesses, but this view may be changing with the reduction in income tax rates for companies with a turnover of $50 million or less. What is tax consolidation? Broadly, it involves grouping […]
Tax Time 2019
By Alisa Sainoski Income Tax Threshold In the 2018 Federal Budget the coalition government announced the Personal Income Tax Plan, a seven-year plan of income tax cuts. The plan became law on 21 June 2018. The resident tax rates have been updated for the 2018/2019 income tax year. Tax Rates: https://www.ato.gov.au/Rates/Individual-income-tax-rates/ 5,000km claim for motor […]