Small Business

Scott Morrison’s First Budget Very Illiberal

Max Newnham - 3 May 2016

There are a number of nasty shocks in the 2016 federal budget that unfortunately probably outnumbered some of the pleasant surprises. There are some massive changes to superannuation and small changes to small business concessions and tax rates.The biggest shock was Scott Morrison proving that he would make a good Labor party treasurer with the introduction of a number of…

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Picking the right business structure

Max Newnham - 2 May 2016

From an income tax point of view there is nothing stopping business owners operating a business through one structure, such as a sole trader, then changing to another structure that more meets their needs. The ATO cannot challenge this change in business structure as long as the prime reason for changing was not to obtain a tax benefit. The following…

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How The Self Employed Are Disadvantaged By The Income Test

Max Newnham - 4 Sep 2015

The income test for the age pension seriously disadvantages those s who are self-employed. A self-employed person earning $10,000 a year receives $3250 less in pension than a person that is employed. There are however ways that the impact of test can be reduced. The income test is made up of two thresholds that change each quarter. Income counted by…

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SMALL BUSINESS AND THE 2015 BUDGET

Max Newnham - 14 May 2015

There were a number of changes announced in the 2015 federal budget that will affect our clients including small business owners. As is usually the case there are different start dates for each of the measures announced. The tax cuts and other incentives included in the budget for businesses are only available to those that qualify as a Small Business…

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Risky business: companies and trusts

Max Newnham - 5 May 2015

There are many risks associated with running a small business, but the financial impact of some of these can be reduced by taking out insurance. There are other risks that can result in the personal assets of the business owners being attacked in the event of a business failing or as a result of legal action. A business owner or…

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The cost of calling yourself a company

Max Newnham - 17 Jan 2012

When people seek professional advice on how to best own and operate a business they often end up with a company. This choice of business entity, although providing some protection for the owner’s personal assets in the event of the business being sued, does come at a major capital gains cost. For income tax and legal purposes a company is…

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What’s your business really worth?

Max Newnham - 12 Dec 2011

One of the sad truths of people who buy small businesses is that they often don’t get advice until after they have made the purchase. This can lead to too much being paid for a business or it being owned by the wrong legal entity. People selling businesses justify their selling price by the profit produced. When this profit does…

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Tax tactics: what to claim when you work from home

Max Newnham - 5 Dec 2011

It is common for owners of a small business to use their home for running their business. For some people with a large mortgage it can seem attractive to class it as a place of business and claim a tax deduction for some of the interest on the mortgage. The ability to do this can have a capital gains tax…

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Whatever the super changes, someone loses

Max Newnham - 2 Dec 2011

The unfortunate truth about Australian politics is that both major parties tend to look after their supporters with the most influence, sometimes to the detriment of others. For the Liberals big business gets preferential treatment, as was evidenced by its Work Choices legislation, while the Labor party supports the unions. The recent super changes introduced by the Labor party are…

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How to write off business costs

Max Newnham - 7 Nov 2011

When the mining tax legislation was introduced several other tax based pieces of legislation were also introduced. One of these was the changes to small business asset purchase write off amounts from $1000 up to $6500. Q. We recently leased an office to run our small business. After GST has been deducted we spent $4500 on floor boards, $3000 on…

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As seen in

Read Max Newnham's columns in the following Publications:
Sydney Morning Herald
Eureka Report
The Age Melbourne
Brisbane Times
The Examiner Hobart, Tasmania
WA Today, Perth WA
Professional Planner Australia