EXPERT INSIGHTS FROM OUR TEAM.

Federal Budget 2021-22: The Essential Update for Private Businesses and their Owners

On 11 May 2021, Treasurer Josh Frydenberg handed down the 2021-22 Federal Budget. Unsurprisingly, while Australia has emerged from the pandemic relatively unscathed, this year’s Budget aims to stimulate economic growth in a post-COVID world.

In addition to significant investments in infrastructure, aged care, health and the digital economy, the budget contains a raft of tax changes and reforms aimed at driving down unemployment, boosting industry and alleviating tax burdens for individuals and businesses alike.

Read on for our full breakdown of some of the major tax announcements in this year’s Budget for private businesses and their owners.

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PODCAST: How to structure a hobby farm

In this episode of Tax Talks, Andrew Henshaw discusses how to structure a hobby farm, and some of the tax consequences to be aware of down the line.

Workplace Sexual Harassment: Reform on the Way

On 5 March 2020, the Sex Discrimination Commissioner, Kate Jenkins, released the report titled ‘[email protected]: National Inquiry into Sexual Harassment in Australian Workplaces’ ([email protected] Report). The [email protected] Report provides a list of recommendations for preventing and addressing workplace sexual harassment in Australia.

Not all self-education expenses are created equal – a reminder from Khan and Commissioner of Taxation

Wanting to claim a tax deduction for self-education expenses? Unfortunately, not all self-education expenses are created equal.

The recent Administrative Appeals Tribunal (AAT) decision in Khan and Commissioner of Taxation [2021] AATA 367 (Khan) is a timely reminder that:

Significant Changes to Casual Employment

The federal government’s stripped-down Fair Work Amendment (Supporting Australia’s Jobs and Economic Recovery) Act 2021 (Act) recently came into force. The Act amends the Fair Work Act 2009 (Cth).

While proposed changes around enterprise agreements, awards and wage theft did not pass the Senate, the Act does introduce new workplace changes and rights for casual employees.

When approached correctly by businesses, the new laws will help provide certainty about their casual employment arrangements.

PODCAST: The Hidden Traps in Selling a Business

PODCAST: The Hidden Traps in Selling Up

Insights by Scott McKenzie and Andrew Henshaw on the Business Essentials Daily Podcast

Non-Residents, CGT and Australian Family Trusts – where does the dust lie pending the outcome of the Full Federal Court appeal in Greensill?

The Full Federal Court’s judgment for the appeal of Peter Greensill Family Co Pty Ltd (trustee) v Commissioner of Taxation (No 2) [2020] FCA (Greensill) is eagerly anticipated within the international tax community.
The purpose of this article is to recap on where the dust lies, and assuming the Greensill decision is upheld, what non-resident controllers of Australian family trusts could do to improve their tax position.

Once a contractor, always a contractor?

The development of the gig economy and the increasing variety of worker relationships has undoubtedly changed the traditional working relationship. Consequently, the traditional ‘employee’ and ‘independent contractor’ dichotomy may not be adequately comprehended or easily accommodated in the current business environment.

Unfair Contract Terms – no longer a ‘toothless tiger’– new penalties for Australian businesses.

Unfair Contract Terms – no longer a ‘toothless tiger’– new penalties for Australian businesses. By Scott McKenzie (Director), Robert Wilson (Associate), Velocity Legal Snapshot summary The Australian Competition and Consumer Commission and the Small Business Ombudsman...

PODCAST: In Connection With Your Retirement

PODCAST: In Connection With Your Retirement Insights by Andrew Henshaw Insight Authors...ANDREW HENSHAW Director Andrew specialises in difficult tax disputes and complex tax advice. He is passionate about getting wins for his clients, solving difficult legal issues...

PODCAST: The Budget

The budget for 2020/21 is huge and will cost us a lot of money.

Federal Budget 2020-21: What does it mean for private business and their owners?

