How to Spend Less Time on Email: 12 Tips for Keeping Your Inbox Under Control

Clarke McEwan Accountants

Managing your email inbox can feel like playing a never-ending game of whack-a-mole. Just when you think you've gotten to inbox zero and start doing your little victory dance ... up pops another email. And another one.

What's worse, the sheer volume of email we get often exceeds the time we can afford to deal with it. This becomes a bigger issue when we let our guilt get the better of us -- the guilt that comes with not responding right away, responding curtly, or not responding at all.

But the fact is, there are more important things on our to-do lists than email. Want to spend less time living in your inbox, and more time doing the stuff that actually matters? Here are 12 tips to get you started.

12 Tips For Better Email Management

1) Unsubscribe. Ruthlessly.

The easiest way to maintain inbox zero? Get less email. The very first step to achieve an emptier inbox is unsubscribing from every single email list that doesn't provide you with value on a regular basis.

In fact, my recommendation is to unsubscribe from everything. Take a few days to let it sink in, and then re-subscribe only to the newsletters you really, truly miss. In this step, you might consider converting any daily digests you used to follow to weekly ones.

While unsubscribing manually from tens -- hundreds? -- of newsletters one by one sounds tedious, there are tools out there that can help you do it in just a few clicks. Unroll.me is my personal favorite: It's a free tool that lets you mass unsubscribe from all the newsletters you don't read. You can either unsubscribe from everything at once (my recommendation), or you can pick and choose. Read this blog post to learn more about how it works.

2) Remove yourself from any internal company and business threads you don't need to be on.

Once you've unsubscribed from external newsletters, it's time to evaluate the internal emails you receive on a regular basis. Do you really need to get email notifications every time the sales team closes or deal, or every time someone on the marketing team reports a bug?

If the answer isn't a definitive "yes," do yourself a favor and remove yourself from whatever alias or list you're on. If that makes you wildly uncomfortable, compromise by creating a folder in your email client and send those emails to that folder automatically. (To set at up, you can create filters in Gmail or rules in Outlook.)

3) Understand -- and embrace -- that you can't respond to everything.

Part of maintaining a manageable inbox -- and your sanity -- is to change the way you think about email a little bit. Only you can decide what deserves your very limited time and attention. When it comes to email, understand that there's simply no way you'll be able to respond to every single email that arrives in your inbox, let alone read them all.

I love the way Merlin Mann puts it : "Stop thinking of emails like precious family heirlooms, and start treating 'em like pints of milk. Perishable, time-stamped milk that becomes a little less fresh every day until it smells kind of funny and just needs to be dumped. Believe me, there will always be more coming."

So if you're looking at an email and know in your heart of hearts you're never going to respond to it, archive it. Better yet, delete it. As Mann says , "Trust your instincts, listen to them, and stop trying to be perfect."

4) Keep your replies brief whenever possible.

When you do have to reply to an email, you'll find that in most cases, you don't need to craft the perfect response. Often, a few sentences will do; in some cases, a few words. If you let an email with an action item sit for a few days, a quick "Do you still need this?" email might end up saving you a lot of time.

Don't feel guilty about sending succinct emails. If you're concerned your brevity will be taken the wrong way, give a heads-up to the folks you exchange emails with the most. Tell them that, in your effort to spend less time on email and more time on your actual work, you plan to cut down word count in your emails.

The better you get at deleting emails you don't need to read or respond to, the more time you'll have to write the emails that warrant those long responses.

5) Use pre-written replies.

Which types of emails do you find yourself typing out over and over, without really needing to customize them?

I, for example, often find myself referring people to HubSpot's guest blogging guidelines page. I used to write one-off emails to folks, meaning I'd have to craft a few sentences, find and copy the link, and so on. Now, I give myself ten minutes back in my day by sending pre-written replies via Gmail's "canned responses" feature.

Gmail, Outlook, and other email clients offer canned responses. Below are instructions for setting up and using them in Gmail.

