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5 Rules you don’t want to break

"I don't know who you are.
I don't know your company.
I don't know your company's product.
I don't know what your company stands for.
I don't know your company's customers.
I don't know your company's record.
I don't know your company's reputation.
Now – what was it you wanted to sell me?"
                                              

I've always thought this ad by McGraw Hill is an incredible insight into the internal dialogue of our prospective clients and customers. I probably don't need to tell you that the hardest and most expensive way to attract new clients or customers is to try and sell them something cold – ie. when they have no idea who we are.

A much more effective strategy is find a referral partner who is already dealing with your target market, and leverage from their many years of building relationships with their clients. This works because of a really powerful concept called 'Trust Transference'.

So why doesn't everyone do it? Well because referral relationships can be slow and difficult to build, and you've probably even tried before with no or very little success.

And that may be because you didn't know the rules... You see there are 5 rules you MUST (yep I'm shouting) get right if you want a successful referral partnership. Master all 5 and your business will absolutely explode with referral opportunities. However... Get just 1 wrong and it's all over.


Rule # 1: NEVER make your referral partner look bad...

This is the greatest fear of your referral partner, and if you break this rule it's sudden-death to the alliance. You need to make sure you're someone that your referral partner can be comfortable referring.

And I'm not talking here about being good at what you do, your referral partner wants to be sure:

•       You will look after their clients.

•       You will stick to your time-frames.

•       You will turn up.

•       You will communicate.

•       You will be consistent and reliable.

Of course, the good news here is that if you know their greatest fear is that you'll make them look bad, then ipso facto you also know their greatest aspiration – to look good!!

 

Rule # 2: Be Choosey!

Just because someone has a heartbeat and is 'willing' to be a referral partner, doesn't automatically make them a good fit for you and your business. In fact, choosing the wrong type of partner can turn a referral gold mine into a referral land mine.

Be sure that they:

·         Have strong working relationships with your exact target market.

·         Share your ethics and values.

·         Do a great job.

·         Have a mentality of abundance.

·         Want to grow their business.

·         Are professional.

·         Are likeable.

·         Are easy to work with.

 

Rule # 3: Make it Super Easy

In fact, you can't possibly make it too easy...

At the end of the day, you don't want to ask someone to be a referral partner and then make them do the work!

It's up to you to provide all the resources, tools, and templates.

And of course the more smooth and effortless it is for them, the more valuable you become, and you can end up becoming an indispensable part of their business.


Rule # 4: Communicate with them frequently.

If you're not prepared to do this – DON'T BOTHER EVEN STARTING...

You need to regularly let your referral partner know what's going on - remember it was their client/customer first).

You should also check in to see how they're going and if you can help make things easier (for them to refer clients to you).

 

Rule # 5: Referral partnerships need to be system driven

This not only makes it easier for you, but gives your referral partner confidence in your ability to look after their precious clients.

If you don't have the systems in place and ready to go, then it will just speed up the rate at which people find out you're not a good alliance partner.

So there you have it, the 5 rules to ensure successful referral partnerships. Get them right and it will make your life easier and your profits soar!!

Would you like some help identifying a valuable referral partner for your business, and put in place a system to approach and get them referring you FAST? Then click here to book in for a 90 minute 'Referrals Accelerator' Strategy Session. It's a one-on-one session with me, and it will move you from just thinking about how good a referral strategy would be for your business, to actually DOING IT.

The cost of the session is usually $495, but if you mention this blog post we'll give you a whopping 50% discount. How's that for an incentive to take action?

Stay fabulous,

Caren



Setting the Scene

Greek debt levels came to the world's attention in December 2009 when Fitch (international ratings house) downgraded the nation's credit rating. Greece had little government revenue due to widespread tax evasion, and it was revealed that the government had been understating its true debt position for years.

In an effort to avoid bankruptcy, Greece accepted bailouts from the Troika (International Monetary Fund, European Central Bank and European Commission) totalling more than $US264 billion. These were subject to harsh austerity measures that required an overhaul of the Greek economy. You may recall the riots…

But ooops - these funds have mostly been used for private creditors rather than build the foundations of a sustainable recovery. Reforming the economy and austerity measures have been enormously unpopular within the Greek population resulting in three changes of Government since 2012.

 

The current plot

Jump forward to the situation as it stood just last week…

Greece is once again running out of money to pay international debts. European officials extended the bailout program in February with the extension Tuesday 30 June when Greece was due to make a 1.6bn payment to the International Monetary Fund and also replenish emergency funds used to make a previous €750mn payment to the same institution. Big bucks!

Greece was offered a further bail out agreement by the European Union if it agreed to further austerity measures to cut pensions and raise taxes. This agreement also expired last Tuesday but Prime Minister Tsipras instead called for a referendum to be held on July 5 (which was last Sunday) for the Greek populace to choose whether or not to accept the European Union's proposal and financial aid.

The European Union announced there would be no extension to the existing program and froze Emergency Liquidity Assistance (ELA) last Friday. Over the weekend, Greek people rushed to ATMs to withdraw their funds and so the Greek government closed the domestic equity market for the week and restricted bank ATM withdrawal limits to 60 a day. The Greek banks have also been temporarily closed.