On 6 October 2020, Treasurer Josh Frydenberg handed down the 2020-21 Federal Budget. Delayed from May due to COVID-19, the key focus of this year’s Budget is to stimulate the Australian economy post COVID-19 lockdowns and the associated economic shocks to the global economy.

Taxpayer wins in Episode III of Eichmann Saga (Return of the Active Asset Test)

On 18 September 2020, the Full Federal Court handed down the third instalment of the Eichmann saga concerning the active asset test under the small business CGT concessions (Eichmann v FCT [2020] FCAFC 155) (Eichmann).
The Eichmann saga is a lot like the original Star Wars trilogy. How so?

Victoria’s extension to the commercial tenancies rent relief scheme and what it means for you.

Victoria’s extension to the commercial tenancies rent relief scheme and what it means for you. Insights by Emma Milne (Senior Associate), Scott McKenzie (Director), and Rajan Verma (Director), Velocity Legal The regulations extending the operation of the COVID-19...

A guide to the Retail Leases Amendment Act 2020

Another major change in the commercial leasing landscape
The eagerly awaited Retail Leases Amendment Act 2020 (Vic) (Amendment Act) received royal assent on 22 September 2020. Importantly, the Act amends the Retail Leases Act 2003 (Vic) (Retail Leases Act) and the Building Act 1993 (Vic) (Building Act).

The Eichmann Case – Federal Court

PODCAST: The Eichmann Case – Federal Court Insights by Andrew Henshaw Insight Authors...ANDREW HENSHAW Director Andrew specialises in difficult tax disputes and complex tax advice. He is passionate about getting wins for his clients, solving difficult legal issues...

‘Who’s paying for this?’ – tax considerations for Employee Share and Option Plans

In the current age of disruption, new ideas are giving rise to new businesses which hope to transform the way we do everything in our lives. However, it takes time to get a new idea off the ground and without revenue, attracting and retaining the individuals who can make the idea a reality can be a major challenge.

Tax Residency – another one bites the dust (the Joubert case)

They say home is where the heart is. The recent AAT decision in Joubert and FCT [2020] AATA 2645is a timely reminder that this proverb generally rings true in the context of tax residency. In other words, Australians who live and work overseas, but have a spouse or dependent children in Australia, will generally be considered tax residents of Australia.

PODCAST: Jobkeeper 2.1

Two things changed from Jobkeeper 2.0 to 2.1. You no longer need a 30% drop in actual turnover in the June quarter. A 30% drop in the September quarter is enough.

And you can add employees to Jobkeeper who joined you between 13 March and 1 July 2020, starting Jobkeeper from 3 August 2020.

NSW discretionary trusts- avoid extra land tax and duty on landholdings!

In the 2016 State budget, the NSW Government announced that foreign persons would be hit with additional transfer duty and land tax. These amendments became law in June 2016. There has been lingering uncertainty whether the ‘foreign trust’ rules would apply to discretionary trusts (given that most discretionary trusts include a wide range of persons, including ‘foreign persons’).

COVID-19 Restructuring

PODCAST: COVID-19 Restructuring Insights by Andrew Henshaw The current COVID-19 crisis might make more businesses eligible for the small business CGT concessions due to lower market values.Insight Authors...ANDREW HENSHAW Director Andrew specialises in...

‘liquid gold’ – the valuable tax concessions for a Members Voluntary Liquidation (MVL)

‘liquid gold’ – the valuable tax concessions for a Members Voluntary Liquidation (MVL) Companies may be voluntarily liquidated for a number of reasons, such as to reduce risk from previous activities of the company, to reduce annual compliance costs, or to...

What if I get it wrong? The benefits of having a ‘Reasonably Arguable Position’

What if I get it wrong? The benefits of having a ‘Reasonably Arguable Position’ By Andrew Henshaw and Rosalind Li, Velocity Legal Introduction Unfortunately, there are many instances where Australia’s tax laws are not black and white. For private businesses and their...