To Set Up Canned Responses in Gmail:

  1. Click the gear icon in the upper right-hand corner and choose "Settings."
  2. Click the "Labs" tab, find Canned Responses at the top, and click "Enable." Scroll down and click "Save Changes."

To create a canned response, compose a new email and click the little arrow in the bottom right-hand corner of the new email. Choose "Canned responses," and then "New canned response." From there, you can name your new canned response, write it, and save it. Anytime you want to use it, simply go back to that little arrow, choose "Canned responses," and click on the one you'd like to use. (Learn more on Google's website.)

To Set Up Canned Responses in Outlook:

In Outlook, the best option I could find was to set up your canned responses as "Signatures." That way, when you reply to an email, you can choose the appropriate "signature" and the whole canned reply will appear. Here's how to do that:

  1. On the Outlook menu, click "Preferences." Under "E-mail," click "Signatures."
  2. Click the plus icon to add a new signature.
  3. A new signature will appear under "Signature name" with the label "Untitled." Double-click "Untitled," and then type in a new name for your canned response.
  4. In the right pane, type the text that you want to include in the signature -- in other words, type in your canned response.

Once you create the canned response as a signature, you can add it to a new email by clicking in the message body, choosing the "Message" tab, clicking "Signatures," and choosing a signature from the list. (Learn more on Outlook's support page.)

6) Employ a one-click rule.

This rule might seem simplistic, but it's a huge time-saver. The "one click" refers to a single click to open an email once. Once it's open, decide exactly what you want to do with it right then and there: Reply, forward, send to a folder, archive, and/or delete.

The point here is to not open an email, read it, and then decide to deal with it later and move on. That's the bad habit that'll guarantee you a clogged inbox and more stress down the road.

7) Triage emails using "special stars" in Gmail.

If you use Gmail and your goal is to get to inbox zero and maintain it, then I'd like to direct you to the email system that's changed the way I do email. Here are the full instructions. This works great in conjunction with the one-click rule we just talked about.

The premise is this: In Gmail, you'll set up multiple inboxes and give each of them a name, like "Needs Action/Reply" and "Awaiting Response." Your general inbox will then appear on the left, and your labeled inboxes (which Gmail calls "panes") will appear on the right, like so:

You'll use what Gmail calls "special stars" -- kind of like Gmail's labels, but better -- to categorize every single email that comes into your inbox.

Every time you get a new email in your inbox, you'll want to:

  • Reply to the ones you can right away.
  • Label the emails you need to deal with later by marking them with the appropriate special star.
  • Archive or delete any emails you don't need to deal with.

In the end, you'll archive everything. Your inbox will stay at zero, and everything else will either be in its designated pane, archived, or deleted.

Use Outlook?

SimplyFile is a free organizational tool that'll help you categorize emails using folders. When an email comes in, all you have to do is drag it into the appropriate folder. You can organize both messages you're receiving in your inbox, as well as messages you're sending -- which you can file as you send them.

Image Credit: SimplyFile

8) Delegate emails to others using a collaboration tool.

Sometimes, you might find that you receive emails that are better handled by someone else. In these cases, you could either forward the email, or you can streamline the process by quickly sharing the email with someone on your team using an email collaboration tool.

There are a number of email collaboration tools out there to choose from. If you use Gmail, Hiver is a great choice: It lets you share Gmail labels (and therefore share folders) with other users, which you can use to assign tasks, delegate emails, and even track their status if you want to. If you need to add a quick note explaining what's going on in an email thread, you can do that right in the tool.

Image Credit: Hiver

9) Use the "yesterbox" approach.

"Yesterbox" is a methodology for managing your inbox created by Zappos CEO Tony Hsieh. This approach is kind of like inbox zero, except you're working off all the emails from yesterday and treating them like today's to-do list.

The basic premise is this: Every morning, you have a fixed number of emails to answer instead of an endless flood of new emails coming in. Once you finish dealing with yesterday's emails, you're done with email for the day. Here are the full instructions .

