News
As a property owner in the vibrant landscape of Sydney, you're no stranger to the complexities of taxes that come hand in hand with your investments.
Navigating the tax realm while making the most of your property ventures can often feel like an overwhelming task. But worry not, the AttuneAdvisory team is here to demystify property depreciation, after all, it can significantly impact your taxes. Here, we'll delve into the significance of property depreciation reports, equipping you with the knowledge that can guide you toward informed decisions that can ultimately save you money.
Whether your ownership extends to residential or commercial spaces, comprehending property depreciation is of key importance. It refers to the decrease in an asset's value over time due to factors like wear and tear, obsolescence, or age. This depreciation offers a unique opportunity for property owners to claim deductions, thereby reducing the value of certain assets over time.
To accurately navigate this terrain and harness its benefits, the key lies in procuring a property depreciation report, meticulously prepared by a qualified quantity surveyor.
Behind every accurate property depreciation report stands a quantity surveyor – an expert in assessing and quantifying the value of construction and assets. These professionals specialise in crafting comprehensive property depreciation reports that detail the depreciable value of your property's assets. This report, in turn, enables you to maximise your depreciation deductions according to the guidelines set forth by the AustralianTax Office (ATO).
In the context of Australia, a depreciation report is a document that outlines the annual depreciation expense that can be claimed as a deduction. It calculates the depreciation of building costs and fittings over specific time periods defined by the ATO. Providing this report to your AttuneAdvisory accountant ensures accurate deductions year after year.
The true value of a property depreciation report lies in its ability to provide a clear insight into the depreciable assets within your property. By outlining eligible items and furnishing precise calculations, this report enables you to claim the rightful deductions on your income tax return.These deductions, in turn, can significantly chip away at your taxable income, leading to substantial tax savings.
However, the impact extends beyond the immediate tax season.Property depreciation also wields influence on your property's cost base, an essential factor in capital gains calculations during sale. Accurate accounting of depreciation through the property depreciation report effectively reduces the cost base each year. Consequently, when the time comes to sell, the capital gain escalates as the cost base (original purchase price plus additional ownership costs) is subtracted from the sale price.
What Assets are Included in a Property Depreciation Report? A property depreciation report encompasses both structural , plant and equipment assets. Structural assets involve components like walls, roofs, and foundations, while plant and equipment assets encompass air conditioning units, carpeting, appliances, and more.
How Often Should I Obtain a Property Depreciation Report? While it's advisable to secure a property depreciation report soon after property acquisition, it's never too late to do so. A seasoned quantity surveyor can assess your property's present condition and create a tailored report.
Are There Limitations to Depreciation Deductions? Yes, the ATO imposes specific eligibility criteria and limitations. Assets must have been installed after a particular date, and the depreciation methods vary based on asset types. Consulting a quantity surveyor ensures adherence to these regulations.
Understanding the profound impact of property depreciation reports on your taxes is merely the beginning of a journey towards enhanced financial management. To harness the full benefits and unlock optimal tax savings, your first stpe should be to contact the Attune Advisory team and allow us to connect you with a qualified quantity surveyor, well-versed in property depreciation. We’ll work alongside them to build the strategy tailored to your specific situation.
Whether you're a seasoned investor or just stepping into the property landscape, our expertise is tailored to guide you toward an efficient tax strategy. Reach out to us on 1300 866 113 for an appointment or visit our website to start your journey toward tax optimisation through property depreciation today.
For small to medium-sized business owners, the tax season can often bring about a sense of unease, particularly when terms like "ATO audit" start circulating. The anxiety often arises from a lack of familiarity with tax requirements and the potential risks linked to non-compliance. But fear not, the Attune Advisory team is here to steer you through the landscape of tax risks.
The world of business tax risks entails the possibility of financial penalties and reputational damage stemming from non-adherence to tax regulations. Businesses face risks when they fail to accurately pay taxes, meet return deadlines, or faithfully represent their financial situation.
High-risk strategies, such as aggressive tax planning, can lead to audits, fines, and even legal action. Common areas of concern include misreporting income, claiming ineligible expenses, and errors in GST reporting. However, armed with knowledge, you can minimise the odds of a time-consuming and costly ATO audit.
The Australian TaxOffice (ATO) conducts audits to verify businesses' compliance with tax obligations. An ATO audit is essentially a review of your business's financial information, ensuring that your declared income aligns with the taxes paid.
The ATO has four primary expectations of taxpayers:
Effectively managing tax risks involves identifying, assessing, and mitigating potential taxation-related hazards. This encompasses adherence to relevant tax laws, minimising tax liabilities, and maintaining open communication with tax authorities. Implementing robust tax risk management strategies can considerably reduce financial losses and enhance overall business efficiency.
The Tax Risk Management and Governance Review Guide serves as an essential tool for businesses to effectively manage tax-related risks. It provides a framework of principles and guidelines that promote transparency and good governance in tax affairs. This guide benefits both tax authorities and taxpayers by fostering improved tax compliance strategies and enhancing overall tax administration.
Proactively reviewing your tax risks offers several advantages. It enables you to identify areas of potential non-compliance before they escalate. Additionally, a thorough review can uncover opportunities to optimise your tax position within legal boundaries, potentially leading to significant cost savings. Moreover, the review process brings peace of mind, eliminating uncertainties about potential ATO audits. Working with your Attune taxation advisor for this review can provide fresh insights and efficient navigation of tax compliance complexities.
What triggers anATO Audit? The ATO may initiate an audit in response to unusual fluctuations in income or expenses, inaccurate reporting, late lodgement of returns, or consistent business losses.
How can I prepare for an ATO Audit? Maintain accurate financial records, regularly assess tax risks, and stay in touch with theAttune team if you require assistance or have questions.
How can I minimise tax risks? Prioritise diligent record-keeping, stay informed about tax laws, but most of all, access experienced and tailored planning and risk assessment help with the Attune accounting team.
Embrace Informed Decision-Making Understanding and managing tax risks is crucial for sustaining a thriving business. While it might seem daunting, with experts on your side, you can navigate these complexities with confidence. Remember, knowledge is power, and being well-informed can set the stage for business success.
If you're a small or medium-sized business owner grappling with tax risks and concerns about ATO audits or looking to ensure you’re processes and tax obligations are in the best shape, we’d love to chat.
Reach out to the Attune team today by calling 1300 866 113 or booking an appointment via our website.
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…
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.
Accessing theSmall Business CGT Concessions when selling shares or trust interest hinges on two tests:
+ 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.
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.
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.
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.
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 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.
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.
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.
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.
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 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.