COVID-19: Victorian Rent Relief Rulebook

Regulations announced by the Victorian government provide the rulebook for landlords and tenants when negotiating rent relief in light of the impact of COVID-19. The devil is in the detail; however, the article below summarises some of the key concepts. We urge landlords and tenants to obtain legal advice to ensure that they approach negotiations in a methodical way without compromising their rights.

COVID-19: Frequently Asked Legal Questions

By Scott McKenzie (Director), Chelsea Davine (Associate) and Patrick Simon (Associate)

PODCAST: COVID-19 Commercial Tenancies Code

Insights by Scott McKenzie

PODCAST: Jobkeeper Rules

Insights by Andrew Henshaw

PODCAST: Job Keeper Payment

Insights by Andrew Henshaw

COVID-19: Commercial Tenancies Code – The Pathway Forward

COVID-19: Commercial Tenancies Code – The Pathway Forward By Scott McKenzie, Emma Milne and Andrew Henshaw, Velocity Legal This is a challenging time. Many businesses have closed or are feeling extreme pressure, which invariably creates headaches for both landlords...

Making sense of the ‘Cash Flow Boost’ Act

By Andrew Henshaw, Director, Velocity Legal.

Guide to leases for business owners

By Scott McKenzie, Emma Milne and Andrew Henshaw, Velocity Legal

Commissioner wins in Eichmann appeal

Commissioner wins in Eichmann appeal Insights by Rosalind Li Commissioner wins in Eichmann appeal: Federal Court tightens the screws on the ‘Active Asset’ Test Published in the Thomson Reuters Weekly Tax Bulletin (23 January 2020) The small business CGT concessions...

Denying the CGT Main Residence Exemption to ‘Aussie Expats’

PODCAST: Denying the CGT Main Residence Exemption to ‘Aussie Expats’ By Andrew Henshaw, Director and Patrick Simon, Law Graduate, Velocity LegalAdapting to the new rules, and why ‘tax residency’ is now even more important than ever. Close to three years since they...

PODCAST: Main Residence Exemption for Foreign Residents

PODCAST: Main Residence Exemption for Foreign Residents Insights by Andrew HenshawThe main residence exemption for foreign residents used to be easy. Once you got it, you didn’t lose it for at last 6 years – and even indefinitely as long as you didn’t rent it out....

PODCAST:Main Residence Exemption Upon Divorce or Death

PODCAST: Main Residence Exemption Upon Divorce or Death Insights by Andrew Henshaw The main residence exemption upon divorce or death can get tricky. How exactly does the exemption apply when owners divorce or die? Click the link below to listen in.Insight...

Victorian SRO awakens

Victorian SRO awakens - drops ‘practical approach’ to applying foreign purchaser additional duty for discretionary trusts By Rajan Verma and Andrew Henshaw, Directors, Velocity Legal Subjecting discretionary trusts that have little real connection to 'foreign...

PODCAST: AIRBNB TRIGGERS CGT

PODCAST: AirBnB triggers CGT Insights by Andrew Henshaw How does renting your home on AirBnB affect the CGT Main Residence exemption? Click the link below to listen in.Insight Authors...ANDREW HENSHAW Director Andrew leads Velocity Legal’s Sydney practice. If you are...

NSW Discretionary Trusts: Still time to act to avoid retrospective additional duty and land tax surcharges

NSW Discretionary Trusts: Still time to act to avoid retrospective additional duty and land tax surcharges Insights by Andrew HenshawNSW Discretionary Trusts: Still time to act to avoid retrospective additional duty and land tax surcharges On 22 October 2019, the New...

PODCAST: Tax Effective Structuring

PODCAST: Tax Talks - Tax Effective Structuring Insights by Andrew Henshaw In this episode of Tax Talks, Andrew Henshaw discusses the key tax issues to consider when considering structuring investments and business affairs. Click the link below to listen in. Insight...

PODCAST: Related Party LRBA

PODCAST: Tax Talks - Related Party LRBA Insights by Andrew HenshawIn this episode of Tax Talks, Andrew Henshaw discusses how a Limited Recourse Borrowing Arrangement can be put in place between a Self Managed Superannuation Fund, and a related party. Click the link...