Like Klinger's methodology from #7, you'll categorize incoming emails into folders labeled "Yesterbox," "Today," "Action Required," "Awaiting Response," and so on. As new emails come in, you'll label them accordingly. But as for actually dealing with these emails -- that's left for a specific time on your calendar that you've designated for handling yesterday's emails. In the end, your Yeseterbox is a to-do list with static tasks.

It's that freeing sense of completion that makes this method so appealing -- but be wary that if your job requires you to tackle emails as they come in, this may not be the best method for you.

10) Set up filters when you go on vacation.

Vacations are awesome, but coming back to a jam-packed inbox is ... not so awesome. One way to manage your email workflow while you're gone for long periods of time is to set up filters.

This is an approach HubSpot's Director of Marketing Rebecca Corliss found worked really well for her when she went on her month-long sabbatical. Corliss was working in Gmail, but you can adapt this method for most email clients. In short, here's what she did:

  1. She created a new folder for her vacation ("Spain Sabbatical 2015").
  2. She set up a filter that recognized any emails being sent to *@hubspot.com. By putting the asterisk there instead of her actual email, she was able to capture not only emails that were sent to her work email address, but also emails sent to the company aliases she was on.
  3. She added a second filter that deleted irrelevant emails -- for example, all the daily and weekly digests she expected to receive, like metrics updates.
  4. When she returned, she strategically handled all her unread emails. For example, she searched for emails she wanted to respond to first by conducting key searches for her manager's email address.

Once these more time-sensitive messages are addressed, she blocked time to go through the remaining emails and respond only to the ones that were absolutely necessary. Here are the full instructions .

11) Block time to get back to inbox zero.

Dedicating specific chunks of time to get back to inbox zero isn't just for when you return from vacation. It should be something you tackle in short batches on a daily basis, and in larger chunks every week or so, depending how much new email you receive.

The purpose of batching email? So you aren't handling emails as they arrive. That can be a serious productivity killer, and can pull you away from projects and tasks that are more important than a perfectly clean inbox.

On a daily basis, limit yourself to dealing with new emails during fixed periods each day. For example, HubSpot Demand Generation Manager Amanda Sibley physically blocks off an hour in the morning and an hour in the evening on her calendar for getting her inbox in order. Do what works for you.

12) Use keyboard shortcuts.

To make the process of reading, replying to, archiving, and deleting emails a lot faster (and generally more enjoyable), take advantage of any keyboard shortcuts your email client offers. Here are tips for keyboard shortcuts in Gmail and Outlook. If you use a different email client, do a quick Google search for the name of your email client + "keyboard shortcuts."

Keyboard Shortcuts in Gmail:

First thing's first: You'll need to activate keyboard shortcuts. To do this:

  1. Click the gear icon in the upper right-hand corner and choose "Settings."
  2. Click the "General" tab, find "Keyboard shortcuts," and select "Keyboard shortcuts on." Scroll down and click "Save Changes."
  3. Then, go back to "Settings" via that gear icon, click on the "Labs" tab, and find "Custom keyboard shortcuts" (by Alan S). Choose "Enable." Scroll down and click "Save Changes."

Once custom keyboard shortcuts are turned on, a new tab will appear in your Settings called "Keyboard Shortcuts." Head over there to learn the default keyboard shortcuts and customize them if you'd like.

Keyboard Shortcuts in Outlook:

Outlook doesn't let you customize keyboard shortcuts, but they have a heck of a lot to choose from. Here's the full list , and below are some favorites:

  • Create a new message: ? + N (Mac); Ctrl + N (PC)
  • Send an open message: ? + Return (Mac); Ctrl + Return (PC)
  • Save an open message and store it in Drafts: ? + S (Mac); Ctrl + S (PC)
  • Forward a message: ? + J (Mac); Ctrl + J (PC)
  • Display the next message: Control + ]
  • Display the previous message: Control + [
  • Delete the selected message: Delete
  • Mark selected messages as read: ? + T (Mac); Ctrl + T (PC)

Looking for more ideas for gaining and maintaining control of your email? Here are 11 inbox organization tools to try, as well as four solutions to getting "inbox zero" based on your personality.

