income tax

What is Division 293 tax?

The normal rate at which pre-tax superannuation contributions in excess of $25,000 (Contributions) are taxed is 15% as prescribed by section 291.15 of the Income Tax Assessment Act 1997 (Cth) (ITAA).[1]  However, section 293.15 of the ITAA  includes an additional tax on Contributions (Division 293 Tax) that applies subject to certain criteria.[2]  This article discusses the Division 293 Tax, and to whom it applies.  Superannuation contributions equal to or below $25,000 are referred to as Low Tax Contributions. [Read more…]

Are legal expenses tax deductible for a start-up?

From 1 July 2015, a newly incorporated company, trust or partnership can immediately deduct a range of professional expenses associated with starting a new business, such as professional, legal and accounting advice.  This change was introduced by the Tax Laws Amendment (Small Business Measures No. 3) Act 2015 (Cth) which amended the Income Tax Assessment Act 1997 (Cth) (ITAA97) and received Royal Assent on 26 August 2015. [Read more…]

What entities are eligible for the R&D Tax Incentive?

Updated: 7 September 2021

The Research and Development Tax Incentive (R&D Incentive) encourages companies to engage in research and development which benefits Australia by providing a tax offset calculated against eligible expenditure (Notional Deductions), where the expenditure relates to eligible research and development activities (R&D Activities).  The R&D Incentive is described in division 355 of the Income Tax Assessment Act 1997 (Cth) (ITAA97).  The R&D Incentive has two (2) core components: [Read more…]

Eligibility for the Trust Restructure Rollover

Thinking of restructuring your trust for some reason?  While there are certainly a number of commercial benefits in transitioning from a trust into a company, a common pitfall is failing to acknowledge potential liability for Capital Gains Tax (CGT) or address potential liability for state based transfer duty (Stamp Duty). [Read more…]

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