PODCAST: SMSF BUYS PROPERTY JOINTLY

PODCAST: Tax Talks - SMSF Buys Property Jointly Insights by Andrew Henshaw In this episode of Tax Talks, Andrew Henshaw discusses the potential traps associated with a Self Managed Superannuation Fund buying property jointly. Click the link below to listen in. Insight...

PODCAST: Small Business CGT Concessions for Big Business

PODCAST: Small Business CGT Concessions for Big Business Insights by Andrew HenshawIn this episode of Tax Talks, Andrew Henshaw discusses how the Small Business CGT Concessions can sometimes not to ‘not so small business’. Click the link below to listen in. Insight...

PODCAST: The 2019 Harding Case

PODCAST: The 2019 Harding Case Insights by Andrew HenshawThe 2019 Harding case received a lot of media attention. And put the spot light onto our highly contentious tax residency rules for individuals – again. In this episode of Tax Talks, Andrew Henshaw discusses the...

PODCAST: Div 7A Reform

PODCAST: Tax Talk - Div 7A Reform Insights by Andrew HenshawWhat will the upcoming Division 7A reform look like? Andrew Henshaw discusses on this episode of Tax Talks. Click the link below to listen in. Insight Authors...ANDREW HENSHAW Director Andrew leads Velocity...

PODCAST: Div 7A Questions

PODCAST: Tax Talk - Listeners Div 7A Questions Insights by Andrew HenshawIn this episode of Tax Talks, Andrew Henshaw answers three Division 7A listener questions. Click the link below to listen in. Insight Authors...ANDREW HENSHAW Director Andrew leads Velocity...

PODCAST: When does a UPE become a Division 7A Issue?

PODCAST: When does a UPE become a Division 7A Issue? Insights by Andrew HenshawWhen does a UPE become a Division 7A Issue? Andrew Henshaw explains on Tax Talks. Click the link below to listen in. Insight Authors...ANDREW HENSHAW Director Andrew leads Velocity Legal’s...

PODCAST: ATO Disputes – How to avoid or manage them

PODCAST: ATO Disputes - How to avoid or manage them Insights by Andrew HenshawAndrew Henshaw shares with Tax Talks some of his experiences as a tax lawyer. Click the link below to listen in. Insight Authors...ANDREW HENSHAW Director Andrew specialises in difficult tax...

PODCAST: Dealing with the ATO in a tax dispute

PODCAST: Dealing with the ATO in a tax dispute Insights by Andrew HenshawAndrew Henshaw shares with Tax Talks some of his experiences as a tax lawyer. Click the link below to listen in. Insight Authors...ANDREW HENSHAW Director Andrew specialises in difficult tax...

The most common pitfalls fitness businesses need to avoid when negotiating a lease

Scott McKenzie’s guest post for the Healthy People fitness blog.

Stamp Duty to apply to Development Agreements in Victoria

BREAKING: STAMP DUTY TO APPLY TO DEVELOPMENT AGREEMENTS IN VICTORIA By Andrew HenshawThe Victorian Government handed down their 2019-20 Budget on Monday 27 May. Under the Budget, various changes to certain state taxes were announced (including duty, land tax and...

Contractor or Employee: What’s the Risk?

Contractor or Employee: What’s the Risk? Insights by Andrew Henshaw We often see employers misunderstand the distinction between independent contractor and employee. This can be a very costly mistake. In this article we discuss: the difference between an employee and...

Struggling with a landlord? You may be able to terminate the lease

Casenote: Tenant's Ability to Terminate a Lease Insights by Andrew Henshaw Struggling with a landlord? You may be able to terminate the lease Heavily entrenched in our legal system is the idea that if a party is not complying with its obligations under a contract, the...

Harding case on appeal – taxpayer wins, scope of ‘permanent place of abode’ concept widened

Harding case on appeal — taxpayer wins, scope of 'permanent place of abode' concept widened Insights by Andrew Henshaw A taxpayer with an Australian 'domicile' is a resident of Australia for tax purposes, unless the Commissioner is satisfied that they have a...