By Clarke McEwan November 5, 2025
However, the Government has reworked the proposed new tax — part of the Better Targeted Superannuation Concessions (BTSC) policy — attempting to make it simpler, fairer, and more practical. After a wave of industry criticism, the revised version keeps the broad policy intent (reducing tax concessions for very large balances) but removes some of the more problematic features. Let’s break down what’s changed and what it means for you. What’s Changing — and Why It’s Simpler The original 2023 proposal aimed to apply an extra 15% tax on “earnings” from super balances above $3 million. The big flaw? “Earnings” included unrealised gains — paper profits on assets like property or shares that hadn’t been sold. This meant some people could have owed tax on increases in value they hadn’t actually received in cash. The reworked model drops unrealised gains from the equation entirely, taxing only realised earnings — actual income and capital gains when assets are sold. This makes the system far more practical and aligned with everyday tax rules. No more worrying about funding a tax bill on assets you haven’t sold. A Fairer, Tiered Approach The new rules introduce a two-tier system for high balances: • Tier 1 ($3m–$10m): Extra 15% tax on earnings from this portion (making a total rate of 30%). • Tier 2 (over $10m): Extra 25% tax on earnings above $10m (for a total rate of 40%). Both thresholds will be indexed annually to inflation ($150,000 steps for the $3m tier and $500,000 for the $10m tier), which should prevent “bracket creep” over time. Importantly, the start date has been pushed back to 1 July 2026, with the first assessments expected in 2027–28. The Government estimates less than 0.5% of Australians will be affected at the $3m level, and fewer than 0.1% at the $10m mark. What This Means in Practice Here are a couple of examples from Treasury to help you get your head around this. Consider Megan, who has a $4.5 million super balance split between an SMSF and an APRA fund. She earns $300,000 in realised income for the year within the super system. The super balance above $3m represents is one-third of the total balance, so she’ll pay $15,000 in additional Division 296 tax (15% × 33.33% × $300,000). Emma, on the other hand, has $12.9 million in her SMSF and $840,000 in earnings. She pays 15% on the Tier 1 portion and an extra 10% on the Tier 2 portion—a total of around $115,000 in extra tax. These examples show how the tax scales up progressively. The ATO will calculate each individual’s total super balance across all funds (SMSFs and APRA funds) and determine the proportionate amount of earnings to be taxed. Why It’s Still Good News (for Most) For many SMSF members, this update is a relief. By removing unrealised gains, it eliminates valuation headaches and liquidity pressures — particularly for those holding property or unlisted assets. That said, individuals with super balances above $10m will face a higher overall rate (up to 40%), which may prompt a rethink of long-term strategies. However, remember that updated legislation relating to this measure hasn’t been introduced to Parliament and things could change before the proposed rules become reality. Low Income Superannuation Tax Offset In addition to introducing the revamped Division 296 tax, the Government has announced that it will increase the Low Income Superannuation Tax Offset (LISTO) from $37,000 to $45,000 from 1 July 2027. The maximum payment will also increase to $810. Treasury estimates that the average increase in the LISTO payment will be $410 for affected workers. What to Do Now 1. Check your total super balance (TSB) now and project where it may be by 2026. 2. Seek advice early — strategies like managing liquidity, reviewing asset allocations, and timing asset sales could make a real difference. 3. Stay informed — draft legislation is expected in 2026. We’ll keep you updated through our newsletters. Overall, the Government’s revised approach strikes a more balanced tone: fewer administrative headaches for most, but less generosity for the ultra-wealthy. If your balance is near or above $3 million, now’s the time to plan ahead — not panic.
By Clarke McEwan November 5, 2025
Unfortunately, a recent tribunal case shows it’s not that simple. In Wannberg v Commissioner of Taxation [2025] ARTA 1561, the Administrative Review Tribunal (ART) upheld the ATO’s decision to deny nearly $100,000 in medical deductions. The case is a stark reminder that the tax system draws a sharp line between earning income and dealing with your health. The Story Behind the Case The taxpayer, Mr Wannberg, had left the workforce due to severe mental and physical health issues caused by years of abuse. His TPD pension from his super fund was his only income. In 2024, he applied to the ATO for a private ruling, asking whether about $98,000 in medical expenses – including psychotherapy, residential treatment, and dental work – could be claimed as deductions. His argument was heartfelt and logical: these treatments were essential to manage his disabilities and sustain his eligibility for the pension. He compared his situation to a 2010 High Court case (Anstis), where a student was