Taxation Query

James Murphy Tax


Thank you for your latest glossy Tax Essentials Manual. I have some questions regarding tax returns that are now due.

  1. Page 2 of Losses Schedule. Do we need to satisfy the ‘business continuity test, what is the test?
  1. What is a ‘superannuation income stream’, Item 7 In Tax return for individuals?
  1. Are we required to lodge a ‘reportable tax position schedule’, Item 25 in Company tax return?


  1. The business continuity test applies for companies – means you carry on the same business at the time the loss was incurred and at the time the loss is recouped.

You cannot derive new income from a transaction of a kind that you did not engage in when the loss was incurred or similarly from a new business activity.

The ATO applies this test strictly. You may however meet the continuity of ownership test – (greater than 50%) – if this is the case then you do not have to meet the continuity of business test.

  • SuperStream is the way businesses must pay employee superannuation guarantee contributions to super funds. With SuperStream money and data are sent electronically in a standard format.

The ATO can see this in real time.

  • The Reportable Tax Position is a schedule contained in the company tax return. Whether it applies to you will be evident from criteria in the Company Tax Instructions published annually by the ATO.