As the end of the Fringe Benefits Tax (FBT) year (31 March) is approaching, this article highlights key areas that employers and employees should focus on.

FBT Updates and Common Issues

• Exemption of FBT for electric cars
• Providing equipment for working from home
• Does FBT apply to contractors?
• Reducing the paperwork burden for FBT
• The biggest risks related to FBT

Key FBT Issues

FBT Exemption for Electric Cars

Employers who provide electric vehicles (EVs) to their employees may not have to pay FBT. The exemption applies if:

• The car is electric, hydrogen fuel cell, or a plug-in hybrid.
• The car was first bought and used on or after 1 July 2022.
• The cost of the car is below the luxury car tax limit, which is $89,332 for the 2024-25 financial year.

Plug-in Hybrids Lose FBT Exemption

From 1 April 2025, plug-in hybrid cars will no longer qualify for the FBT exemption. The only exceptions are if:

• The exemption was already applied before 1 April 2025.
• There is a legally binding agreement to continue providing the car for private use after 1 April 2025.

If this agreement is changed or stopped after 1 April 2025, the exemption will no longer apply.

Managing the Exemption

Even though some electric cars are exempt from FBT, employers still need to calculate the taxable value of the benefit. This is because the value of the benefit is still included in the employee’s reportable fringe benefits amount. This amount does not count as taxable income, but it may affect things like:

• Medicare levy surcharge
• Private health insurance rebate
• Employee share scheme discounts
• Social security payments

Employees may need to track the electricity costs they pay when charging the EV at home. These costs can be treated as an employee contribution to reduce the FBT amount. However, it can be difficult to calculate these costs. To help, the Australian Taxation Office (ATO) has provided a shortcut rate of 4.20 cents per km for electric vehicles. This rate does not apply to plug-in hybrid vehicles.

Employers should also note that the FBT exemption for electric cars does not include home charging stations. If an employer provides a charging station for an employee’s home, FBT may apply.

Providing Equipment for Working from Home

Many businesses now allow employees to work from home. Employers often provide work-related items to help employees perform their jobs at home. In most cases, if these items are used mainly for work, FBT does not apply.

For example, if an employer provides laptops, mobile phones, or other portable electronic devices, no FBT should be charged as long as the devices are used mostly for work.

Employers with a turnover of less than $50 million can provide multiple similar items during the FBT year without extra tax. This means a business can provide more than one laptop to an employee if needed.

If an employee uses the employer-provided equipment for personal use, FBT may apply. However, the FBT liability can be reduced based on the percentage of business use.

Does FBT Apply to Your Contractors?

FBT usually applies to employees and some directors. It does not apply to genuine independent contractors. However, businesses must ensure that their contractors are truly contractors.

Are Your Contractors Actually Contractors?

The ATO has provided new guidelines to help determine if a worker is an employee or an independent contractor. The High Court has also ruled on two important cases that set the rules for classification.

The ATO’s TR 2023/4 ruling states that if there is a written contract, the contract’s terms should be the main focus when determining the worker’s status. Just calling someone a contractor in the contract is not enough. If the contract’s terms indicate an employment relationship, the worker will be considered an employee.

The ATO’s PCG 2023/2 guideline provides four risk categories. A contractor arrangement is less risky if:

• There is clear evidence that both the business and the worker agreed on the contractor status.
• A proper written agreement is in place.
• Both parties understand the legal consequences of the arrangement.
• The actual working relationship follows the contract without major changes.
• Legal advice was obtained to confirm the classification.
• The business has followed all tax, superannuation, and reporting rules for the worker.

If your business hires contractors, it is important to review their classification regularly. Even if a worker is a genuine independent contractor, businesses may still have obligations, such as paying superannuation in certain situations.

Reducing the FBT Record-Keeping Burden

Keeping records for FBT can be time-consuming. However, from 1 July 2024, businesses will have more options. You can either continue using the current FBT record-keeping methods, use existing business records (if they meet the legal requirements), or combine both methods.

Here are some types of records you may need to keep:

• Travel diaries – see LI 2024/11
• Living-away-from-home-allowance (FIFO/DIDO declarations) – see LI 2024/4
• Living-away-from-home maintaining an Australian home declaration – See LI 2024/5
• Expense payments, property, or residual benefits declaration (Otherwise Deductible Rule) – See LI 2024/6
• Private use of a vehicle other than a car declaration– See LI 2024/7
• Car travel for a job interview or selection test declaration– See LI 2024/14
• Remote area holiday transport declaration– See LI 2024/10
• Overseas employment holiday transport declaration– See LI 2024/13
• Car travel for certain work-related activities declaration– See LI 2024/9
• Relocation transport declaration– See LI 2024/12
• Temporary accommodation for relocation declaration – See LI 2024/8

FBT Housekeeping

Keeping track of records for fringe benefits can be tricky, especially if they depend on employees providing documents on time. If your business provides cars, you must record odometer readings on 31 March and 1 April. To make this easier, ask employees to take a photo of the odometer and email it to a central contact person. This will help avoid missing records or having to check each car manually.

Biggest FBT Risk Areas

Mismatched Entertainment Claims

One of the most common FBT mistakes is claiming a tax deduction for entertainment expenses but not reporting the benefit for FBT purposes. The ATO closely monitors these mismatches.

For example, if a business takes a client to lunch and the cost per person is under $300, there may not be any FBT. However, the business cannot claim a tax deduction or GST credit unless FBT applies. If the business uses the 50/50 method for entertainment expenses, then 50% of the cost is subject to FBT, and only 50% of the amount can be claimed as a deduction.

Employee Contributions Made by Journal Entry

Many businesses allow employees to make after-tax contributions to lower the taxable value of fringe benefits. Instead of paying in cash, some businesses record these contributions as journal entries in their accounting system.

While this method can be acceptable if done correctly, the ATO has raised concerns about whether journal entries made after the FBT year-end are valid.

For an employee contribution through a journal entry to be valid in reducing FBT, these conditions must be met:

• The employee must be required to make a contribution toward the fringe benefit as part of their employment agreement.
• The employer must owe the employee a payment, such as a loan or a bonus that hasn’t been paid yet. However, if a loan is involved, additional tax issues may arise.
• Both the employee and employer must agree to offset their respective obligations (the employee’s contribution against the employer’s payment).
• The journal entries must be made before the business finalizes its financial accounts for the year.

If these conditions are not met, the ATO may challenge the validity of the arrangement. The business must keep proper documentation showing that the employee was actually required to contribute toward the fringe benefit. If there is no clear evidence, the business may face unexpected FBT liabilities.

