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June 2010 Newsletter
1 Jun 2010 12:00 AM - 16th Edition Newsletter
| Firstly to cover some basic issues prior to year end, and secondly to provide a basic checklist of what is required when bringing in your work for the 2010 tax year. Accelerating and Prepayment of certain deductible expenditure, before 30 June 2010. On the right side is a table listing different types of expenses that your business may be able to accelerate or prepay to reduce your tax bill for the 2010 Income Year. You will need to see if you qualify under the simplified tax system (STS). Check with us first if you have any queries on this issue. PRE-PAYMENTS Please note different rules apply to both STS and non STS taxpayers, therefore the following should be read as applicable to you. Many non STS taxpayers will unfortunately not be eligible for the following. Basic definitions therefore are that prepayments must be commercial in nature and substantiated to conform with your business operations. Prepayments generally constitute 12 months of deductible expenditures and are allowable to the extent that the expense payment or contract does not go beyond 30/6/2011. ALSO BE AWARE OF THE FOLLOWING • Debit Director’s Loan A/C: Balances must either have a proper loan Agreement drawn up or be repaid by 30/6/2010 (this is a big ATO audit area). Call one of the accounting team if you are concerned. • Superannuation (SGC): The minimum of 9% must be paid quarterly i.e. must be PAID within 28 days of each quarter or heavy non-deductible fines will be payable. Deductible if paid by 4pm 30th June 2010. • 80/20 Rules and Personal Services Income Issues: Are you a bonafide contractor and can you pass the results test? • Prior Year’s Tax Returns: Those still not dropped in may attract fines for late lodgement. Please get your records in ASAP and we will endeavour to assist as soon as possible. • Please also be aware of your obligations to lodge future returns, your tax lodgement obligation dates may change from year to year (please check with us). • Bring forward Capital Gains where there are capital losses prior to year end. • Defer Capital Gains, consider various concessions available. • Ensure borrowings during the year have been used for business purposes and or to derive assessable income. • GST Registration: Change to existing circumstances, then contact us or the ATO. • Can you defer some billable income into next year? • Spouse Contributions Rebate: (Up to $540) if contributing up to $3,000 into a Superfund on his or her behalf. (Income thresholds apply). • Super Government Co-Contribution: (Means tested) for Super Contributions made by Employees for the amount of up to $1,000 paid out of own pocket. • Long Service Leave: Certificates need to be lodged by 31/7/2010. • Bad Debt and Obsolete Stock Write-offs: Prior to 30/6/2010. (Minute required if in a Company) remember, GST adjustments may be required. Remember to do your stock take as at 30/6/2010. • Land Tax: If buying properties other than your own house then you may be liable for Land Tax. Registration is up to you! New Rates, New Rules, Please be aware! If you need assistance contact us. • Workers Compensation (Work Cover): For new or renewed policies from 4pm 30/06/03. New Rules are applicable to Companies, Partnerships and Trusts as members of the Group. This is the biggest change to the Workers Comp laws in many years. Please review your circumstances, perhaps talk to your Insurance Company or broker on how it affects your circumstances. Superannuation, FBT and other salary items are now part of the New Workers Compensation declaration formulas. (Audits have increased in the last year, if you need assistance in this area, please call one of the team members as a matter of urgency!) FAMILY TAX BENEFIT CLAIMS From the 2009 financial year, you will not be able to make any claims for FTB through your income tax return. All claims from the 2009 year and onwards must be made direct with the Family Assistance Office. Bear in mind that in order to be able to lodge your claim you must have your tax return lodged prior to claiming with FAO. If you lodge your claim with FAO prior to lodgement of your 2009 income tax return, your application won’t be processed until your return is lodged with the ATO. Should you have any questions in relation to this please contact the FAO direct. EDUCATION TAX OFFSET Please be aware in order to be eligible to claim this offset, you must be entitled to receive Family Tax Benefit Part A from FAO. If you are unsure if you are entitled to this please contact the FAO. 2010 NORTHERN BEACHES LOCAL BUSINESS AWARDS We are pleased to announce that we are a finalist in the Outstanding Professional Services category of the 2010 Northern Beaches Local Business Awards. It is a massive achievement to make the finals & we wish to thank all of our valued clients who have voted for us. We will keep you posted & let you know if we win the big prize. PENINSULA LIVING MAGAZINE Did you know that we are a regular contributor to Peninsula Living magazine. We have had a number of articles published and have had many enquiries as a result of these articles. Please read our articles from January, March, May and June. If there is anything of interest to you please do not hesitate to contact our office to make an appointment with Terry or Andrew. |