SELLING YOUR BUSINESS: HOW TO NAVIGATE THE LEGAL MINEFIELD

Selling your business: How to navigate the legal minefield By Scott McKenzie and Andrew Henshaw, Directors, Velocity Legal Selling a business can be a bittersweet moment. On one hand, you are ‘cashing in’ and will have the opportunity to free up time for other...

Business Succession: Transitioning to the next generation

Business Succession: Transitioning to the next generation By Scott McKenzie and Andrew Henshaw Transitioning Family Businesses Statistics demonstrate that family owned businesses are the lifeblood of Australia’s economy. For example: around 70% of Australian...

What’s in store for tax in 2019? Key tax issues business owners need to watch out for

What’s in store for tax in 2019? Key tax issues business owners need to watch out for Insights by Andrew Henshaw What’s in store for tax in 2019? Plenty! The upcoming Federal election is already looming as an important one for business owners in light of the possible...

Co-Owned Businesses: Why you need a business ‘pre-nup’ …. and what to do if you don’t have one.

Co-Owned Businesses Insights by Scott McKenzie and Andrew Henshaw Co-Owned Businesses: Why you need a business ‘pre-nup’ …. and what to do if you don’t have one. Sport and business have many similarities. A championship winning sports team generally wins because the...

Can a transfer to a ‘bare trust’ be subject to transfer duty? The devil is in the detail!

Can a transfer to a ‘bare trust’ be subject to transfer duty? The devil is in the detail! Insights by Andrew HenshawThe recent Victorian Supreme Court case of MD Commercial Pty Ltd and AJ Commercial Pty Ltd vs Commissioner of State Revenue [2018] VSC 560 highlights...

Selling a fitness business: what you need to know

SELLING A FITNESS BUSINESS: WHAT YOU NEED TO KNOW By Scott MckenzieWhen you’re selling a fitness business, the ideal scenario is a stress-free transaction that allows you to close that chapter of your life and move on, without having to think about the business ever...

Trust Splitting: the ATO’s controversial new Draft Taxation Determination

TRUST SPLITTING: THE ATO’S CONTROVERSIAL NEW DRAFT TAXATION DETERMINATION By Andrew Henshaw and Rosalind Li, Velocity LegalThe Australian Taxation Office (ATO) issued Draft Taxation Determination TD 2018/D3 (Draft Determination) on 11 July 2018. The Draft...

Buying a fitness business: what you need to know

BUYING A FITNESS BUSINESS: WHAT YOU NEED TO KNOW By Scott MckenzieBuying a fitness business is a major financial outlay, so you want to ensure you make a smart purchase that delivers what was promised, without any unpleasant surprises down the track. Follow these tips...

Tax residency – Commissioner wins big in recent expat case

TAX RESIDENCY – COMMISSIONER WINS BIG IN RECENT EXPAT CASE By Andrew HenshawThere are many Australian citizens and permanent residents who leave Australia to work overseas (Expats). Expats will often consider they are not a resident of Australia for tax purposes (i.e....

CGT marriage breakdown roll-over: the Sandini Case revisted

CGT MARRIAGE BREAKDOWN ROLL-OVER: THE SANDINI CASE REVISTED By Andrew HenshawCGT MARRIAGE BREAKDOWN ROLL-OVER: THE SANDINI CASE REVISTED A recent case before the Full Federal Court has tested the limits of the CGT marriage breakdown rollover relief. In Ellison &...

New ‘Integrity’ Measures for the Small Business CGT Concessions

significant changes when selling shares or units.

‘PLUS’ GST CASE – COURT OF APPEAL MUDDIES THE WATERS

‘PLUS’ GST CASE – COURT OF APPEAL MUDDIES THE WATERS By Andrew Henshaw, Director, Velocity LegalThe Victorian Court of Appeal has reversed a Supreme Court decision on whether the purchase price in a sale of land contract was GST-inclusive or GST-exclusive. The Court...

