News & Tax Insights

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?

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?

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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!

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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!

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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…

CONSULTING ACCOUNTANTS . TAXATION SPECIALISTS . BUSINESS IMPROVEMENT