News & Tax Insights

Tax-free government money to combat COVID-19?

Blog Post
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…

Should I set my business up in Hong Kong?

Blog Post
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…