As a business owner, you are well aware of the myriad decisions that demand your attention on a daily basis. Among these crucial choices is the potential sale of shares in your company or your interest in a trust. However, comprehending the taxation implications, particularly the Capital Gains Tax (CGT) concessions related to this kind of thing, can feel like a daunting task.

Fret not, the Attune Advisory team is here to assist you through this process with tailored guidance to provide complete clarity.

With that in mind, we thought we’d put together a top level overview of CGT concessions in this scenario to help you get a quick grasp if you’re in a situation where this could affect you or your business…

CGT Concessions for Selling Shares or Trust Interest:

When you decide to sell shares in a company or interest in a trust, you may be eligible for SmallBusiness CGT Concessions, potentially resulting in significant tax savings during the transaction. While the rules and conditions can be intricate, understanding them ensures you make informed decisions and, potentially, maximise your financial outcomes.

EligibilityCriteria:

‍Accessing theSmall Business CGT Concessions when selling shares or trust interest hinges on two tests:

1. TheMaximum Net Asset Value Test (MNAV) stipulates that the net assets of the entity selling the shares or trust interest, including connected entities, must not exceed $6 million just before the CGT event. And;
2. TheSignificant Individual Test requires that the person selling the shares or trust interest, along with their associates, must have at least a 20% direct or indirect small business participation percentage in the company or trust whose shares or interest are being sold.

 + The ActiveAsset Test:

In addition to the above tests, the company or trust must satisfy the active asset test. This test essentially requires that at least 80% of the assets in the company or trust(by market value) are used in the course of carrying on a business.

‍FAQs on SellingShares or Trust Interest:

What if I don’t pass the Significant Individual Test? If you don't meet the criteria for the Significant Individual Test, there is still an alternative. You can satisfy the CGT concession stakeholder test. As a CGT concession stakeholder in the company or trust, you may be eligible for concessions if, together with other CGT concession stakeholders, you hold at least 90% of the shares or interest.

‍Do these rules apply to shares or trust interest held as an investment? Unfortunately, the Small Business CGT Concessions do not apply to passive investments. To qualify for the concessions, the shares or trust interest must be related to your active small business operations.

Next Steps:

If you are contemplating selling shares in your company or your interest in a trust, it is crucial to understand the potential tax implications. The Attune Advisory team is here to help you navigate this complex area with tailored, strategic advice that ensures you benefit from all applicable tax concessions.

Book an appointment with us via email or call the Attune team on 1300 866 113 to discuss your situation in detail. Our team will provide tailored, strategic advice to help you make informed decisions based on your unique circumstances.

Navigating the complex world of small business CGT concessions doesn’t have to be a solo journey. With expert guidance from Attune Advisory, you can confidently move forward, knowing you are minimising your tax liability while maximising your financial position. As you embark on the path of selling shares or trust interest, our dedicated team is here to support you every step of the way. Trust in our expertise to make the most of your financial opportunities and secure a prosperous future for your business.

‍As a small or medium business owner, your responsibilities can be overwhelming, especially when it comes to managing employee payroll tax and Pay As You Go (PAYG) withholding. These areas can be complex and demanding, with various obligations, calculations, and deadlines.

At Attune Advisory, we understand the challenges you face, which is why we've created the below guide to help demystify these topics and provide guidance based on state and territory government revenue authorities and Australian Tax Office (ATO) requirements.

Understanding PAYG Withholding:

Pay As You Go (PAYG) withholding is a system where employers withhold tax amounts from their employees' payments and remit them to theAustralian Taxation Office (ATO). This system ensures that employees meet their annual tax liabilities. As you’re likely aware, the amount of tax to be withheld depends on the employee's earnings and the information provided in their Tax file number declaration but if you have any uncertainty around this, definitely reach out to the Attune team.

Employer Tax Obligations for PAYG Withholding:

As an employer, you have several tax obligations related to PAYG withholding. These include registering for PAYG withholding, withholding the appropriate amounts from employee wages, reporting and remitting these amounts to the ATO, providing payment summaries to employees, and submitting an annual report to the ATO.

