Author Archives : admin

Black Economy Taskforce findings

In its effort to facilitate a fair business environment, the ATO has offered continued support for honest businesses.

Girl counting money

With an estimated $40 billion lost to the hidden economy, the need for strong diligence and continued governance over Australian businesses is essential. The Black Economy Taskforce, established in May 2017, has uncovered a number of alarming trends. These trends relate to strategies dishonest businesses and individuals are engaging in to evade their tax responsibilities.

Trends show that problematic areas include:
The sharing economy:
The money exchanged through services such as Airbnb, Airtasker and Uber are all taxable. Ensure you understand how to be compliant before engaging with these services.

Cash transactions:
Employers paying employees in cash to avoid tax and super responsibilities costs the economy an astronomical amount, as well as contractors accepting cash payments and not accurately documenting these.

Incorrect reporting:
Individuals and businesses failing to report their business dealings correctly are creating huge liabilities in the economy. Small reporting dishonesties by a great portion of taxpayers creates a large balance of unaccountable money; the majority of unaccountable money in relation to tax evasion.

If you have any queries please contact our office on (03) 9728 1448

Have a great day,

The team at TAS Tailored Accounting Solutions 

This publication is for guidance only, and professional advice should be obtained before acting on any information contained herein. Neither the publishers nor the distributors can accept any responsibility for loss occasioned to any person as a result of action taken or refrained from in consequence of the contents of this publication.

Digital currency no longer subject to double tax

The Government has announced that the GST treatment of digital currency, such as Bitcoin, is now the same as using money for purchases of goods and services.

Businesses that use digital currencies will no longer need to pay GST twice, as of 1 July 2017.

The Commissioner of Taxation accepts that affected taxpayers may lodge BAS in accordance with either the current law or in accordance with the new law from 1 July 2017 until the corresponding amendments made to the GST Regulations are registered.

The following will apply if the GST Regulations are registered:

• Taxpayers who correctly anticipated the law do not need to act.

• Those who did not anticipate the law, i.e., acted in accordance with the current law, will be required to lodge requests for an amended assessment.

Taxpayers may receive a refund of overpaid GST provided the amendment results in a reduction in liability (subject to restrictions). If the amendment results in an increase to your liability, no tax shortfall penalties will apply and any general interest charge associated with the shortfall will be remitted to nil for a period up until 28 days after the amending Regulations are registered.



Should you have any queries please contact our office on (03) 9728 1448.

Have a great day!

TAS Tailored Accounting Solutions


Don’t get caught at these public holidays

When it comes to public holidays, business owners have the responsibility of getting it right.


Consider the following:

National public holidays Under the National Employment Standards (NES), the following days are national public holidays:

• 1 January (New Year’s Day)

• 26 January (Australia Day)

• Good Friday

• Easter Monday

• 25 April (Anzac Day)

• Queen’s birthday holiday (celebrated on different days for each State or Territory or a region of a State or Territory)

• 25 December (Christmas Day)

• 26 December (Boxing Day) • Any State or Territory (or a region of a State or Territory) specific public holidays.


Employers can ask their staff to work on public holidays if it is required, however, an employee can refuse the request if it considered unreasonable. Fair Work Australia reminds business owners to decide if the request is reasonable by considering:

• the nature and needs of the workplace

• the employee’s personal circumstances

• whether the employee will get more pay

• the type of work • whether their salary includes work on a public holiday

• their employment status (full-time, parttime, casual, etc.)

• how much notice is given

• the notice an employee gives when refusing to work on a public holiday

Pay on public holidays

Most employees are entitled to penalty rates for working on a public holiday, these are set by the award or enterprise agreement the employee is under. Some awards and agreements allow staff and employers to agree to substitute the public holiday for a different day, get time off in lieu, or have a day added to their annual leave balance. When a public holiday falls on a day or partday that an employee would usually work, you must pay the employee their base rate of pay for their ordinary hours of work.

Other considerations

Public holidays that fall on an employee’s paid leave do not get treated as annual leave; the day is still treated as a public holiday and the employee must be paid at least their base rate of pay for the day.