 

The plot thickens

As if things weren't already dramatic enough…

British Prime Minister Harold Wilson once famously said, "A week is a long time in politics", and ain't it the truth. The Greek referendum has come and gone and the Greeks have confounded most of the pundits and the opinion polls by voting 'NO' 62% to 38%.

Talk about a landslide… And a landslide that no one predicted – almost everyone felt that despite the austerity measures not being popular, the referendum would be passed.

Wrong!

So what does this 'no' vote mean in the scheme of things?

At this stage everyone has least agreed to negotiate. Fortunately for them the Greek Finance Minister, Varoufakis has resigned, so the European powers should find it less irritating to negotiate with their Greek counterparts going forward - Varoufakis was fairly combative to say the least.

In fact just yesterday Greece called an emergency summit where it asked for a 3 year loan form the European bailout fund. This was met with mixed reactions, especially as the Greek Prime Minister and Finance Minister were still unable to promise anything other than that by today they would announce plans to immediately implement tax and pension related measures starting Monday. This fate will be decided Sunday.

Now if they do leave the Eurozone, all this will cause the drachma to be substantially devalued as Greece prints money and it would reduce the value of its debt.

This will then start to assist its recovery however will have serious implications for other European countries awaiting repayment of its debts. The European Central Bank will be severely compromised given its holding of Greek debt, reducing its ability to assist other countries within the Eurozone.

 

Implications for financial markets

Angela Merkel and the other leaders of the Eurozone and Christine Lagarde of the IMF may not have blinked yet but they may soon do so, as failing to support Greece will be against their own long term interest. Maybe the Greek voters understood this when they mostly voted no last Sunday… 

The development of the crisis is still a day to day proposition and it will largely be a case of wait and see.

Activity in Greece primarily affects bond, share and currency markets.

 

Bonds

Greek bonds have already collapsed but are not likely to fall further into distressed/default territory.

Prices for German bonds may be driven up by a 'flight to safety' out of riskier European assets as investors fear further disruption in the Eurozone.

Australian bonds may also benefit from movement to safer assets.

 

Shares

Uncertainty leads to volatility in the short term and all markets will experience this from risk aversion.

It is likely there will be a selloff in Greek bank shares, along with any other European shares viewed as risky, in favour of other areas such as US and Australia. So a build-up of some cash in portfolios, while offering record low yields, provides an opportunity to take longer term advantage of weaker equity prices in the event of a short run sell off.

 

Currency

The euro has been relatively resilient to date – and let's face it, it's been through a lot -  however investors may move to the US dollar as a safe haven.

 

The Cliff-hanger

Far from the finale, as of today this Soap Opera ends on a cliff-hanger – leaving us wondering what, when, how much, and how long…

In our view, it will be a bumpy ride and as such, caution and patience are key. But we do also need to keep things in perspective. On it's own, Greece – representing the world's 43rd largest economy – is not going to have a huge long-term impact on economic growth and investment markets. If anything we should be more concerned about China, where the local sharemarket is down more than 20% in the last month. The Chinese government has a very good track record of stimulating the economy. But that's possibly a topic for another blog…

Ultimately, you shouldn't be overly concerned about market fluctuations if you have a long-term financial strategy in place to effectively cope with short-term falls in the sharemarket.

We believe that market volatility will continue for a while and as many of our current financial planning clients already know, we believe times like this usually call for some strategic defensive positioning. In particular, holding enough equity exposure to take advantage of any market rallies over the next 6-12 months, but also putting measures in place to help protect against 'downside' risk.

For this reason we prefer strategies that include tactical decisions, rather than 'set and forget' which is somewhat redundant in this environment.

Of course if you are concerned, or if it's been more than twelve months since you last sat down with us to review your circumstances and strategy, then please don't hesitate to shoot me an email, give me a call, or call 9725 2533 and make a time to come and meet with me.

 

Cheers,

Michael Crowe

Managing Director Financial Planning

Senior Adviser

Authorised rep 232696

 

The contents of this publication are general in nature and do not constitute or convey personal advice. It has been prepared without consideration of anyone's financial situation, needs or financial objectives. Formal advice should be sought before acting on the areas discussed. The authors and distributors of this document accept no liability for any loss or damage suffered by any person as a result of that person, or any other person, placing any reliance on the contents of this document.  

 



 


Tax tips for property investors

Savvy Australian property investors can save a large amount on their tax bill by deducting associated expenses. 

Negative gearing allows property investors to claim any shortfall between their income and expenditure on an investment property as a deduction against their total taxable income.

Most property investors are aware of the usual  expenditure  deductions  that they can use to offset any income earned by an investment  property.  Regular  costs such as maintenance, repairs, interest on loans and management fees can all be used to offset  rental income.

However, there are a few lesser known tax strategies that property investors may care to look at as June 30 approaches:

Refinancing your mortgage 

Refinancing your mortgage usually incurs a couple of one-off costs and fees. Investors who are planning on refinancing  their mortgage may care to consider doing so before June 30 in order to claim  these costs as a deduction in the 2014-15  financial year.

Pre-pay interest 

Property investors who have sufficient funds to pre-pay interest on a loan can do so and claim the deduction in the current financial year. It is also possible to pre-pay (and claim a deduction for) your upcoming property insurance premiums. 