Setting Up Employees for Tax and Super:

Setting up your employees for tax and super involves collecting Tax file number declarations, using tax tables to determine the amount to withhold, and making superannuation guarantee contributions for eligible employees. If you have multiple staff members, you’re probably across this, but if you’re hiring your first employee, give the Attune team a call and we can help you through the process.

Understanding Payroll Tax:

Payroll tax is a state and territory tax imposed on employers based on the wages they pay. The tax amount varies across states and territories, and specific thresholds determine when employers become liable for payroll tax.

Who Needs to Pay Payroll Tax:

Payroll tax applies to all employers whose total wages exceed the specific threshold set by their jurisdiction. If your totalAustralian wages surpass the threshold, you must register for payroll tax. Once again, if you’re looking for advice on your Payroll Tax requirements, we’re here for you.

Note there’s specific thresholds to be aware of when it comes to where your business operates and is located, so it’s worth chatting to the Attune team to ensure you’re covered with your Payroll Tax obligations.

Taxing Termination Payments and Superannuation:

Certain components of termination payments are subject toPAYG withholding, such as unused leave, redundancy payments, and payments in lieu of notice. Additionally, employers have an obligation to make superannuation contributions for eligible employees.

Employee Pay Rates and Conditions:

Pay rates and conditions for employees vary based on their industry, job, and any applicable awards or agreements. Fair Work Australia provides resources to help employers understand their obligations in this regard.

Employing Casual Workers:

Employing casual workers may involve different tax and super obligations. It's crucial to understand these distinctions and ensure compliance with the relevant requirements, and we can offer you tailored advice that suits your needs when looking to employ a casual worker.

At Attune Advisory, we offer expert advice tailored to your business needs. Book an appointment online or give us a call to receive tailored, strategic advice that will ensure your business is operating at its optimum level.

If you’d like some help navigating your Payroll Tax and PAYG, reach out to the Attune team on 1300 866 113 or send us an email to book an appointment.

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‍As part of the Australian Government's commitment to supporting small businesses and promoting energy efficiency, a new tax incentive known as the Small Business Energy Incentive was announced on 30 April 2023.

This incentive aims to assist small businesses in their energy transformation efforts, helping them save on energy costs while contributing to a more sustainable future. The Attune Advisory team is here to provide you with all the essential information you need to take advantage of this incentive, starting with some of the details as outlined below…

‍The Small Business Energy Incentive:

The Small Business Energy Incentive offers businesses with an annual turnover of less than $50 million an additional 20% tax deduction on expenditures that support electrification and more efficient energy usage. This means eligible small businesses can invest in assets or upgrades that promote energy efficiency and sustainability.

Eligible Investments:

The incentive allows small businesses to make investments in various areas, including:

• Electrifying heating and cooling systems to reduce reliance on traditional energy sources.
• Upgrading to more energy-efficient fridges and induction cooktops, minimising energy wastage.
• Installing batteries and heat pumps to optimise energy usage and reduce dependence on the grid.

‍Maximum Deduction and Eligible Expenditure:

Small businesses can claim a maximum bonus tax deduction of$20,000 through this incentive. The total expenditure eligible for the incentive is capped at $100,000. By leveraging this incentive, you can not only save on energy costs but also enhance the financial health of your business!

‍Timeline and Legislative Status:

To be eligible for the Small Business Energy Incentive,assets or upgrades must be first used or installed ready for use between 1 July2023 and 30 June 2024. It is important to note that this measure is not yetlaw. Stay updated on the latest developments and consult with the AttuneAdvisory team for personalised guidance based on your specific circumstances.

Benefits and Opportunities:

Small businesses play a vital role in our communities, and the Small Business Energy Incentive ensures they can actively participate in the ongoing energy transition. By making investments that lead to energy savings, small businesses can lower their operational costs and contribute to reducing emissions. The incentive aligns with the government's efforts to build a stronger, sustainable, and resilient economy, creating more opportunities for all Australians.

Looking to the Future:

The Small Business Energy Incentive, with an expected cost of $314 million over the forward estimates, has been strategically introduced to support small businesses in laying the foundations for future growth. It positions them to bounce back after a challenging period for the economy, allowing them to embrace energy efficiency and sustainability, leading to long-term success.

