News & Tax Insights

Tax-free government money to combat COVID-19?

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State, territory, and the Commonwealth governments are now in the process of providing tax-free grants to businesses to support them during lockdowns imposed to protect public health from the pandemic.  Usually, government grants to support the ongoing operations of a business are assessable income.  With the COVID-19 pandemic, Victoria, NSW, the ACT, to a lesser extent, Queensland and the other locations have all been subject to community and business lockdowns that have decimated business revenues and caused significant losses.   Late last year, Victoria agreed with the Commonwealth to provide tax-free business grants during its extended lockdown.  Parliament amended the 97 Tax Act to make eligible state and territory grants non-assessable, non-exempt income for tax purposes. With the long-running, current lockdown in NSW, the use of those rules has expanded to NSW and potentially, in the future, to the other states and territories.  Also, legislation recently passed to…

Australian Research & Development Tax Incentives

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The Australian Government offers some great incentives to innovative technology companies who undertake R&D as part of their business or growth strategy. In fact these companies could get up to 43.5% of R&D expenditure back from the government if they meet certain requirements. This video touches on some important considerations and processes that should be followed correctly in order to access available funds. For more information, watch the full video or give us a call on +61 7 3012 9580.

Merry Christmas!

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Our office will close at 5pm on Friday 20th December, 2019 and re-open at 8:30am on Monday the 13th January, 2020. The Lovetts team would like to wish you all a very Merry Christmas and a safe and happy holiday. We look forward to working with you in 2020!

Real-time Tax Reporting & Penalties!

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Governments and tax offices are stepping up the use of information technology to provide much more real-time reporting and tax penalties. It's a major trend that is likely to accelerate. This video explores three examples: Single Touch Payroll, imposition of Director Penalty Notices for GST and the Common Reporting System. Check out the video article for more information.

Cash payments to be outlawed in 2020.

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Big cash payments will be outlawed from early 2020 with a Government bill making cash payments of $10,000 or more a criminal offence. Watch the video for the full details or give us a call on +61 7 3012 9580.

Taxable payments reporting – expanded

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New rules apply for the reporting of payments to suppliers by couriers and cleaners for the 2019 financial year and other industries such as information technology, security, surveillance and investigation for the 2020 financial year. Courier and cleaning companies will need to report in August 2019 for the first time. Information technology, security, surveillance and investigation companies will need to put in place systems now so that they are able to report in August 2020 for the first time.

QLD Absentee land tax

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Governments have been cracking down with increased taxation on non-residents that own land here in Australia. That’s happening at a Commonwealth and State level. From July 2018, the Queensland Government implemented Absentee land tax rules. Usually, somebody’s home is exempt for land tax purposes. If you are undertaking expatriate duties overseas, it’s important with these relatively new Absentee land tax rules to check your status against the criteria to make sure you don’t get a surprise land tax bill. The recent 2019 Queensland State Budget contained both “carrots” and “sticks” here with a carveout for Australian citizens and permanent residents…

Payroll tax update for Queensland

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This is good news for small and particularly regional employers, and includes the following changes: • Reduction in tax payable for small businesses by increasing the exemption threshold to $1.3m • A 1% rate reduction for regional employers • A temporary rebate of up to $20,000 for businesses taking on new employees • Continuing the 50% payroll tax rebate on the wages of apprentices and trainees until 30 June 2021 and • Increasing the payroll tax for employers with taxable wages above $6.5m. The Government is delivering a package of targeted payroll tax measures to drive employment in Queensland businesses,…

Can you claim a tax deduction for cleaning up an environmental mess?

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Broadly yes, provided the expenditure is for the sole or dominant purpose of environmental protection activities that are sufficiently linked to your earning activities. You can claim an immediate tax deduction for the costs of environmental protection activities which are undertaken by you, or on your behalf, to: prevent, fight or remedy pollution or treat, clean up, remove or store waste where that pollution or waste results from or is likely to result from: your earning activity the site of your earning activity, or a site where a business was carried on and you acquired and continue to carry on…

Australians setting up business in the USA – does it make sense?

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The USA is a huge wealthy market with high demand for innovative products and services and Australia has largely been unaffected by the imposing of tariffs on other US trading partners. There are sophisticated supply and logistics capabilities and the world's best technology, however, America's litigious reputation and restrictive immigration can be a downside from a business perspective. There are complex federal, state, county and city taxes and estate and gift taxes, with those negatives somewhat balanced by a low headline corporate tax rates and the flexibility of check the box elections. There are unusual arrangements for corporate residency and complex foreign…

Should I set my business up in Hong Kong?

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The “freest” economy in the world even though it is under the overall control of mainland China! Hong Kong has a low corporate tax regime, simple taxation system and a highly entrepreneurial culture and heritage. At seven million people, the domestic market is small, but it is a gateway to mainland China with its huge population. There is no obligation to have a resident director for a Hong Kong small company, but a resident company secretary and audit requirements are mandatory. Australian’s should not forget that they need to navigate the Australian company residency and control foreign company rules. There…

Election promise on reporting thresholds for large proprietary companies

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Earlier this year, we filmed this video about some key tax and regulatory, election promises. The first two topics have been superseded but from 2:00 we explain Government moves to change the thresholds for being classified as a large proprietary company. This change has now been put into effect  through the Corporations Regulations for the year beginning July 2019. It’s a good change that will reduce reporting and auditing costs and competitive disadvantages for our large private companies, by not exposing the accounts of as many companies to the scrutiny of competitors or others.

What are the company tax rates over the next few years?

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The prevailing company tax rate will depend on whether the company is a base rate entity. In two years’, there will be a 5% differential. From 2018/19, a company will be a base rate entity and use the Low Rate if its aggregated turnover is less than $50m and 80% or a less of its assessable income is base rate passive income.  Base rate passive income includes: Dividends (including non-share dividends) Franking credits Interest (including gains on qualifying securities) Royalties Rent Net capital gains, and Distributions of base rate passive income from trusts or partnerships. Aggregated turnover means the company’s…

Setting up business in Singapore?

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Singapore is a close neighbour to Australia and has many benefits for the establishment of a new business. Nonetheless, it is a foreign jurisdiction and complexities arise within the Australian tax system that need to be thought through and dealt with prior to the establishment of a new business. This video covers the Singapore’s major pros and cons across the business spectrum.

CONSULTING ACCOUNTANTS . TAXATION SPECIALISTS . BUSINESS IMPROVEMENT