Accounting & Tax

AAW W.

Melbourne, VIC

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Hi! I am considering starting a small business from home relating to a craft hobby that is starting to pick up pace. I'm still in the market research stage but I've come up against an issue that could be an instant deal breaker.

I live in a rental property. I reviewed our lease, which doesn't have any clauses preventing a home based business, but I reached out to our landlord and agent as a courtesy to make sure it wasn't going to cause any issues.

Landlord says she's happy for me to do it, thinks it's a great idea as long as I don't register an ABN – which is a bit contradictory. She is under the impression that if I register an ABN then our residential lease will automatically convert to commercial lease and she will have to pay GST on the rent she collects.
That just doesn't sound right to me. To be clear, if I proceed:
- this will not be my primary source of income
- there will be no customers coming to the home
- there is no dedicated space for the business, I have a desk and cabinet set up in the corner of my dining room
- there will be no business signage or advertising on the property

Is she right?
Thanks in advance for any advice.

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10 months ago

Peter W.

Forresters Beach, NSW

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Hi Creative accounts,

I’m looking for a way to reduce my taxable income by $6500 per annum. I currently keep earning to much, and it makes my wife in eligible for family tax benefit B.
I’m on wages and work for a large company that wont let me take a few weeks off without pay.
I Need some creative accounting ideas on how to reduce my income to just squeeze under the 100k threshold. I’m only aware of negativity gearing an investment loan to reduce income.
Any other advice/ideas would be greatly appreciated

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last year

K LEE

Medical Practitioner

Clear Island Waters, QLD

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If I work as a sole trader medical professional within a company getting profits for amount of patients seen, is there any benefits to company structure rather than ABN. Only expenses of my own will be car/laptop/phone and paid educations.

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last year

PJ M.

New Farm, QLD

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If I have a line of credit and previously used it for personal purchases but paid it off in full last year (non deductible debt), but then decide to re-use the line of credit on a new investment, can I still claim the new interest on the new investment?

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2 years ago

Peter W.

Forresters Beach, NSW

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Hi Tax People,

I have a joint equity loan with my wife. We both have individual online broking accounts.
I have been told by our accountant that my wife or myself can use money from that loan to buys shares individually and he would make “loan up” saying the money was borrowed from the account and therefore claiming the interest individually.
To keep this cleaner for tax purposes my bank said we can split the loan and call loan 1 ( wife investment loan) and say loan 2 ( Peter (me) investment loan).
My question is

1) if wife wants to pay her loan down , I’m wondering if that’s possible with the original “loan up” document written up at a certain amount and as it’s paid down obviously the loan has reduced and wouldn’t match the original loan amount.

Any help would be great.
Also if any one is a subject expert on these setups would love to make an appointment for advice happy to travel.

Regards Peter

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2 years ago

Tayla H.

Albany Creek, QLD

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I am contractor on $40 an hour. I work 28 hours a week. How do I calculate how much this would be in terms of a casual worker? taking into account casual loading, super, and tax?
Is there anything else I am not considering as well?

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2 years ago

Michael F.

Parkdale, VIC

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0 Followers

I have had the same accountant for years. They do my return and I'm sure it's done properly.

However, when I did my last return I asked my accountant a question ...

What could I / should I be doing to minimize the tax I pay?

Am I paying too much tax with my shares?

I claim as much as I can when I do my BAS & Tax Return, but is there a better way?

Any other strategies?

My accountant said they assess my return based on the information provided and they do not provide advice.

hmmm

wondering what your thoughts are? Also, I saw this website

https://taxfitness.com.au/ but it seems to be targeted towards accountants, is there something similar for individuals?

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2 years ago

Kirsty M.

Briar Hill, VIC

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Hello,

Currently on maternity leave and quite confused as to whether I have made the right choice on the way I have taken my leave.

I have chosen to take it at full pay and remove half myself and place in our mortgage offset account therefore pretending I am receiving it as half pay and saving on the interest.

Questions are:
If I hadve taken it at half pay, do I accumulate more superannuation through my employer? I think I would’ve accumulated an extra week of annual leave.

Also, would I pay less tax each pay being on half pay as opposed to full pay or does it work out the same as all my payments are received in one financial year?

One other reason I took the full pay was because I am on a contract which is due to expiry just after my leave at full pay therefore I was unsure if I was entitled to take it at half pay if my contract had expired half way through?

Thanks :)

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3 years ago

Glory B.

Curramore, QLD

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We have a 108 acre farm in Qld which is registered for GST and has been in steady operation for 12 years as a beef cattle farm. We are planning to sell the farm and understand that GST will be payable unless we sell it to another party who wants to carry on farming. We are in an area where the lifestyle buyer will probably be the more likely buyer so we are wondering about ways to get around this. If we wind up the partnership and sell all the cattle and do not operate as a farm for say 6 months to a year and then sold to a private buyer, would the sale be GST exempt?

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3 years ago

Total F.

