The company has excess franking credits accumulated from payment of tax at a 30% income tax rate and has not previously paid dividends. What franking credit would be applied to a fully franked dividend paid in the 2022 financial year? Answer We assume your company is a base rate entity with a turnover of less than $50 million. As of …

My client received a $7,000 first homeowners grant (FHOG) on his first principal place of resident property purchase in 2010. This property was purchased for $700,000, and full stamp duty was paid as there was no stamp duty concession at the time for first-time buyers (just the FHOG grant). Since this time, he has married, and his wife owns no …

Details A client has passed away. Will states cash distributions to the client’s two sisters and the balance to be left to the client’s son as a testamentary trust. Cash distributions to sisters have been paid. Trust has not been set up as yet per the Lawyer. Assets of the estate include: 3 Motor Vehicles BMW Jaguar Aston Martin – …

Further to my conversation about UPE’S, what is the time frame for these dividends to be paid? I was under the impression that the payment had to take place within five years. Maybe I am wrong? Answer There is no 5-year requirement for the dividends. The real issue is the UPE between the discretionary trust and the company. You have a year …

A query relating to GST on sale of goodwill… Client A has a business of IT/Software consulting/licence sales…and currently owes software Supplier B $180,000 for licences sold to customers. Supplier B has decided to cease providing licences to Client A and has offered $180,000 in compensation…and suggested that Client A keep the $180,000 rather than pay Supplier B. Is the …

Australian private company is wholly owned by an overseas company (only shareholder is the overseas company – 100% ordinary shares). This Australian private company will be ceasing the operation in December. The business got a loss, so there is no need to pay company tax. This company wants to lodge the company tax return in January / February and deregister the …

We have a client who employed a new worker from Queensland to work in her Outback Hotel. The client paid the costs for the flight ticket and hotel isolation. Can our client claim these costs as a tax deduction? Answer The employee can’t claim a deduction for removal or relocation costs incurred to transfer or relocate for work purposes. This …

Could you advise on the information to be provided in the Trust tax return for a non-resident individual who will receive a discount capital gain from property sold in Australia by a resident Trust? And what forms, if any,  are required to pay any Australian tax liability, how the tax calculation is determined and who is required to prepare, pay, …

We are a charity registered with ACNC and income tax-exempt. Would you advise which of the following benefits would attract FBT? Gym membership Community service day off or well-being day off Employer funded paid parental/maternity leave Flu vaccinations Rostered days off Higher super contribution by employer Paid health cover or contribution to health cover Car parking Concessional leave Christmas lunch …

Question: I have a staff member who has been employed for nine years as of May this year. He has no personal leave. Can he use his long service leave entitlements to cover his sick leave? He was away for surgery for five days. Answer If workers require more time off work than they have accrued in personal leave, they …

Question: This question is about my client. They belong to the APSS superannuation fund with a member saving account and defined benefits. The trustee has decided to change strategy and next year 2022 and merge with Sun Super. Will the change and the merger impact member investments as their savings are invested in conservative investment options and are 68 years …

Question: Could I have your thoughts/comments on my client’s position? He has sold all his shares to another Company that will assume the running of the business in which he and 2 others were the operators/employees/directors. They have also sold all their shares, like my client. My client’s shares sold [600,000 units] were acquired [for $900] upon incorporation some 10 …

Question: Just requiring verification of transfer of livestock on Cessation of a Partnership, 4 Partners in equal shares.  The livestock is transferred to 2 Sons in equal shares, and they will trade individually going forward. Can I use the election and transfer the livestock at book value, i.e.  3661 Sheep at $21966?  Also, can you please very the correct Notice …

Question: The client is getting old and wants to sell the land they own. It is approx. 30 acres on the edge of town. They are not registered for GST, and no business has been carried on, on the land. Meaning not having any cows, etc., on the land. They have owned the land for several decades. Do they have …

Question: I have an educator who is on leave without pay until the end of the year. They have requested two weeks of their annual leave. I am going to pay it. Do I have to pay leave loading on these two weeks? Do you have a template letter that I can give to the employee to sign off on …

