06 Oct 2016

Small Business Restructures

The government recently passed into law new small business rollover rules. The new rules are designed to enable any small business to restructure their business without Capital Gains Tax (CGT). Rollover is generally available providing the following conditions are met: 1. Both entities involved are small business entities (Turnover less than $2 million dollars or net assets less than $6 million) 2. There is no...

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28 Sep 2016

Goods & Services Tax on purchase of farmland

Consider George’s case George has been farming potatoes in Trentham as part of the family business for many years. He has finally gathered together enough funds to purchase his first farming property. George is concerned about the Goods & Services Tax (GST) applicable to the purchase as the vendor is registered for GST and has indicated there may be GST charged on top of the...

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15 Aug 2016

SMSF’s and related party lending

A related party limited recourse borrowing arrangement (LRBA) is a loan between a non-bank (related party) and a SMSF for acquisition of property or listed security to be held in the SMSF. Trustees of SMSF’s that currently have a LRBA in place for a property or listed security need to ensure that these LRBA’s are in line with the new safe harbour provisions set out...

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04 Jul 2016

Did you know that Langley McKimmie are certified as a Xero Partner Firm

There has been a lot of recent media about the online software provider which has taken the Australian accounting software market by storm (now with over 200,000 Australian subscribers). Xero provides users with a cloud based online accounting solution that is marketed at a reasonable monthly cost. Basically this means that you can access your accounts whereever you have an internet connection. The benefit of...

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06 Jun 2016

How does the 2016-2017 federal budget affect you?

The 2016-2017 Budget introduced a lifetime limit of $500,000 for non-concessional superannuation contributions effective 7:30pm on 3 May 2016. Significant changes from 1 July 2016 are: The company tax rate will reduce to 27.5% for companies with turnover < $10m. The turnover threshold to access the reduced tax rate will increase annually and the company tax rate will reduce to 25% by 1 July 2026...

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05 May 2016

Main Residence Exemption Part 2 – Adjacent Land

In the event that adjacent land is split from a taxpayers main residence and separately sold, a capital gains tax event will occur, even when the original block is less than 5 acres. Case Study Bob acquired a residential property on 2 acres for $1 million, it has been his main residence for the entire ownership period, 4 years. The property encompasses two adjoining titles,...

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01 Apr 2016

Main Residence Exemption Part 1 – Large Properties

When selling your home, capital gains tax does not generally apply; this is commonly referred to as the main residence exemption. This exemption extends to the land surrounding the dwelling to a maximum of two hectares, so long as the land is not used for income producing purposes. But what happens if you live on more than two hectares? Let’s look at Maria’s situation: Maria...

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02 Mar 2016

Are you aware of your Fringe Benefit Tax obligations?

Consider Diane’s case Diane runs a company with a staff of twelve. Bill is her general manager and receives use of a company car as part of his remuneration. Diane throws a large Christmas party each year to which she invites all her staff, as well as other meal benefits during the year. Diane is concerned that the 49% FBT rate may apply to these...

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01 Feb 2016

Redundancy Payments

Consider Jim’s case Jim aged 50 years old has recently been made redundant from his position at his football club. Jim had been working for the club for 3 years as the club mascot and the club decided the position was no longer required. Jim wanted to confirm the taxation treatment of his redundancy payment of $30,000. Taxation Treatment As the club can no longer...

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10 Nov 2015

Do you know your superannuation obligations?

Case Study Sole trader Chris failed to pay $2,500 superannuation guarantee for his employee Ron for the June 2015 quarter. Ron is 21 and a full time employee who has been working for Chris for two months. Chris is legally required to pay 9.5% of Ron’s ordinary times earnings to an eligible superannuation fund by the 28th day past the quarter. However Chris is new...

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