If you have a family trust that will distribute the net profit to beneficiaries for the 2014 financial year, you need to create and sign a trust resolution by the 30th June 2014.
A Trust Resolution is a statement of intention to distribute the profits to the beneficiaries you have nominated (made presently entitled to).
If you don’t draft and sign a resolution by the 30th of June 2014, the ATO will deem that nobody (beneficiaries are not presently entitled) to the profit being distributed and assess the trust under s99A of the Income Tax Assessment Act 1936 at the top marginal rate of 45%.
Sporting Clubs, Schools or religious institutions – not DGR (tax deductible), however tax exempt bodies
Any amounts make presently entitled to a tax exempt body will need to be disclosed in the trust resolutions and be either paid in full or provide a written notice to the tax exempt body within 2 months of the 30th June 2014.
Capital Gains or Franked Dividends
If you are expecting any Capital Gains or Franked Dividends to be received in the Trust and paid out to beneficiaries, theses amounts need to be specifically stated in dollar or percentage terms (%) and directed (streamed) to a beneficiary, or you will lose the right later for any tax planning as these amount will be distributed in the same proportion as ordinary taxable income. Bamford Case – Proportionate Approach
Please speak to your accountant ASAP if they have not already contacted you to draft a resolution for 2014.
If you need help – please contact our office before the 30th June 2014.
Joint Venture tax understanding for property developers in Australia Joint Venture Agreement What is a (JV) for Property Development A joint venture (JV) is a cooperative agreement between two or more parties in which all parties contribute their resources (such as...
National Disability Insurance Scheme What is the NDIS / SDA? NDIS The National Disability Insurance Scheme is a Federal Act developed in 2013 to allow people with a disability to exercise choice and control about matters that affect them- such as their housing....
Property Price Increases and Tax? Property Prices Increase what about taxes? Residential properties values have increased in some cases over 30% in the last year, what does this mean for owners and investors? Family Home If the property being sold is the family home...
All directors or intended directors need a DIN All directors or proposed directors within 12 months of directorships of companiescorporate associations & body corporates registered under the Corporations Act.Corporate Trustees for TrustsSMSF Corporate Trustee Need...
Small Business Clients Business in the following industries that make payments to contractors or subcontractors needs to lodge a Taxable Payment Annual Report (TPAR) by the 28th of August each year. Black or Cash Economy Detection The TPAR is a black economy measure...
COVID-19 $150,000 Instant Asset Write-Off The best tax breaks for small business is the instant asset write-off, a great way for your business to purchase capital assets and get an immediate tax deduction. As part of the COVID-19 Coronavirus Stimulus Package, the...
Employer payments to employees Job Keeper Payment OverviewSupport for Employers to keep employees on the books! Employer Register Now for Jobkeeper The Job Keeper Payment will provide a flat $1,500 a fortnight per employee for businesses to retain or rehire nearly six...
2nd Wave COVID-19 Stimulus Packages Income support for individuals & Sole Traders Over the next six months, the Government is temporarily expanding eligibility to income support payments and establishing a new, time-limited Coronavirus supplement to be paid at a...
Corona Virus Stimulus Packages Low Income Australian The Australian Government will provide financial assistance to around 6.5 million lower-income Australians in response to the Coronavirus.One-off payments of $750 will be paid to around 6.5 million lower-income...
Flipping houses can be a great way to make a living or a handy lump of cash quickly, however it involves Finding the right propertyFinancing can be on a short-term basisGetting the number rightExecuting the makeover and selling in the shortest time possibleGetting the...
