ITAA

What is my superannuation taxed at?

Superannuation can be a tax-effective way of saving for retirement and it is well known that employers are required to contribute to their employee’s superannuation funds (Funds) separate to taxable income.[1]  However, taxes still apply to all aspects of Funds.  The rate used differs depending on what is being taxed.  [Read more…]

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…]

When is a company an Australian resident for tax purposes?

A critical component for any person operating a business is understanding the laws regarding taxation.  While the general provisions for taxation, such as the company tax rate, are relatively well known, complexities can arise where companies are unsure whether or not they are based within Australia, and are therefore subject to Australian taxation laws.  In this article, we consider what it means to be resident in Australia under the Income Tax Assessment Act 1936 (Cth)(Tax Act). [Read more…]

Convertible Notes

While convertible notes (Convertible Notes) may in a lot of cases provide considerable benefits for the issuer they may also create a significant burdens.  This article attempts to explain what can be a complex financial instrument by examining some of the key features of Convertible Notes and some of the more common legal issues associated with their use. [Read more…]

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