Let’s unravel the mystery of Indirect Australian Real Property Interests (IARP). What Are IARP Interests?Indirect Australian real property interests refer to membership interests in an entity that—subject to a few exclusions—satisfies two key tests: Non-Portfolio Interest Test: This test checks whether the interest represents a significant stake (usually 10% or more) in the entity. Principal Asset Test: Here, we’re…
Reporting foreign income to the Australian Taxation Office (ATO) is an important aspect of tax compliance. Let’s dive into the details: Australian Resident with Foreign Income: If you’re an Australian resident, you must declare any foreign income you earn on your Australian tax return. This includes income from sources outside Australia, such as rental income from…
Let’s dive into the tax implications when you spread your financial wings beyond our sunny shores. Corporate Tax at the Source: First off, when you invest in foreign stocks, those companies are taxed at their home turf. Yep, they pay their corporate taxes there. But here’s the twist: These investments don’t dance under the Australian…
Let’s waltz through some strategies to minimize your tax bill when selling that charming villa in Tuscany or that beachfront shack in Bali. Foreign Resident Capital Gains Withholding (FRCGW): First, let’s address the elephant in the room: If you’re selling foreign property in Australia and the sale price is $750,000 or more, the ATO does…
Let’s unravel the tax implications for Contractors. Australian Taxation Office (ATO) Wisdom:As an independent contractor in the land Down Under, you’re effectively treated like a small business. Picture yourself in a cozy corner office (or maybe just your home office with a nice cuppa). Here’s what you need to know: ABN (Australian Business Number): First…
Who cannot access the FBT exemption Your business structure makes a difference By its nature, the FBT exemption only applies where an employer provides a car to an employee. Partners of a partnership and sole traders will not be able to access the benefits of the exemption as they are not employees of the business.…
New legislation before Parliament, if enacted, will make zero or low emission vehicles FBT-free. We explore who can access the concession and how. Electric vehicles (EV) represent just under 2% of the new car market in Australia but it is a rapidly growing sector with a 62.3% jump in new EV registrations between 2020 and…
The Australian Taxation Office (ATO) have recently released a package of new guidance material that directly targets how the income of Trusts is distributed and how it is taxed. This ATO guidance material is only a draft at this stage with the ATO seeking comments from the profession. Under this guidance material released, the ATO…
It’s quite common for individuals to subdivide land they own, and then sell off one of the blocks. Depending on the circumstances, this can have capital gains tax (CGT) and GST implications. Capital Gains Tax If you subdivide a block of land, each resulting block is registered with a separate title. For capital gains tax…
When it comes to choosing a structure for your business, it’s worth spending a little time learning about your options. It may surprise you to hear that your accountant is the expert when it comes to business structures! Why? Because business structures are the building blocks for tax planning and also protect your key assets…
