Debt recycling in Australia is a financial strategy used to convert non-deductible debt (e.g., a home loan) into tax-deductible investment debt over time. It is commonly used by homeowners and investors to minimise tax and build wealth. While reading this blog, please note that your business accountant Melbourne can assist in implementing a debt recycling […]
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For many business owners, making informed decisions about vehicle purchases is important to maximizing tax deductions. One critical aspect is the car depreciation limit, which sets the maximum value that can be used to calculate depreciation deductions for passenger vehicles. For the 2024–2025 financial year, this limit has been updated—and understanding what it means for
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Commercial debt forgiveness is a financial concept that occurs when a creditor (the lender) formally forgives or cancels a debt owed by a business or individual to themselves. In simple terms, it means that the debtor (the borrower) is no longer legally required to repay the outstanding amount. This can happen for various reasons, including
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When making payments of interest, dividends, or royalties, it is crucial to understand resident withholding tax (RWT). Understanding Resident Withholding Tax (RWT) on Interest Resident withholding tax on interest applies when a financial institution or business pays interest to a resident taxpayer and that resident taxpayer has not reported their tax file number to the
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Claiming parking expenses on tax can be a tricky subject, as it depends on various factors such as the purpose of travel, the nature of your work, and whether the expenses are directly related to work. Understanding the Australian Taxation Office (ATO) rules can help ensure you claim what you’re entitled to without falling foul
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Lodging your tax return online in Australia is a convenient and efficient way to ensure you meet your tax obligations. The Australian Taxation Office (ATO) provides various online options to help individuals and businesses submit their tax returns accurately. This guide outlines the steps involved in lodging your tax return online and provides useful tips
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The minimum wage is a fundamental aspect of employment law in Australia, ensuring that employees receive fair compensation for their work. This article explores the current minimum wage, how it is determined, and its implications for employers and employees. Current Minimum Wage in Australia As of July 1, 2024, the national minimum wage in Australia
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If you’ve ever come across the term 401(k) while researching retirement plans, you might be wondering what the Australian equivalent is and how it works. In the U.S., a 401(k) is a tax-advantaged retirement savings plan, but Australia has its own system for retirement savings: superannuation (super). In this article, we’ll break down what a
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A defined benefit superannuation fund is a type of super fund where the retirement benefits are predetermined based on a specific formula, rather than being directly linked to investment returns. Unlike accumulation funds, where retirement savings depend on investment performance, defined benefit funds provide more certainty for members regarding their retirement income. How Defined Benefit
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“Succession planning, and the tax risks associated with it, is our number one focus in 2025. In recent years we’ve observed an increase in reorganisations that appear to be connected to succession planning.” ATO Private Wealth Deputy Commissioner Louise Clarke The Australian Taxation Office (ATO) thinks that wealthy babyboomer Australians, particularly those with successful family-controlled
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