Business
How the ATO Uses AI to Keep an Eye on Small Businesses
The Australian Taxation Office (ATO) is employing Artificial Intelligence (AI) to assess small business tax compliance, using custom-built systems to analyse deductible expenses and detect income hidden in the shadow economy. AI Models for Tax Compliance Among the AI tools is the ‘Black Economy Omitted Income Scoring Job,’ designed to identify undeclared cash-in-hand earnings and…
The Importance of Keeping Your ATO Lodgments & Payments Up to Date
The ATO may require small businesses to switch from quarterly to monthly GST reporting from 1 April 2025. Who Will The ATO Target? Anyone who has a history of non-compliance Anyone who has missed/made late payments Anyone who has lodged a BAS late Anyone who reports GST incorrectly This shift aims to help businesses meet…
Xero: A Great Accounting Tool, But Not for Job Costing
Xero is a powerful cloud-based accounting software that helps small and medium businesses manage bookkeeping, invoicing, payroll, and financial reporting. While it’s a great general ledger system, many businesses assume it can handle job costing effectively-but that’s where problems arise. Job costing is essential for businesses managing multiple projects, such as construction companies, trades, and…
Maximising your Returns: How Property Depreciation Works
Property tax depreciation refers to the decline in value of an investment property’s assets over time due to wear and tear. The Australian Taxation Office (ATO) allows investors to claim this depreciation as tax deductions, thereby potentially increasing tax refunds and increasing the effectiveness of negative gearing. How is Depreciation Categorised? 1. Capital Works (also…
How Changes to ATO Interest Deductions Will Impact You
Historically, ATO interest charges, such as General Interest Charges (GIC) and Shortfall Interest Charges (SIC), have been tax deductible for businesses and individuals. These charges often arise from underpaid tax, late payments, or adjustments to prior tax returns. However, from 1 July 2025, ATO interest charges will no longer be eligible for tax deductions. This…
Ensuring ATO Compliance for Property Investors
Each tax season, the Australian Tax Office pays special attention to areas where taxpayers often make mistakes, intentionally or unintentionally. Rental properties have been a key focus this year, with the ATO revealing that 90% of audited rental property schedules contained errors. These errors accounted for a $1.3 billion shortfall in tax collection. Common issues…
Christmas Parties & Gifts: A Business Owner’s Guide to Festive Tax Perks
As Mariah Carey’s “All I Want for Christmas Is You” is starting to blast through supermarkets and shopping centers, businesses are gearing up for staff parties and expressing gratitude through gift-giving. In saying this, it’s important to consider the tax implications of these celebrations, particularly when it comes to Fringe Benefits Tax (FBT) and tax…
The Power of Shorter Meetings in Small Businesses
In today’s fast-paced business environment, time is one of the most valuable resources. Many businesses find themselves stuck in long, drawn out meetings that often achieve less than intended. Statistics show shorter, more focused meetings can lead to better decision making, greater productivity, and happier teams. In this article we unveil 6 reasons as to…
10 Spring Cleaning Steps for Small Businesses.
Spring is the perfect time for a fresh start, and this applies to your business as much as your home life. Taking a moment to “spring clean” your business can help you streamline operations, improve profitability, and uncover new opportunities for growth. In this article, we explain 10 practical steps every small business owner should…
Investment Bond: A Tax Effective Way to Fund Your Child’s Education
Securing your child’s financial future is a top priority for many parents. With education and living costs on the rise, starting a savings plan early can make a significant difference. There are three main avenues to consider when saving for your child: Bank Accounts, Investments, and Investment Bonds. Each option has its own benefits and…