Not Lodging FBT Returns

The ATO has noticed that some businesses are failing to submit FBT returns when they are required to do so.

If your business employs staff, including family members in a closely held business, and is not registered for FBT, you should review whether you might have an FBT liability.

You may need to lodge an FBT return if your business provides any of the following:

• Cars or parking spaces for employees
• Reimbursements for private (non-business) expenses
• Entertainment, such as meals and drinks
• Employee discounts

Some benefits are exempt from FBT, such as work-related electronic devices (e.g., laptops), protective clothing, and tools of trade. If your business only provides these exempt items or occasional benefits worth less than $300, you likely do not need to worry about FBT. However, if you provide any taxable fringe benefits, it’s important to ensure compliance to avoid penalties.

Pitt Martin Group is a CPA accounting firm, providing services including taxation, accounting, business consulting, self-managed superannuation funds, auditing and mortgage & finance. We spend hundreds of hours each year on training and researching new tax laws to ensure our clients can maximize legitimate tax benefit. Our contact information are phone +61292213345 or email info@pittmartingroup.com.au. Pitt Martin Group is located in the convenient transportation hub of Sydney’s central business district. Our honours include the 2018 CPA NSW President’s Award for Excellence, the 2020 Australian Small Business Champion Award Finalist, the 2021 Australia’s well-known media ‘Accountants Daily’ the Accounting Firm of the Year Award Finalist and the 2022 Start-up Firm of the Year Award Finalist, and the 2023 Hong Kong-Australia Business Association Business Award Finalist.

Pitt Martin Group qualifications include over fifteen years of professional experience in accounting industry, membership certification of the Australian Society of Certified Practising Accountants (CPA), Australian Taxation Registered Agents, certified External Examiner of the Law Societies of New South Wales, Victoria, and Western Australia Law Trust Accounts, membership certification of the Finance Brokers Association of Australia Limited (FBAA), Registered Agents of the Australian Securities and Investments Commission (ASIC), certified Advisor of accounting software such as XERO, QUICKBOOKS, MYOB, etc.

This content is for reference only and does not constitute advice on any individual or group’s specific situation. Any individual or group should take action only after consulting with professionals. Due to the timeliness of tax laws, we have endeavoured to provide timely and accurate information at the time of publication, but cannot guarantee that the content stated will remain applicable in the future. Please indicate the source when forwarding this content.

By Angela Abejo @ Pitt Martin Tax

The Australian Taxation Office (ATO) is paying close attention to wealthy baby boomers, especially those who own family-run businesses. Many of these individuals are passing on their businesses and assets to their children or selling them. The ATO is concerned that some of these transfers and business restructures are being done in ways that reduce tax payments unfairly.

According to ATO Private Wealth Deputy Commissioner Louise Clarke, succession planning and tax risks are a major focus for 2025. The ATO has noticed a rise in business reorganizations that seem to be linked to business owners retiring and passing on their wealth.

If you belong to the ATO’s Top 500 (the wealthiest private groups in Australia) or Next 5,000 (those who control a net wealth of over $50 million), expect the ATO to closely examine how money moves through your businesses and investments.

Why Business Owners Should Be Careful

For many business owners, their company is more than just a source of income—it’s their biggest asset. Over the years, they’ve earned income through salaries, dividends, or by selling shares. While tax laws allow business owners to structure their assets in ways that protect their wealth, they must do so legally. If the ATO finds that a structure exists only to avoid taxes, it can deny any tax benefits under Part IVA, the rule that prevents artificial tax avoidance.

The ATO is particularly watching business owners who are nearing retirement and want to pass their companies down to their children. Often, these owners transfer wealth through trusts and other financial arrangements. While this is legal, the ATO is looking at whether these methods are being used to reduce tax payments unfairly.

Areas That Concern the ATO

Some of the key things the ATO is monitoring include:

1. Division 7A loans settlements – Some companies lend money to shareholders, and instead of repaying the loan, they remove it from the books by calling it a “distribution.” This raises tax concerns.
2. Moving Assets Without Proper Valuation – If businesses transfer assets between family members or related companies, they must properly value them. If an asset is moved just to avoid paying capital gains tax, the ATO may investigate.
3. Restructuring Family Interests – Changing how family members own or control assets may trigger tax issues.
4. Changes to Trust Deeds – The ATO is checking whether changes to trust agreements are being used to lower tax payments.
5. Delays in Tax Filings – Businesses delaying tax returns after a restructure may face scrutiny.

The Use of Trusts

Trusts are under greater scrutiny in 2025. If a trust makes a Family Trust Election (FTE) or Interposed Entity Election (IEE), it must follow strict rules about distributing income. If the trust distributes money outside the family, a 47% Family Trust Distribution Tax applies.

The ATO is also tightening rules on trust tax returns for private trusts. When a trust distributes money or assets to another trust, it must complete a Trustee Beneficiary (TB) statement, unless there is an exclusion that applies. If the TB statement is missing or late, the trustee may face a 47% Non-Disclosure Tax on the undisclosed income.

How to Avoid Risk

If you control multiple businesses or investment entities, make sure everything is structured correctly. Whether these businesses are in Australia or overseas, failing to report transactions properly could lead to penalties.

Transferring a business to the next generation might require changes to share ownership, trust structures, partnership agreements, or asset transfers. Each of these changes has tax consequences that need to be carefully managed.

Business owners should also keep detailed records of why and how they transfer assets. Proper documentation can help show that the purpose of a transaction was legitimate and not just for avoiding tax.

It’s important to plan succession and tax strategies properly. Seeking professional tax advice before making major changes could be something you might need to take into consideration. Tax laws are complex, and a professional can ensure that business owners comply with regulations while still minimizing tax burdens legally to avoid any issues in the future.

Pitt Martin Group is a CPA accounting firm, providing services including taxation, accounting, business consulting, self-managed superannuation funds, auditing and mortgage & finance. We spend hundreds of hours each year on training and researching new tax laws to ensure our clients can maximize legitimate tax benefit. Our contact information are phone +61292213345 or email info@pittmartingroup.com.au. Pitt Martin Group is located in the convenient transportation hub of Sydney’s central business district. Our honours include the 2018 CPA NSW President’s Award for Excellence, the 2020 Australian Small Business Champion Award Finalist, the 2021 Australia’s well-known media ‘Accountants Daily’ the Accounting Firm of the Year Award Finalist and the 2022 Start-up Firm of the Year Award Finalist, and the 2023 Hong Kong-Australia Business Association Business Award Finalist.

