December 2012 Newsletter

1 Dec 2012 12:00 AM - 23rd Edition Newsletter

 2012 has just flown by, another busy & successful year is winding up. This is our annual newsletter to let you know the team from FATS will be having a short break for the upcoming festive season.

CHRISTMAS OFFICE CLOSURE
Our office will be closed from 5pm Friday 21st December 2012 to 9am Wednesday 9th January 2013 inclusive. We will all be back, recharged, refreshed & energised for another exciting year.

21 YEARS!
It's our 21st birthday this year we would like to thank the dedicated accounting team Andrew, Terry, Jamiee, Elsa, Andy & Christine; together with our great support team members Anna, Anita, Reen, Belinda, Alison & John. Also a big thank you to Robert Thomas, & his dedicated team of Marie & Anna in our financial planning arm of our organisation.

LAND TAX
Do you own your own property that isn’t your principle residence? If so there may be serious implications for land tax. This item is published every year in our newsletter as a courtesy to our clients, however it is your responsibility to check with Office of State Revenue if you may have a land tax issue. There are new laws introduced recently that could apply especially to those who have property held in a family trust, sole trader, partnership or superfund entity. This is assessed as at 31 December each year. Please contact Andrew or Terry or go to www.osr.nsw.gov.au/taxes/land for further information.

NEW DIRECTOR PENALTY LAWS
The ATO has applied changes to the Director Penalty Notice (DPN) regime which became law in June 2012. 3 major highlights of these changes are:

• Expand the DPN regime from just PAYG deductions to include Superannuation Guarantee amounts (‘SG”)
• Make directors automatically personally liable if PAYG or SG amounts remain unpaid and unreported 3 months after the due date for lodging a return & a director can’t cause their director penalties to be remitted by placing their company into administration or liquidation
• Directors should get their company Tax Returns up to date & lodge them. If a company can’t pay the PAYG or Super liability, it should lodge the returns anyway or a director risks incurring automatic personal liability.

ASIC REGISTERED OFFICE FEE INCREASE
To keep in line with software,outsourcing, labour cost increases & ASIC raising fees in July 2012, we advise you all companies which FATS acts as the registered office, our registered office fee will be increase effective from 01/01/13 to $130.00 + GST per entity.

DO YOU CARE ABOUT YOUR WORKERS?
It is imperative that all companies/sole traders/partnerships/trust entities who have employees or "subbies" be aware of certain obligations to be adhered to. These include Workers Compensation, Payroll tax, Super Guarantee Surcharge & related. Please contact either Andrew/Terry or Jaimee if you have any questions in relation to this.

PENINSULA LIVING
We have been a regular contributor with Peninsula Living magazine for the last 3 years; writing about various tax and accounting issues. If you haven't seen our latest articles then you are able to view all the back issues on our website: just click on the Peninsula Living button.

2012 NORTHERN BEACHES LOCAL BUSINESS AWARDS
Finalists for Most Outstanding Professional Services 

Thank you to all of our wonderful clients who voted for us, for your loyalty and support. We were proud to be announced as a finalists for the 3rd year in the category for Most Outstanding Professional Services out of several thousands of nominees. It is a great honour and we are proud that this endorses our unique and specialised services.  

NEW SERVICES AVAILABLE
- Audit Insurances: to protect you from any general audits and associated costs – please refer to anna@forestaccounting.com.au if you would like further information or have any questions.

- Car Buying & finance - for any questions or further information please contact anna@forestaccounting.com.au.

- Bookkeeping & Cloud Services: with a management style to help make your lifestyle easier and give you better and quicker reporting standards, please contact jaimee@forestaccounting.com.au for further details.
 

PAYMENT AND LODGEMENT TERMS & CONDITIONS
From 1^st September 2012; our payment and lodgement system has changed. Work will be lodged when payment has been received. This policy requirement is due to the high volume of administration time required to follow up overdue accounts. Our current payment terms still remain as 14 days from Invoice date. When we complete work and it’s ready for signing, we’ll send your returns & invoice. If we don’t receive payment with your signed returns or within 14 days of invoice date, this will compromise the lodgement of your return. Payments made via EFT, please advise by note/email. Returns will be lodged once payment is cleared. There is the option of having your fees deducted from your refund. We require Trust Authority form signed or have this in writing. If you are entitled to a refund, a form will be sent, with your return and invoice, please send this back if you wish to take this up. Note, this incurs an $18.18 plus GST administration fee. If we don’t receive this, we will assume you'll be making payment. Please refer to our terms of engagement & contact Anna or Irene if you have any questions.

LONG SERVICE LEAVE REQUIREMENTS All Self Employed Workers your Long Service Leave certificates for the 2011-2012 financial year must be lodged with Long Service Leave Corporation by 30 June 2013. Employer Returns for 2011–12 are available online & were due for lodgement by 31/7/12. All Employers are obliged to lodge returns on time & further information is available at www.longservice.nsw.gov.au or call the Helpline on 13 14 41.