This publication is for guidance only, and professional advice should be obtained before acting on any information contained herein. Neither the publishers nor the distributors can accept any responsibility for loss occasioned to any person as a result of action taken or refrained from in consequence of the contents of this publication.

Make 2018 your best year ever

The New Year is the perfect time to reflect on the past year, and implement changes in order to strengthen and grow your business.


Consider the following areas when developing your New Year business resolutions:


No matter how well your business performed in the past year, there is always room for growth and improvement. If you set a target of earning a certain figure in 2017, raise that by 10 per cent for 2018. Revisit where the business is spending money and create strategies to lower these costs. For example, if the internet bill for the business is X amount, consider shopping around and looking for a cheaper deal. Small changes in multiple areas can see you make an extra 10 per cent annually without feeling like you are making large sacrifices.

Revamp social media marketing strategies:

Technology is ever-evolving, meaning the way it can be used as a business and marketing tool is too. January is the ideal time to do your research; investigate emerging trends for social media marketing and try to analyse the direction in which these trends are travelling. Research may tell you, hypothetically, that successful businesses in your industry are steering away from Facebook and are predominantly using Instagram and Snapchat. In this instance, you should be analysing how you can adapt and transform your current marketing strategy to stay current.

Professional and personal development

There is always something new to learn; whether that be related directly to your business and the industry it is in, or whether it relates to personal skills that will make you a better business person and a better leader. Take some time to look at the courses available to you, that will fit into your schedule, or that you can adjust your schedule to fit them in.

There are many organisations online that provide courses in a large array of areas, such as developing your technology skills, learning how to use specific software and programs, business refresher courses, etc. You may have always wanted to learn a new personal skill, such as yoga, rock climbing or a new language; make that a priority in 2018. Developing your personal skills will help you to become a better leader and all round entrepreneur.

Should you have any queries please contact our office on (03) 9728 1448.

Have a great day!



Benefits of a business valuation

Knowing the value of your business is critical, especially nearing the end of the year. It allows you to enter the new year with an informed understanding of the business’ worth and potential.


There are numerous benefits of getting a business valuation, including the following:

  • Understanding your business’ worth

Conducting a business valuation can provide you with accurate, reliable data as to how much your business is actually worth. Your prediction as to what your business is worth may be completely off. Whether your belief is that the business is worth a considerable amount more or less, actually knowing the worth can allow you to act accordingly.

  • Evaluating business growth

A business valuation will provide you with the data to adequately assess how successful your business has been. In fact, a business valuation at the end of each year can help you evaluate how to implement strategies for the new year to increase profit and business value.

  • Strategic planning

Without knowing the true value of the business, strategic planning for the future becomes extremely difficult; it is not based on true data. Knowing how much your business is worth allows you to reassess how effective your marketing and business practices are, and how to improve upon them.

If you have any queries please contact our office on (03) 9728 1448

Have a great day,

The team at TAS Tailored Accounting Solutions 

This publication is for guidance only, and professional advice should be obtained before acting on any information contained herein. Neither the publishers nor the distributors can accept any responsibility for loss occasioned to any person as a result of action taken or refrained from in consequence of the contents of this publication.

Deadline for 7-year sub-trust arrangements

The ATO has published a Practical Compliance Guideline PCG 2017/13 for those who used a 7-year sub- trust arrangement to deal with unpaid present entitlements (UPE) owed by a family trust to a related entity.


The guideline provides assistance on the administration of these sub-trust arrangements once the 7-year loan period expires. As many entered into these sub-trust arrangements on or before 30 June 2011, the period is close to expiry for many no later than 30 June 2018.

The sub-trust arrangement formed as an option to deal with unpaid present entitlements. A UPE is an amount of trust income which the trustee of a trust appoints, but does not pay, to a private company beneficiary.
Under this arrangement, UPE funds in the sub-trust are held for the sole benefit of the private company beneficiary if they are lent to the main trust under a 7-year interest only loan with the principal of the loan repayable at the end of the 7-year interest only loan.