Bring forward maintenance expenditure

If there are maintenance tasks that you know will need to be completed on an investment property, then you may wish to complete them before June 30 in order to minimise your tax bill in the current financial year.

Stay on top of your paperwork

Make sure that you are aware of the depreciations on any fittings or repairs, as well as any other costs you have incurred, for example, strata fees, management fees or rental losses.

Property investors are highly advised to discuss their tax situation with an accountant to ensure that their activities are compliant and that tax savings are maximised.

 

2015 Tax Return Charges


               Minimum Tax Return Fee                    $215.00

               Minimum Fee, 2 Tax Returns              $375.00

               Pensioner Discount                               $20.00

   Please note that these charges relate to the preparation of standard tax returns comprising PAYG employment income and expenses only. Further charges will apply for additional and/or more complex work as required. Prices are inclusive of GST.



Surviving the run up to June 30

Every small business owner knows the stress that comes with the end of Financial year. 

A lot of valuable time and energy gets poured into getting your paperwork in order and making sure that you're minimising your tax bill as much as possible.

The good news is that there is still time to sort things out, and with this checklist you can feel confident that you are on top of your tax:


Get on top of your records

If you've been organised this year then you  deserve to give yourself a big pat on the back! However, taxpayers who have fallen behind on any record keeping are advised to take any necessary steps to get up to date, including seeking external assistance. Record keeping is critical and it is imperative to stay on top of your responsibilities.

Write off bad debts 

Unfortunately, there will be times that a client does not pay you for work that has been completed. This is known as having a bad debt  and it is an extremely frustrating situation for any business owner.

A small consolation can be found in the fact that bad debts are tax deductible. In the event that you have a bad debt, it should be formally written off in your financial records. You will then be able to claim it as a deduction against your taxable income. It may also be necessary for you to provide the ATO with proof that you have taken reasonable steps to recover the amount.

Seek advice about legislation changes

These changes may be from the last  financial year and therefore require you to take certain steps in the next few weeks. There may also be additional changes that were announced in the May Budget. It is important to be aware of any impending changes as they may influence your tax strategy and decisions as June 30 approaches.

Get the ball rolling on stocktake

Retailers and wholesalers are required to undertake a stocktake at the end of each financial year.

However, if your annual turnover is less than $2 million and the difference in value between your opening and closing stock can reasonably be estimated to be less than $5000 then you are exempt from this  requirement. 


Keeping on top of your records

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.

Well organised records carry the additional benefit of allowing you to review your finances easily, potentially showing you where you may be losing out unnecessarily. Records that you must keep include:

Income tax records

You will need all of your income  details and expenses in order to prepare your activity statements and your annual tax return. These records may include invoices, cash register tape, receipts and records that indicate the breakdown of personal and private use of an asset.

Bank records

This includes bank statements, loan documentation and records of any cash deposits.


End of financial year: SMSFs

The compliance requirements for SMSFs are extremely stringent, and it is important for trustees to be acutely aware of their responsibilities. 

Of course, your accountant is there to help   you out, but you should always aim to have a robust understanding of your SMSF's reporting requirements.

Withdrawing minimum pension

SMSFs that do not distribute minimum pensions to members who are in pension phase may face hefty tax penalties. If a member of your SMSF has recently reached pension phase or you are at all unsure as to what your minimum pension amount is, please do not hesitate to contact our office.

Depositing contributions

All of the contributions that have been recorded for your SMSF need to be deposited in the SMSF's bank account by no later than June 30 2015. This is especially important where members have reported concessional or non- concessional contributions.

Spouse contributions

If you are eligible to split your superannuation contributions then you may be able to make some savings on your tax bill come June 30.

This is especially true where your spouse is a low-income earner. However, even if your spouse is not a low-income earner, there are other advantages to splitting income between accounts, for example, increased income flexibility in retirement.


Upcoming ATO compliance targets

Every year, the ATO announces a number of compliance areas that will be subject to additional scrutiny. 

It always pays to be aware of these targets, as non-compliance is, more often than not,  the result of an honest mistake as opposed to willful deception. Unfortunately, an honest mistake can still cost you dearly in penalties and/or interest on late payments to the ATO. In the 2014/15 financial year, the ATO will be focusing on:


Personal technology

Deductions claimed for personal technology items such as smartphones, tablets and laptops. Taxpayers who are claiming deductions on such items should ensure that they have adequate documentation to prove the breakdown of personal/work use (for example diary entries). You are only able to claim a tax deduction equivalent to the portion of the use that is work related.

Cash economy

The ATO will be aiming to identify businesses that operate off the books by failing to accurately record their cash transactions. This may involve paying employees in cash (and therefore avoiding minimum wage requirements and the   super  guarantee)  and/or underreporting the business's profits, thereby reducing the overall tax liability.

GST compliance

The GST compliance program involves ensuring that all businesses that are required to register for GST have done so (that is all businesses with an annual turnover in excess of $75,000). The accuracy of BAS reporting is also under scrutiny.

Travel costs

Taxpayers claiming large deductions in the form of work-related travel costs will be subject to additional examination from the ATO this year. In particular, the tax office has warned that it will be focusing on the validity of deductions claimed for the transportation of bulky tools and equipment.