NETWORKING PARTNERS
Pacific East Coast – if you are in the market or thinking of purchasing a new investment property through your Self Managed Superfund, trust or just as an individual we have an exclusive relationship with our property partners Pacific East Coast. PEC has a range of properties currently in Brisbane, Sydney & Melbourne available to choose from. Please contact Terry on 02 9975 6155 or email: terry.g@forestaccounting.com.au for further information.

IMPROVING THE TAXATION OF TRUST INCOME
On 29 June 2011, legislation was enacted that impacts the taxation of trusts. The changes ensure, where permitted by the trust deed, the trust's capital gains and franked distributions. can be streamed to beneficiaries for tax purposes by making those beneficiaries 'specifically entitled' to those amounts. Beneficiaries specifically entitled to franked distributions will, subject to existing integrity rules, also enjoy the benefit of any attached franking credits. Jaimee our in-house specialist in this area has made contact with all our clients in June of this year to allow you to action the new legislative requirements; this is an ongoing issue for all trusts; if you have any concerns please contact Jaimee at jaimee@forestaccounting.com.au. 

WORKING WITH YOU TO ADDRESS THE CASH ECONOMY
Do you work within the cash economy? Are you concerned about business benchmarks, tax audits & general record keeping matters? If you answered yes to any of the above then please contact Terry, Jaimee, Elsa or Andrew to discuss your concerns.

ARE YOU CLEAR ABOUT THE STATUS OF YOUR WORKERS?
Various ATO visits have found instances where employers are treating common law employees as contractors. One reason often given to not cover some subbies is that the worker holds an Australian Business Number (ABN). This suggests that many clients, whether they are employers or workers, may hold misconceptions about what it means to hold an ABN. Some people incorrectly believe that an ABN is an alternative to a tax file number (TFN). They also believe if an individual has an ABN, they are automatically a contractor. Many people do not understand that only those who are carrying on an enterprise in Australia or who have clear business intent are entitled to an ABN. Misconceptions like these can result in clients being non-compliant with their employer obligations such as PAYG withholding and super guarantee. Employers may face penalties for failing to comply with these obligations. For further information please refer to www.ato.gov.au/business/content.

PAYROLL TAX
The same issues arise when discussions on Payroll Tax is brought up. If you are in doubt about PRT & its effect on your subbies then please call Terry or Andrew on 02 9975 6155. Please refer to www.osr.nsw.gov.au/taxes/payroll for more detailed information.

DO YOU HAVE A GST DEBT?
The ATO can work with you to solve debt issues; for example, by making arrangements to pay by instalments. However, it is important you lodge on time even if you are unable to pay by the due date. We've been very successfull in negotiating with the ATO on behalf of many clients who may have cashflow or peronal problems & can't meet their requirements. If this applies to you & you need assistance plese call Anna on 02 9975 6155; or for further information please refer to www.ato.gov.au.

CONTRIBUTING TO SUPER – WHAT YOU NEED TO KNOW…
There are limits on the amount you can contribute to super each financial year that are concessionally taxed (are a tax deduction). There are two types of contributions and the limits are different for both. These are called concessional and non-concessional contributions.

Concessional contributions include:

• the 9% compulsory super guarantee made by employers
   
• any extra voluntary super contributions employers make
   
• salary sacrificed amounts
   
• personal contributions you make that are allowed as a personal super deduction in your income tax return.

The 2012–13 concessional contributions cap is only for all eligible workers of $25,000.

Non-concessional contributions include:

• personal contributions made by you from your after-tax income that cannot be claimed as a personal super deduction in your income tax return
   
• contributions made by your partner
   
• any contributions in excess of the concessional contribution cap.

If you have any queries on these super issues or want to know more information, please call Robert Thomas on 02 9975 6155.

BUSINESS SIDE OF THE NEWS & INFORMATION FOR YOU TO THINK ABOUT

SUPERFUND RETURNS
Most superfund returns are due for lodgement by end of February 2013. For those who have not dropped in their work, please do so before Christmas or NO LATER than mid to end of January 2013, otherwise our time to prepare will be limited and will conflict with the 2nd BAS/IAS preparation deadlines.

INDIVIDUAL / COMPANY / PARTNERSHIP AND TRUST RETURNS
The ATO this year is again cracking down on overdue income tax returns. For anyone that has 1 or more years outstanding your returns are now OVERDUE and fines are being imposed for late lodgement by the ATO. We urge you to get your outstanding work papers to us so that we can fast track and assist in getting these lodged with the ATO. Correspondence from the ATO and our firm has been sent to clients that we are aware of with outstanding lodgements.

ATO PAYMENTS
All ATO payments (e.g. PAYG, BAS, IAS to mention a few) for the quarter ending 31st December 2012 are due by late February 2013. If you want us to assist in any ATO preparations, we must have your work in by no later than the end of January 2013 otherwise delays and fines may occur.

SMSF & BORROWING TO BUY PROPERTIES
We pride ourselves on being industry leaders in the area of 
property purchases via superfunds. Through this innovation we have assisted many clients in buying their requested properties via this process. Please don’t hesitate to call us if you wish to know more about this.