Pitt Martin Group qualifications include over fifteen years of professional experience in accounting industry, membership certification of the Australian Society of Certified Practising Accountants (CPA), Australian Taxation Registered Agents, certified External Examiner of the Law Societies of New South Wales, Victoria, and Western Australia Law Trust Accounts, membership certification of the Finance Brokers Association of Australia Limited (FBAA), Registered Agents of the Australian Securities and Investments Commission (ASIC), certified Advisor of accounting software such as XERO, QUICKBOOKS, MYOB, etc.

This content is for reference only and does not constitute advice on any individual or group’s specific situation. Any individual or group should take action only after consulting with professionals. Due to the timeliness of tax laws, we have endeavoured to provide timely and accurate information at the time of publication, but cannot guarantee that the content stated will remain applicable in the future. Please indicate the source when forwarding this content.

By Angela Abejo @ Pitt Martin Tax

The Federal Court recently decided against a sports company that wanted to claim tax benefits for research and development (R&D) work on an Australian signature basketball shoe.

The case brings to mind the success of Nike’s Air Jordan shoes, famously highlighted in the movie Air. Originally, Nike expected these shoes to earn $3 million by the fourth year. However, they became a massive success, earning $126 million in the first year alone. Nike sold 1.5 million pairs within six weeks. Marketing played a big role, hinting that the colorful shoes violated NBA rules. Today, the Jordan brand is a key part of Nike’s success. By May 31, 2024, it was worth $7 billion and saw a 6% increase in sales during the fourth quarter.

In Australia, Peak Australia tried to replicate similar success with the Delly1 shoe. This shoe was designed with the help of Matthew Dellavedova, an Australian Olympian and NBA champion. Dellavedova worked closely on the shoe, stating in interviews that he wanted it to be low-cut, lightweight, and comfortable for defending quick players in the NBA. He said the team made small adjustments based on his feedback during the testing phase.

However, the key question was whether the work done to create the Delly1 shoe qualified as R&D under tax law.

How R&D Tax Incentives Work

Australia’s R&D tax incentive program is meant to encourage companies to perform research they might not do otherwise. The program offers tax benefits based on how much a company spends on qualifying R&D activities. The type of tax benefit depends on the company’s situation. To qualify, the activities must either be “core” or “supporting.”

Core R&D activities involve solving problems that can only be addressed through scientific methods and experiments. The goal is to create new knowledge. Supporting activities are those that directly assist core R&D work.

Active Sports Management Pty Ltd applied with Industry Innovation and Science Australia (IISA), to have their work on the Delly1 shoe recognized as core R&D. They said the process involved detailed research and testing.

Why the Claim Was Denied

Despite the company’s claims, the Australian Taxation Office (ATO), the Administrative Appeals Tribunal, and the Federal Court all rejected the application. They found that the shoe’s development didn’t meet the standards for core R&D. According to the courts, the work didn’t involve significant technical or scientific uncertainty. Instead, it seemed to focus more on personal preferences and design adjustments.

As a result, the company couldn’t claim R&D tax incentives for their work on the Delly1.

Pitt Martin Group is a CPA accounting firm, providing services including taxation, accounting, business consulting, self-managed superannuation funds, auditing and mortgage & finance. We spend hundreds of hours each year on training and researching new tax laws to ensure our clients can maximize legitimate tax benefit. Our contact information are phone +61292213345 or email info@pittmartingroup.com.au. Pitt Martin Group is located in the convenient transportation hub of Sydney’s central business district. Our honours include the 2018 CPA NSW President’s Award for Excellence, the 2020 Australian Small Business Champion Award Finalist, the 2021 Australia’s well-known media ‘Accountants Daily’ the Accounting Firm of the Year Award Finalist and the 2022 Start-up Firm of the Year Award Finalist, and the 2023 Hong Kong-Australia Business Association Business Award Finalist.

Pitt Martin Group qualifications include over fifteen years of professional experience in accounting industry, membership certification of the Australian Society of Certified Practising Accountants (CPA), Australian Taxation Registered Agents, certified External Examiner of the Law Societies of New South Wales, Victoria, and Western Australia Law Trust Accounts, membership certification of the Finance Brokers Association of Australia Limited (FBAA), Registered Agents of the Australian Securities and Investments Commission (ASIC), certified Advisor of accounting software such as XERO, QUICKBOOKS, MYOB, etc.

This content is for reference only and does not constitute advice on any individual or group’s specific situation. Any individual or group should take action only after consulting with professionals. Due to the timeliness of tax laws, we have endeavoured to provide timely and accurate information at the time of publication, but cannot guarantee that the content stated will remain applicable in the future. Please indicate the source when forwarding this content.

By Angela Abejo @ Pitt Martin Tax

Working with overseas, non-resident workers can be a great opportunity for Australian businesses, but it also brings some important tax responsibilities. Let’s break this down in simple terms to help you understand the basics.

Understand the Worker’s Status

Before anything else, you need to figure out if the worker is an employee or an independent contractor. This is important because tax rules apply differently to each type. The Australian Taxation Office (ATO) provides guidance on this in their Employee or Independent Contractor resource, but if you’re unsure, seeking professional advice is a good idea.

Tax Rules for Employees

If the worker is classified as an employee and they are not a resident of Australia for tax purposes, here are the main things you should know:

1. Tax on Income
   Non-resident employees are generally taxed in Australia only on income earned from an Australian source. For instance, if the work is done entirely overseas, it might not be taxed in Australia.

However, you must check if a Double Tax Agreement (DTA) between Australia and the worker’s home country applies. Australia has around 45 DTAs, which help decide how income is taxed in such cases. For example, the DTA between Australia and the Philippines (Article 15) typically prevents Australia from taxing income unless the work is done within Australia.

2. PAYG Withholding
   Normally, you don’t need to withhold Pay As You Go (PAYG) tax if the employee is a non-resident and earns income from a foreign source.
3. Superannuation
   If the worker is a non-resident and performs all work overseas, superannuation contributions are not required under Australian rules. However, you’ll need to check the worker’s local laws to see if superannuation or similar payments are necessary in their home country.
4. Local Tax Advice
   It’s essential to get advice from a tax expert in the worker’s home country. They can guide you on obligations like withholding taxes or pension contributions.

