ATO and Christmas Parties

Embed from Getty Images

This is the time to be jolly, but unfortunately this jolliness doesn’t come with a tax deduction. First there is a distinction between holding the Christmas Party at your premises or at some other location. For more information, please see our client newsletter on this issue or contact our office. Read More…

Tax Planning Season



We are rapidly nearing the end of the financial year. This is the time to ensure that the current year’s tax planning is in order: we can’t change things retrospectively. It is also the time to plan ahead for the coming year(s). Proper tax and financial planning doesn’t happen automatically and circumstances may have changed without us knowing. It would be a good idea to book a review meeting in the next 2 months, especially if we haven’t discussed your financial affairs for some time.

ATO Guidelines on Professional Practice Structures



Back in September the ATO issued new guidelines on profit distributions from professional practices. Although these are primarily aimed at some contrived constructions used by larger legal and accounting practices, they equally apply to other professional ‘business’, including medical practices. The guidelines seem to contradict the ATO’s own tax rulings and we have been involved in drafting a submission by the Tax Institute to the ATO requesting a re-drafting or clarification. Read More…

VMO Contracts



Since this financial year VMO contracts (in NSW) can only be signed in the doctors own name (and the doctor has to be registered for GST) or in the name of a practice company, provided the doctor is the sole director/shareholder/employee. Trusts are not accepted anymore as a party, but payments can still be made into trust bank account. In this situation the doctor should still register for GST in their own name. Read More…

MV Expenses on ATO Radar



ATO seems to have increased their audit activities with regards to MV expense claims by doctors. Logbooks in particular are being investigated. When claiming MV expenses under the logbook method – which often gives the best results for tax purposes – one needs to ensure that all requirements have been met. In the first place you should actually have kept a logbook within the last 5 years. Read More…