Question: My client has purchased several blocks of land. Some with GST, some without. They are registered for GST. Their business is property development; they contract to the builder to build the house and sell it to people. Hence a house and land package. I.e., they purchased one block for $143,000 incl. GST. The block is a standard size house …

Question: Could you please advise whether payments by a business as a result of a scam are tax deductible? My client is a farming partnership and receives invoices by email. Several of the invoices were intercepted by scammers advising of a change of banking details on the invoices. The changed invoices were then received by my client and paid into …

Question: In NSW, the public health order has been updated for early childhood workers to have both vaccines by 8 November. I have one staff member that isn’t getting it and has no intentions of getting it. I am just wondering what I do. Do I need to write a letter of termination? Or does she write a letter of …

Question: I need to clarify the following scenario. If you have a Self-managed Super Fund, are you able to use any of the funds in providing a deposit for a house ( First Home Buyer)? Answer If we are talking about existing funds in super, the answer is no… But we mention in passing the First Home Super Saving (FHSS) …

Question: I note the rollover provisions relating to the transfer of an asset under relationship breakdown, i.e., the party receiving the asset is liable for CGT if/when eventually sold. The cost base being that of the other party. However, what is the situation when under the “divorce” agreement, the property recipient pays an agreed price for the 1/2 share of …

Question: I would like to know how purchased leave works. Could you please help with this? Specifically, I would like to know how purchased leave is taxed. Is it taxed when taken or when the initial deduction is made? I would also like to know how superannuation works when an employee purchases leave and if any additional leave is accrued …

Question: Just wondering if you could assist please with a CGT calculation for a commercial property owned by a unit trust.  It is a commercial property from which my clients run their business. They lease it to their trading entity, another unit trust. They will continue to lease the premises from the new owners.   I understand that there are …

Question 2 In Manual 2021, I cannot find an explanation of how the pension amount should be calculated. I would also like to know what penalties there are if the pension is not paid on time? I had a problem paying the 2021 pension before 30 June, and I wondered whether I could appeal to someone for leniency. It could …

Question: My client is a registered provider for NDIS and has the GST concession as a NFP entity. Currently registered for GST Major incomes are from government funding. The question is whether this business can still claim a GST credit for expenses, such as rent and general business overhead expenses, for running a business. ATO website does not really show …

Our Educator is Certificate 3 in children’s service qualified and is working towards a Diploma of Early Childhood Education and Care in NSW Pre-school. We are a small Pre-school and already have a diploma trained Educator. Do we have to pay them at the diploma level because they have completed 50% of their course? Answer The employee is not entitled …

Season’s Greetings from the very merry team at … bO2 Corporate Essentials. In a year filled with challenges, we’re grateful for your support. Wishing you happiness & health in 2022. Our last day of the year is Friday 17th December.  We will return on Monday 10th January 2022. THE OFFICE CHRISTMAS PARTY, SHOULD YOU JUST CALL THE WHOLE THING OFF? …

I have composed a resolution concerning changing the company registration from Queensland to NSW. Can you suggest the fastest thing to do to address the resolution? The company was just incorporated yesterday. This shelf company noted that these changes would cost $1,000, which should have been confirmed before the registration. We are looking forward to your kind advice. Answer Our …

Is the superannuation to be paid when I pay an employee a performance bonus? Answer Correct, you do pay super because a bonus falls within the definition of Ordinary Times Earnings (OTE).

There are two separate questions: Would you please provide a brief explanation as to the mechanics behind carry-back losses? And details as to who is entitled to fuel tax credit and how it is calculated. Answer The loss carry back is covered in the Form C instructions guide section S item 13. We trust you find the following link useful: …

I am being asked to do a HR health check at our workplace. What things would they be covering, or what information do I need to provide them? Answer This is a question that we are asked frequently. Log in to your secure portal and look at the current and up to date Covid resources available as a member. You …