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Showing posts from November, 2018

Clients separating from their partners - what do you do next?

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Relationship breakdowns are emotional and can be complex. While it marks the end of one thing, it often begins something new, with the path to separating any shared assets rarely straightforward.

This is where the family lawyer and the tax professional enter the fray, to help their client navigate the emotions and the commercial realities of the separation. 
In October 2018, Rishi Wijay, (Klimek & Wijay Family Lawyers) presented the session ‘Your client tells you that they are separating from their spouse or de facto partner. What do you do next?’ at WA's ‘The Client Life Cycle: challenges and opportunities’ event.

We spoke to Rishi about some of the issues facing advisers.

“When a long-standing client of a tax professional tells them that they are separating from their de facto partner or spouse, a difficult journey begins for the client and their trusted adviser. I want to trace that journey from a family lawyer’s perspective, and try to offer some insight into how the tax p…

What happened in tax in November

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Written by TaxCounsel Pty Ltd
The following points highlight important federal tax developments that occurred during November 2018.
Each month, these developments are considered in more detail in the 'Taxing Issues' column of Taxation in Australia, the Institute's member journal.
Division 7A consultation

A consultation paper in relation to the amendments that are proposed to improve the integrity and operation of Div 7A ITAA36 has been released.

Small business rates 
An amending Act that became law on 25 October 2018 contains amendments which will give effect to the government’s decision to accelerate the reduction of the corporate tax rate for corporate tax entities that are base rate entities.

Deductions for vacant land


Exposure draft legislation has been released relating to the proposal to deny deductions for losses or outgoings incurred to the extent they relate to a taxpayer holding vacant land.

Education:Think differently about your education. Gain accreditation with sho…

Labor’s negative gearing restrictions – how might they work?

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Written by Bob Deutsch, CTA

The Federal opposition’s plans to introduce restrictions on negative gearing for investors, if elected next year, have received some much-needed clarification.

Last week, I was able to confirm with the Labor Party that their proposed changes to negative gearing would apply across the board to all investments. Previously it was thought that Labor’s negative gearing restrictions might only apply to property investment.

With this knowledge, The Tax Institute issued a media release outlining the good and bad news for investors.

Shortly after the media release was issued, I received feedback from Member 372 who suggested that “it is not the Institute’s business to act as spokesman or apologist for a political party”.


I thank Member 372 for their comments. However, with all due respect to the member, to suggest that by examining these measures, I am acting as an apologist for the Labor party is no more accurate than to suggest that when the the Institute publish…

Becoming a better client adviser through education

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Adam Rutherford, Accountant CMS Private Advisory and dux graduate, on how study made him a better adviser to his clients.
Adam started his professional career at CMS Private Advisory in 2013 where he works as an accountant. 
“I work in the business services division assisting small-medium sized businesses and individuals with a range of taxation matters among other things,” he says.
He says he wanted to learn about the strategies and concessions that may be available to a client when dealing with transactions that have tax implications.

Undertaking education not only builds knowledge and skills but also builds confidence that can translate to success on the job. One of the key challenges for the profession is building a strong pipeline of future advisory capability amidst technology advances and changing client expectations driving a shift in the role of the tax professional.
After completing CTA2A and CTA2B Advanced, Adam says the questions raised throughout the programs helped him…

3 steps to prepare you for tomorrow’s commercial practice needs

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How to help your clients navigate the intricacies of commercial law and think strategically about business risks.
Commercial law, also known as trade law, concerns the laws surrounding business and commercial transactions, including both private and public law. Working in commercial law, you would be spending your time advising clients on various day-to-day legal issues that may arise as they manage a business. If you work in tax, you’re certain to engage with Australia’s commercial law environment. And clients and stakeholders depend on tax professionals to help them navigate the intricacies of commercial law.
Studying commercial law will give you an array of skills that are valued highly in business. It will develop your analytical and critical thinking skills, improve your written communication skills, and help you to think strategically about business opportunities and business risks. The Tax Institute’s commercial law subjects provide candidates with education to register as a tax …

5 steps for successful career planning

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Fast track your career development and success with a career roadmap. “If you don’t know where you’re going, any road will take you there”.
This may have been a line out of Lewis Carroll’s, Alice’s Adventures in Wonderland, but it applies equally to business. One of the most important steps to reaching what you want is knowing what you are striving for. How many of us, however, follow Alice’s approach, wandering aimlessly without any clear direction?
Having a career roadmap will set you up for success.At significant checkpoints in the year – such as birthdays, work anniversaries and the start of a new year – it’s good to reflect on how you are tracking against your plan. And if you don’t have a plan, here is how to create one.
1. Define what success looks like Think about what’s most important to your career now and how you want your career to look in the future. It’s that dreaded but necessary question in a job interview – where do you see yourself in x amount of years?
Create a c…

Div 7A: Issues when dealing with loans and unpaid present entitlements

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It’s been 20 years since Division 7A was enacted, and, despite the passage of time, it remains one of the most complex and challenging provisions in our taxation legislation.

Treasury have released their proposed changes to Division 7A and suggested a number of measures from a new loan model for all existing 7 and 25 year loans and self-correction mechanism to rectify Div 7A breaches to safe harbour rules for the use of assets.

At the sold-out Division 7A Day in Perth on 22 November, Daniel Smedley, CTA, (Sladen Legal) presents the session ‘Issues when dealing with loans and unpaid present entitlements’.

Daniel’s session considered the issues that arise when dealing with loans and unpaid present entitlements primarily in a taxation context including the income tax and capital gains tax implications of forgiving and waiving loans, and the income tax and capital gains tax implications of creating, satisfying, waiving, releasing or assigning unpaid present entitlements (UPEs).

His pape…

The post BEPS world – Lessons learned and what is the reality?

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Recent years have seen an unprecedented global, coordinated response to the 15 Action Items recommended by the OECD following its Base Erosion and Profit Shifting (BEPS) project, a process in which Australia, and the ATO, has been at the leading edge.

At the 51st Western Australia State Convention in August, Matt Popham, CTA, (KPMG), presented the session ‘The post BEPS world – Lessons learned’.

Speaking to us before the event, Matt said “The various BEPS initiatives that have been implemented over the years have been translated into practices that actually impact Australian businesses. Looking at these practices and how the ATO are seeking to implement new initiatives can be used, together with what is happening around the world, to help us predict what will come in the future.”

Next year Matt will present at our National Convention in Hobart, in the session ‘Australia’s Responses to the BEPS OECD Project – What is the Reality?’, where he will peer through the fog of these legisl…

2019 National Convention - Key Sessions Sneak Preview

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Going back only a few short years, there aren’t many of us who could have accurately predicted the landscape of 2018.

Brexit. President Trump. The fallout from the Banking Royal Commission. A Liberal leadership spill, and a new Prime Minister.

The world is changing at an increasingly rapid rate, and often in unpredictable ways. If you’re not looking forward you’re going to be left behind.

Taxation administration and practice continues to evolve and many expect it to feature prominently in the 2019 election. With all this happening in the background, the 34th National Convention program has been designed with one eye on the horizon, and both feet planted firmly on the ground.

We take a look at some of the key sessions and speakers in this post.

Division 7A and UPEs – The Road Ahead

In October 2018, Treasury published a Consultation Paper outlining the elements of a proposed new regime for Division 7A.

Proposed amendments to Division 7A have a long history commencing with the Board…