Category: News

If you’re a business or an individual engaged in eligible research and development (R&D) activities in Australia, it’s vital to be aware of the essential steps and deadlines necessary to claim the R&D Tax Incentive. As per the regulations outlined by the Australian Taxation Office (ATO), the first crucial step is to register your eligible R&D activities before making any claims. To ensure a smooth process, you need to apply for the registration within ten months from the end of your income year. For instance, if your income year concluded on the 31st of December 2022, the deadline for submitting …

The Australian Taxation Office (ATO) is issuing a stern warning to businesses: Settle your tax and superannuation debts quickly or risk having these debts disclosed on your credit reports. Below, we will cover the ATO’s recent actions, the consequences of debt disclosure, and the steps businesses can take to safeguard their credit profiles. ATO’s Assertive Approach Since July 2023, the ATO has been proactive in debt collection, sending Notices of Intent to over 22,000 businesses with tax debts exceeding $100,000, overdue by more than 90 days. Over 9,000 businesses are expected to see their debts disclosed to credit reporting agencies …

When it comes to choosing the right business structure for your clients, there are several crucial considerations, especially when it comes to taxes, compliance requirements, and safeguarding the interests of business owners. The primary goal is to protect their personal wealth while minimising risks and exposure. Sole traders make up a significant portion of small businesses, accounting for 31% according to ABS statistics. However, recent challenges have prompted many sole traders to reconsider their business structure, particularly due to the substantial personal liability they face for all business debts, including tax obligations. If you’re thinking about transitioning your business from …

In recent times, the Australian Taxation Office (ATO) has been issuing director penalty notices (DPNs) at an alarming average rate of 60 per day, as reported by an ATO spokesperson. If you’re a director of a company or considering such a role, it’s essential to grasp what DPNs entail and how they can affect your responsibilities and liabilities. Below, we’ll break down what DPNs are and the steps you should take to navigate this complex landscape. What is a Director Penalty Notice (DPN)? First and foremost, it’s crucial to understand that a director penalty notice (DPN) doesn’t make you liable …

Facing financial distress is a daunting challenge for any business owner. When your company is struggling with mounting debts and cash flow problems, seeking a way out becomes imperative. One option that offers a lifeline to struggling businesses is voluntary administration. Below, we’ll explore the benefits of voluntary administration and how it can help businesses navigate through turbulent financial waters. Breathing Room for Assessment Voluntary administration provides a critical breathing space for businesses in financial turmoil. When you appoint a voluntary administrator, it temporarily halts legal actions and creditor demands. This reprieve allows you and your appointed administrator to take …

In the ever-changing landscape of business finance, staying up-to-date with taxation obligations is paramount. Recent developments suggest that businesses need to pay extra attention to their tax debts, as both the Australian Taxation Office (ATO) and major banks are intensifying their efforts to recover overdue payments. The ATO’s Vigilant Pursuit The ATO’s crackdown on businesses with outstanding tax debts has reached historical levels. They are actively pursuing these debts through various legal avenues, including Director Penalty Notices, court claims, winding-up applications against companies, and even sequestrations against individuals. This aggressive stance is indicative of their determination to recoup old debts. …

The New South Wales (NSW) State Budget for 2023-2024 brings forth a mix of economic forecasts, infrastructure investments, and measures designed to support various sectors of the economy. As we delve into the details of the Regional NSW budget, we’ll explore key economic indicators and significant initiatives aimed at driving growth, creating jobs, and enhancing the quality of life for residents. Economic Outlook Slower Economic Growth One of the prominent features of the budget is a forecasted slowdown in economic growth. For 2023-24, the state’s economy is projected to grow at a rate of 1.25%, with a revision down to …

Innovation is the lifeblood of progress, and Australia is committed to nurturing it. Enter the Research & Development (R&D) Tax Incentive program, a vital resource for businesses seeking to innovate, develop, and thrive. Boosting Innovation This program backs Australian businesses by offsetting up to 43.5% of R&D-related expenses. It’s designed to support activities that drive innovation and growth. Eligible Activities If your venture involves R&D projects that improve products, processes, services, materials, or devices, and if the outcomes weren’t foreseeable, you’re likely eligible. Significant Benefits Here’s the financial kicker: this program offers a refundable tax offset of up to 43.5% …

In an ever-evolving digital landscape, safeguarding sensitive information is paramount. As part of our commitment to ensuring the security of your online interactions, The Australian Taxation Office are rolling out important changes to the client-to-agent linking process in their online services. This update aims to strengthen security measures, protect against fraud, and provide greater peace of mind for both the tax agent and their clients. Here’s what you need to know: Overview of the Update Effective November 13, 2023, all businesses holding an ABN (excluding sole traders) will be required to nominate their agent before an agent can add them …