News

You may be starting out in business and trying to decide whether to become a sole trader or to set up a company. Alternatively, you may already be an established sole trader and considering switching to become a company. Tax considerations are vital in deciding which of the two business structures is most suitable for...

In today’s sharing economy, platforms like Airbnb have made it easier than ever to earn extra income by renting out a spare room or your entire home – but many Australians are unaware of the tax implications that come with these arrangements. When you rent out all or part of your residential property through digital...

If you’ve thought about upskilling or undertaking professional development this year, you may be able to claim some of your self-education expenses in your 2024–2025 income tax return. You incur self-education expenses when you: take courses at an educational institution (even if you don’t gain a formal qualification); undertake training provided by an industry or...

Taxpayers will be restricted from claiming deductions for general interest charge (GIC) and shortfall interest charge (SIC) incurred on or after 1 July 2025, after Parliament passed amendments on Wednesday (26 March). The Labor Party has previously said the changes will enhance incentives for all entities “to correctly self-assess their tax liabilities and pay on...

The Government’s big moment in the 2025-26 Federal Budget was the personal income tax cuts. Income tax cuts are a dazzling headline but in reality they deliver a tax saving of up to $268 in the 2026-27 year, with a tax saving of up to $536 from the 2027-28 year. At the same time, the...

The Commissioner of Taxation has filed a special leave application with the High Court in respect to the recent Commissioner of Taxation v Bendel decision. In an update to the Bendel case, the ATO has revealed it will maintain its current position treating UPEs to corporate beneficiaries as loans under Division 7A. In an interim...

On 19 February 2025, the Full Court of the Federal Court handed down a highly anticipated ruling in Commissioner of Taxation v Bendel [2025] FCAFC 15. This case tackled a key issue in private group structures—whether an unpaid present entitlement (UPE) to a corporate beneficiary qualifies as a “loan” under Division 7A of the Income...

Big changes are coming to foreign resident capital gains withholding laws, and they’re now officially locked in. If you’re selling certain taxable real property (like Australian land), these rules apply to you—even if you’re an Australian resident. Here’s why: Under these laws, if you don’t have a valid ‘clearance certificate’ from the ATO at or...

The ATO has set the record straight on some common misconceptions about Division 7A—the tax rules that prevent private companies from distributing profits or assets to shareholders (or their associates) tax-free. In short, if a private company provides a payment, loan, or other benefit to a shareholder or their associate, it could be treated as...

The ATO is stepping up its data-matching efforts when it comes to rental properties. From 2024 to 2026, it will collect rental bond data from State and Territory regulators twice a year. What kind of rental bond data? The program will capture details of landlords, tenants, property managers, and rental bond transactions. Why is the...