Lessee and GST

James Murphy Tax

We are a not-for-profit registered charity, registered for GST and endorsed for income tax exemption, operating as a church. Another legal entity (also a registered not-for-profit charity) owns the church property. It leases it to our legal entity, which is the local church. The lessee pays property costs (e.g., rates, insurance) as part of the lease agreement. Because the invoices …

Voluntary Bankruptcy and SMSFs

James Murphy Tax

In the event of voluntary bankruptcy and SMSF, I presume the director of the corporate trustee must remove themself, and therefore fund must close. What happens to the assets in the fund? Are the funds exposed to the bankruptcy trustee if already bankrupt, and the fund must then close? If the funds remain in the SMSF (cash),  can I close …

Redundancy Payment

James Murphy Tax

I need to make a redundancy payment but need some advice on how to calculate the payment correctly. Answer We take it the payment has been negotiated and that it is only a matter of determining the tax treatment. If it is a genuine bona fide redundancy, then the following tax treatment applies. No tax will be payable on $11,341 …

Setting Up a Company

James Murphy Tax

For example (his wife and brother-in-law ) are planning of purchasing the late sisters’ property as an investment property. They intend to keep their sisters legacy at the same time as an investment for him and his wife for future generations. They will be using their own personal funds (husband and wife) for the purchase. The sale proceeds can be …

Industrial Relations Update – October 2021

James Murphy HR/IR

COVID-19 VACCINES AND THE WORKPLACE For the guidance of issuing mandated vaccines in the workplace, the Fair Work Ombudsmen has provided a guide on workplaces as a structure. Tier 1 work – where employees are required as part of their duties to interact with people with an increased risk of being infected with coronavirus (for example, employees working in hotel …

FBT – Change of Position

James Murphy Tax

An employee leaves working for a large chain as an area manager, takes a new position at an associated subsidiary being an area manager. The employer’s ABN changes, but he rolls his AL, LSL, and SL to the new employer, as it’s the same parent company. As part of the package at the large chain, he gets a salary packaged car …

Snap Lockdown Payment

James Murphy Tax

Our preschool is currently in the LGA with a snap lockdown. I am just curious if we have no children turn up to preschool – and no jobs to be done at preschool, can I send my staff home with no pay? Do I use their sick pay? If they don’t want to come to work due to mental health, …

Loan for Investment Rental Property

James Murphy Tax

If a family member lends funds for another family member to purchase an investment property and charges interest on the loan, is the interest deductible for the member/owner of the property? I assume if one claims a deduction, the other member declares the interest in their tax return. What rate of interest should be charged against the loan? Answer The …

Home Schooling

James Murphy Tax

Can an employee take carers leave for home-schooling during a Covid-19 lockdown? Answer The answer is no. Careers leave only applies and is taken when the person they are caring for is sick, ill, or injured. A business can pay it if they wish, but they are not obligated.

Dual Company Structure

James Murphy Tax

Would you please help with the following questions?  There is a Holding company and Trading company under a dual company structure.  The Holding company owns 100% shares of the Trading company and has no other business activity. Only the income for the Holding company will be the dividend income if the Trading company pays the franked dividend in the future. …