allowed to deduct self-education costs linked to her Youth Allowance. But the ATO said no – and the tribunal agreed. Why the Deductions Failed The key issue came down to a single piece of tax legislation: section 8-1 of the Income Tax Assessment Act 1997. To be deductible, an expense must be incurred “in gaining or producing your assessable income” and must not be of a private or domestic nature. The tribunal found no direct link – or “nexus” – between the medical treatments and the pension income. The TPD pension was payable because of his disability, not because of any ongoing effort to maintain it. As the tribunal put it, the medical costs helped him live with his condition, but didn’t produce the pension. In other words, while staying healthy might be personally essential, it doesn’t make those expenses tax-deductible. The costs were considered private in nature – similar to most therapy, medical, or dental bills. What This Means for You This decision offers a few key takeaways for anyone receiving disability pensions, super income streams, or other support payments: • Understand the “nexus” test: An expense must directly help you earn your income. Medical costs for managing a condition usually don’t meet that test. • Recognise the private line: Even if a treatment relates to your ability to work, it’s likely still “private” unless it directly relates to producing income. • Treatment vs assessment: Some taxpayers are required to obtain certificates from medical practitioners to maintain a licence so that they can continue with their current income producing activities. These costs are often deductible, unless the individual receives medical treatment. • Plan for non-deductible costs: If you rely on disability or super pensions, factor medical expenses into your financial plan. Consider insurance options, offsets, or rebates (like private health or Medicare levy exemptions) to ease the load. • Seek advice early: Before spending large sums, get an ATO private ruling or professional advice. The Wannberg case is a tough reminder that the tax law cares more about how income is produced than how life is lived. The system draws a firm line between personal wellbeing and income generation – and unfortunately, even genuine medical needs often fall on the wrong side of that line. If you’re unsure whether an expense might be deductible, don’t guess. Talk to us first. We can help you plan ahead, stay compliant, and make the most of the rules that do work in your favour.
By Clarke McEwan November 5, 2025
Small Business Boost: $20,000 Instant Asset Write-Off Extended If the Bill passes, small businesses with an aggregated annual turnover of less than $10 million will continue to be able to immediately deduct the full cost of eligible assets costing under $20,000 (excluding GST) through to 30 June 2026. The threshold applies per asset, meaning multiple purchases can qualify if each individual item is under the limit. To claim the deduction, the asset must be first used or installed ready for use by the new deadline. This measure remains one of the simplest and most practical tax incentives available to small businesses. It provides a direct cash-flow benefit by allowing the full deduction in the year of purchase instead of spreading depreciation over several years, as long as the taxpayer would actually have a tax bill for that year. For example, a tradesperson upgrading tools, or a café purchasing a new fridge or coffee machine, can immediately claim the full deduction – freeing up cash for reinvestment elsewhere in the business. While the proposal still needs to pass Parliament, now is the time to plan. If you are considering new equipment or technology upgrades, budgeting early ensures assets can be delivered and installed before the cut-off date once the law is enacted. Strengthened Corporate Disclosure The Bill also proposes tighter disclosure rules for listed companies. Changes to the Corporations Act 2001 would require the disclosure of equity derivative interests – such as options, swaps, and short positions – under the substantial holding regime. These reforms are designed to improve market transparency and make it harder for significant shareholdings or control interests to remain hidden. For listed entities, this will increase compliance obligations and may require updates to internal monitoring and reporting systems. Investors with substantial positions in listed companies should also review their current arrangements to ensure future compliance. Greater Transparency for Charities For the not-for-profit sector, the ACNC Commissioner would gain the power to publicly disclose “protected information” such as details of investigations, provided it meets a public harm test. This aims to strengthen public confidence in the charity sector by showing that the regulator is taking action where misconduct occurs. For well-run charities, stronger transparency can enhance community trust – but it also highlights the need for robust governance, record-keeping, and compliance processes. Financial Regulator Reviews Simplified Finally, the Bill would reduce the frequency of reviews of ASIC and APRA by the Financial Regulator Assessment Authority from every two years to every five. While largely administrative, this signals a shift toward streamlined oversight to allow regulators to focus on core functions. What You Should Do Now Although these measures are still before Parliament, it’s wise to start planning. For small businesses, consider your 2025–26 capital expenditure needs and make sure any planned purchases can be installed and ready for use by 30 June 2026 if you are hoping to rely on the upfront deduction. For charities and listed entities, review governance and reporting frameworks to prepare for greater transparency requirements.  We’ll keep you updated as the Bill progresses. In the meantime, contact us if you’d like to discuss how these proposed changes might fit into your business or investment strategy.
