ASIC’s annual insolvency data shows corporate business failure is up 39% compared to last financial year. The industries with the highest representation were construction, accommodation, and food services at the top of the list. Restructuring appointments grew by over 200% in 2023-24. Small business restructuring allows eligible companies – those whose liabilities do not exceed …
As 2024-25 approaches, questions arise about whether the year will bring continued volatility or a return to stability. Key changes include the introduction of personal income tax cuts and an increase in the superannuation guarantee rate. Employers must update payroll systems to reflect these changes and remain vigilant about super guarantee obligations. Wage growth shows signs of evening out, while interest rates remain a tool for controlling inflation. Business confidence has dipped, but strong labour market conditions persist. Migration trends highlight the ongoing impact on Australia’s economy, with a focus on skilled migration. Businesses must strategically manage cash flow, costs, and pricing to thrive in this evolving landscape.
Legislation raising the instant asset write-off threshold from $1,000 to $20,000 for the 2024 income year has passed Parliament. Small businesses can now write off the full cost of depreciable assets under $20,000 purchased between 1 July 2023 and 30 June 2024 in the year of purchase, providing a significant cash flow advantage. Assets must be used or installed by the end of June 2024 to qualify. The threshold applies per asset, allowing multiple deductions. A proposal to extend this threshold increase to 30 June 2025 is under consideration.
From 1 July 2023, sharing economy platforms for ride-sourcing, taxi travel, and short-term accommodation must report transactions to the ATO. This marks the first year the ATO will match income tax returns with this data. Other platforms will start reporting from 1 July 2024. Failing to declare income from these sources could trigger a compliance inquiry from the ATO. It’s crucial to accurately report all earnings from sharing economy activities to avoid potential penalties.
The main residence exemption can exempt your family home from capital gains tax (CGT) upon sale, but the rules are complex. Eligibility requires the home to be your main residence, with specific conditions around living arrangements, use of the property, and tax residency status. Partial exemptions may apply if the home was used to generate income. Special rules cover scenarios such as moving out, foreign residency, and changes in ownership. Understanding these nuances is essential for effective tax planning.
There are changes to the tax rates coming on 1 July 2024. Here’s a snapshot of what to expect.
New research from ASIC’s Moneysmart shows that 47% of Australian adults with debt, equivalent to 5.8 million people, have struggled with repayments in the past year. Over half of those surveyed are unaware they can request financial hardship assistance from their lenders, with many preferring to sell assets or get a second job instead.
The ATO is intensifying its scrutiny on how trusts distribute income. Trustees must carefully review trust deeds, ensure compliance with distribution requirements, and understand the implications of family trust elections. Changes in tax return reporting now require detailed information on trust income distributions. It’s crucial for trustees to get it right to avoid significant tax ramifications. Learn how to navigate these complexities and ensure your trust distributions are compliant.
Prepare for the end of the financial year with our essential guide. Learn how to maximize deductions, make strategic superannuation contributions, navigate work from home expenses, and understand the ATO’s areas of scrutiny. Ensure your tax returns are accurate and beneficial.
Generational succession – handing your business across to your kids or family – sounds simple enough but, many families end up in a dispute right at the point when the parents, business, and children are most vulnerable. It’s important that generational succession is managed as closely and diligently as if you were selling your business …
Do your kids really want to take over your business? Read More »