The terms of the sub-trust arrangement compromised that the terms of the investment agreement must be legally binding and
documented, and that the trustee had an obligation to repay the principal of the loan at the end of the loan term.

This means the trustee must repay the principal of the loan before the 7-year period expires. If the trustee fails to do so, any unpaid principal of the loan will be treated by the Commissioner as the provision of financial accommodation and therefore a Division 7A loan.

The trustee of the sub-trust would then need to enter into a 7-year complying loan agreement by the private company’s lodgment day. This provides a further period for the amount to be repaid with periodic payments of both principal and interest. If the 7-year complying loan is not put in place between the sub-trust and the private company prior to the private company’s lodgment day, a deemed dividend will arise at the end of the income year in which the loan expires.

Furthermore, where the facts and circumstances indicate there has never been an intention to repay the principal of the loan at the end of the 7-year interest only loan, the Commissioner may consider that the arrangement was a sham, and/or that there was a fraud or evasion.

In these circumstances, the Commissioner may go back beyond the period of review and deem a dividend in the income
year in which the provision financial accommodation originally arose.


Avoiding Scams

The ATO is warning Australian taxpayers to be careful with their personal information.



The crime of identity theft can create a number of issues for a victim, such as a poor credit rating, money stolen and bank accounts emptied, and serious crimes committed under their name, such as fraud.

The ATO offers five strategies for protecting yourself from identity crimes:

1) Understand what you need to protect
There are a number of personal details scammers can use to carry out an identity crime that the average person may not consider. Details such as your full name, date of birth, driver’s licence, passport details, etc., can all be used to steal your identity.

2)Keep personal information safe and secure
Once personal information is captured by someone deceptive, in many cases it is impossible to get back. For instance, once someone knows your tax file number or address, you can’t take this knowledge back from them. If financial details are shared or stored online, they are there permanently. Carefully consider the safest place to store details like passwords and bank details to avoid fraud.

3) Avoid oversharing
Professional identity thieves are just that, professionals. They are extremely savvy and can discover a great deal about a person from piecing together who they are based on what they share online, particularly on social media platforms. Something as innocent as sharing a photo of yourself in front of your house can provide a thief with enough information to find out where you live.

4) Being vigilant when divulging personal information
Treat requests for personal information with caution. If you are unsure about the legitimacy of a call from either a company, organisation or government agency, call their phone number directly to check if it is really them calling.

5) Use legitimate channels to make payments
Many scammers will request payment methods such as pre-paid gift cards or for money to be sent to bank accounts. To avoid falling into these scams, don’t send money or provide personal, credit or banking details to anyone unless you made the call and are sure that the phone number is genuine.

Thank you for reading – if you have any questions feel free to contact our office.

Many thanks,

TAS Tailored Accounting Solutions
(03) 9728 1448




ATO offers leniency to small business owners

Small business owners deal with many issues on a daily basis. Between managing staff, suppliers and customers, running a business can be quite stressful.


Around 45 per cent of Australians aged 16-85 will experience a common mental health-related condition in their lifetime. Many of the signs and symptoms of common mental illnesses can be hard to differentiate between general stresses in your professional life and experiencing a mental health condition. For example, feeling irritable, stressed or teary, changes in appetite, the inability to switch off from work even during personal time and troubles with sleeping may be ‘red flags.’

The Australian Tax Office (ATO) has recognised that general stresses combined with mental illnesses such as anxiety, depression or a substance use disorder, can severely impact on a small business owner’s ability to run their business efficiently and enjoy a high quality of life.

The ATO offers support and assistance for any small business owners who are having difficulty meeting their tax and super obligations due to experiencing a mental health condition. The Tax Office provides the following options:

Tailored payment plans
Those struggling to pay their tax bill on time can opt for a payment plan. This option allows business owners to pay back their debt by instalments to cater to their circumstances. In some cases, the ATO can offer interest-free payment arrangements for small businesses with an activity statement debt.

Lodgment and payment deferral
Business owners can apply for a deferral of lodgment and/or payment of their reports and returns in certain circumstances. If you would like to apply for a deferral, contact our office and one of our accountants can apply on your behalf.