Also, it has come to our attention that many property promoters are contravening some basic rules when borrowing to buy property in a SMSF. Strict rules have to be followed & many developers either don't know or cut corners which will put a trustee at risk. Remember if you are the trustee of the fund then you are responsible. If in doubt or you need to discuss, then please call Terry or Andrew on 02 9975 6155.

IMPORTANT UPCOMING LODGEMENT DATES & DETAILS

• Late February 2013: 2nd BAS/IAS lodgements and payments due
   
• Late February 2013: some company tax payments due
   
• Feb/March 2013: superfund tax returns due
   
• March 2013: fringe benefits update due
   
• March to June 2013: periodical accounting and tax planning reviews for the year ending 2013.
  Please register your interest by calling 9975 6155 or emailing us at tax@forestaccounting.com.au
   
• Late April 2013: 3rd BAS/IAS lodgements and payments due
   
• Late July 2013: 4th BAS/IAS lodgements and payments due
   
• Mid August 2013: PAYG certificates and PAYG reconciliations due to be lodged with the ATO. Note the ATO is imposing fines for late lodgements of these reports
   
• Monthly or quarterly super must be paid at least on a quarterly basis or fines will apply. Consider paying your super at the same time as your BAS/IAS lodgements and payments. A Super levy of 9% (minimum) on basic wages is to be paid to a complying superfund. If you are not sure what a complying superfund is, then please call Terry on 02 9975 6155.

FINANCIAL ETHIX GROUP NEWS
Another busy year has passed also with FinancialEthix Group. Robert & his team can assist you with the all-important Risk and Estate planning issues required & at the same time show you how these can be applied tax effective for you. These include Income Protection, Life Insurance, Trauma Insurance, Total Permanent Disability Insurance, Estate Planning cover, Superannuation and retirement issues. We can assist you with a basic will if you haven't already got one established.  Please call Marie to discuss your needs & wants for a complimentary 1/2 hour meeting with Robert.

FINANCIALETHIX TEAM GROWS FinancialEthix Group has a dedicated financial planning team that can assist with a wide area of your financial needs. We're here to be your long-term financial partner and seek to accompany you through the challenges you face during your entire financial life. The team includes Marie Cost-Chretien & Anna Gordon joining during the year.

Marie Cost-Chretien - has strong organisational skills and a client focused attitude, Marie is a vital member of FinancialEthix team, working closely with Robert, Anna and clients. Marie’s wealth of experience in delivering high levels of client service and administrative orientated results provides our clients and advisers with the confidence of knowing that what we say we will deliver is delivered. Marie has over 10 years of experience in this area of work.

Anna Gordon - has a wealth of knowledge in the financial planning industry & works closely with Robert & Marie in handling client queries & related matters. Anna has a background in the compliance side of Financial Planning & has over 10 years experience in this area.

If you would like further information on any of these issues please feel free to contact Robert or Marie on 02 9975 6155 for a complimentary discussion & review of your affairs.

Planning areas the team can help you with include:

Wealth Protection
FinancialEthix Group are risk insurance specialists.  We will review your situation, assess your risk insurance requirements, and put in place an appropriate level of risk insurance coverage that protects you and your family. We have access to  wide range of risk insurers and strive to select the right product for you, so you can be sure that your risk insurance needs are well looked after.

Long-term Financial Planning
FinancialEthix Group can develop a long-term financial plan that meets your goals. We will work closely with you to identify your goals and objectives, understand your individual circumstances, and develop a personalised strategy to meet your goals. A long-term strategy is not just about deciding in which assets to invest, it's more about understanding where you are now and where you want to be in the future and helping you get there.

High Quality Investment Advice
FinancialEthix Group has researched the market to offer a panel of high quality superannuation and investment funds for our clients. There are hundreds of individual super funds on the market and it can be difficult to determine which one is suited to you. We will consider the features of the investments, such as cost and flexibility, and strive to ensure that the super fund or investment recommended to you is the right one for you. 

Self-Managed Super Funds (SMSF)
If you're interested in having greater control over your superannuation, we will be able to assist you in reviewing the suitability and implementation of a Self-Managed Super Fund (SMSF). 
  
Please give us a call for a complimentary first meeting appointment with our Adviser Robert Thomas.

From the team at FATS we hope you have an enjoyable and relaxing festive season, and we look forward to providing you with our continued excellent services in 2013!

Office 4 Russell Avenue, Frenchs Forest NSW 2086 - Tel: 02 9975 6155 - Fax: 02 9975 5966 - Email: tax@forestaccounting.com.au

Important: This newsletter does not represent formal advice in any way but rather a helpful guide and is for the private consumption of our clients. Contents of this newsletter herein are in general nature and are issued as a guide for our clients only. We recommend that clients seek formal advice before acting on any of the abovementioned issues within this newsletter. The content of the newsletter remains the property of Forest Accounting & Taxation Services Pty Ltd and shall not be reproduced or made available to any 3rd party without consent. E & OE