Bentleigh East, VIC

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As a builder using non-GST-registered contractors, do I add GST to the principal (before margin) when charging the client? Or does the client not pay GST for that service, as the contractor is exempt?
e.g.
Scenario A:
Contractor GST exempt -$100
Margin 15% - $15
GST - $11.50
Total - $126.50

or, Scenario B:
Contractor GST exempt -$100
Margin 15% - $15
GST - $1.50
Total - $116.50

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3 years ago

Tony O.

Rowville, VIC

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Do i need an ABN?

I have a full time job and a side job managing a website. I spend about 12 hours a month working on the website and was told to send him an ‘invoice’ so does this mean i am a contractor? I personally think it is a hobby but my friends said to open an ABN ‘just to be safe’. If so how do i declare this additional income when i don’t have an ABN.
Thanks

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3 years ago

Demi R.

Kensington, NSW

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Just started my own business and wondering if there a rating system or platform where I can find a good accountant. There’s only two of us in the business but we will be looking to expand in the coming months with a number of new contracts being negotiated. Any help would be great

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3 years ago

Jennifer T.

Mount Waverley, VIC

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0 Followers

I am in Victoria and my baby is due end of June 2019.
Is it better to take maternity pay from work at half or full pay?
My work pays 10 weeks full or 20 weeks half pay. I have accrued 5 weeks of annual leave.
I am only planning to be on maternity leave until there is no income.
Therefore I am considering: 5 weeks annual leave (ends July), 10 weeks full work paid mat leave (ends Sept), then Govt paid leave to start in the last 2 weeks of Sept lasting until end of Jan).
This is 7 months of maternity leave, I return to work in February 2020
Does this arrangement work out better, or would half work pay at 20 weeks, in tandem with Govt Pay at 18 weeks work out better tax wise?

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3 years ago

Mario G.

Haberfield, NSW

2 Likes
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Does the government tax benefit of 20,000 prior to 30 June 2019 still exist? What happens if we spend $22-23,000, is it the first $20,000 we can claim or none at all?

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3 years ago

Julie V.

Traveston, QLD

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my husband earns $110000 on investment income and we earn together in our super $70000 all before GST. (PASSIVE INCOME) what we need to know is can we register our goat hobby farm and claim some tax benefits, plus we wish to employ someone ( with experience) and want to know can we claim for the wages we pay them. thank you for your time Julie

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3 years ago

Stephen A.

Raworth, NSW

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0 Followers

I have a partnership with my wife but will be eligible for the age pension in 12 mths. If we close the partnership and she continues as a sole trader can I still get the pension

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3 years ago

Pip S.

Paddington, QLD

1 Likes
0 Followers

What is the primary measure used for asset valuation on the statement of financial position? What is the source of this measure and justification for its use?

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3 years ago

Susan B.

Wanganella, NSW

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0 Followers

I have been working on contract for the last two years for the NSW government, my contract is due to finish in November 2019. I am due to take maternity leave on the 1st of June. If I take half pay for 28 weeks do I still get paid that after my contract end date? 1st of June to November 1 is only 21 weeks and 6 days. Do I have any other options?

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3 years ago

Yasmin T.

Morley, WA

2 Likes
0 Followers

Hi, I'm starting my own business and have registered a business name, ABN and for GST and hoping to start in early May. My question is will l have to pay tax in June this year or could it be held over until June 2020 to help with cashflow stating up... thank you

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3 years ago

Stephen M.

Maitland, NSW

2 Likes
0 Followers

We have a business and try and keep the business assets separate from the business income as the income is shared with family members. We have been advised to set up two trusts, one for the assets of the business and one to run the business. Is this the right option or are there others........... thank you?

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3 years ago

If I work as a sole trader medical professional within a company getting profits for amount of patients seen, is there any benefits to company structure rather than ABN. Only expenses of my own will be car/laptop/phone and paid educations.

If I have a line of credit and previously used it for personal purchases but paid it off in full last year (non deductible debt), but then decide to re-use the line of credit on a new investment, can I still claim the new interest on the new investment?

I am contractor on $40 an hour. I work 28 hours a week. How do I calculate how much this would be in terms of a casual worker? taking into account casual loading, super, and tax?Is there anything else I am not considering as well?

Just started my own business and wondering if there a rating system or platform where I can find a good accountant. There’s only two of us in the business but we will be looking to expand in the coming months with a number of new contracts being negotiated. Any help would be great

Does the government tax benefit of 20,000 prior to 30 June 2019 still exist? What happens if we spend $22-23,000, is it the first $20,000 we can claim or none at all?

I have a partnership with my wife but will be eligible for the age pension in 12 mths. If we close the partnership and she continues as a sole trader can I still get the pension

What is the primary measure used for asset valuation on the statement of financial​ position? What is the source of this measure and justification for its​ use?

Hi, I'm starting my own business and have registered a business name, ABN and for GST and hoping to start in early May. My question is will l have to pay tax in June this year or could it be held over until June 2020 to help with cashflow stating up... thank you

I am contractor on $40 an hour. I work 28 hours a week. How do I calculate how much this would be in terms of a casual worker? taking into account casual loading, super, and tax?
Is there anything else I am not considering as well?

What is the primary measure used for asset valuation on the statement of financial position? What is the source of this measure and justification for its use?