Newsletter

In a volatile market, keeping to a strategy, or let’s face it creating one, can be tough. The downside of not taking time out for your strategy is that there is a tendency to keep a short-term focus at an operational level to try and pick quick wins to generate financial returns. Sometimes in the process, this short-term focus undermines longer term value and returns.

Earn-out clauses for the sale of a business are increasingly common. We look at the positives and negatives that every business owner should consider.

Business transactions often include earn-out clauses where the vendors ‘earn’ part of the purchase price based on the performance of the business post the transaction. Typically, an earn-out will run for a period of one to three years post transaction date.

From 1 July 2023, a new reporting regime will require platforms that enable taxi services including ride sourcing, and short-term accommodation to report their transactions to the Australian Taxation Office (ATO) each year. From 1 July 2024, the regime will expand to include all other platforms.

The Australian Taxation Office (ATO) has issued another reminder for clients and practitioners to be careful when dealing with properties that are used as holiday homes and to generate rental income. This has been a target area for the ATO in recent years and it seems like the ATO is still concerned about the deductions being claimed by some taxpayers in relation to properties that are used for mixed purposes.