A company is a separate legal entity – that is, it exists under the law in its own right and can do nearly all of the things that a normal person can do such as enter into contracts, borrow money, and buy and sell assets.
A director of a company is a person who is responsible for managing the company’s business activities.
To be eligible to be a director of a company, you must:
Small companies must have at least one director. Larger companies may have many directors who collectively manage the business of the company.
If you become a director of a company, you must remember that:
You cannot treat what the company owns – for example, company property, assets and funds – as if they are your own. They do not belong to you, they belong to the company.
Because the company exists as a separate entity, almost like a separate person, you must carry out your duties as a director in accordance with certain rules. For example, you must always act in good faith, in the best interests of the company (even where this may conflict with their personal interests) and for a proper purpose.
These rules are contained in the Corporations Act 2001 in the form of legal obligations that are imposed on company directors, which set out how directors must perform their duties and how they are expected to manage the affairs of the company.
According to ASIC, company directors have seven key responsibilities. These include:
The ATO has announced that it is increasing its focus on rental property deductions and is encouraging all rental owners to double-check their claims before lodging their tax return.
The ATO is paying particular attention to excessive deductions claimed for rental properties, especially those located in popular holiday destinations around Australia. It has reminded taxpayers to only claim the deductions they are entitled to, for the periods the holiday home is rented out or is genuinely available for rent.
The ATO has identified a number of instances where taxpayers are claiming rental deductions for holiday homes that appear to be higher than expected when compared to the rental income being reported.
As part of the ATO’s prevention before correction approach, they are sending letters to taxpayers in approximately 500 postcodes across Australia, reminding them to only claim the deductions they are entitled to, for the periods the holiday home is rented out or is genuinely available for rent.
There are a few simple rules rental property owners should follow to avoid making mistakes on their tax return.
Firstly, it is important for all property owners to keep accurate records. This helps to ensure they declare the right amount of rental income and they have evidence for claims made.
Secondly, rental property owners should only claim deductions for the periods the property is rented out or is genuinely available for rent. If a property is rented at below market rates, for example to family or friends, deduction claims must be limited to the income earned while rented.
The ATO has advised taxpayers that it will be focusing this year on unusually high work-related expenses claims across all industries and occupations.
Technology enhancement and use of data is improving the ATO's ability to identify and investigate such claims. The ATO will also focus on claims that are already reimbursed by employers and private expenses such as travel from home to work.
When claiming work-related travel, you can't claim for a normal trip between home and work, unless:
The ATO has reminded taxpayers that in order to claim work-related expenses, the taxpayer must have spent the money, it must be related to their job and they must have a record to prove it.
The Small Business Grants (Employment Incentive) Act 2015 received assent on 29 June 2015. The Grant will provide employers up to $2,000 per new employee for businesses that don't pay payroll tax. The grant is designed to encourage the nearly 650,000 small businesses in NSW that do not pay payroll tax to hire new employees and expand their business.
The Grant will apply to new positions filled on or after 1 July 2015 and will continue until 30 June 2019. The Grant will be payable after the first anniversary of the hire of a new employee. The grant is a one off payment per new position and is paid when a claim is made on the 12 month anniversary of when the position was created.
For full-time employees the grant amount is $2,000. In the case of part time or casual employees, the grant amount will be pro-rated based on FTE hours of employment.
Businesses will be able to register for the Grant from 1 July 2015. Registration for the grant can be made:
WHAT BUSINESSES ARE ELIGIBLE?
To be eligible for the grant your business must:
WHAT EMPLOYMENT IS ELIGIBLE?
A business will receive the grant if all the following employment conditions are met:
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