By Clarke McEwan November 5, 2025
Outside of Government organisations, the financial services sector was the most targeted industry in Australia in FY 2024/25, with the cost of these cybercrimes increasing up to 55% for small and medium businesses. People: The Biggest Cyber Risk But where does your cyber strategy start, and how do you know what the risks are? The biggest risk to Australian businesses is its people. More than 85% of all cybersecurity incidents are caused by human error. The top three incident types all rely on staff and business decisions to gain access into systems, meaning it is more important than ever to conduct regular staff training. Staff training should focus on identifying phishing attempts, understanding what to look for in malicious emails and content and how to maintain healthy password practices. Technology and Updates: Don’t Let Legacy Systems Create Weaknesses Another considerable business risk is legacy hardware and software being used in your environment. It might seem like a small frustration, turning your computer off for updates regularly, and using the latest versions of software, replacing hardware to align with required standards, but it works to close the gaps of security vulnerabilities. Recommendations aligned with the Australian Signals Directorate’s Essential 8 Framework are that all critical vendor patches are applied within 48 hours of release, and any non-critical patches are applied within two weeks. This method applies to networking equipment, third party vendor software and device operating systems. Recently, Microsoft have made the Windows 10 Operating System End of Life (EOL) which means that devices still running on this operating system can no longer receive security updates, a vulnerability that malicious actors will no doubt use to their advantage. Visibility and Monitoring: Detecting Threats Early Realistically, you cannot defend what you cannot see. An important safeguard is event logging, reporting and alerting being setup in your environment. Just by way of example, the average breach for financial services businesses in Australia takes 288 days to detect. 288 days of unmitigated breaches, access to customer and staff data, contact lists, patterns of behaviour and possibly already setting up rules and routing inside the environment that the business is entirely unaware of. Setting up appropriate logging and alerts to ensure that you are notified when something risky, like logging in from Australia at 10am and Japan at 11am, is happening inside your environment. Understanding when unauthorised access to systems has occurred is critical in being able to then assess the potential scope of an incident, so it can then be managed. The Importance of a Cyber Incident Response Plan A Cyber Incident Response Plan (CIRP) might seem like another piece of paper, but it is critical in defining the steps that your organisation needs to take to act, mitigate and respond to a cyber event. An adequate CIRP will include several critical components, but the incident management team, detection methods, incident categorisation, evidence process and resolution plans form the baseline of what will help an organisation act swiftly, and appropriately for the event type. A CIRP that has been tested regularly ensures that in the event of a cybersecurity incident, your organisation has a prioritised and effective response that deals with the technical concerns, the potential data breaches and any ongoing communications required either internally or externally with customers and stakeholders. Protecting Your Business, Clients, and Reputation In today’s digital world, it is never more important for businesses to ensure their data, systems, staff and clients are protected from threats. Cybersecurity and risk strategies are critical in this landscape and should consider different components, including staff training, technology strategies, data and information handling policies, and incident response plans. Considering cybersecurity as a business strategy is how organisations will survive, and thrive, and ensure that their reputation, financial security and customers are protected.
By Clarke McEwan October 28, 2025
Accounting tasks don’t have to eat into your business time. With the right cloud accounting software and setup, you can save time and money – while also getting tighter control over your finances. #accounting #software #finance
