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Taxation

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Consulting on the side? Don't fall into these tax traps

Consultants must be aware of the risks of Personal Service Income rules applying to their income. Especially if they want to split their income or work through a company.

Tomorrow's taxpayers pay for today's policy mistakes

Less affordable housing isn't the only thing set to weigh on Australia's younger generations. If new solutions for pension deficits and the use of resource revenue aren't found quickly, tomorrow's taxpayer will foot the bill.

The mixed fortunes of tax reform in Australia, part 2

Since Federation, reforms to our tax system have proven difficult. Yet they're too important to leave in the too-hard basket, and here's a look at the key ingredients that make a tax reform exercise work, or not.

The mixed fortunes of tax reform in Australia, part 1

While there have been numerous tax reviews at the Commonwealth and state levels, most have not resulted directly in substantive tax reforms. This two-part series looks at that history and explores the pathway forward. 

For the younger generation, we need to get real on tax

The distortions in our tax system have been ignored for too long, and we're now paying the price. It's time Australia got real and addressed the problems to prevent an even greater intergenerational tragedy.

Indexing tax thresholds to address bracket creep

To negate bracket creep, the thresholds at which marginal tax rates change should be indexed to inflation. Instead, governments legislate ad-hoc tax cuts to address bracket creep and announce them with great fanfare.

Are more taxes on super on the cards?

The Government's broken promise on tax cuts has prompted speculation about other promises that it may consider breaking. It's widely believed that super is lightly taxed and a prime candidate for special attention.

SAPTO and LITO, or do you really need an SMSF?

Money withdrawn from super after age 60 is tax-free but less understood are arrangements that allows a couple over the age of 67 to earn up to $57,948 per year outside super and pay no tax with LITO and SAPTO.

A capital gains tax discount is legitimate but how much?

Like negative gearing, discounted capital gains tax, especially on residential investment properties, is criticised for giving investors an edge over first-home buyers. A discount is justified but at what level?

Are franking credits back in Labor's sights?

A recent Treasury Department statement on tax spending includes franking credits, which may be coincidence or something more ominous. Here's why the Labor Government shouldn't target franked credits to raise revenue.

The proposal on capital raisings and franking is misguided

In proposing to prevent certain franked distributions that are funded by capital raisings, the Government is addressing the wrong problem, and the solution lies in this week's 2022 Budget announcement on buybacks.

Annuities cost more for women: it's time for unisex rates

Lifetime annuities will become a more important tool to manage longevity, but they are the only part of our retirement income system where the benefit is determined by an individual’s sex. It's time to change.

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Vale Graham Hand

It’s with heavy hearts that we announce Firstlinks’ co-founder and former Managing Editor, Graham Hand, has died aged 66. Graham was a legendary figure in the finance industry and here are three tributes to him.

Warren Buffett is preparing for a bear market. Should you?

Berkshire Hathaway’s third quarter earnings update reveals Buffett is selling stocks and building record cash reserves. Here’s a look at his track record in calling market tops and whether you should follow his lead and dial down risk.

What will be your legacy?

As we get older, many of us start to think about how we’ll be remembered by those left behind. This looks at why that may not be the best strategy to ensure that you live life well and leave loved ones in good stead.

It's the cost of government, stupid

Australia's bloated government sector is every bit as responsible for our economic worries as the cost of living crisis. Grand schemes like the 'Future Made in Australia' only look set to make it worse.

Welcome to Firstlinks Edition 584 with weekend update

A new report shows Australian fund managers performed better in the first half of the year, with most outperforming indices in local equities, small and mid-caps, and bonds. Their results are less impressive over longer periods.

  • 31 October 2024

A guide to valuing SMSF assets correctly

SMSF trustees are required to value all fund assets, including property, at market value when preparing the fund's financial statements each year. Here are some key tips to ensure that you get it right.

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