Contact Attune Advisory today to learn more about how this incentive can benefit your business and ensure compliance with the evolving legislation. We’re here to offer you tailored, strategic advice to set you up for success. Call the team on 1300 866 113 or send us an email to start the conversation.

The information provided in this blog post isbased on the available information as of the date of writing. Please consultwith us for the latest updates and personalised advice related to the SmallBusiness Energy Incentive.

The start of a new financial year brings along various changes that will impact almost everyone, from families and workers to business owners and retirees. As your trusted  Accountant, Attune Advisory is here to provide you with a comprehensive breakdown of the significant changes taking effect from July 1, 2023.
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Here's our snapshot:

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1. National Minimum Wage Increase: Effective from July 1, Australia's minimum wage will be $23.23 per hour, reflecting a 5.75% increase in award wages and an 8.6% increase in the minimum wage. This translates to $882.80 per week based on a 38-hour work week.
2. Farewell to LMITO (Low and Middle-Income Tax Offset): The temporary tax cut known as LMITO, or "lamington,"will no longer be available for the 2022-23 income year. LMITO provided tax relief to individuals earning up to $126,000, with the maximum benefit of $1500 going to those earning between $48,000 and $90,000 in 2021-22.
3. Superannuation Increase: The superannuation guarantee, which is the portion of wages employers must contribute to their employees' retirement savings, will increase from 10.5% to11% from July 1. This increase will continue by 0.5% each year on July 1 until it reaches 12% in 2025. Additionally, the temporary reduction on minimum super drawdown rates for retirees will end. This measure, introduced during theCOVID-19 pandemic, allowed retirees to withdraw only 50% of age-based minimums if they chose to do so.
4. Revised Method for Calculating Working from Home Expenses: The fixed rate method for calculating deductions for working from home expenses has been revised. From July 1, the fixed rate method will be67 cents per work hour, up from the previous rate of 52 cents per hour. The actual cost method, requiring detailed record-keeping of private and work-related expenses, remains an alternative option.
5. Expanded Eligibility for First Home Owner Schemes: The federal government's Home Guarantee Scheme, including theFirst Home Guarantee, Regional First Home Guarantee, and Family Home Guarantee, will have expanded eligibility criteria. Starting July 1, friends, siblings, and other family members can jointly apply for the First Home Guarantee andRegional First Home Guarantee. These schemes will also be available to non-first home buyers who have not owned a property in the past 10 years.
6. Enhanced Child Care Subsidy: Families earning less than $530,000 will be eligible for an increased childcare subsidy from July 10. Higher subsidy rates will apply to families with one child in care earning less than $530,000 in household income, with even higher rates for second and additional children in care. The subsidy increase will also extend to outside school hours care.
7. Extended Paid Parental Leave: New parents can now claim up to 20 weeks of paid parental leave, and partnered couples have the option to split the leave between them. For single parents at the time of their claim, the full 20 weeks of paid parental leave is accessible. The current arrangement offers parents 18 weeks of paid parental leave and two weeks of secondary carer leave, both paid at the minimum wage.
8. Age Pension Eligibility Age Increased: As of July 1, the age at which Australians can become eligible for the age pension will increase to 67 years, up from the current age of 66 years and six months.However, you can submit your claim in the 13 weeks leading up to your AgePension age.
9. TSMIT (Temporary Skilled Migration Income Threshold) Increase: From July 1, the TSMIT will rise from $53,900 to$70,000. The TSMIT represents the minimum salary that must be paid to a sponsored employee to obtain a temporary skilled visa in Australia.

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As the new financial year unfolds, it's essential to stay informed about these changes to effectively plan and manage your financial affairs moving forward. At Attune Advisory, we are here to support and guide you through these updates with tailored advice specifically for your circumstances. If you have any questions or would like help with tax planning, superannuation, or other financial matters, reach out to the team on 1300 866113 or send us an email.We are dedicated to helping you navigate these changes and achieve your financial goals.

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