Tips and hints

Beware of non-commercial loans

Following regulations relating to non-commercial loans is crucial or you could end up facing a significant tax problem that could put your business in jeopardy.


Be careful with non-commercial losses

If you are an individual, operating either as a sole trader or within a partnership, and have a net loss then you must adhere to the ATO's non-commercial loss rules. These determine whether you can use a business loss to off.

Defer income

One of the most common tax tips is to defer taxable income into the next financial year. This is one of the most common overlooked - tips.

Look at timing of income to maximise a benefit. If you are a small business enterprise then you can defer income received, and you should be deferring this until you actually receive it. If you aren't a small business, you can invoice some of your income into the new financial year so it's not bought into a taxable calculation.

Beware GST compliance crackdown

In the latest Federal Budget, the Government provided an extra $440 million over four years to help crack down on the cash economy and promote GST compliance. A lot more funding is being provided for GST compliance activity. This is really just putting people on notice. It's nothing new, no new requirements, businesses need to be sure they have their ducks in a row because they could face an audit.

Frequently asked questions

Can I buy an investment property through my SMSF - Self Managed Super Fund?
Yes, although there are things that need to be considered before you do.

You can buy any sort of property however Residential Property must be an arm’s length transaction from a third party.

You can buy Commercial Property from a related party if certain conditions are met.
Can I borrow to buy property through my SMSF – Self Managed Super Fund?
Yes, but there are guidelines to follow to allow this to happen.

Changes to the Superannuation Industry Supervision (SIS) Act in September 07 now means SMSFs can now borrow to purchase real estate using a structure established for this purpose as long as certain conditions are met. There are various loan products offered which enable these purchases to be made.
Are you having difficulty making super payments for your employees on time?
You need to pay super for all eligible employees at least once every financial quarter, by the 28th day of the month following the end of the quarter. This is the last day that you can pay a super contribution to an employee’s super fund before you are liable for the super guarantee charge. If you do not pay at least the minimum amount of super to the correct super fund, you’ll need to lodge a Superannuation guarantee charge statement – quarterly. The super guarantee late payment offset allows you to offset late super contributions against the super guarantee charge for a period.
Am I eligible for one of the new measures to assist small businesses?
The ATO has introduced new measures to help small businesses with an annual turnover of less than $2 million that are struggling to manage their tax payment obligations in the current economic climate. These are (1) 12-month general interest charge (GIC) free payment arrangements, and (2) deferred activity statement payment due dates.
Has your business income reduced?
If you make pay as you go (PAYG) instalments on your activity statement and your business income is reduced substantially part way through the tax year, you may be able to vary your instalment amount or rate.
Do you need more practical help to manage your business?
If you need assistance to manage your business, talk to us and we can help you better understand your tax obligations. Our range of business support services gives you access to experienced tax officers who can answer your questions and help you get on top of your tax issues.
Are you having difficulty paying your tax on time?
If you are having difficulty paying your tax obligations, phone us to discuss your circumstances. By contacting us early, we can help you address the problem before it becomes more difficult to manage.

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Peter Sobczuk (AR No. 468453) and SJFPPS Pty Ltd (CAR No. 1255556) ATF GLFS Discretionary Trust (ABN: 91 132 859 641) trading as Good Life Advice are authorised representatives of Bluewater Financial Advisors Pty Ltd (AFSL: 411846 ABN: 99 153 118 533)