New Penalty Regime for SMSFs from 1 July 2014

A new Penalty Regime for SMSFs will apply for contraventions that occur on or after 1 July 2014.

The new measures will provide the ATO, as the Regulator of SMSFs, with greater flexibility when dealing with a fund’s non-compliance with the law.

Where an administrative penalty is imposed it must be paid personally by the trustee or the director of the trustee company and cannot be paid or reimbursed by the SMSF.

The new penalties are substantial as indicated in the table below.

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The Simplified Pooling Arrangements

From the 2013 income year the small business entities (SBE) capital allowance rules were amended to make the SBE pooling arrangement simpler. A SBE is a business (including the individual, partnership, company or trust) that carries on the business activity with aggregated turnover less than $2 million per annum. Learn more »

Trust Deeds and Resolutions – Important Issues to Remember

A reminder that all trustees who make beneficiaries entitled to trust income by way of a resolution must do so by the end of an income year (30 June). This resolution will determine who is to be assessed on the trust’s taxable income.

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How you could benefit from the Exempt and Complying Development Policy

Exempt and complying development policy provides for a streamlined planning pathway that provides:

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Division 7A and Divorce

The ATO recently released draft taxation ruling TR 2013/D6 which deals with certain income tax consequences that may arise where, as a result of the Family Court ordering that interests in property be altered upon the breakdown of a marriage, money or other property is transferred from a private company to a shareholder, or an associate of a shareholder, of that company. Learn more »

Copyright in the Building Industry

Given the rise in copyright infringement claims and growing fears builders are experiencing when investing in designs and plans, confusion has simultaneously arisen as to what copyright actually is. Copyright claims arise under the ambit of the Copyright Act 1968 (Cth) (‘the Act’). This Act serves to protect various works that attract copyright under its provisions, and penalises any infringements that may transpire. It is important to understand the nature of the protection that is offered under the Act so you may remain aware of your rights and obligations pursuant to the law.

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State and Federal Jurisdiction – What’s the difference?

Many courts and tribunals exist within Australia, and with each dealing with a different type of matter, it is not surprising that so many people get confused as to which court or tribunal is relevant to their matter. To ensure that you receive a cost effective solution to your matter, it is important for you to know which jurisdiction your matter falls into.

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Social Media for Businesses

Social media has had a pervasive affect on society. From keeping in touch with family and friends to hosting countless ‘selfies’, no doubt you’ve engaged in one form or another with this well-known medium for connecting. What business owners may not know is that social media is an invaluable tool when it comes to marketing and professional networking. The question becomes whether or not a business, whatever size it may be, can survive in a contemporary marketing environment where social media is slowly establishing a monopoly across the board.

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Value Delivery

Value delivery is exactly as it sounds; the delivery of value to the customer. This can include order processing, inventory management, fulfilment, and customer support. Without value delivery, you can’t be a successful business. Read on to find out everything you need to know about value delivery and your business.

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CGT and the principal residence exemption

When you sell real estate for more than you bought it for, you make a capital gain. Ordinarily, capital gains form part of your income tax, essentially increasing the tax that you are required to pay. There are however, certain types of assets that are exempt from capital gains tax (CGT). For example, you do not have to pay CGT on any capital gain you receive from disposing of a dwelling that is your main residence. But what’s a “dwelling”? And how do you prove that such dwelling is your main residence?

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