Please note, information in this article should not be a substitute for professional advice, seek help if you or someone you know is experiencing issues.

Have any questions? Contact our office on (03) 9728 1448.

Have a great day,

TAS Tailored Accounting Solutions

(03) 9728 1448



Tax compliance and the sharing economy

The ATO is reminding those who work in the sharing economy to be aware of their tax obligations.




The sharing economy connects buyers (users) and sellers (providers) through a facilitator who usually operates an app or a website. Some popular examples include Airbnb, Stayz, Uber, Deliveroo, Airtasker and so on. It is often overlooked by providers of these services that money earned as a result of using them is taxable income. Different rules apply, depending on what type of sharing economy activities are undertaken by an individual.

Tax responsibilities will vary depending on the services taxpayers engage with. Those who rent out part or all of their home are reminded to:

• declare what they earn in their tax return;

• apportion related expenses as appropriate before claiming deductions and

• understand it may affect their capital gains tax if they sell their home in the future.

Individuals who participate in ride-sourcing activities need an ABN, to register for GST from the day they start, to pay GST on the full amount of every fare and to keep records of income and expenses for both GST and income tax purposes. GST credits associated with your ride-sourcing enterprise are deductible.

Those providing other goods and services through the sharing economy need to remember to declare what they earn and apportion related expenses.

While there are a number of compliance issues to consider, there are also a number of deductions users and providers of the sharing economy can claim, but rarely do. According to the ATO, to be eligible to claim a deduction:

• Appropriate records must be kept

• You must not have been reimbursed for the money spent

• Cost must relate to the job/service and not a private expense

• Accurately calculate how much of the total expense is business related and only claim from this portion.

If you have any queries please contact our office on (03) 9728 1448

Have a great day,

The team at TAS Tailored Accounting Solutions 

This publication is for guidance only, and professional advice should be obtained before acting on any information contained herein. Neither the publishers nor the distributors can accept any responsibility for loss occasioned to any person as a result of action taken or refrained from in consequence of the contents of this publication.

Turning negative customer feedback around

In a perfect world, every customer your business works with will be pleased with how the transaction went and will want to return to you for future business.


In reality, this isn’t always the case. It is human nature that people make mistakes and there will always be circumstances outside of your control that can result in a customer not feeling satisfied with your products and services. Consider the following tips for handling negative customer feedback:

Be responsive
When people feel they have received poor or inadequate service, they can be quick to complain. One thing that can be extremely damaging and can make that person feel even more negatively towards your business is to ignore them. Being unresponsive can come across as arrogant and seriously tarnish the reputation of your business. Once a customer has complained, the best thing you can do is to work to rectify and resolve their issue. Doing nothing and failing to respond casts a negative light on the business, particularly in the social media environment where there is a large audience.

Apologise and offer a solution
One of the worst actions you can take is to respond aggressively and take no responsibility for the way in which you have made the customer feel. The best approach is to acknowledge they are unhappy, apologise and assure them that you will contact them, through calling or emailing, or encourage them to come back into the business so that you can resolve the issue for them in person.

Implement changes
Once you have spoken to the unhappy customer and worked out how you can resolve the issue, it is important that you implement the appropriate changes to resolve the issue. Saying you are going to take action and then not doing anything will only make the issue bigger. One common mistake that occurs is when one employee says they will follow up and take appropriate action to resolve the issue, but then fails to do so, and then when the customers calls back, they deal with a different employee who has no knowledge of the situation.

Learn from it
To prevent the same issue occurring again in the future, analyse how the negative feedback was dealt with and if it was dealt with efficiently. Evaluate what could be done better or what could be approved upon. Maybe you dealt with and resolved the issue in the end but the procedure in place for following up with and responding to negative feedback could be improved. Every negative aspect of business should be analysed and improved upon; that is how your business model will continue to develop and strengthen.

Thank you for reading – please do not hesitate to contact our office on (03) 9728 1448 with any queries.

Many thanks,