Depreciation – the tax deduction lots of property investors forget to claim.
Here are 5 key strategies all practitioners must consider now to take advantage of tax reduction benefits for the upcoming tax season!
From 1 July 2017, practices that haven't engaged with the Australian Taxation Office (ATO) to get their tax debts under control could have their tax debt information disclosed to credit reporting agencies.
On 31 March 2017, the Fringe Benefits Tax (FBT) year ends. The ATO will review whether employers should pay FBT, as well as ensure you are paying the correct amount.
The ATO is targeting individuals (at, or approaching, retirement age) purporting to divert personal services income to a SMSF to minimise or avoid income tax obligations. A person earns personal services income (PSI) when 50 per cent of their income is earned from offering products or services that involve their skills, knowledge, expertise or efforts.
Specialist accountant do more than producing your tax and annual accounts.
Their industry specific knowledge on Medicare, Practice Management and Incentive Payments can be instrumental in keeping the practices functions healthy and helping practitioners plan.
What would you consider to be the holy grail of business? How about clients who automatically return to your business for services or products without giving your competitors a look in? Certainly such client captivity would have to rank right up there among the most sought-after business achievements. After all, Australia’s business marketplace is a highly competitive place. Maintaining strong financial health and performance depends on having a loyal pool of satisfied customers. For this reason, customer satisfaction is a crucial metric is business management and growth.
The recontribution strategy can be utilised to reduce the taxable portion of your superannuation benefits passed onto your beneficiaries following the death of an SMSF member.
A testamentary trust is an effective estate planning tool that can provide greater flexibility when it comes to protecting assets and minimising tax when distributing assets to beneficiaries.
Testamentary trusts are trusts that are established through an individual's Will that do not come into effect until the individual has passed away. The trust outlines a structure whereby assets are managed by appointed trustees for the benefits of the beneficiaries nominated in the Will.
Developing a sound succession plan can be a tricky process, especially for business owners looking to handover the business to family members.
Are you aware that if any of your children have a failed relationship, their share of your family wealth could end up going to another family?
Before you launch into the process of setting up your own business, read through the suggestions below for some vital steps to consider
It is important to consider the advantages and disadvantages of the various business medical structures available, and to choose the best structure to suit your circumstances.
Before you launch into the process of setting up your own business, read through the suggestions below for some vital steps to consider.
How do I know if I need to pay FBT? What is exempt from FBT? And what to be aware of come 1 April 2016.
The Government has announced the introduction of a separate grossed up cap of $5,000 for FBT salary packaged meal entertainment and entertainment facility leasing expenses.
Even though managing your financial affairs should be a year round activity, the start of a new year is a perfect opportunity to get your financial house in order.
The ATO is targeting those who rent out their property for a few weeks during the year but claim a full year’s worth of tax deductions. The tax office will be paying close attention to rental property owners, especially those who own a holiday home, who incorrectly claim for initial repairs to recently acquired rental properties.
While most of us will hopefully accumulate enough superannuation throughout our working lives to have a comfortable retirement, many of us simply won’t have the funds there to splurge on something nice every now and then.
GST could be taking a ride up in that great glass elevator leading to a tax hike. A 15 per cent GST increase is on the table for Australia. While the Government has remained coy calling the possible GST rise ‘speculative’ this is none the less, this option has certainly not been dismissed.
Ho ho ho. Christmas is just eight weeks away and the right sales planning could have you laughing all the way to the bank. Smart marketing has never been more important than over the silly season. If you are like many small businesses, Christmas sales may account for a major chunk of your annual sales tally. So how prepared are you to capitalise on the Christmas sales rush? Here are some handy tips to help you steal a march on your competitors and lay out a blueprint for a very merry Christmas season:
We wish you a Merry Christmas and a happy new year – one with reduced Fringe Benefits Tax (FBT). At Ganrid, we find that FBT draws plenty of questions all year around. By far the most common question we are asked though, is what FBT strategies achieve the highest possible savings. As 2016 fast approaches, now is a great time to look at reducing your business’ FBT to kick off a prosperous new year.
