What a difference timing makes. A recent case before the Administrative Appeals Tribunal (AAT) is a reminder about the tax impact of the
timing of employment income.
When the job ended, the taxpayer moved to Australia and became a resident. Once in Australia, the former employer
honoured the performance bonus and paid it as a series of instalments.
The dispute between the ATO and the taxpayer started when the Commissioner issued amended assessments taxing the bonus payments received.
The dispute focused on when the bonus was derived. Had the bonus been derived while the taxpayer was still a non-resident then it would not
have been taxed in Australia.
This is because non-residents are normally only taxed in Australia on Australian sourced income. Employment income is typically sourced
in the place where the work is performed (although there can be exceptions to this).
Australian tax case law says that employment income is normally derived on receipt. In the taxpayer’s case, this was when he received the
payments from his former employer, not when he became entitled to the bonus. Because the taxpayer received the bonus when he was a tax
resident of Australia, the bonus was subject to tax.
The difference for the taxpayer was quite dramatic. Had he been paid the bonus when it was due, he would have paid no
tax as Kuwait does not impose income tax.
Please call us if you are concerned about tax residency or managing overseas income. We want our people to be the best they can be.
After overwhelming demand and sold-out sessions in Perth, Brisbane, Sydney, Melbourne and Mornington in 2025, we’re inviting expressions of interest for 2026. If you missed out earlier or are ready to dive into hands-on automation training, we’re considering additional sessions in various locations across Australia in 2026.
LIVE 2-DAY COURSE - MELBOURNE CBD
15 & 16 December 2025
Join SkyBots’ 2-day Workshop with automation expert Daryl Aw to revolutionise your workflow using Power Automate, UiPath, VBA,
and cutting-edge AI tools like Copilot and ChatGPT. Tailored for accounting and finance
professionals, bookkeepers and small business owners, this hands-on training will teach you to automate repetitive tasks, generate and
optimise VBA scripts, and deploy robust automation solutions independently.
LIVE 2-DAY COURSE - SYDNEY
11 & 12 December 2025
Join SkyBots’ 2-day Workshop with automation expert Daryl Aw to revolutionise your workflow using Power Automate, UiPath, VBA,
and cutting-edge AI tools like Copilot and ChatGPT. Tailored for accounting and finance
professionals, bookkeepers and small business owners, this hands-on training will teach you to automate repetitive tasks, generate and
optimise VBA scripts, and deploy robust automation solutions independently.
LIVE 2-DAY COURSE - ADELAIDE CBD
8 & 9 December 2025
Join SkyBots’ 2-day Workshop with automation expert Daryl Aw to revolutionise your workflow using Power Automate, UiPath, VBA,
and cutting-edge AI tools like Copilot and ChatGPT. Tailored for accounting and finance
professionals, bookkeepers and small business owners, this hands-on training will teach you to automate repetitive tasks, generate and
optimise VBA scripts, and deploy robust automation solutions independently.
Equipment finance makes the most sense when it helps your business grow. If new machinery will increase productivity, open up new contracts, or allow you to expand your services.
SMART Business Solutions is proud to announce its recognition as the winner of Excellence in Local Community Connection (Medium–Large Business) and Excellence in Access and Inclusion at the 2025 Mornington Peninsula Business Excellence Awards.
A good rule of thumb is to match the finance term to the useful life of the asset. This ensures your repayments align with the equipment’s value to your business.
It might seem like a clever strategy - moving surplus business cash into your personal mortgage offset account to save on home loan interest, then shifting it back to the company around tax time. But there’s a catch: the ATO sees this, and they’re not fans.
Commercial property has rebounded strongly, reaching $15.9 billion year-to-date through the second quarter of 2025.
Retail has positioned itself as one of the strongest performing sectors in the commercial property market.
With $7 billion in Games-related infrastructure investment already underway, demand for office space in engineering, construction and professional services sectors is increasing substantially.
Running a small business has always been personal. Every sale, every setback, every sleepless night - it all comes back to the same person: the owner.
A staggering 93% of small business owners reported higher costs this year, while 64% saw profits fall. Taxes, wages, and insurance top the list of pressures, with taxes ranked as the number one cost by half of respondents of a recent report.
Australia’s small business sector has always been defined by its resilience - but the latest Council of Small Business Organisations Australia (COSBOA) and CommBank Small Business Perspectives Report 2025 shows that resilience is being tested like never before.
Online loan calculators can give you a realistic estimate of your potential repayments without affecting your credit score.
The ATO is tightening the screws. They’ve issued a clear warning to businesses: stop inflating or falsely claiming GST. And they’re not just making noise - thanks to advanced data-matching and technology, they’re more capable than ever of spotting discrepancies.
Debt consolidation works best when the new loan has a genuinely lower interest rate and a reasonable term.
Smart Private Wealth is proud to announce that Founding Director, Shannon Smit, has been recognised in the 2025 FS Power50, Financial Standard’s annual list of the 50 most influential financial advisers in Australia.
It’s human nature to make decisions based on how something makes us feel — but property investing is not the time for sentimentality.
Guyrobb Electrics’ success story shows how structure, visibility, and partnership can transform the way a business operates. With the right systems, advice, and regular strategic review, Jon has been able to grow confidently.
SMART Business Solutions is proud to announce its recognition as the winner of Excellence in Local Community Connection (Medium–Large Business) and Excellence in Access and Inclusion at the 2025 Mornington Peninsula Business Excellence Awards.
It might seem like a clever strategy - moving surplus business cash into your personal mortgage offset account to save on home loan interest, then shifting it back to the company around tax time. But there’s a catch: the ATO sees this, and they’re not fans.
