Capital Gain Tax

James Murphy Tax

Question: Background The taxpayer is a family trust which has owned a small shopping centre with 5 shops for 25 years. All shops have been leased out for the last 25 years. One shop has been leased to a related entity. The family trust sold the shopping centre in August 2020 with a profit of 2 million dollars. Tax Issue …

Semi-Retirement.

James Murphy Tax

Question: Scenario:  The seller has been in practice as a sole trader for over 27 years, just turned 60, and starting to prepare for semi-retirement. A colleague has had discussions about buying 50% of the business and eventually owning 100% down the track so are putting this in place intending to buy in on 1July 2021.  The buyer does not …

Distributions of a Discretionary Trust

James Murphy Tax

Question: Can you please advise if a Family Discretionary Trust  (owned by son) can distribute trading profit to a Company (owned by father)? Answer This is quite possible, but you need to refer to the clause of beneficiaries in the trust deed to determine if the father’s company is an eligible beneficiary.

What Company Rate?

James Murphy Tax

Question: Could you please confirm what company rate is applicable on the following? Distribution from a Family Trust to a Company. All income is from a trading business within the Trust. As more than 80% of the income, being distributed from the discretionary trust to the company is not passive income. Can you please advise what tax rate is applicable …

Proposed Merging Superfund

James Murphy Tax

Question: My client has a superannuation fund with defined benefits and member contributions with an employer. The employer proposed to merge with another super fund with an accumulation merger fund. My client question from me is : What is advantage and disadvantage of merging proposed fund? Answer We assume your client has a choice. Usually, a defined benefit fund has …

Industry-Specific Redundancy

James Murphy Tax

Question: An employee that has handed in their resignation and I am after some advice as to whether they are entitled to a redundancy payment on termination. They are employed under the Building & Construction General Onsite Award 2010 and is currently employed as a trainee surveyor. When they first started with the company they were employed as a Civil …

Sick Leave

James Murphy Tax

Question: Scenario: A staff member requires time off for ill-health but has no sick leave accrued and is minus 27 hours. If we do not pay them for this time off, is it recorded as sick leave, even though they are not paid for it? If so, do we then still deduct the sick leave amount from their sick leave …

Paid Personal Leave

James Murphy Tax

Question: I have a question regarding personal leave regulations. In the last couple of years, there was a period that paid personal leave for part-time employees was increased to 10 days. Can you please tell me when that started & finished? Answer: The decision was overturned by the High Court so there is no effect moving forward.

Calculating LSL

James Murphy Tax

Question: An employee started on 29.5.12 then become permanent 27.8.12. When calculating LSL what date do I calculate from? Answer The Long Service Leave Act 1955 (the Act) provides full-time, part-time, and casual workers (or any combination of these throughout the period of service) in NSW to 2 months (8.6667 weeks) paid long service leave on completion of 10 years’ …

Staff Covid/Flu Shot Obligations?

James Murphy Tax

Question: We have a staff member who has been encouraged to have the Astra Zeneca Vaccine. “As recommended by my doctor and due to existing medical condition, I need to have Vaccine (Astra Zeneca).” It is for the entire day so have asked if they can submit the day off as sick leave? If everyone wants a day off to …