From 1 July 2025, businesses and individuals will no longer be able to claim a tax deduction for interest charges imposed by the Australian Taxation Office (ATO). This change is now law and applies to two main types of ATO interest: the General Interest Charge (GIC) and the Shortfall Interest Charge (SIC). The new rules…

Cutting costs is arguably the quickest and easiest way to improve the profitability of your business. Introducing a cost-control system can bring immediate savings and ensure that you remain competitive in the longer term. Systematic cost control Start by identifying your major cost centres. These may be purchasing, production, sales and marketing, finance and administration.…

Preparing for the Fringe Benefits Tax (FBT) year-end is never a walk in the park and, with the ATO now using increasingly sophisticated data matching programs, it is more important than ever to get your return right. As part of the ATO’s post-pandemic campaign to improve taxpayer compliance and payment of tax debts, the ATO…

Granny flats: tax traps and tips With more older Australians looking to downsize and younger generations looking to get a foot on the property ladder, building a granny flat or a second dwelling in your backyard has become a more affordable solution. In 2023, CoreLogic analysis of residential properties in Sydney, Melbourne and Brisbane found…

The hidden drain of decision fatigue As we kick off the new year, many of us are excited to embrace fresh beginnings, set new goals, and maybe even tackle those pesky resolutions. But if you’re feeling more drained than invigorated, you’re not alone. In fact, one in every five adults worldwide has experienced general fatigue…

Understanding cash flow Understanding cash flow can be the difference between a solid long-term investment and a costly mistake, writes Michael Sloan. So do your research – and get good advice before you buy. What is negative cash flow? Oftentimes investment properties generate negative cash flow. That means, you must put money in each year…

Self managed super funds (SMSFs) can offer their members many benefits, but one that’s often overlooked is their potential as a multigenerational wealth creation and transfer vehicle. Family SMSFs are relatively rare. According to the most recent ATO statistics (2022-23), the majority of SMSFs (93.2 per cent) have only one or two members.i Just 6.6 per cent have…

If you are considering disposing of a property, it’s important to understand the implications so that there are no surprises when your tax bill arrives. As with most investment assets, when you dispose of an investment property generally you are liable for capital gains tax. Capital gains tax (CGT) is levied when you make a…

With the cost of doing business continuing to squeeze the bottom line, careful cash flow management has never been more important. Not only is the ATO paying extra attention to timely payment of tax debts, but once the new payday super rules commence, many small businesses will no longer have access to one of their…

What happens to a self managed super fund (SMSF) when a trustee dies or becomes mentally impaired? While these are circumstances that many of us would rather not think about, some time spent planning now could make a big difference to you and your family later. Australia’s 620,000 SMSFs hold an estimated $933 billion in…