End-of-year superannuation checklist

As the end of financial year approaches, it pays to start thinking about whether or not you will be able to make any additional personal contributions to your super.

In addition to topping up your retirement nest egg, you will also benefit from some generous tax breaks.

Recently, there has been a lot of discussion surrounding the future of these tax concessions so if your financial situation is permitting, it might be worth considering maximising your contributions as soon as possible.

Super for the self-employed

Self-employed Australians can claim a tax deduction for contributions made to an eligible superannuation fund.

However, taxpayers who are both employees and self-employed may only claim super contributions as a tax deduction where they have derived less than 10% of their assessable income from  employment.

These contributions are considered to be part of your concessional contributions cap.

Deductible superannuation contributions can offset an unusually large taxable income, for example, if you have made a significant capital gain from the disposal of an asset.

Set up a salary sacrificing arrangement

In a salary sacrificing arrangement, your employer will hold back part of your gross (before tax) pay and contribute it to your nominated superannuation account.

The contributions to your super account are taxed at the flat rate of 15%, which is typically much lower than your marginal tax rate. Salary sacrificing into your super reduces your total taxable income, thereby reducing your tax bill.

Super contributions for your spouse

Where your spouse is a low-income earner, you can make superannuation contributions on their behalf in order to receive a tax offset of up to $540.

In order to qualify for this offset, your spouse must have an assessable income that is less than $13 800 per annum, making it an option worth considering where a family member is taking time out from the workforce.

As an added benefit, their superannuation savings won't suffer from their contributions break. Furthermore, the money will work hard due to compound interest and low tax rates.

End-of-financial year superannuation checklist:

  • Do I have the necessary records for all of my superannuation contributions and accounts?
  • What is the total amount that I have contributed this year (including my super guarantee amounts)?
  • Can I make a contribution for my spouse? And is this an effective tax minimisation strategy?
  • Were there any contributions from the previous financial year that I can super split into this current financial year?
  • Should I consider making any additional contributions before the end of financial year (concessional and non-concessional)?


Making the most of small business tax breaks

There are a number of small business tax breaks that it pays to be aware of as the end of financial year approaches

We have compiled this brief overview to give you an idea about whether any of these will be beneficial to your business:

Trading stock

Small businesses can opt out of doing an end of year stocktake (which can be expensive) if the value of their trading stock has not gone up or down by more than $5,000 in the past financial year.

Accelerated depreciation

Businesses that invest in new tools or machinery will receive an immediate tax  deduction for any individual assets under $20,000 from 12 May 2015 until 30 June 2017. The $20, 000 limit can be applied to as many items as they wish. This will replace the previous instant asset write-off  threshold of $1,000. 

Assets that exceed the $20,000 limit will be added to the entity's small business pool and depreciated at 15 per cent in the first income year and 30 per cent each income year thereafter.

CGT consessions

There are four CGT tax concessions available to small businesses that can be extremely effective in minimising, or even eliminating, CGT liability. These concessions are:

  • The retirement exemption: Available to small business owners over the age of 55, or when the capital gain is contributed to a superannuation account.
  • The 15 year exemption: Available to retiring small business owners who have held the asset for over 15 years.
  • The 50% active asset reduction: Where an asset is considered to be 'active' the CGT liability may be reduced by 50% (the requirements here are complex and it is advisable to seek professional advice).
  • The CGT rollover: If a business asset is disposed of and the business plans to purchase a similar replacement asset, then the CGT bill may be deferred for at least two years.

There are specific rules about the order that these CGT concessions should be applied. It is advisable to seek professional advice before disposing of an asset.


Capital gains at end of financial year

The end of financial year is a good time to think about your capital gains and losses for the year

Timing and planning are everything when it comes to minimising your CGT bill and making the most out of your investment returns.

Capital gains tax (CGT) is incurred when a taxpayer disposes of an asset, for example, commercial and residential property, shares, units in unit trusts or collectables. Where the asset is sold for a price that is higher than the cost base (which may be calculated based on the purchase price, associated costs and indexation) the difference is considered to be a capital gain. Where an asset is sold at a loss (for a smaller amount than it was originally purchased), a capital loss may be incurred.

Capital losses can be used to offset capital gains in a financial year. It is also possible for taxpayers to carry capital losses forward to subsequent years if they do not have capital gains against which they can deduct them at the time.

Here are some strategies to reduce your CGT liability:

Use CGT concessions 

As detailed in the article above, there are a number of CGT concessions that are available to small businesses. These concessions can be extremely effective in reducing your CGT bill, and, in some circumstances, may even reduce it to nil.

Taxpayers who do qualify for any of the CGT concessions are in an advantageous position when it come to paying their tax bill.

Dispose of assets before June 30

In years where you have incurred a significant capital gain, you may care to consider disposing of another asset that will yield a capital loss. 

In the event that an underperforming asset will not have a positive turn around, disposing of it before the end of financial year will allow you to use the capital loss to offset your tax liability from any capital gains.

Defer disposal to a lower-income year

Instead of disposing of an asset that you expect to make a capital gain on this year, you may care to consider postponing the disposal if you expect to have a lower taxable income next year. For example, you may be planning to take some unpaid leave or have disposed of multiple assets in the current year.