Medicare may be about to set you reaching deeper into your pockets. Are you up for the Medicare Levy Surcharge? This surcharge is additional to the ‘garden variety’ Medicare Levy paid by all eligible Australian tax payers. You will need to cough up the extra dough if you are:
This month we complete our refresher course on budgeting and forecasting. These are multi-faceted disciplines and company directors must skillfully poise cost-efficient operating outlay with continual business growth and health. Here budget and cashflow forecasts become crucial business disciplines. This month, we cover two aspects of company budget and cashflow management that are common to almost every business: labour budget and profitability forecasting.
We understand that doing your tax return can be a stressful and at times bothersome experience. Yet being prepared with some key items of information can make your tax return experience much more convenient and hassle-free. Have a read through the list in the full article to see if it jogs your memory about work related expense claims or other tax deductible items that may have slipped your mind.
Professional practices are to be placed under greater ATO scrutiny. ATO guidelines for its professional practices risk classification matrix have been updated and expanded. Such updates focus specifically on how much of the profits arising from professional practices the ATO expects to end up in the tax returns of individuals who own or control the equity owners.
Staying safe online is vital to both your personal and financial wellbeing. As a Xero Certified Advisor, Ganrid knows the exceptional ease and efficiency that online accounting offers. Yet we also know the pitfalls. That is why we work together with Xero to help you stay savvy about online risks to your financial health.
Training can seem like a worthy investment indeed. After all, having a workforce that is continually developing their skills, knowledge and capabilities is a smart way to keep your business on top of its game. Yet as an employer you must not forget to consider the relationship between training courses and tax.
Perhaps selling your holiday home seems like a long-term initiative or simply a long shot possibility. In reality you should prepare for the possible sale of your holiday retreat from the time you purchase this personal getaway. The key to unlocking seamlessly calculated capital gains tax (CGT) lies in keeping full valid and accurate records from the get-go.
Last month we launched a refresher course on budgeting and forecasting. These are multi-faceted disciplines and company directors must skillfully poise cost-efficient operating outlay with continual business growth and health. Here budget and cashflow forecasts become crucial business disciplines. This month, we cover two aspects of company budget and cashflow management that are common to almost every business: debors and creditors:
Do you receive income from a superannuation pension? If so, your eligibility for certain key social security benefits may be affected. Now, any superannuation pension income you draw will be included in determining whether you are entitled to receive:
Modern businesses operate in a dynamic yet high-pressure environment. Lean operating costs are essential not just for continued growth but also for business survival. Here budget and cashflow forecasts become crucial business disciplines. Over coming months we look at key items that company directors must consider in budgeting and forecasting. Here we begin with several factors that are common to almost all businesses:
Every day, many Australian business owners register new self managed superannuation funds (SMSF). SMSF is an option that enjoys increasing popularity thanks to the greater freedom and flexibility of investment that it allows. Yet counterbalancing this freedom is a rigorous regulatory framework – one that is set to become even stricter. From 1 July 2015, the ATO has new penalty powers regarding certain breaches of SMSF rules. If you are a current SMSF holder or are considering SMSF as a possible superannuation choice, it is important that you understand the new ATO penalty powers.
Superannuation is the roadmap to a secure retirement. In Australia almost all employees are entitled to employer superannuation contributions. But you can also make your own super contributions and thanks to recently increased superannuation contribution caps – you can put more money in super going forward.
Our new financial year is upon us and against what a colourful backdrop it falls. Greece's debt crisis is drawing global attention. Yet perhaps of even bigger note to Australia is the Chinese economic slow down. After all, China is Australia's largest trading partner so our two countries' economic fortunes are inextricably connected.
Small to medium enterprises have some valuable Government grants that their disposal. If you are an SME be sure to investigate your eligibility for the Research and Development Tax Incentive and the Export Market Development Grant. Each grant can make an important contribution to your business growth and cashflow. Here is a little more about the two grants to get you started:
Yes. You did read the title correctly: tax planning time is here. In fact it never left. Tax planning is not something that should come onto your radar every June at financial year end. Rather, tax planning should be an all-year-round event. So now that 30 June 2015 has been and gone, it is valuable to consider the several tax planning considerations that you should review on a continual basis:
Property investment can be a great way to secure your financial future. Yet no property investor relishes the stress and time demands of an audit. If you own a rental property beware of borrowing expense claim errors. Such claims are a continual source of common mistakes that the ATO encounters time and again. Claim errors are red flags that attract ATO attention and heighten your chances of being selected for an audit or review. Here is how you can avoid rental claim errors in your property investment portfolio.