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KEEPING RECORDS FOR CAPITAL GAINS TAX (CGT) PURPOSES AND THE CAPITAL GAINS TAX ASSETS REGISTER A common mistake that we regularly see clients make is the belief that you only need to keep copies of tax related records for up to 5 years. This is correct with all tax documents except for when it comes to Capital Gains Tax Assets (CGT assets) such as Real Estate, Shares and Investments. For people who aren’t aware for any CGT asset you acquire you are required to keep all the relevant information associated with that asset for the period you own it and for up to 5 years after you dispose of it. So if you hold the asset for say 10 years, and then sell it, you will have to keep the records for a total of fifteen years. Alternatively, if you make an asset register entry that contains all of the required information about an asset, you will only have to keep the records for five years after the entry is certified. You can discard your CGT records five years after having an asset register entry certified if: • You enter all of the information in those records that you must keep about an asset into your CGT asset register and • The entry into the asset register is in English and is certified in writing by an approved person (such as a tax agent) and • You keep the record from which the information was transferred for five years after the entry into the asset register is certified. A Capital Gains tax assets register is a way of keeping all relevant information contained in your CGT records such as invoices, receipts and contracts - that you are required to keep under CGT record keeping laws in a simplified schedule form which will generally include: • The date of acquisition and disposal of the asset, • Amounts forming or which would form part of the cost base of the asset, • Consideration for the disposal of the asset. For an example of what an Asset Register should look like, please give one of Team at Forest Accounting a call and they will be more than happy to help you with it. FINANCIALETHIX PTY LTD This is our sister company that deals with helping our valued clients in the areas of Risk Management, Estate Planning, Superannuation & Investment. We are acknowledged as one of the very few planners who rebate part of any upfront commissions received on newly settled insurances. Is your insurance, tax & cash flow effective? If in doubt please contact the office on 02 9975 6155 to make an appointment and speak with Terry or Andrew. Count GPS – We are now the number 1 firm in Australia with Count GPS for all tax effective set ups including companies, trust & the new Superannuation Fund rules. If you require any assistance in the area of new entity & best practice set up, please contact Andrew at any time. JIVVE This is an exclusive car buying service that we are able to offer to you our valued clients. If you are in the market for a new car, why not try this service whereby the hassle of looking for a car and negotiating a price is all taken care of for you. We can assist with all of your needs right through the process from the quote, test drive, finance and delivery of the car from start to finish and your only dealing with FATS and Jivve. For further information, please contact Anna on 02 9975 6155 at any time. Asset, Car & Equipment Finance – did you know that in 2008 we were the 2nd top rated firm with Macquarie in all tax effective & cash flow appropriation. We can assist with all types of finance from Chattel Mortgage to CHP or Novated Lease for your asset & equipment financing. Please call Terry, Andrew or Anna if you have any questions for this area. OUTSTANDING ACCOUNTS Our business like most businesses heavily relies on cashflow; we appreciate & thank the majority of our clients that make prompt payments of their accounts. However there are clients that have over due accounts, we would appreciate prompt payment & if you are having difficulty in paying your fees, please do not hesitate to contact Anna on 02 99756155. We are happy to work together with you on a payment arrangement in getting your fees due paid. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Company Partnership & Business Taxation* Trust & Superannuation Taxation Services * Bank Liaison, Cash Flow & Budgeting Advice * Property & Asset * Gearing & Advice * Business Set Up & Development Advice * Software Set Up & Training * Motor Vehicle & Equipment Finance * Commercial & Residential Lending * BAS Assistance, Preparation & Advice Office 4 Russell Avenue, Frenchs Forest NSW 2086 - Tel: 02 9975 6155 - Fax: 02 9975 5966 - Email: tax@forestaccounting.com.au www.forestaccounting.com.au Important: This newsletter does not represent formal advice in any way but rather a helpful guide & 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 & shall not be reproduced or made available to any 3rd party without consent. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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