Newsletter

ABN CANCELLATIONS

The Australian Taxation Office (ATO) will be increasing its focus on the bulk ABN cancellation program in coming months.

The ATO indicates that it has been refining its models to help identify businesses that are not active any more or have forgotten to cancel their ABN when the business ceased.

As anticipated, the Budget celebrated the surplus with a $19.5 billion package of personal income tax cuts for Australian residents. This package revises the legislated seven-year income tax plan.

The personal tax changes mean a tax saving of $855 for someone on an annual taxable income of $45,000 per annum until 2022, then $1,080 until 2024 onwards.

There has been an increased focus by the Australian Taxation Office (ATO) on the use of assets held by business entities for private purposes. This includes assets that are genuinely used in the course of the entity’s business operations.

Life does not always go to plan. While we logically know that, most of us don’t plan for the worst - it’s all a bit morbid and time consuming.

The downside of not planning is the potential for hard earned assets to be squandered, family fall-outs, and money handed to the Government that could have been distributed in accord with your wishes. If you are a business owner, then the stakes are even higher.