High net worth Australians will remain under high ATO scrutiny this financial year. The ATO recently released an online guide that outlines its approach to ensuring Australia’s wealthiest individuals and private companies uphold strict tax compliance.
A recently announced ATO drive targets investment property owners who are over-claiming tax deductions. Owners of both long-term rental and holiday rental properties are put on notice to have detailed records available to support their deduction claims.
GST errors are unfortunately commonplace in business BAS. Yet most businesses do not intentionally set out to make these mistakes in order to gain some benefit. Many GST mistakes are simply that – an inadvertent error. When these happen though, GST errors can cost your business time and money. Not to mention delaying your refund. Here are some tips to get your BAS right first time round.
Small business investment and growth is officially a 2015 Budget centerpiece. Instant asset write-off for small business has undergone a major transformation, from a $1000 instant asset write-off threshold to a new $20,000 tax break. Small businesses and sole traders can now immediately claim back purchases of up to $20,000. In other words, any business-related purchase under $20,000 is now 100 per cent deductible.
What you can expect from this years budget.
Over the past year, natural disasters have severely impacted areas throughout Australia, leaving rental property owners especially feeling the brunt of these disasters through costly repair bills and loss of rental income.
For small business, this will also incur additional R&D benefit, where the permanent tax benefit will increase from 15 to 16.5 per cent.
The Government has released some points in the latest budget to stimulate small businesses.
The latest budget has made a few changes to personal tax.
Save time with this fantastic add on for your accounting software.
It is essential for all small businesses to have an effective record keeping system in place.
Having your records in good working order will significantly reduce the stress that comes with the end of financial year, and will ensure that you make the most out of all of your potential tax savings.
Over two million motor vehicle records are set to be examined in an attempt to identify noncompliant taxpayers.
On the weekend David Murray handed down his ‘Financial Systems Inquiry Report’, which included 44 recommendations, one of which was the prohibition on direct borrowing by superannuation funds.
So let’s clear up some abbreviations. You may have read some TLA’s (Three Letter Acronyms) and FLA’s (Four Letter Acronyms) in the news over the weekend so let’s quickly cover them now.
The end of the FBT year is fast approaching, and employers may notice that their FBT bill is running a little higher than usual.
With continued declines in interest rates and positive gains in the stock-market, self-managed super fund (SMSF) trustees have moved more of their cash holdings into managed funds and international equities, according to the latest Multiport SMSF Investment Patterns Survey.
The government have drafted legislation that could assist START-UP companies by reintroducing employee share schemes.
So you have had this dream of setting up your own small business and being your own boss. But, ever since your dream became a reality, life has not been the same. And not necessarily in just a good way.
The ATO can easily see if you have made a mistake in your GST return by data matching your income tax return. For instance, they can check the sales lodged in Business Activity Statements with the figures lodged in your income tax return.
Effective from 6th April 2015, the UK Government will ban pension transfers from Public Sector Schemes.
Business owners need to be aware of the difference between an employee and a contractor so that they are able to meet their appropriate tax and superannuation requirements.
We would like to share with you an article written by Jamie Sutherland who is the President of Xero in the US.
Do you receive income from a superannuation pension? If so, your eligibility for Age Pension and Commonwealth Seniors Health Card may be affected. Now, any superannuation pension income you draw will be included in determining your entitlement to receive:
It is not unusual for Australians to overlook their superannuation in general, let alone worrying about accounting for it in their estate planning.
Fraudulent investments can be a serious problem in Australia, and individuals with a high net worth are often targeted in these scams.
Some investment scams in the past few years have been extremely sophisticated, and have managed to fool seasoned investors. Here are some things that should raise a red flag in a prospective investment opportunity:
The ATO is preparing to enter into the second phase of its dividend washing compliance program.
Over 3000 individuals and entities have now received written correspondence requesting that they amend their returns to rectify dividend washing benefits.
When it comes to investing there is always a certain amount of risk involved.
The key to a great investment strategy lies in being able discern exactly how much risk you are willing to take on. The risk profile of your superannuation investment strategy should be determined by a combination of your financial goals and the time frame in which you want to achieve them.
Many people make the mistake of assuming that all debt is bad and that they should aim to reach a point where they are completely debt free.