Tax Rules for Independent Contractors

If the worker is a genuine independent contractor (or operates through a trust or company), here are the key points:

1. Tax on Income
   Non-resident contractors are taxed in Australia only on income earned from an Australian source. For example, under Article 7 of the DTA with the Philippines, Australia generally cannot tax the contractor’s income unless they have a permanent establishment in Australia.
2. PAYG Withholding
   In most cases, you won’t need to withhold PAYG tax if:
   • The contractor has an Australian Business Number (ABN).
   • The DTA prevents Australian taxation.
   • The contractor isn’t conducting a business in Australia.

If the contractor works entirely overseas with no physical presence in Australia, they likely don’t carry on a business in Australia.

3. Reporting to the ATO
   Payments to foreign contractors might need to be reported in the Taxable Payments Annual Report (TPAR) if your business operates in areas like construction, cleaning, IT, or security services.

What About Permanent Establishments?

Hiring overseas workers could lead to your business being seen as operating in their home country. This is called a permanent establishment, and it might mean you have to pay tax in that country.

A permanent establishment usually refers to having a fixed place of business in another country, like an office or warehouse. However, each DTA has its own definition, so it’s important to understand how the rules apply to the specific country you’re working with.

Why Get Professional Advice?

The rules around international workers and taxes can get complicated quickly. Mistakes can lead to unnecessary taxes or penalties. That’s why it’s always a good idea to:

• Seek advice from tax professionals in both Australia and the worker’s home country.
• Understand your obligations clearly to avoid surprises.

By handling these details carefully, you can focus on making the most of your international partnerships while staying on the right side of the law.

Pitt Martin Group is a CPA accounting firm, providing services including taxation, accounting, business consulting, self-managed superannuation funds, auditing and mortgage & finance. We spend hundreds of hours each year on training and researching new tax laws to ensure our clients can maximize legitimate tax benefit. Our contact information are phone +61292213345 or email info@pittmartingroup.com.au. Pitt Martin Group is located in the convenient transportation hub of Sydney’s central business district. Our honours include the 2018 CPA NSW President’s Award for Excellence, the 2020 Australian Small Business Champion Award Finalist, the 2021 Australia’s well-known media ‘Accountants Daily’ the Accounting Firm of the Year Award Finalist and the 2022 Start-up Firm of the Year Award Finalist, and the 2023 Hong Kong-Australia Business Association Business Award Finalist.

Pitt Martin Group qualifications include over fifteen years of professional experience in accounting industry, membership certification of the Australian Society of Certified Practising Accountants (CPA), Australian Taxation Registered Agents, certified External Examiner of the Law Societies of New South Wales, Victoria, and Western Australia Law Trust Accounts, membership certification of the Finance Brokers Association of Australia Limited (FBAA), Registered Agents of the Australian Securities and Investments Commission (ASIC), certified Advisor of accounting software such as XERO, QUICKBOOKS, MYOB, etc.

This content is for reference only and does not constitute advice on any individual or group’s specific situation. Any individual or group should take action only after consulting with professionals. Due to the timeliness of tax laws, we have endeavoured to provide timely and accurate information at the time of publication, but cannot guarantee that the content stated will remain applicable in the future. Please indicate the source when forwarding this content.

By Angela Abejo @ Pitt Martin Tax

The Australian government is planning to ban life insurers from using predictive genetic test results to discriminate against people. Predictive genetic tests can identify gene variants linked to diseases that might appear later in life but are not yet visible when the test is done.

Right now, some people are worried that life insurers might deny them coverage or charge higher premiums if they take these tests, so they avoid genetic testing altogether. To address this, the government has proposed a total ban on the use of these genetic test results by life insurers.

How Life Insurance Works

Life insurance is a type of voluntary insurance that’s based on individual risk. Insurers consider factors like your family’s medical history and your personal habits to set your premiums. Once you have life insurance, it’s guaranteed renewable, meaning the insurer can’t cancel or change your policy as long as you keep paying the premiums, even if your health changes. This is why people need to think carefully before switching life insurance policies, especially if they’ve developed health issues since their first policy was issued.

The Current Moratorium on Genetic Testing

In 2019, Australia introduced a partial moratorium on disclosing genetic test results for certain life insurance applications. This moratorium, effective from 1 July 2019, prevents the use of genetic test results for some types of coverage below specific thresholds. However, based on APRA data, these thresholds are considerably lower than the average sum insured:

Policy cover	Moratorium limit	APRA average
Death	$500,000	$713,959
Total permanent disability	$500,000	$849,128
Trauma and/or critical illness	$200,000	$207,414
Disability income insurance	$4,000* a month	$7,706 a month

* any combination of income protection, salary continuance or business expenses cover.

Ongoing Discrimination Concerns

Even with this moratorium, many people still worry that taking a genetic test could hurt their chances of getting affordable life insurance. Research from Monash University found that 35% of people who had taken a genetic test faced difficulties getting life insurance. Some had their applications rejected, while others were advised by financial professionals that they wouldn’t qualify for coverage. Insurers sometimes placed restrictions on policies or charged higher premiums based on test results. In one case, a 43-year-old woman with a BRCA2 gene variant, who had taken preventative measures like surgery, was denied life insurance, even though she had no personal history of cancer.

The Government’s Response

The Australian government has now announced a full ban on the use of predictive genetic tests in life insurance underwriting. This ban is meant to stop the discrimination that still exists. However, the government has not yet introduced the legislation for these reforms or announced when the ban will take effect. The ban will be reviewed after five years, and it only applies to predictive genetic tests, not to diagnostic tests done to confirm an existing condition based on symptoms.

Global Examples

Australia isn’t the only country facing this issue. In the UK, insurers can’t use genetic test results unless the information benefits the person applying for insurance, or the person voluntarily provides the results. There’s one exception: insurers can use genetic test results for Huntington’s disease for life insurance policies worth over £500,000.

In Canada, the Genetic Non-Discrimination Act makes it illegal for insurers or any other entity to ask for or use genetic test results, except when the individual voluntarily discloses a negative result (meaning they don’t have the genetic condition that runs in their family).

In the United States, the Genetic Information Nondiscrimination Act (GINA) prevents genetic test results from being used in health insurance and employment, but not in life insurance. However, Florida has a state law that bans the use of predictive genetic test results in life insurance underwriting.

Conclusion

While genetic testing has the potential to improve health outcomes, it has also created concerns about discrimination, especially in life insurance. Australia’s move to ban the use of predictive genetic tests in life insurance underwriting aims to protect consumers and encourage participation in genetic testing and research without fear of losing access to affordable life insurance.