Plan for CGT events in advance

If you are planning on making any new investments or disposing of assets, it always pays to plan your CGT strategy in advance. Careless timing can cost you a huge amount on your tax bill.

For a copy of our Personal tax Checklist for 2015 click the image below!



 


 


1.     What are the new small business SuperStream laws? And why is the government making you do this?

If you're still paying your employees' super with bank transfers (or worse still, cheques), then you need to change the way you do things - and fast.

From 1 July 2015, if you make super contributions for employees you must make those payments online.

This means you'll no longer be able to pay by cheque (yes, some super funds still insist on being paid that way). And chances are a bank transfer won't cut it either because you'll also need to include other details such as the employee's name, Tax File Number and Super Fund member number.

As for why the government is making you do this, quite simply, it's to make it easier for them to track down any business owners who don't pay their quarterly super payments on time. And then to issues harsh penalties for anyone who doesn't comply.


2.     How do you get set up for SuperStream?

As part of the new rules, as of 1 July 2015, you need to set up your bookkeeping software so that it can do the following:

-          send all mandatory data in the specified format;

-          make payments electronically;

-          link data and money with a payment reference number;

-          respond to super fund requests for member information within 10 business days.

If it can't, then you need to update your software FAST.

 

3.     Three Reasons the SuperStream Rules are an Opportunity to GROW YOUR BUSINESS

1.     less bookwork

2.     less admin

3.     more PROFIT!


Here's t
he bottom line? If you're not using an electronic bookkeeping system, you need to make the switch.

The good news is that Cloud-based bookkeeping software is making life a lot easier for business owners, especially if you move around a bit in your working day. Cloud bookkeeping software allows you to do your books anywhere, anytime, on any device. Invoice on the spot with your smart phone, check who owes you money, and thereby improve your cash-flow. And we all know cashflow is still king.

The difference between Cloud-based software and your traditional desktop software is that it provides a view of your financial information in real-time. The software automatically imports your bank statements daily so you can keep abreast of your cashflow, and has a full suite of accounting features such as invoicing, payables, expense claims, GST, reporting and much more.

So doing your bookwork becomes significantly easier (seriously, don't we all want that?) and faster allowing you to spend time concentrating on growing your business and your profit.

 

What Next?

VIP Client offer - Free "Uncloud My Vision in 45 minutes" breakdown session. It's a one on one session with me designed for business owners who are frustrated by keeping up with bookwork, having to "guesstimate" your position when making financial decisions, and not understanding what the numbers mean for you, when you'd rather be spending time in your business making money.

In 45 minutes we'll look at:

-          What you need to do to get ready for the new SuperStream laws 1 July;

-          Whether your current software is capable;

-          A breakdown of the pros and cons of moving your business to the Cloud and saving yourself a considerable amount of time and grief.

Booking in for your session is easy, you can:

1.       Click here and we'll call you to make a time

or

3.       Call us on 9725 2533 to make a time

Looking forward to seeing you soon.

Cheers,

Ron Zamora

 

 




Budget Update


Personal tax measures

Whilst there were no significant taxation proposals in this year's Budget, the Government has made some relatively conservative changes to FBT exemption and employee share schemes. 

FBT exemption for electronic devices

 

Small business FBT exemption for work related electronic devices Effective date: 1 April 2016 Currently, an exemption from fringe benefits tax is available where an employee packages (or an employer provides) a portable electronic device (eg mobile phone, iPad, laptop etc).

This exemption is currently available where an employee packages (or is provided) multiple devices provided that the devices perform substantially different functions. 3 From 1 April 2016, where this device is provided (or packaged) with a small business employer (ie aggregated annual turnover below $2M), this exemption will be available across all such devices that are primarily used for work purposes. This change recognises that with the evolution of technology, there is an increasing level of similarly in functions that can be undertaken by items such as smart phones, tablets and some laptops.

FBT: meal and entertainment

A $5,000 grossed-up cap will be introduced for salary sacrificed meal entertainment expenses for employees of not-for-profit organisations from 1 April 2016. The cap previously sat at $30,000, allowing charities and other similar groups to compete with the private sector for the attention of prospective employees. Not-for-profit employees can now salary sacrifice meal entertainment benefits without reporting them. In addition, their employers will not have to pay fringe benefits tax.

Employee share schemes

Expanded tax concessions for employee share schemes from 1 July 2015, will allow employees to share in and gain from the future growth and success of the business. The new start-up concession ensures employees are not liable to pay tax up-front until they are able to grasp a benefit from the share options.

Other measures

The Government tightened access to pension payments as a result of decreases in the assets test. The maximum value of assets outside the family home a couple can hold while still qualifying for a part pension will be reduced from $1.15 million to $823,000. Pensioners with substantial private assets will have to draw on slightly more of their assets to maintain their current income levels in retirement. 

The asset test taper rate will be increased from $1.50 of pension per fortnight to $3 of pension for each $1,000 of assets over the relevant assets test threshold from 1 January 2017. It will allow those with moderate assets to receive a full or increased pension.

 

Budget focus on stimulating small business activity

The Budget has introduced a number of measures for small businesses designed to revive investment and support entrepreneurship and startups.

