Commercial law isn't just for lawyers. If you're a tax agent, it's part of your daily toolbox. Think of it as the framework that supports everything from how your client operates to how you give sound advice.
Tax and law intersect more often than you might expect. A missed clause in a contract, the wrong business structure, or an overlooked trustee obligation? These aren’t just legal issues—they're tax issues too.
You're not here to play lawyer, but you are expected to understand when commercial law impacts your client's tax position. That makes you a more trusted and capable advisor.
Ever had a client ask you to check a lease or a service agreement? It happens more than you'd think. You should know the basics of what makes a contract valid: offer, acceptance, consideration, intention, and capacity. Miss one, and the whole deal might fall apart.
What to look for:
Example: A gym owner signed a supply contract with hidden annual price increases. You flagged it early and saved them from an unexpected $12,000 spike the next year.
Always review contracts with your tax lens on. Can't give legal advice? No problem. Just flag the concern and suggest legal input.
Your clients choose structures for tax benefits—but legal liability tags along. Here’s what you need to know:
Sole Traders: One-person shows. Full control, full responsibility.
Partnerships: Profits are shared, but so are liabilities. One partner's mistake affects all.
Companies: Separate legal entity. Limited liability, but directors still carry responsibilities under law.
Trusts: Legal owners vs. beneficiaries. It’s great for planning—but only if managed right.
Practical Tip: A family trust that didn’t distribute income properly triggered a hefty ATO review. The issue? A misunderstanding of the trust deed.
You guide the setup. You help manage the risks. You explain how tax flows from each structure.
Tax and consumer law? Surprisingly connected.
Say your client sells online. They need to know about refunds, guarantees, and advertising laws. Guess who helps them avoid misleading tax claims? You do.
Real Example: A fitness coach promoted their program as "fully tax-deductible." You stepped in, reworded it, and kept them out of legal hot water. If clients offer services, consumer law impacts their invoices, pricing, and policies. Helping them stay compliant helps their tax records stay clean too.
Trusts are powerful tools. But they come with rules. You work with discretionary, unit, and hybrid trusts. Your job is to understand who gets what and how it affects their taxes. The trust deed is the bible. Read it. Respect it. If a trustee distributes income incorrectly, it can lead to legal breaches or unpaid tax.
Tip: Always double-check distributions align with the deed. And never assume past patterns are a guide.
You're not expected to give legal trust advice—but you are expected to report accurately and spot potential compliance risks.
Every property transaction is a legal and tax event. Sales, purchases, leases—they all raise tax questions. You should know when capital gains tax applies, how to handle stamp duty, and where GST kicks in.
Example: A client leased property under a long-term agreement that qualified as a capital lease. You helped them avoid misstating it on their return.
Also be alert to zoning and planning rules. They affect property use and, indirectly, tax outcomes. Understanding property law basics helps you offer sharper advice on timing, structure, and reporting.
You don’t need a law degree to help clients stay compliant—but you do need awareness.
Here are a few red flags to keep on your radar:
Use checklists. Record everything. Review the basics. Don’t assume clients know what’s required.
And when something smells off legally? Pass it to a lawyer. Clients respect honesty and referrals more than risky advice.
Law and tax change all the time. Staying current doesn’t mean reading legal texts after hours.
Here’s how to stay sharp:
Build a 15-minute habit. Read one update a day. Flag what affects your clients.
You don’t need to know everything. But you do need to know what’s changed and how to respond.