Pitt Martin Group is a CPA accounting firm, providing services including taxation, accounting, business consulting, self-managed superannuation funds, auditing and mortgage & finance. We spend hundreds of hours each year on training and researching new tax laws to ensure our clients can maximize legitimate tax benefit. Our contact information are phone +61292213345 or email info@pittmartingroup.com.au. Pitt Martin Group is located in the convenient transportation hub of Sydney’s central business district. Our honours include the 2018 CPA NSW President’s Award for Excellence, the 2020 Australian Small Business Champion Award Finalist, the 2021 Australia’s well-known media ‘Accountants Daily’ the Accounting Firm of the Year Award Finalist and the 2022 Start-up Firm of the Year Award Finalist, and the 2023 Hong Kong-Australia Business Association Business Award Finalist.

Pitt Martin Group qualifications include over fifteen years of professional experience in accounting industry, membership certification of the Australian Society of Certified Practising Accountants (CPA), Australian Taxation Registered Agents, certified External Examiner of the Law Societies of New South Wales, Victoria, and Western Australia Law Trust Accounts, membership certification of the Finance Brokers Association of Australia Limited (FBAA), Registered Agents of the Australian Securities and Investments Commission (ASIC), certified Advisor of accounting software such as XERO, QUICKBOOKS, MYOB, etc.

This content is for reference only and does not constitute advice on any individual or group’s specific situation. Any individual or group should take action only after consulting with professionals. Due to the timeliness of tax laws, we have endeavoured to provide timely and accurate information at the time of publication, but cannot guarantee that the content stated will remain applicable in the future. Please indicate the source when forwarding this content.

By Angela Abejo @ Pitt Martin Tax

The Reserve Bank of Australia (RBA) has been at the center of debate, with politicians and the public questioning its policies on interest rates. There’s increasing frustration that the RBA has not reduced interest rates, despite community pressure. Let’s take a look at what’s really happening and why the RBA is maintaining its current course.

Political Criticism of the RBA

Treasurer Jim Chalmers has openly blamed rising global uncertainty and interest rates for “smashing the economy.” Former Treasurer Wayne Swan also voiced his frustration, accusing the RBA of following outdated economic principles instead of making sensible decisions. He argues that their policies are hurting families, causing less spending, and pulling the economy backward.

For Australians with mortgages or paying rent, the last 13 consecutive interest rate hikes have been hard to bear. The first increase happened in May 2022, and there has been no relief since. This has had a ripple effect on households, leaving many feeling the squeeze.

The RBA’s Decision on Interest Rates

In its September meeting, the RBA Board chose to keep the official cash rate at 4.35%. The main reason for this decision is the ongoing problem of high inflation, which has been a challenge for the past 11 quarters. In the year leading up to June 2024, the consumer price index (CPI) rose by 3.9%, staying above the RBA’s target range of 2-3%.

Despite this high inflation, the RBA has been clear that it’s too early to think about lowering interest rates. RBA Governor Michele Bullock has warned that rate cuts are unlikely anytime soon.

Economic Data Paints a Gloomy Picture

According to the Australian Bureau of Statistics (ABS), the June 2024 National Accounts show that the economy is struggling. Per capita GDP declined for the sixth consecutive quarter, falling by 0.4% to -1.5%. This marked the longest period of continuous economic weakness on record.

Household spending, which is a major part of the economy, has also slowed down. In the June quarter, spending decreased by 0.2%, the weakest since the COVID Delta-variant lockdown in September 2021.

Less Spending on Discretionary Items

One of the biggest areas hit by the downturn is discretionary spending—money people spend on non-essential items like travel, events, and dining out. This type of spending fell by 1.1%, with the hardest-hit sectors being hotels, cafes, and restaurants, which saw a 1.5% decrease. Even spending on groceries dropped slightly by 0.1%, showing how households are cutting back to save money.

Household Savings Hit a 17-Year Low

Adding to the financial stress, household savings are at their lowest level since 2006. Households are now saving just 0.9% of their income. When household spending grows faster than income, it becomes harder for people to save, making it tougher to build financial security.

Where is Economic Growth Coming From?

While household spending is down, the Australian economy still managed to grow by 0.2% in the June quarter. However, this growth was mainly driven by government spending, not consumer demand. Government consumption added 0.3 percentage points to GDP growth, with social assistance programs and state government expenditures boosting the economy.

The RBA’s Difficult Balancing Act

The RBA is trying to balance two major goals: bringing inflation back to its target range while protecting the job market gains made in recent years. The RBA expects to reach its inflation target of 2-3% by the end of 2025.

Over the past 18 months, most items in the consumer price index (CPI) basket have been rising faster than normal. However, prices for goods have started to come down as supply issues caused by the COVID-19 pandemic and the war in Ukraine have begun to ease. But two problem areas remain: housing and services.

The Cost of Housing and Services

Housing costs are rising because of increased construction costs and higher rent. Meanwhile, inflation for services remains high at 5.3% in the June quarter, even though spending on things like travel and dining out is down. The high cost of services is driven by several factors: wage increases, lower productivity, and rising business expenses such as electricity, insurance, logistics, and rent.

Who’s Hurting the Most?

Inflation tends to hit lower-income households the hardest, as they spend more of their income on necessities like food, utilities, and rent. In contrast, wealthier households tend to spend more on housing and non-essential items. As a result, younger and lower-income households are feeling the brunt of rising costs.

Conclusion

The RBA’s decision to keep interest rates high, despite political pressure and public dissatisfaction, reflects the complex challenge it faces. The RBA is trying to curb inflation while preventing the economy from falling into deeper trouble. While the pain is real for many Australians, especially those with lower incomes, the RBA remains focused on its long-term goal of stabilizing prices by 2025. Until then, the economic strain is likely to continue.

Pitt Martin Group is a CPA accounting firm, providing services including taxation, accounting, business consulting, self-managed superannuation funds, auditing and mortgage & finance. We spend hundreds of hours each year on training and researching new tax laws to ensure our clients can maximize legitimate tax benefit. Our contact information are phone +61292213345 or email info@pittmartingroup.com.au. Pitt Martin Group is located in the convenient transportation hub of Sydney’s central business district. Our honours include the 2018 CPA NSW President’s Award for Excellence, the 2020 Australian Small Business Champion Award Finalist, the 2021 Australia’s well-known media ‘Accountants Daily’ the Accounting Firm of the Year Award Finalist and the 2022 Start-up Firm of the Year Award Finalist, and the 2023 Hong Kong-Australia Business Association Business Award Finalist.

