News
A new dependant tax offset allows individuals to claim an offset for invalids and carers. At the start of the 2012-13 financial year, the ATO made some changes to how individuals can claim offsets for dependants when lodging a tax return. One change is the eligibility age for the dependant tax...
You have probably heard this term in the medial lately, therefore I have added this article to provide you with a background of what they are referring to. The Federal Government has introduced changes to the superannuation system designed to make Australia’s superannuation system stronger and mo...
You may recall in my last newsletter the concept of only needing to focus on ‘three’ areas to help grow a business and improve its profitability. Many business development books and consultants argue there are numerous aspects to consider. However, if you think of any business strategy y...
The new Federal Government's plan to remove the Mineral Resource Rent Tax (The MRRT), also involves removing some tax benefits that are currently available to small businesses. Whilst the Federal Government had made this known in their commentary in the past, it is now Draft Legislation. In r...
As you all know I am a big supporter of the online accounting program Xero (www.xero.com.au) due to its simplicity of use, ability to access from any location, no data backups required, etc. Most importantly I can work with you in a more timely manner by being able to view the same data and inform...
In our past couple of editions we have discussed some foundation asset protection strategies and explored some of the misconceptions regarding various matters. We have also highlighted the need to obtain specific advice for your own situation before a problem arises. But, what if you are now faced ...
Many small business owners fall into the trap of building a business entirely dependent on them so that it would not survive if they were unable to work. They have not built a business rather, they've created themselves a job. Even worse a job from which they can’t resign or take extende...
As detailed in our May 2013 newsletter the super guarantee (SG) rate increases to 12% over seven years, as shown in the table below. 1 July 2003 - 30 June 2013 9% 1 July 2013 - 30 June 2014 9.25% 1 July 2014 - 30 June 2015 9.5% 1 July 2015 - 30 June 2016 10% 1 Ju...
In our last newsletter, we visited the issue of protecting your assets and started to discuss some of the ‘ownership’ options such as companies or trusts. Many businesses operate via a company. Some people with large amounts of business assets even use a separate company (or...
The Australian Taxation Office (ATO) now has a greater ability to make company directors accountable for unpaid PAYG withholding and superannuation guarantee obligations of their company. These changes are intended to discourage directors from being involved in fraudulent phoenix activity. The chan...
This is the first in a series of articles looking at how you can protect your hard earned assets; your home, your business and/or your investments. Like all financial matters, you must have a strategy. Unfortunately for many their asset protection strategy stops with insurance believing this will c...
What are the differences between a person being an employee or a contractor? Many business owners ask me this question. This article should help clarify some of your concerns. It is important that you understand the differences as a number of government organisations are continually reviewing the...
Testamentary Trusts can be incorporated into a Will to provide greater flexibility for the beneficiaries of a deceased estate. A Testamentary Trust operates under a Trust structure whereby assets are managed by one person or persons, such as a trustee, for the benefits of others, known as benefic...
The ATO has increased their data matching for rental property owners who are claiming tax deductions in their income tax returns. In April, the ATO revealed it would use new data-matching technology to closely scrutinise residential and commercial property sales to ensure tax payers paid the correc...
A comment that I frequently hear when reviewing a person’s accounts and taxation returns is “… that can’t be right, we don’t have any money … where has all the cash gone if we made that much profit …” Sound familiar? So, where did the money go? Firstly we need to look at the...
I was recently asked by one of my clients if they could purchase a car in their Self-Managed Superannuation Fund (SMSF). Trustees of SMSF’s are aware whilst the ATO does not prohibit a SMSF investing in collectables and artwork, they may be less sure of the rules concerning cars and motorcycle...
Read more: Motor vehicles as Self-Managed Superannuation Fund assets
We have been working with Roxby and other remote area workers for over 20 years and during this time have been asked a lot of questions about zone rebate. History The Zone rebate was introduced in 1945 to recognise the disadvantages that people in remote areas encounter. For example the high...
An area that I am commonly asked about is about what are the taxation implications of developing a property? Given the significant value of the transaction it is a very good question as the taxation implications can have a dramatic impact on the profitability of the project. Property investor...
Read more: What is the tax difference between a Property Developer and an Investor?
There are now greater penalties in place for breaches of most Australian tax laws. The ATO has increased the value of a penalty unit from $110 to $170, the first such increase since 1997. A maximum of 5 penalty units for a very late tax return increases $300 to $850 ($170 x 5) from the previous $55...
With 30 June 2013 only 3 weeks away it is perfect time to review your situation to make sure that you take advantage of any planning opportunities to ensure that your financial situation is maximised. Document and claim all work-related expenses, you can automatically write off $300 a year ...
You probably have now all heard of cloud computing, but how can it help you with your bookkeeping and accounting? Presently the accounting software industry is going through one of the greatest changes that I have seen in 20 years since MYOB, Quickbooks and other desktop computer programs were intr...
Read more: Why change your accounting system to a cloud based system.
Image source www.dfat.gov.au Significant changes that will impact on individuals. Increased Medicare levy The big news item is a 0.5 per cent increase in the Medicare levy to fund the National Disability Insurance Scheme. Under the proposal, the levy will increase from 1.5 per cent to 2 per cen...
With the end of financial year fast approaching, starting to prepare now will save time and headaches when the June 30 deadline arrives. There are a few common financial planning strategies that may be appropriate for businesses and individuals looking to take control of their finances and plan for...
To help grow Australian workers' savings for retirement, the compulsory super guarantee rate will gradually increase from 9% to 12%. When you make super payments on behalf of your employees based on the minimum 9% super guarantee rate, you will need to increase this rate on which you bas...