ATO Interest Charges Hit Harder: Tax Deductions Gone from 1 July 2025
The Federal Government has announced that from 1 July 2025, (subject to the measures being introduced as law) businesses and individuals will no longer be able to claim a tax deduction for interest charges imposed by the Australian Taxation Office (ATO). This change, announced in the 2023–24 Mid-Year Economic and Fiscal Outlook, , reflects a significant […]
Urgent company reinstatement to avoid a DPN – Gregg v ASIC
The case revolves around Bradley Stuart Gregg, a former director of a deregistered company, JR Serra Proprietary Limited. Gregg sought a court order to reinstate the company to allow for the appointment of a liquidator. This action aimed to address a Director Penalty Notice (DPN) issued by the Australian Taxation Office (ATO) for PAYG withholding […]
ATO Doubles Down on Debt Recovery Efforts
The ATO is doubling down on its debt recovery efforts, with a focus on aged, high-value debts. This is in response to the growing collectable debt book, which has increased by 89% over the past four years to $50.2 billion. Speaking at the Tax Institute’s Tax Summit last week, Deputy Commissioner Vivek Chaudhary outlined that […]
Section 444GA of the Corporations Act: Transfer of shares in a company in administration
Section 444GA of the Corporations Act 2001 (Cth) (Corporations Act) allows a deed administrator of a company in administration to seek leave of the Court to compulsorily transfer the shares in the company to another person. This is a powerful tool that can be used to restructure a company or to facilitate a takeover. To […]
ATO Cracks Down on Unpaid Small Business Tax
The Australian Taxation Office (ATO) has ramped up its enforcement action against small businesses with unpaid tax debts. In the first seven months of 2023, the ATO started 476 wind-up proceedings against small businesses, compared with just 14 in the same period last year. The ATO’s crackdown is part of a broader effort to recover […]
ATO Tax Penalty Amnesty for Small Businesses
The Australian Taxation Office (ATO) has announced a tax penalty amnesty for small businesses that have fallen behind on their tax returns. The amnesty will waive failure to lodge (FTL) penalties for certain overdue payments held by small businesses. The amnesty applies to income tax returns, fringe benefit tax returns, and business activity statements (BAS) […]
Superannuation Funds and Bankruptcy
Superannuation in a regulated super fund is generally protected and is not considered to be property divisible among creditors in a personal bankruptcy scenario. This means that superannuation is typically not available to pay off debts during bankruptcy. Lump sums paid to a bankrupt during bankruptcy are also generally protected, including assets purchased with these […]
Introducing Payday Super: A Step Towards Ensuring Timely Superannuation Payments
In a significant move to promote financial security and improve retirement savings for Australian workers, the Albanese Government has introduced a new initiative called Payday Super. This program, due for commencement on 1 July 2026, aims to streamline and enhance the process of superannuation contributions, ensuring that employees receive their super payments promptly and efficiently. […]
Liquidator’s entitlement to company books and records
In the winding up of a company, the Liquidator plays a crucial role in identifying and collecting the company’s assets, paying off its debts, and distributing any remaining funds to the creditors and shareholders. To carry out these responsibilities effectively, a Liquidator has certain rights and powers, one of which is the entitlement to access […]
What happens to assets acquired during bankruptcy?
Bankruptcy is a legal process that allows individuals to deal with their debts when they are unable to pay them. During the period of bankruptcy, the debtor’s assets are realised by the Trustee to repay creditors. However, what happens if the debtor acquires or becomes entitled to property during the bankruptcy? The answer to this […]