Pitt Martin Group qualifications include over fifteen years of professional experience in accounting industry, membership certification of the Australian Society of Certified Practising Accountants (CPA), Australian Taxation Registered Agents, certified External Examiner of the Law Societies of New South Wales, Victoria, and Western Australia Law Trust Accounts, membership certification of the Finance Brokers Association of Australia Limited (FBAA), Registered Agents of the Australian Securities and Investments Commission (ASIC), certified Advisor of accounting software such as XERO, QUICKBOOKS, MYOB, etc.

This content is for reference only and does not constitute advice on any individual or group’s specific situation. Any individual or group should take action only after consulting with professionals. Due to the timeliness of tax laws, we have endeavoured to provide timely and accurate information at the time of publication, but cannot guarantee that the content stated will remain applicable in the future. Please indicate the source when forwarding this content.

By Angela Abejo @ Pitt Martin Tax

Divorce and separation are difficult life events, bringing not just emotional stress but also financial complications. One of the key issues that arise during a relationship breakdown is how assets are divided between the partners. Among these assets, those that have appreciated in value, like real estate, shares, or investments, may be subject to Capital Gains Tax (CGT) when they are sold or transferred.

However, in Australia, the law provides some relief through what is known as a relationship breakdown rollover. This means that, under certain conditions, you can transfer assets between separating spouses without triggering an immediate CGT liability. This article explains how the CGT rollover works, when it applies, and how it interacts with other aspects of divorce, like superannuation and family businesses.

What is Capital Gains Tax (CGT)?

CGT is a tax on the profit you make when you sell or transfer an asset, such as property or shares, for more than what you paid for it. The gain is considered part of your taxable income and is taxed at your marginal tax rate. For many people, the largest assets subject to CGT are their home (if it’s not exempt), investment properties, or shares.

What is a Relationship Breakdown Rollover?

A relationship breakdown rollover is a special provision in Australian tax law that allows the transfer of assets between spouses during a divorce or separation without immediately paying CGT. Instead, the tax is deferred until the person who receives the asset sells it in the future.

This rollover is meant to ease the financial burden during a relationship breakdown, as paying a large tax bill right away could add to the stress and financial strain of divorce.

When Does the Relationship Breakdown Rollover Apply?

The CGT rollover applies in specific situations:

1. Court Orders and Formal Agreements: The rollover can be applied if the transfer of assets occurs due to a court order, an agreement made under the Family Law Act, or a binding financial agreement (BFA).
2. Eligible Assets: The rollover can only be applied to certain types of assets, like real estate, shares, or units in a managed fund. It generally doesn’t apply to assets that are not subject to CGT, such as your primary residence (if exempt) or depreciating assets like cars.
3. Spouse Transfers: The transfer must occur between spouses or former spouses as a result of a relationship breakdown. This includes de facto couples as well.
4. Asset Held at the Time of Relationship Breakdown: The asset must have been held by one of the spouses at the time of the relationship breakdown for the rollover to be applicable.

If all these conditions are met, the asset can be transferred without triggering CGT. Instead, the spouse who receives the asset takes on the original cost base of the asset, and the CGT is deferred until they sell it.

How Does CGT Rollover Work with Superannuation?

Superannuation is treated differently in divorce, but it’s also a significant financial asset. When superannuation interests are split between spouses as part of a property settlement, the transaction is usually exempt from CGT under Australian law.

For example, if one spouse’s superannuation fund owns an investment property, transferring a portion of that property to the other spouse’s super fund as part of a divorce settlement won’t trigger CGT. The superannuation splitting process requires a court order or a superannuation agreement.

It’s important to note that superannuation cannot be paid out directly unless the receiving spouse is eligible to access their super (for instance, they’ve reached the retirement age). Instead, the amount is rolled over into the receiving spouse’s super fund, and no immediate CGT is triggered.

Managing Family Businesses During a Divorce

Divorce can complicate the management of a family business, especially when both spouses have ownership interests. The relationship breakdown rollover can apply here as well, allowing one spouse to transfer their shares or interest in the business to the other without an immediate CGT bill. On the other hand, payments made by a corporation as settlements may be classified as taxable dividends and could be taxed at the applicable marginal tax rate of the spouse receiving them. It’s crucial to get proper advice to ensure the business continues to run smoothly and that the tax implications are fully understood.

When managing a family business during a divorce, it’s also important to think about the long-term health of the business. Beyond the tax issues, keeping the business operations stable is vital, especially if one or both spouses rely on the business for their income.

Planning Ahead: Protecting Both Parties from Financial Stress

One way to minimize the financial stress of divorce is through careful planning. Couples should consider how assets, including superannuation and business interests, are owned and managed during the marriage. Even before a relationship breaks down, strategies like income splitting or topping up the lower-earning spouse’s super can help balance the financial benefits and tax burdens.

For instance, if one partner earns significantly less, increasing their super contributions can be tax-efficient because super contributions are taxed at a lower rate. Additionally, balancing the income flow between spouses can reduce the overall tax burden on the household.

In the event of a divorce, having a well-planned tax and financial strategy can make the division of assets more straightforward and less contentious.

Conclusion

Divorce and relationship breakdowns bring many challenges, but understanding the tax implications, especially related to CGT, can help ease the financial burden. The relationship breakdown rollover offers a valuable tool for deferring CGT when transferring assets between spouses. However, it’s essential to seek professional advice to navigate the complexities of tax law, superannuation, and business management during such a difficult time.

By planning ahead and staying informed about your financial situation, you can better protect yourself and your assets during a divorce.

Pitt Martin Group is a CPA accounting firm, providing services including taxation, accounting, business consulting, self-managed superannuation funds, auditing and mortgage & finance. We spend hundreds of hours each year on training and researching new tax laws to ensure our clients can maximize legitimate tax benefit. Our contact information are phone +61292213345 or email info@pittmartingroup.com.au. Pitt Martin Group is located in the convenient transportation hub of Sydney’s central business district. Our honours include the 2018 CPA NSW President’s Award for Excellence, the 2020 Australian Small Business Champion Award Finalist, the 2021 Australia’s well-known media ‘Accountants Daily’ the Accounting Firm of the Year Award Finalist and the 2022 Start-up Firm of the Year Award Finalist, and the 2023 Hong Kong-Australia Business Association Business Award Finalist.

