GST Margin Scheme

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GST Margin Scheme

What Is the GST Margin Scheme? GST is levied on taxable supplies (including the supply of new residential remises). Ordinarily, GST is calculated on the total value of the supply, however, where the GST margin scheme applies, GST payable is calculated on the ‘margin’ rather than the total value of the supply which can lead […]

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SBCGT: What is an active asset?

Introduction One of the key basic conditions to access the small business CGT (SBCGT) concessions is that the relevant CGT asset subject to the particular CGT event (generally CGT event A1 on disposal) satisfies the active asset test. What is the active asset test?                                                                                                                                                   The active asset test requires that the relevant CGT asset was

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SBCGT active asset reduction: getting tax sheltered amounts out of a company

Introduction Companies, like other entities, are able to access the small business CGT concessions, subject to meeting the relevant conditions. Where the basic conditions are met, a company can apply the SBCGT active asset reduction (Active Asset Reduction), meaning: The first half of the capital gain is tax-free to the company (Tax-Sheltered Amount), and only the

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SBCGT and discretionary trusts:

Introduction The basic conditions for small business CGT concessions (SBCGT) relief require that certain conditions are met ‘just before the relevant CGT event, that is, it is a snapshot test at that time, including: the maximum net asset value test; and the significant individual test. The problem Given the ‘just before’ requirement above, a difficulty

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