News & Tax Insights

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

Blog Post
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?

Blog Post
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.

Should I set up my new business here in Australia or go offshore?

Blog Post
There are pros and cons in all the business areas in deciding whether to set up in Australia or taking your business offshore. It’s necessary to consider the small but sophisticated domestic market, close vicinity to large Asian markets and early adoption of technology. Aspects of supply are expensive, but talented people want to live in Australia because it’s a great lifestyle. Taxes are relatively high but there is an absence of estate and gift taxes.

Government tries to fix the glitch in company tax cut. Does it make things worse? Yes!

Blog Post
In December 2017, we published this article and video: government-tries-fix-glitch-company-tax-cut-make-things-worse Those publications were in response to a Government Bill to change the way companies could access the lower corporate tax rate.  That bill has now become law and has made the determination of the tax position for a company much more complicated. With the “bright line” test in this new law, companies may fluctuate from being a lower tax “base rate entity” one year and subject to the full 30% corporate tax rate the next year and then, subsequently revert.  A change would also trigger for the maximum franking for dividends from…

Our New Website is Now Live!

Blog Post
With over 50 years of experience helping businesses solve complex problems and seizing opportunities, we felt that an improved online presence is the best way for Lovetts to share our experience, knowledge and information with you. We continue to thrive on solving your problems, whether they’re complex or unusual in nature and love going the extra mile to get you the result you want and need. The new-look website will be updated regularly with blog articles and the new format is now mobile-friendly! Watch our “Who We Are” video on the website and keep an eye on your email Inbox…

Who we are

Blog Post
The Lovetts team are focused on getting the best outcomes for our clients. For over 50 years, Lovetts has been helping businesses solve complex problems and take advantage of lucrative opportunities. Our team also works with individuals who require personal accounting advice to manage their portfolio of wealth affairs. By offering specialised and tailored services, we can solve almost all financial situations. Our portfolio of work spans many industries including; mining services, tourism, property development, dental, rural and complex international tax business matters. We have a dedicated team of specialists in our Brisbane office who are ready to take on…

Foreign owners of agricultural land: Register now

Blog Post
Foreign agricultural land owners must notify the Tax Office if they hold agricultural land, acquire new agricultural land or dispose of agricultural land.  The new registration requirement came into force from July 2015 and all existing holdings must be registered by 29 February 2016. The requirement applies to all “foreign persons” and includes an Australian citizen living permanently overseas that may be considered a foreign person as they are not ordinarily residing in Australia.  Foreign persons also includes foreign companies and trustees. Where there are multiple owners of an agricultural land holding, each foreign owner has an obligation to register. …

Employee Share Schemes (ESS)

Blog Post
These highly valuable benefits fell into disfavour following amendments to the taxing provisions introduced by the previous Government. New rules have been legislated with effect from 1 July 2015.  Employees, who receive options and other ESS interests as remuneration from that date, will be taxed under the new rules subject to some transitional provisions. Employees, who receive options, will generally be taxed when they exercise those options.  Previously, they were taxed on the granting of the options. If an employee chooses to let the option lapse, he or she will be able to claim a refund of any tax already…

Extra pay day in the 2015-16 financial year?

Blog Post
Where you are paid weekly on a Wednesday or Thursday, you will actually have 53 pay days during the financial year ending 30 June 2016 and similarly, if you are paid fortnightly and your pay day was either Wednesday 1 July 2015 or Thursday 2 July 2015, you will have 27 pay days for this financial year.  This might cause an expected tax refund to become an amount payable! The extra pay day happens for two reasons being that the 2016 year is a leap year (29 days in February) and also when you divide the number of days in…

Transfer Pricing rules getting serious attention

Blog Post
Do you have dealings with a related overseas entity?  If so, you may have been caught up with the dreaded complexity of the Transfer Pricing (TP) rules.  This is receiving increased attention by the Tax Office and by a Senate Committee currently examining the question of whether overseas companies are paying their fair share of tax on income earned in Australia. These rules are not limited to the ‘Apples’ and ‘Googles’ of this world but, due to increasing trade globalisation, they increasingly apply to small and medium enterprises.  The OECD term for entities which may be caught up in this…

CONSULTING ACCOUNTANTS . TAXATION SPECIALISTS . BUSINESS IMPROVEMENT