Pitt Martin Group qualifications include over fifteen years of professional experience in accounting industry, membership certification of the Australian Society of Certified Practising Accountants (CPA), Australian Taxation Registered Agents, certified External Examiner of the Law Societies of New South Wales, Victoria, and Western Australia Law Trust Accounts, membership certification of the Finance Brokers Association of Australia Limited (FBAA), Registered Agents of the Australian Securities and Investments Commission (ASIC), certified Advisor of accounting software such as XERO, QUICKBOOKS, MYOB, etc.

This content is for reference only and does not constitute advice on any individual or group’s specific situation. Any individual or group should take action only after consulting with professionals. Due to the timeliness of tax laws, we have endeavoured to provide timely and accurate information at the time of publication, but cannot guarantee that the content stated will remain applicable in the future. Please indicate the source when forwarding this content.

By Angela Abejo @ Pitt Martin Tax

Exciting news for small businesses! Two significant changes are happening for the 2024 financial year, thanks to new laws passed by Parliament recently.

Instant Asset Write-Off Increase

First, the instant asset write-off threshold has been raised from $1,000 to $20,000 for business annual aggregated turnover less than $10 million. This means that small businesses can now write off purchases of assets costing less than $20,000 in 2024 financial year. This change is a big boost for cash flow, as businesses can claim the tax deduction immediately instead of spreading it out over several years.

To take advantage of this, the asset must be bought and either used or installed and ready to use between 1 July 2023 and 30 June 2024. For example, if you buy an industrial fridge, it needs to be delivered and installed by 30 June 2024 to qualify for the write-off.

If the business is registered for GST, the cost of the asset must be less than $20,000 after deducting GST credits. If the business is not registered for GST, the cost must be $20,000 including GST. If the asset is only partly used for business, to determine the amount you can claim, subtract the portion used for private purposes. The remaining balance, which is the portion used to earn assessable income, is typically considered the taxable purpose portion (or business purpose portion). Although you can only deduct the taxable purpose portion, the total cost of the asset must be below the $20,000 threshold.

This new threshold applies to each asset individually. So, a small business can deduct the full cost of several items as long as each one costs less than $20,000. Additionally, a Bill is currently before Parliament to extend this increased threshold to 30 June 2025.

Small Business Energy Incentive

Another great benefit for small businesses is the new small business energy incentive. This incentive provides an extra tax deduction of 20% for the cost of eligible assets and improvements that make your business more energy-efficient or support electrification, such as purchasing of an air conditioner that replace a gas heater, installing time-shifting devices which allow electrical appliances to operate at off-peak times, etc.

There are some exceptions for the energy efficiency solutions, such as no bonus deduction for electric vehicles, solar panels, capital works, etc. Also, the maximum bonus deduction is $20,000, which means you can spend up to $100,000 on qualifying expenses happened between 1 July 2023 and 30 June 2024. Different from the Instant Asset Write-Off, this incentive is available to businesses with an annual turnover of less than $50 million. However, businesses with an annual turnover less than $10 million may can potentially claim both the Instant Asset Write-Off and Small Business Energy Incentive for the eligible assets and improvements. To read the details about the policy, please refer to our previous article ‘Empowering Your Business with Electrification: Unlocking the $20k Tax Deduction’.

Summary

These changes provide fantastic opportunities for small businesses to improve their cash flow and invest in energy-efficient equipment. With the increased write-off threshold and the energy incentive, make sure to check if your purchases qualify and take full advantage of these new laws.

Pitt Martin Group is a CPA accounting firm, providing services including taxation, accounting, business consulting, self-managed superannuation funds, auditing and mortgage & finance. We spend hundreds of hours each year on training and researching new tax laws to ensure our clients can maximize legitimate tax benefit. Our contact information are phone +61292213345 or email info@pittmartingroup.com.au. Pitt Martin Group is located in the convenient transportation hub of Sydney’s central business district. Our honours include the 2018 CPA NSW President’s Award for Excellence, the 2020 Australian Small Business Champion Award Finalist, the 2021 Australia’s well-known media ‘Accountants Daily’ the Accounting Firm of the Year Award Finalist and the 2022 Start-up Firm of the Year Award Finalist, and the 2023 Hong Kong-Australia Business Association Business Award Finalist.

Pitt Martin Group qualifications include over fifteen years of professional experience in accounting industry, membership certification of the Australian Society of Certified Practising Accountants (CPA), Australian Taxation Registered Agents, certified External Examiner of the Law Societies of New South Wales, Victoria, and Western Australia Law Trust Accounts, membership certification of the Finance Brokers Association of Australia Limited (FBAA), Registered Agents of the Australian Securities and Investments Commission (ASIC), certified Advisor of accounting software such as XERO, QUICKBOOKS, MYOB, etc.

This content is for reference only and does not constitute advice on any individual or group’s specific situation. Any individual or group should take action only after consulting with professionals. Due to the timeliness of tax laws, we have endeavoured to provide timely and accurate information at the time of publication, but cannot guarantee that the content stated will remain applicable in the future. Please indicate the source when forwarding this content.

By Angela Abejo @ Pitt Martin Tax

A recent tax case of Duncan and Commissioner of Taxation [2024] AATA 974, the Administrative Appeals Tribunal (AAT) looked at a situation where a taxpayer, Mr. Duncan, tried to claim large deductions for meals eaten during his work trips. As the new financial year arrives, the tax return has been started. This case in time has shed some light on the meal expenses deduction claiming for the tax return season.

The Situation

Mr. Duncan is a long-haul truck driver who spent 282 days on the road in the year in question. He claimed a deduction of $100 per day for food and drink, which added up to a total of $28,200 for the year. This amount was just below the Australian Taxation Office’s (ATO) reasonable amounts (See TD 2023/3), so Mr. Duncan believed he did not need to provide detailed evidence for these expenses.

The ATO’s Response

The ATO agreed that Mr. Duncan spent $8,393 on meals at cafes and restaurants because these expenses were supported by his bank statements. However, the ATO did not accept the remaining $20,000 deduction because there was not enough evidence to support it.

The Arguments

1. Automatic Deductions Claim:
   • Mr. Duncan argued that he was entitled to automatic deductions up to the ATO’s reasonable amounts without needing to prove he spent the money.
   • The AAT disagreed, stating that the law requires the expenses to be actually incurred, even if the claim is below the ATO’s reasonable amounts.
2. Evidence of Grocery Expenses:
   • Mr. Duncan tried to show some expenses by providing evidence of purchases at supermarkets and stores near his home.
   • The AAT found it difficult to determine which meals were eaten during his trips and which were not because the purchases were made near his home.

