If you own an investment property that costs you more to hold than it earns in rent, you have probably heard the term thrown around at a barbecue without ever getting a proper explanation. How does negative gearing work in practice? At its core, it is a tax strategy where your rental losses reduce your taxable income, meaning the tax office effectively subsidises part of the shortfall. It sounds simple until you try to calculate it against your own numbers. The mechanics involve more than just "losing money on purpose". You need to understand how loan interest, depreciation, and running [...] READ MORE

Every property investor eventually hits the same fork in the road: do you buy a property that costs you money each month, or one that puts cash back in your pocket? The negative gearing vs positive gearing question sits at the heart of almost every investment property decision we discuss with clients in Ormond and across Melbourne, and getting it wrong can quietly drain your cash flow for years. Both strategies are legitimate ways to build wealth through property, but they suit different financial situations, income levels, and goals. Negative gearing works around tax deductions on a loss-making property, while [...] READ MORE

Selling an investment property, a parcel of shares, or a business asset triggers a tax bill most owners don't see coming. Working out how to calculate capital gains tax in Australia isn't just plugging a sale price into a formula. You need the right cost base, the correct discount method, and an honest look at your other income for the year, because CGT gets added to your assessable income and taxed at your marginal rate. This guide walks you through the actual calculation, step by step: establishing your cost base, applying the 50% CGT discount for assets held over 12 [...] READ MORE

If you're starting a business or thinking about registering one, you've probably come across the term sole trader and wondered exactly what it means for you. What is a sole trader in Australia comes down to one simple idea: you and your business are legally the same entity. There's no separate company structure, no shareholders, just you, trading under your own name or a registered business name, taking on all the legal and financial responsibility yourself. This guide answers the question properly. We'll cover how sole trader status works under Australian law, what it means for your tax obligations, and [...] READ MORE

If you own an investment property in Melbourne and haven't claimed depreciation, you're leaving money on the table every single tax return. A rental property depreciation schedule is the document that unlocks these deductions, yet plenty of property investors either don't have one or are using an outdated version that misses thousands of dollars in claims. Wear and tear on your property counts as a legitimate tax deduction, even though you never physically spend that money. This guide explains exactly what a depreciation schedule covers, how a quantity surveyor calculates the figures, and what separates the capital works deductions from [...] READ MORE

If you're weighing up an investment property purchase, you've probably heard someone at a barbecue mention that negative gearing saves them a fortune on tax. It's one of the most talked-about, and most misunderstood, strategies in Australian property investing, and getting the detail wrong can cost you thousands come tax time. In simple terms, negative gearing happens when the costs of owning an investment property, including loan interest and running expenses, exceed the rental income it earns. That shortfall becomes a tax deduction against your other income, which is exactly why so many investors structure their portfolios this way. But [...] READ MORE

Sell an asset you've held for a while and the tax bill can come as a shock, until you realise you might only pay tax on half the gain. The capital gains tax discount australia rules allow individuals and trusts to cut their taxable capital gain by 50%, provided you've held the asset for at least 12 months before selling. It sounds simple, but the eligibility rules, the ordering rules with other concessions, and the entity type you hold the asset in all change the outcome. This article walks through exactly how the 50% CGT discount applies, who actually qualifies [...] READ MORE

If you have ever stared at your company's tax return wondering whether you should be paying 25% or 30%, you are not alone. The company tax rate australia businesses use depends entirely on whether you qualify as a base rate entity, and plenty of directors get this wrong or assume last year's rate still applies without checking. Here is the short answer: most small and medium businesses pay 25%, while larger companies and those earning too much passive income pay 30%. The test comes down to your aggregated turnover and how much of your income is base rate entity passive [...] READ MORE

Most small business owners in Melbourne reach a point where the spreadsheet and the shoebox of receipts stop working. You are either paying for a full-time bookkeeper you don't need yet, or you are doing the books yourself at 10pm when you should be running the business. Outsourced accounting services for small business exist to solve exactly this problem, giving you professional financial support without the overhead of an in-house hire. If you are trying to work out whether outsourcing makes sense for your business, this guide answers the practical questions: what these services actually include, what they cost in [...] READ MORE

Selling an investment property can trigger a capital gains tax bill large enough to change your retirement plans or your next purchase decision. If you've held the property for more than twelve months, the CGT discount on investment property could cut that bill in half, but only if you meet the eligibility rules and structure the sale correctly. This article explains exactly how the 50% CGT discount works for Australian property investors, who qualifies, and where people commonly get tripped up. We'll cover the twelve month ownership test, how the discount interacts with your cost base calculations, and what happens [...] READ MORE

Choosing the wrong structure at the start of your business costs Australian owners thousands of dollars in tax, admin, and legal headaches down the track. If you're asking how to set up a company structure, you're probably weighing up whether to trade as a sole trader, form a partnership, register a company, or set up a trust, and the honest answer is that it depends on your income, your asset protection needs, and where you plan to take the business over the next five years. This guide walks you through each structure available in Australia, what it actually means for [...] READ MORE

If you run a business in Australia, understanding what is BAS lodgement isn't optional, it's one of your core obligations to the Australian Taxation Office (ATO). A Business Activity Statement (BAS) is how you report and pay several tax obligations, including GST, PAYG withholding, and PAYG instalments, on a regular cycle. Yet for many business owners, BAS lodgement sits somewhere between confusing and stressful. Due dates shift depending on your reporting period, lodgement methods vary, and the penalties for getting it wrong, or lodging late, can add up fast. The good news is that once you understand how the process [...] READ MORE