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The ATO has launched a refreshed version of its app to introduce “myDeductions”, a brand new online tool designed to help Australians keep track of their deductions by allowing them to capture expenses on the go. The ATO app is free and available in Apple, Android and Windows stores.

If you are a small business who incurs expenses creating or maintaining your business website you may be able to claim some costs as a deduction in your tax return.

CASE STUDY 1 - STARTING AN INCOME STREAM AT 60

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:

• be at least 18 years of age; and
• consent to taking on the role and responsibilities of a director.

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:

• the company owns the assets;
• the company is generally responsible for repaying company debts; and
• any money invested in the company (e.g. through loans to the company or by owners or investors buying shares in the company) belongs to the company and must be used for a proper company purpose.

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:

• disclosing personal details of directors – a company must inform ASIC of the name, date of birth and current residential address of directors;
• having a current registered office – a company must have a current registered office in Australia and must inform ASIC of its location;
• having a principal place of business – a company that operates a business from a location different from the registered office must inform ASIC;
• keeping financial records – a company must keep up-to-date financial records that correctly record and explain transactions and financial position (larger companies have additional obligations to lodge financial reports with ASIC);
• notifying ASIC of key changes – whenever there are certain key changes to the company’s details (for example registered office, principal place of business, directors), ASIC must be notified;
• paying relevant fees to ASIC – for example, the annual review fee; and
• checking annual statements – a company’s details on the ASIC register must be accurate and up-to-date.