Tax cuts

The Government has followed through with its announced 1.5 per cent tax cut for small businesses with an annual turnover of less than $2 million, which will take effect from 1 July 2015. The Government will also provide a 5 per cent tax discount (capped at $1000) for small businesses that are unincorporated with an annual turnover of less than $2 million, such as sole traders and trusts.

Accelerated depreciation

Businesses that invest in new tools or machinery will receive an immediate tax deduction for any individual assets under $20,000 from 12 May 2015 until 30 June 2017. Currently, the threshold sits at $1,000. They can apply the $20,000 limit to as many individual items as they wish. 

Assets that exceed the $20,000 limit will be added to the entity's small business pool and depreciated at 15 per cent in the first income year and 30 per cent each income year thereafter. These were the current rules for assets costing $1000 or more. The Government will also suspend the current lock-out laws for the simplified depreciation rules. These will prevent small businesses from re-entering the simplified depreciation regime for five years if they opt out until 30 June 2017. 

Measures encouraging business startups

In order to encourage business start-ups, business registration processes will be streamlined through the creation of a single website (business.gov.au), which allows new businesses to register using a one key identifier. The new online portal will be implemented by mid 2016. The Government will also change the regulatory framework for crowd-sourced equity funding, including simplified reporting and disclosure requirements, to provide small businesses with access to additional funding from innovative sources.

Business establishment costs

Small businesses will be able to immediately write off professional costs associated with starting up a company from the 2015/16 income year instead of over a five-year period. Business owners will be able to invest more money into the growth of their new business.

CGT relief reforms for small business

A new CGT relief measure will be available for small businesses that change their legal structures and do not necessarily involve incorporated entities from the 2016/17 income year. However, small businesses can only apply changes to the legal structure once.

Age pension changes - good and bad

The budget papers contained significant changes to the aged pension assets test that will come into effect on 1 January 2017.

Under the proposed changes, the value of assets you can have in addition to the family home to qualify for the full pension will increase significantly. However, the taper rate will increase from the current $1.50 per fortnight per $1,000 of assets over the lower threshold to $3.00 per $1,000 of assets. The government estimates this will mean 91,000 people will stop having access to part pensions and a further 235,000 people will have their part pensions decreased.

                  Assets test threshold - now
 

  Homeowner
Full Pension
Homeowner
cut-out
Non- Homeowner
Full Pension
Non- Homeowner
cut-out
 Single

 $202,000 $775,000 $348,500 $922,000
 Couple

 $286,500 $1,151,000 $433,000 $1,298,000


              Proposed assets test threshold from 1 January 2017

  Homeowner
Full Pension
Homeowner
cut-out (estimated)
Non-Homeowner
Full Pension
Non-Homeowner
cut-out (estimated)
 Single

 $250,000  $547,000  $451,500  $747,000
 Couple

 $375,000  $830,000  $575,000  $1,023,000

As a sweetener to those who will lose their pension, the government will guarantee eligibility for the Commonwealth Seniors Health Card (CSHC), which provides the same concessional access to pharmaceuticals as those on the pension.


The government also said it will scrap the proposal announced in last year's budget to index pension solely to CPI increases. As such pensions will continue to be indexed by the greater of CPI and the Pensioner and Beneficiary Living Cost Index plus benchmarked to a percentage of Male Total Average Weekly Earnings.

Budget outlook for individuals and families

The 2015 Budget made sweeping changes for individual taxpayers and families with its focus on improving the economy.

Car expense deductions

The Budget has introduced new modernised methods for calculating work-related car expense deductions from the 2015/16 income year. The '12 per cent of original value method' and the 'one-third of actual expenses method,' which are used by less than 2 per cent of those who claim workrelated car expenses will be removed. 

The 'cents per kilometre method' will be modernised, allowing workers to claim a deduction for each kilometre driven in the car for work based on a schedule of typical costs. Under the new regime, one rate will be set at 66 cents per kilometre to apply for all motor vehicles. Taxpayers can continue using the 'logbook' method of calculating expenses if they do not want to use the cents-per-kilometre approach. These changes will adjust car expense deductions to align with the average cost of running a car.

Ageing workers

A flexible wage subsidy will give older Australians approaching retirement an incentive to remain in the workforce with the possibility of receiving a bonus later. It will also shorten the length of time Australians over the age of 50 have to wait on income support or the pension before they qualify for job incentives. 

Amendments to the new Restart program will offer older workers incentives for training to further assist them with retraining for a job and prevent them from falling back on unemployment benefits or pensions.

In addition, employers who hire job seekers under the age of 30 or workers aged 50 or older will share in a redesigned national wage subsidy pool from 1 November 2015. Eligible employers will be granted a subsidy of up to $6,500 for hiring a job seeker under the age of 30, an indigenous job seeker, a parent returning to the workforce, or a longterm unemployed job seeker. They can also receive up to $10,000 under the Restart program for hiring workers aged 50 or older.

Families

The childcare scheme has received a major overhaul to support low income families. Families with access to maternity leave through work will no longer receive government assistance in the form of the existing Parental Leave Pay (PLP) scheme from 1 July 2016. This measure will prevent families from double dipping into both schemes.

Under the new proposals, both parents must do at least eight hours a fortnight of work, training or study to qualify for any childcare support. Families earning up to $65,000 will receive 85 per cent off childcare fees, while stay-at-home parents with a family income over $65,000 will no longer secure childcare subsidies.