THE EMPIRE STRIKES BACK: THE NEW GST WITHHOLDING REGIME

THE EMPIRE STRIKES BACK: THE NEW GST WITHHOLDING REGIME By Andrew Henshaw and Rajan Verma Ordinarily, vendors pay GST on the value of the taxable supplies that they make. Vendors will sell goods or services for a price that includes a GST component. When it comes time...

WORKING OFFSHORE? TRANSFERRING MONEY TO AUSTRALIA? BEWARE OF AUSTRAC & THE ATO!

WORKING OFFSHORE? TRANSFERRING MONEY TO AUSTRALIA? BEWARE OF AUSTRAC & THE ATO! By Andrew Henshaw, Director, Velocity LegalAustralia is a big, isolated island. Despite our isolation, Australians are very well travelled. For some Australians, travel leads to living...

SEVEN REASONS WHY LABOR’S DISCRETIONARY TRUST PROPOSAL IS FUNDAMENTALLY FLAWED

SEVEN REASONS WHY LABOR’S DISCRETIONARY TRUST PROPOSAL IS FUNDAMENTALLY FLAWED By Andrew Henshaw, Director, Velocity LegalOn 30 July 2017, the Labor party announced that, if elected, a Labor Government would introduce a standard minimum 30 per cent tax rate for...

THE NEW 27.5% CORPORATE TAX RATE: HOW DO I GET IT?

THE NEW 27.5% CORPORATE TAX RATE: HOW DO I GET IT? By Andrew Henshaw, Director, Velocity LegalOn 1 July 2017, the new 27.5% corporate tax rate took effect. Many companies that are ‘small businesses’ will qualify for the new tax rate. Companies that do not meet the...

DID THE SANDINI CASE REALLY EXTEND THE BOUNDARIES OF THE CGT MARRIAGE BREAKDOWN ROLLOVER? NO!

DID THE SANDINI CASE REALLY EXTEND THE BOUNDARIES OF THE CGT MARRIAGE BREAKDOWN ROLLOVER? NO! By Andrew Henshaw, Director, Velocity LegalThe breakdown of a marriage can have a high emotional and financial cost. Often, a spouse will have to transfer some of their...

SPECIAL CONTRIBUTIONS TO SUPERANNUATION: ATO U-TURN: EXTREME CAUTION REQUIRED

SPECIAL CONTRIBUTIONS TO SUPERANNUATION: ATO U-TURN: EXTREME CAUTION REQUIRED By Andrew Henshaw, Director, Velocity LegalFrom 1 July 2017, drastic changes to superannuation take effect. Under those changes, the amount of money that a person can put into super (i.e....

FOREIGN PROPERTY INVESTORS STUNG: SPECIAL BUDGET UPDATE

FOREIGN PROPERTY INVESTORS STUNG: SPECIAL BUDGET UPDATE By Andrew Henshaw, Director, Velocity LegalIn my most recent edition of Life, Death and Taxes, I talked about some of the tax and duty changes targeting foreign property investors over the last five years....

Foreign Property Investors: 5 years of tax and duty changes

Property investment in Australia has boomed in recent years.

Getting the Small Business CGT Concessions: When is a liability, a liability?

The small business CGT concessions are some of the most significant tax…

Asset Protection: the Gift and Loan Back

Over your lifetime, you may have accumulated significant assets in your personal name.

Small Business Owners: Five Tax Issues to Watch Out for in 2017

Five tax issues that small businesses and their owners should pay close attention to.

Born in the USA

A look at one big difference between the Australian and US tax systems.

“Plus” GST – how one word costs $290,000

The importance of completing contracts correctly.

Tax Disputes: The Onus of Proof

When it comes to tax disputes, the proof is in the pudding.

Superannuation: $500K Cap is Axed!

The Coalition Government announced further changes to superannuation.

The Top 3 Legal Traps for Gym Owners