Tribunal’s Decision

The AAT ruled against Mr. Duncan, highlighting that even if the claimed deductions are below the ATO’s reasonable amounts, taxpayers still need to prove that the expenses were actually incurred.

Important Lessons

• Substantiation Exceptions: The rules can reduce the need for keeping every receipt and invoice, but taxpayers still need to incur the expenses.
• Evidence Requirements: The ATO can ask for evidence on how deductions were calculated and require proof that the expenses were incurred.
• Good Practices: Keeping a detailed diary or log of trips and meals, along with bank and credit statements, can help support deductions and reduce the risk of ATO challenges.

Pitt Martin Group is a CPA accounting firm, providing services including taxation, accounting, business consulting, self-managed superannuation funds, auditing and mortgage & finance. We spend hundreds of hours each year on training and researching new tax laws to ensure our clients can maximize legitimate tax benefit. Our contact information are phone +61292213345 or email info@pittmartingroup.com.au. Pitt Martin Group is located in the convenient transportation hub of Sydney’s central business district. Our honours include the 2018 CPA NSW President’s Award for Excellence, the 2020 Australian Small Business Champion Award Finalist, the 2021 Australia’s well-known media ‘Accountants Daily’ the Accounting Firm of the Year Award Finalist and the 2022 Start-up Firm of the Year Award Finalist, and the 2023 Hong Kong-Australia Business Association Business Award Finalist.

Pitt Martin Group qualifications include over fifteen years of professional experience in accounting industry, membership certification of the Australian Society of Certified Practising Accountants (CPA), Australian Taxation Registered Agents, certified External Examiner of the Law Societies of New South Wales, Victoria, and Western Australia Law Trust Accounts, membership certification of the Finance Brokers Association of Australia Limited (FBAA), Registered Agents of the Australian Securities and Investments Commission (ASIC), certified Advisor of accounting software such as XERO, QUICKBOOKS, MYOB, etc.

This content is for reference only and does not constitute advice on any individual or group’s specific situation. Any individual or group should take action only after consulting with professionals. Due to the timeliness of tax laws, we have endeavoured to provide timely and accurate information at the time of publication, but cannot guarantee that the content stated will remain applicable in the future. Please indicate the source when forwarding this content.

By Angela Abejo @ Pitt Martin Tax

The Australian Taxation Office (ATO) has issued a stern warning to trustees, emphasizing the importance of carefully considering how and to whom trust income is distributed. In recent years, trust distribution arrangements have faced increasing scrutiny, and trustees must meticulously review their practices to ensure compliance with relevant regulations. It is a good time to recapitulate this before the end of financial year distribution.

Understand your Trust Deed

One of the main concerns is that trustees may not be looking at their trust deed before distributing income. The trust deed is a legal document that outlines what the trust can do and who can receive income. It’s crucial to review this document before making any decisions.

Steps for Reviewing Your Trust Deed

1. Check the Deed and Amendments: Make sure that any actions taken by the trustees are in line with what the trust deed says.
2. Vesting Date: The trust deed specifies the procedures when the trust vests. Upon vesting, trustees may be required to distribute income and property to designated beneficiaries, losing their discretion in this regard.
3. Identify Beneficiaries: Determine who the beneficiaries are and understand their entitlements to income and capital.
4. Resolution Timing and Requirements: Review any conditions for trustee resolutions, including deadlines and the need for written resolutions, eg. it has to be done by 30 June.
5. Streaming Income: If you plan to allocate capital gains or franked distributions to certain beneficiaries, ensure the trust deed allows this.

Family Trust and Interposed Entity Elections

A family trust election ties the trust’s operations to a specific family group, helping protect losses and franking credits but potentially causing tax issues if misused. An interposed entity election brings an entity into an individual’s family group. Trustees need to understand the consequences of these elections before distributing income, as distributing outside the family group can result in hefty family trust distribution taxes.

Who really benefits?

The ATO is also vigilant about arrangements where income is allocated to beneficiaries who do not actually receive the financial benefit. If such arrangements reduce the overall tax paid, they are likely to draw the ATO’s attention.

Increased Reporting Requirements

Recent changes mean more detailed information is now required on tax returns about trust income distributions. These include:

• Trust Tax Return: Four new capital gains tax labels have been added, requiring information that matches what beneficiaries report in their returns.
• Beneficiaries: All beneficiaries must now file a new trust income schedule that matches the trust’s distribution statement.

The Importance of Compliance

Trusts offer significant flexibility in income distribution, but this comes with stringent compliance and control requirements. The ATO is closely monitoring how trusts distribute income and the associated tax implications.

Trustees must take these warnings seriously and diligently review their trust deeds and distribution arrangements to align with regulatory expectations. Ensuring proper compliance not only safeguards against potential penalties but also maintains the integrity and intended benefits of the trust structure.

Pitt Martin Group is a CPA accounting firm, providing services including taxation, accounting, business consulting, self-managed superannuation funds, auditing and mortgage & finance. We spend hundreds of hours each year on training and researching new tax laws to ensure our clients can maximize legitimate tax benefit. Our contact information are phone +61292213345 or email info@pittmartingroup.com.au. Pitt Martin Group is located in the convenient transportation hub of Sydney’s central business district. Our honours include the 2018 CPA NSW President’s Award for Excellence, the 2020 Australian Small Business Champion Award Finalist, the 2021 Australia’s well-known media ‘Accountants Daily’ the Accounting Firm of the Year Award Finalist and the 2022 Start-up Firm of the Year Award Finalist, and the 2023 Hong Kong-Australia Business Association Business Award Finalist.

Pitt Martin Group qualifications include over fifteen years of professional experience in accounting industry, membership certification of the Australian Society of Certified Practising Accountants (CPA), Australian Taxation Registered Agents, certified External Examiner of the Law Societies of New South Wales, Victoria, and Western Australia Law Trust Accounts, membership certification of the Finance Brokers Association of Australia Limited (FBAA), Registered Agents of the Australian Securities and Investments Commission (ASIC), certified Advisor of accounting software such as XERO, QUICKBOOKS, MYOB, etc.

This content is for reference only and does not constitute advice on any individual or group’s specific situation. Any individual or group should take action only after consulting with professionals. Due to the timeliness of tax laws, we have endeavoured to provide timely and accurate information at the time of publication, but cannot guarantee that the content stated will remain applicable in the future. Please indicate the source when forwarding this content.

By Angela Abejo @ Pitt Martin Tax