When you are buying and selling an investment property it does not only involve annual rental income or loss, you also have to beware of the tax which you have to sell it. This tax is one of the biggest taxes and it is called Capital Gains Tax (CGT)

Despite the commonly used term and its widespread impact, most of the people don’t know what CGT is and what the effects of CGT are.

What is Capital Gains Tax?

CGT was introduced in Australia in 1985 and applies to asset you have acquired since that time. When you are buying most financial assets like shares or commodities aimed to earn some profit then in that scenario that profit is usually subject to CGT.

In the case of property, CGT is usually considered by the property investors as the tax only applies for investment purchase not for your owner occupied residence.

How do I work out my CGT?

CGT is calculated on the difference between selling price and the purchase price, which can include sum paid for the property plus all the legal fees, stamp duty and upfront costs as well as the value of any capital improvement completed by you. Capital Gain occurs when the sale price is greater than the Cost Price.

In regards to a property investment, the principal CGT exemptions include:

  • 50 % Discount for the investors: For properties purchased after October 1999, a discount of up to 50% may be available on the capital gain calculated for tax purposes

If an investment property is held for 12 months or more you are entitled to a 50% discount. In other words Capital gain is halved before tax is applied.

  • The 6 year rule: This is one of the handy rules. If you move out of the property and rented it out, you can claim an exemption for a period of up to six month.
  • The 6 month rule: This rule applies only if you upgrade or purchase another home. If you buy a new home before selling your present one, you will get the CGT exemption so long as you dispose of your older home with in the 6 months of purchasing the new home.

For your questions and queries, contact us to talk to our professionals at 1300 664 796.


The Australian tax season is approaching and everyone will get busy in dumping useless data which constitute recently filed tax information as well. In this technological era, almost every accounting firm has migrated to paperless records but few of them still grapple with their tax record preservation. Accountants normally encounter their clients in a confuse state-of-mind while dealing with their tax records. They do not know what should be done with their past tax records and for how long they should be retained.

The Australian tax system allows tax-payers to self assess their income tax and are responsible for calculating amount to be declared and claimed on their tax return. This way ATO relies on the information provided by them. The tax-payers may be required to give written evidences to support their information. Hence, the ATO always encourages tax payers and their tax advisers to keep financial records.

But the question is still the same “How long to keep your records“

ATO advices that you must keep your written evidence for five years from the tax-return lodgment date. There are more reasons to retain your tax-

  1. If you are claiming for depreciation deduction, then five years from the date of last claim for depreciation should be held.
  2. If you have acquired or disposed an asset, then after five years of that you do not need to work out a capital gain or loss. Therefore it becomes certain that after five years there will be no CGT or Capital Gain Tax event.
  3. If you are having any dispute with ATO, then you need to keep the records from the date of tax-return lodgment until the dispute is dissolved.

For any tax related assistance, contact us 1300 300 106.

We are happy to serve after-office hours and on Saturdays at your premises as per your convenience.



Running a business is not an easy task. The experience of running a business is full of highs and lows and includes variety of experiences, challenges and requires lots of creativity, motivation and enthusiasm. In the enthusiasm and passion, a business owner encounters realities they might rather not. However, some experiences cannot be avoided while one must prepare for others.

  • Delegation and trust enhance healthy company growth: With the growth in company business one must learn the art of delegation and imbue company culture with shared trust and this can be done by hiring the best candidates and defining their roles and trusting each staff to perform their role.
  • Plan your things: You must work for today and plan for everything else. Regardless of the things whether you business operation are running smooth or not, you should spent some time on your contingency plan. Spend some time with your administrative staff and find solution to what if scenarios and documenting them for future reference.
  • Be careful with partnership: You need to be extra careful while choosing your partners as choosing a right partners can bring a lot of opportunities, resources and capital for your business and poor partnership can leads to a great difficulty.
  • Learn from the failure: Every business encounter less favourable results at some point. When you do, build on the experience. Critically analyse everything that happened, look for solutions to the failures which led to failures and implement them in future
  • Record Keeping: A good record save time and reduces stress if a discrepancy in a transaction arises, good records allow its easy correction
  • Client acquisition continues even after a client is signed: You not only need to continue to court your clients once they sign, you must maintain an ongoing funnel of potential clients. Spare some time for the client maintenance and client recruitment.

Contact HS Bookkeeping Services at 1300 664 796 for all your bookkeeping!



A Business Tax Advisor is more than just a tax professional. It is a trained financial expert in tax laws. Every business welcomes tax season every year and whether this season makes you happier or makes you fall prey to unpleasant tax related experience, it all depends on how well your business tax advisor is prepared. ATO facilitates with self tax-lodgment services but still why business owners needs a professional business tax advisor! Well the answer is straight forward. By employing a business tax advisor you can save a lot on finances during taxation period and have up to date record maintenance so that there will be no last time record-pulling and doing it by yourself. Moreover, a professional tax advisor can help in seamless company’s auditing. Keeping updated tax regulations information and meeting all the standards are some qualities that make a tax professional a good business tax advisor.

Roles and Responsibilities of a tax advisor

  1. Tax planning cannot be done overnight as it is year-long continuous process in any business. A business tax advisor advices the company on its tax planning and discusses various strategic points to control your taxes.
  2. A business tax advisor may work as your tax preparer and look after the tax lodgment process from scratch till end. It is recommended that if your business tax is taken care by your business tax advisor than your personal taxation should also be handled by the same professional so that overall tax savings can be coordinated.
  3. Lodging a tax file does not relieve your tax advisor from its responsibilities. Any business can be notified for getting audited at any time. This may land you in difficult financial situation if not prepared beforehand. Having a Business Tax Advisor beside you can help escape from any unexpected situation swiftly. The Business Tax Professional will represent your company in front of the ATO.

With BookSmart Accountants, you can enjoy hassle free business taxation process. Your business accounts are in safer hands of BookSmart Accountants. We provide after-office hours service (Saturdays inclusive) and can happily visit you to discuss your business tax requirements.

Contact us at 1300 200 106 to have a brief discussion on your taxes and book an appointment as per your convenience.




In GST (Goods and Services Tax), 10% broad-based tax is levied on almost every goods, services and items widely sold or consumed in Australia. Let us give you an overview about role and some aspects of GST. If the annual turnover of your business is $75,000 or more then Yes, you need to register for GST otherwise not. Your company must be registered for GST within the time frame of 21 days after the threshold of $75,000 is reached. There are few businesses like taxi and rider-share drives which need to be registered for GST regardless of their annual turnover. On the contrary, Not-for-Profit organisations can register for GST till the threshold amount of $150,000.
Registration for GST can be done online with ABN (apply if you do not have one via the Australian Business Register or ABR.

How it works?
As mentioned above, the present GST rate is 10%. If any goods or services are charged $100 e.g. then the customers need to pay 10% over the charge paid to you against the goods or services i.e. $110. This additional amount in the form of GST is meant to be paid to the ATO (Australian Taxation Office).

As a business owner you must also be buying resources to be sold. The GST paid to get resources supplied to you can be claimed back as a credit. The GST accounts are balanced at the end of each GST period which is usually done quarterly. The difference between the GST hence collected on your sales and the GST credits you received must be calculated. This difference of amount is the net GST payable to the ATO.

Businesses with annual turnover less than $75,000 are also encouraged to register for GST because they might be spending extensively on supplies and would like to claim their GST credits from the ATO*.

(* Only applicable if the GST credits exceed the GST charged on goods and services)

To get assistance for such financial matters in your business, please book the earliest appointment with one of our financial experts at BookSmart Accountants at 1300 300 106.


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