Reading Room

A new issues paper from Treasury’s Competition Review questions whether non-competes and other restraints are limiting job opportunities and movement. A recent Australian Bureau of Statistics (ABS) survey found that 46.9% of businesses surveyed used some kind of restraint clause, including for workers in non-executive roles. The survey also found 20.8% of businesses use non-compete clauses for at least some of their staff and 68.2% for more than three-quarters of their employees.  Over the last 30 years, Australia has seen a decline in job mobility. Australia is not alone in this and other advanced economies have experienced the same issue. While restraint clauses are not the only factor contributing to the decline – an ageing population and a rise in post-pandemic market concentration in some industries has also contributed - i t is specifically the role of restraints that is the focus of the Competition Review issues paper (s ubmissions close 31 May 2024).

The ATO is willing to pursue professional services firms who divert profits to avoid tax. The ATO can potentially challenge arrangements involving the distribution of profits from a professional practice.

For many small business owners, their business is their largest asset and expected to help fund their retirement. But what is your business really worth and what sets a high value business apart?

The ATO has warned trustees of SMSFs about sloppy valuation practices. For trustees of SMSFs, where asset values are consistently reported at the same value, your SMSF may be flagged for closer scrutiny.

t’s not uncommon for business owners to pour their money into a business to get it up and running until it can survive on its own. A recent case highlights the dangers of taking money out of a company without considering tax implications.

From 1 July 2024, the amount you can contribute to superannuation will increase from $27,500 to $30,000 for concessional super contributions and from $110,000 to $120,000 for non-concessional contributions.

The ATO has paused all action in relation to debts placed on hold prior to 2017 whilst they review and develop a pragmatic and sensible way forward that takes into account concerns raised by the community.

If your business is planning on acquiring an electric vehicle, be aware that from 31 March 2025, the FBT exemption will no longer apply to plug-in hybrid electric vehicles unless certain conditions apply.