A two-year nanny trial starting on 1 January 2016 will assist the parents of approximately 10,000 children, especially those working for emergency services or living in regional areas, without access to regular childcare services. 

Rural Australia

Farmers can continue the Drought Concessional Loan Scheme for another year. Farmers will also be able to claim fences and new water storage as tax write-offs. 

Power to amend fraud and evasion 

The Commissioner of Taxation has been granted power to modify the time limit for assessments and testing of fraud and evasion, which normally varies between two and four years.

Under subsection 170 (1), (2) and (3) of the Income Tax Assessment Act 1936 (ITAA), the Commissioner can adjust the assessment of an individual or small business entity within two years of the day they were given notice of the assessment.

A small business entity is an entity which carries on a business and has turnover of less than $2 million. A four year period of assessment still applies for other entities.

The Commissioner may revise an assessment under section 170 (5) when they believe there has been fraud or evasion. Fraud is not limited by a time period and is evaluated on the absence of veracity in a statement or carelessness to its truths.

Evasion is gauged from the avoidance or withholding of information in a statement.

Lower penalties are imposed for carelessness and recklessness. Carelessness attracts a penalty of 25 per cent of the tax avoided, recklessness 50 per cent and intentional disregard 75 percent. An additional uplift penalty of 20 per cent will be issued for fraudulent misstatement in a tax return.

The time period applicable for fraud and evasion commences when the assessment is made or any time afterwards. 

 

 

Unlocking Your Financial Freedom

Transcript date:

Thursday 14 May 2015

Topic:

New family finances radio program for the outer-eastern community

"UNLOCKING YOUR FINANCIAL FREEDOM"

Topic Introduction and Relevance to you

I'm so excited after more than 15 years on the air, to be launching a brand new segment – Unlocking your financial freedom.

And if you're wondering why I decided to change the segment after so long, well frankly you're the reason!

Each week I get calls and emails from listeners, and so I started asking what is it that you want from a finance program. And the issues that came up over and over were:

-          That you wanted more consistency with the timeslot. Having
           me scheduled on different days and different times was a tad
           confusing.

-          You wanted practical guidance on money relevant to the
           day-to-day lives of families in the outer-east.

-          You wanted ideas that can be implemented by business
            owners and non-business owners alike.

Well folks, I'm responding to your feedback! And what I'd like to do today is give you a taste of what you can expect from this fresh new program, so that you can decide whether it's going to be valuable for you, and if so, it'd be terrific if you could also tell your friends and family about it.

Main Segment

Before I get too far into explaining the new segment, I want to touch very briefly on last Tuesday's Federal Budget. The budget is something that occurs every year, there's always a big hoo-ha about it, and there's a massive amount of information. And it can be really tough to discern from all this "guff" what issues are actually relevant to you, your family, your lives. So what I'm going to do in my next segment is break it all down and make it really easy for you. I'll do the hard work and read through all the reports, attend the briefings, and then I'll come back to you with a 20 minute summary of the issues I believe are most relevant to you and what you need to do about them. How does that sound? Good?

Ok, then let's move on to Unlocking Your Financial Freedom and the exciting new changes I have in store for you.

First up, I've heard your request for less confusion, and so as of today I will be presenting the Unlocking Your Financial Freedom program every second Wednesday from 1.15pm-1.45pm. So pop that in your diary now. That's every second Thursday 1.15pm-1.45pm as of today, so I'll be back on the mike in a fortnight.

I also appreciate that you don't just want information that's informative and interesting, you need it to also be relevant to your day to day lives. That makes sense, and frankly that's what I can do best!

If you're a regular listener then you'll know that one of my soap boxes (and I'm only 5ft so I do have a few) is that we are not taught day to day money management in our school curriculum.

You see, there are what I call the 7 ultimate steps to unlocking your financial freedom – 8 steps if your'e a business owner, and if you can put in place a strategy for each of those steps, financial freedom is pretty much assured.

What I'd like to do now is give you a brief overview of the different steps because the Unlocking Your Financial Freedom segment is going to focus each fortnight on different topics relating to the 8 steps. And I think you'll agree after I've gone through them that they are definitely relevant and practical.

 

Step 1: Cashflow

It's funny, but when it comes to money – oh hey that rhymes – one of the most stressful things is our income. It's never enough! And if you're a business owner you have the added pressure of irregularity. Your income isn't the same ever week and sometimes it can be a real juggle. It makes such a difference to be in a position of assurance when it comes to your cashflow, and that means you need to get serious about your budget and your spending. Understanding of your net cashflow position (both business and personal) is fundamental to your financial freedom. So that's definitely and area I'm going to help you with.

 

Step 2: Debt Management:

What would it mean for you to be debt free? Less stress, less arguments, and no more money wasted on loan interest?

Your 2nd step to financial freedom is putting a robust debt management plan in place. One that will make sure your loans are structured correctly and that you pay off your debts faster so that you can focus on getting ahead!

 

Step 3: Savings

It takes discipline, but if you're sick of living week to week, concerned about not having a decent cash "buffer" for unexpected expenses, or that you won't have enough for that well earned holiday, then it's worth doing. You need a strategy in place that takes into account both your short-term needs (savings) and your long-term needs (investment).

