Contractor or Employee? How to Get it Right

When is a worker an independent contractor or an employee? Plenty of people ask this question as it can expose businesses and individuals to significant risk and costs under tax and employment law. Sometimes, a person might seek a contracting relationship for perceived tax benefits or the company might want to keep employment flexible. However, […]

Contractor or Employee – What You Need to Know

What is the difference between a contractor and an employee and whose responsibility is it to get right? An employee – typical characteristics works in the business and is integral to that business has rights and entitlements under the Fair Work Act 2009 has a reasonable expectation of ongoing work, agreed hours and duties is […]

Covid-19. Financial Support for Australian Businesses

Federal Government Stimulus Package The federal government has recently released details of a stimulus package designed to keep the money flowing through the economy and prevent, or at least delay or minimise a recession brought on by the coronavirus. Set out below is a summary of the elements of the package assisting businesses and their […]

The Benefits of Creating a Holding Company

Once your business gets to a certain size and turnover, there’s real value in assessing the business structure and how to make things more tax-efficient. Setting up a holding company is one way to start creating an ordered and effective group structure. And by moving any surplus cash up from your trading entity to your […]

Working from Home? Claim your home office expenses

If you have a home office for your business, you should be able to claim some of the costs involved in maintaining, owning and using your home. It’s important to be aware of what you can and can’t claim, and the record-keeping involved in making a claim. How does it work? In order to claim, […]

Dividends and Paying Yourself as a Director

As the director in a limited company, dividend payments are the usual way for you to take money out of the company – and see a financial return on your investment into the company. Dividends are payments made to the company’s shareholders when the business has made a profit. What’s not re-invested into the company […]

Cash vs Accrual Accounting – It’s All About Timing

What are the two methods? Understanding cash and accrual accounting comes down to timing. In a cash-based accounting system you recognise income and expenses when they happen, that is, when the money arrives into or leaves your bank. In an accrual-based accounting system, income is recognised at the date the customer is invoiced and expenses […]

Report PAYGW Correctly to Claim Tax Deductions

From July 1 2019, If you don’t meet PAYG withholding obligations for your workers, by not withholding tax from their payments and not reporting it to the ATO, you could lose your tax deduction. This will apply to income tax returns lodged for the 2020 financial year and beyond. If you withhold tax from payments […]

The Importance of Tax Planning for Directors

Paying tax is something you’re likely to see as a necessary (but not hugely enjoyable) part of running your business. But are you doing enough to plan your own personal tax liabilities? As a director, you’ll pay your income tax annually on a self-assessment basis. But there are plenty of ways to make this a […]