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2-minute quiz: Business deductions

QUESTION 1A company’s financial accounts show the following information in relation to its bad debts and doubtful debts for the year:Closing balance for doubtful debts from the previous year - $172,000;Doubtful debts provided for (but not written off) during the year - $89,000;Bad debts formally are written off during the…

How testamentary trusts work

A testamentary trust works in tandem with a will, and is similar to a discretionary trust, with the major difference being it only takes effect upon the death of the person who made the will. The trust can be funded by some or by all of your assets, and by…

Superannuation contributions ‘work test’ for over 65s

Whether or not the trustee of a complying superannuation fund can accept member contributions for those aged between 65 and 75 depends on the member satisfying the “work test”.The work test requires a member to have been gainfully employed for at least 40 hours in a period of not more…

Interest deductibility after income-producing activity ceases

An issue that sometimes arises for business owners is whether interest expenses incurred on borrowed funds used in a business remain deductible after the business’s income earning activities have ceased.As a general rule, in order for interest expenses to be deductible in the relevant income year, a taxpayer is generally…

Franchise businesses and tax

The Australian Competition & Consumer Commission (ACCC) is the government body responsible for enforcing the Franchising Code of Conduct, and if you or someone you know are considering entering into a franchise arrangement, this will probably be a good starting point to get an idea of what to expect.  It…

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