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2019 November Client Alert

We are pleased to supply you with the November 2019 edition of Client Alert, which contains information on a number of important developments up to and including 18 October 2019:

  • Getting the benefit of your business tax losses – If you’re a sole trader or individual partner, you may be able to use your business tax loss to offset other assessable income you earn personally.
  • Downsizer super contributions: getting it right – “Downsizer” contributions let you contribute some of the proceeds from the sale of your home into superannuation, but there are several important eligibility requirements.
  • Health insurance and your tax: uncovered – If you don’t hold private hospital cover or are thinking about dropping it, you could be hit with an extra tax surcharge of up to 1.5% or cost yourself extra premiums in future.
  • Small business CGT concessions: when do I qualify? – CGT concessions allow you to reduce or eliminate the capital gain from the sale of a business asset, whether it’s held directly by your business entity or in another related structure.
  • Unpaid super: important amnesty update for employers – The government is getting tough on unpaid compulsory super guarantee contributions, but fortunately for businesses it has recently announced a revised “grace period” to rectify past non-compliance.
  • Selling shares: how does tax apply? – Each time you sell a parcel of shares, you trigger a “CGT event” and you must work out whether you’ve made a capital gain or capital loss on that parcel.
  • ATO to scrutinise every return for Tax Time 2019 – The ATO has announced that it will scrutinise every tax return lodged during Tax Time 2019 as part of its ongoing focus on “closing tax gaps”.
  • Beware of insurance changes in superannuation – Since July this year, super funds have been required to cancel insurance on accounts that have not received contributions for 16 months unless you elect to continue the cover. Inactive super accounts with balances of under $6,000 will be automatically consolidated with your other accounts or transferred to the ATO.

In addition, you’ll find a Due Diligence Checklist to help with various considerations when acquiring a business.

Please contact us if you wish to discuss how the points raised in Client Alert specifically affect you.