By Clarke McEwan October 10, 2025
As the trustee believed the income was classified as interest (this was challenged successfully by the ATO), the trustee assumed that the income would be subject to a final Australian tax at 10%, under the non-resident withholding rules. This was clearly more favourable than having the income taxed in the hands of Australian resident beneficiaries at higher marginal rates. However, the ATO argued that the distribution resolutions were invalid and the Tribunal agreed. Why? The main reason was a lack of evidence to prove that the distribution decisions were made before the end of the relevant financial years. While there were some documents that were purportedly dated and signed “30 June”, the Tribunal wasn’t convinced that the decisions were actually made before year-end and it was more likely that these documents were prepared on a retrospective basis. The evidence suggested the decisions were probably made many months after year-end, once the accountant had finalised the financial statements. The outcome was that default beneficiaries (all Australian residents) were taxed on the income at higher rates. Timing of trust resolution decisions is critical For a trust distribution to be effective for tax purposes, trustees must reach a decision on how income will be allocated by 30 June each year (or sometimes earlier, depending on the trust deed). It might be OK to prepare the formal paperwork later, but those documents must reflect a genuine decision made before year-end. For example, let’s say a trust has a corporate trustee with multiple directors. The directors meet at a particular location on 29 June and make formal decisions about how the income of the trust will be appointed to beneficiaries for that year. Someone keeps handwritten notes of the meeting and the decisions that are made. On 5 July the minutes are typed up and signed. The ATO indicates that this will normally be acceptable, but subject to any specific requirements in the trust deed. If the ATO believes the decision was made after 30 June (or documents were backdated), the resolution can be declared invalid. In that case, you might find that one or more default beneficiaries are taxed on the taxable income of the trust or the trustee is taxed at penalty rates. This could be an unexpected and costly tax outcome and could also lead to other problems in terms of who is really entitled to the cash. Broader lessons – it’s not just about trust distributions The timing issue is not confined just to trust distribution situations. Other areas of the tax system also turn on when a decision or agreement is actually made, not just when it is eventually recorded. For example, if a private company makes a loan to a shareholder in a given year, that loan must be repaid in full or placed under a complying Division 7A loan agreement by the earlier of the due date or lodgement date of the company’s tax return for the year of the loan. If not, a deemed unfranked dividend can be triggered for tax purposes. If a complying loan agreement is put in place then minimum annual repayments normally need to be made to avoid deemed dividends being recognised for tax purposes. A common way to deal with loan repayments is by using a set-off arrangement involving dividends that have been declared by the company. However, in order for the set-off arrangement to be valid there are a number of steps that need to be followed before the relevant deadline. The ATO will typically want to see evidence which proves: · When the dividend was declared; and · When the parties agreed to set-off the dividend against the loan balance. If there isn’t sufficient evidence to prove that these steps were taken by the relevant deadline then you might find that there is a taxable unfranked deemed dividend that needs to be recognised by the borrower in their tax return. Documenting decisions before year-end The key lesson from cases like Goldenville is that documentation shouldn’t be an afterthought — lack of contemporaneous documentation can fundamentally change the tax outcome. What normally matters most is when the relevant decision is actually made, not when the paperwork is drafted. In practice, this often means: · Check relevant deadlines and what needs to occur before that deadline. · If a decision needs to be made before the deadline, ensure that a formal process is followed to do this. For example, determine whether certain individuals need to hold a meeting or whether a circular resolution could be used. · Produce contemporaneous evidence of the fact that the decision has been made. You might consider sending a brief email to your accountant or lawyer explaining the decision that has been made before the relevant deadline , basically providing a time-stamped record of the decision. · Finalise paperwork: formal minutes of meetings can sometimes be prepared after year-end, but they must accurately reflect the earlier decision. Thinking carefully about timing — and building a habit of producing clear evidence of decisions as they are made — is often the difference between a tax planning strategy working as intended and an expensive dispute with the ATO.
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