We are currently hearing from a lot of our clients that they are having trouble finding staff to fill roles within their business. This often leads to the business owner and remaining staff picking up the slack and working in an unsustainable way which inhibits the business’ ability to grow.
Whilst Australia remains mostly closed to skilled migrants, university students and back packers, businesses will have to rethink their employment and growth strategies. Given this is such a topical issue right now, Renee Bettenay, one of Harris Black’s Directors, has made a short video on possible ways to combat these staff shortages. Please watch here.
• the maximum net assets of your business must be below $6million; AND
• the asset being sold must be an “active asset”.
So… Is your entity a Small Business?
You are a Small Business if you are a sole trader, partnership, company or trust that:
• operates a business for all or part of the income year; and
• has a turnover less than $2 million
Turnover includes the turnover of connected entities and affiliates of the business and their connected entities.
Turnover can be worked out based on the previous year’s turnover, an estimate of your current year turnover or your actual current year turnover. There are some exceptions and special rules if you are not using your previous year’s turnover.
Are the maximum net assets of the business below $6 million?
Net value of CGT assets:
• owned by the taxpayer (and entities connected with the taxpayer); and
• used or held ready to use in a business carried on by the taxpayer (or an entity connected with the taxpayer); and
• owned by the taxpayer’s affiliates (and entities connected with their affiliates)
must not exceed $6 million (the “maximum net asset value” test) just before the sale of the active asset which created the CGT event.
Is the asset being sold an Active Asset?
If the entity is either a small business OR the entity satisfies the $6 million net asset value test, the asset being sold must also be an Active Asset for the business to qualify for a Small Business CGT Concession.
Active Assets are those owned by the taxpayer and used or held ready for use in carrying on a business. The asset is not considered an Active Asset if it is held for a passive investment, rental property, financial instrument, loan etc. Obviously there is a large degree of complexity in the above rules. Please contact us if you would like to discuss further or have any questions.
Despite owning multiple properties, you cannot simply choose which property is your main residence to suit the best capital gains tax outcome at the time of sale. In order to claim the Main Residence Exemption from CGT at the time of sale there is a need to establish the property as your main residence.
Generally speaking, your main residence is considered to be the address at which you most frequently reside and is that recorded:
on the Electoral Role;
on your driver’s licence;
with the ATO; and
with your bank.
The existence of an electricity account and internet account in your name for the address and even photos of you residing at the property can also help establish a property as your main residence.
Carley Chapman and Amelie Smith have recently joined Harris Black to assist our wonderful Administration Team.
Carley has joined HB as receptionist and is enjoying interacting with our valued clients.
Some interesting fun facts about Carley… Her favourite subject in high school was Ancient History. Without any preparation, Carley can give a 40-minute presentation on cold cases and serial killers. If she could share a meal with any three individuals, she would choose Princess Dianna, Drake and Tutankhamen. Aside from necessities, Carley could not go a day without going to the gym and if she had to plan a three-week holiday overseas, she would go to Japan, UK and Mexico. Carley’s dream car is a Nissan Silvia S15.
Amelie is currently studying her Bachelor of Business (and achieving great results!). She is working with our Admin Team part time whilst she completes her studies. Her proudest accomplishment is completing an Accounting subject at QUT whilst in Year 12.
Some interesting fun facts about Amelie – her favourite subjects in High School were Accounting and Music. Amelie is also a massive AFL-Brisbane Lions fan and can give a 40-minute presentation on AFL without any preparation. Aside from necessities, her cat Bella is one thing she could not go a day without. Amelie is looking forward in coming months in taking a break from Uni and immersing herself in her new role at Harris Black. If Amelie had to plan for a three-week holiday, she would go to Canada, Japan and France. Also, her mum’s uncle is a distant relation to Rod Laver.
We are delighted to welcome Carley and Amelie to the HB Team!!
Harris Black is proud to be supporting the “The Australian Red Cross”.
The Australian Red Cross was set up to bring people and communities together in times of need and to build on community strengths. In addition to the Australian Red Cross Lifeblood branch which is responsible for the collection and distribution of blood, the foundation also supports people in natural disasters and other significant emergencies, provides help to the homeless, provides meals to people experiencing hardship, provides help and support to refugees, people seeking asylum and others who are vulnerable as a result of migration.
Over the next 3 months, the team at Harris Black will be raising funds for the Australian Red Cross through various activities, such as a special morning tea and lunch fundraising which will include baby photos guessing games, boardgame tournaments, guess the lollies in the lolly jar and also a blood drive for those who want to participate.
To find out more about the Australian red cross, visit their website here – www.redcross.org.au
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Today’s financial environment demands a regular review of strategy and a focus on execution.
