The company has excess franking credits accumulated from payment of tax at a 30% income tax rate and has not previously paid dividends. What franking credit would be applied to a fully franked dividend paid in the 2022 financial year? Answer We assume your company is a base rate entity with a turnover of less than $50 million. As of …
Stamp duty concession
My client received a $7,000 first homeowners grant (FHOG) on his first principal place of resident property purchase in 2010. This property was purchased for $700,000, and full stamp duty was paid as there was no stamp duty concession at the time for first-time buyers (just the FHOG grant). Since this time, he has married, and his wife owns no …
Testamentary Trust – Distributions
Details A client has passed away. Will states cash distributions to the client’s two sisters and the balance to be left to the client’s son as a testamentary trust. Cash distributions to sisters have been paid. Trust has not been set up as yet per the Lawyer. Assets of the estate include: 3 Motor Vehicles BMW Jaguar Aston Martin – …
UPE – Dividends
Further to my conversation about UPE’S, what is the time frame for these dividends to be paid? I was under the impression that the payment had to take place within five years. Maybe I am wrong? Answer There is no 5-year requirement for the dividends. The real issue is the UPE between the discretionary trust and the company. You have a year …
GST On Sale of Goodwill
A query relating to GST on sale of goodwill… Client A has a business of IT/Software consulting/licence sales…and currently owes software Supplier B $180,000 for licences sold to customers. Supplier B has decided to cease providing licences to Client A and has offered $180,000 in compensation…and suggested that Client A keep the $180,000 rather than pay Supplier B. Is the …