 

Step 4: Tax

And speaking of savings (funny how these things just seem to flow; you'd almost think it was common sense). It's important to make sure you don't pay any more tax than you have to because that would be a waste.

Financial Freedom involves knowing how to "squeeze" as much money out of the Government as possible (legally of course!!). As well as maximising your business and personal deductions, you should also review any tax effective strategies you might be able to take advantage of to improve your financial position.

 

Step 5: Super

Are you on track to have $744,000* saved by retirement? Because according to the *Association of Superannuation Funds of Australia this is the minimum estimated amount needed for a couple to lead a "comfortable lifestyle" in retirement.And if you're single, don't think it's half – it's more.

Superannuation may be the most important investment you make in your future financial freedom.

And business owners, have you thought about what will happen if your business doesn't sell for what you expected?

Decisions about your super today will directly affect your future lifestyle!

 

Step 6: Protecting your lifestyle

Imagine you had a machine in your home and once a week you turned the handle and it dispensed $1,800. Would you insure that machine for potential breakage or malfunction? Of course you would; in the same way that you've insured your home, contents, car...

You care about the lifestyle and financial security of your family right? You should be spending a small percentage of your income to insure your greatest asset - your ability to earn income.

But this can be a confusing area – so let me guide you as part of the new segment.

 

Step 7: Estate Planning

Did you hear the one about the 8 year old who inherited $6 million from his dad's estate while his mum inherited the house and $200,000?? How could this happen? Because his father didn't have a Will.

If it's important to you that the right people inherit your assets when you die, and that someone can make decisions on your behalf if you're not able to, then you need to do something about it.


Now the final step is just for our outer-eastern business owners:

 

Step 8: Business building

When dealing with the day-to-day operation of your business, it's easy to neglect things like finances, systems, and marketing. But this can create run-off problems, including weakening the business, anxiety, and cashflow struggles. This can then in turn lead to business and financial stress and more time away from the family.

So your final step towards unlocking financial freedom is spending time to grow your business, and work ON it not just work IN it.

 

Summary/Action/Special offer

Ok, so I'm hoping that gives you an idea of the relevant and practical topics I'm going to be covering for you as part of Radio Eastern's brand new segment "Unlocking your financial freedom".

On top of the family finance information, I've also created an email address dedicated to any questions you might have. So from now on if you have any questions after the program about ANY money issues, you can email me directly at askCaren@hendrie.com.au. You're even welcome to email me topics you'd like me to cover- after all, this is your segment!!

And wherever possible I'm going to bring you special offers exclusive to Radio Eastern listeners.


Unlocking your financial freedom

The Hendrie Group are very happy sponsors of Radio Eastern, and have been for – well a really long time!

At The Hendrie Group we guide families through the ultimate 8 step formula to unlocking your financial freedom, and we've been doing this for more than 35 years.

We're a family business and the most important thing to us is looking after you and your family.

We'll get you from where you are now to where you want to be in the future!

The Hendrie Group is located at 23 Lacey Street Croydon and you can call us on 9725 2533.

Don't forget to tune in to 98.1 Radio Eastern on Thursday each fortnight at 1.15pm for the Unlocking Your Financial Freedom segment filled with tips, ideas, and information about achieving financial success for your family.

Next fortnight we'll be discussing the federal budget and what it actually means for you.

You might also like to visit our website which has loads of great information, including a recording of today's program which should be up and running within the hour. Just go to  www.hendrie.com.auAnd of course you can email me directly at askCaren@hendrie.com.au

The Hendrie Group

1st Floor
23 Lacey Street
Croydon, VIC 3136

T: (03) 9725-2533 E: support@hendrie.com.au

www.hendrie.com.au


WINNER
Madison Financial Planning Practice of the Year; WINNER Grosvenor Securities Adviser of the Year;
WINNER Count Financial Planning Practice of the Year;
7th Place IFA National Best Practice (of more than 300) firms).

 

 

 

               

Have you heard of the "SMSF Retirement Home Strategy"? 

Well an investor finds a property they'd like to live in during their retirement. They use money in their SMSF as a deposit and borrow into a special super fund borrowing arrangement with the bank to complete the transaction.

Warning: A member (or a relative of a member) of a SMSF by law cannot live in a property owned by a SMSF (and it can't buy a residential property from a member or related person/entity).

However, while the property is owned by the SMSF it's rented to UNRELATED INDIVIDUALS for a market-based rent.

Upon retirement the SMSF members start a pension and sell their current family home. They then use the proceeds from the sale of their home to buy the property from their SMSF at market rates.

The sale of the SMSF-held property is capital gains tax free because the SMSF is in pension phase. When the transaction is complete the super fund has liquid assets to pay their retirement income.

Estate Planning

Another key reason for using a SMSF is that it gives you very exact estate planning options. For example, you can nominate a specific dependent (spouse or child under 18) to receive your super benefit if you die. Unlike a Will, this cannot be contested.

Would you like NO TAX on your Investments?

Once you turn age 60, you can start to pay yourself a pension from your SMSF, and there is NO tax on income of the SMSF and NO tax on any capital gains.

This means you can gradually sell down assets (including property) held in your SMSF and pay NO TAX regardless of any capital gain you make.

We believe this is an absolutely terrific outcome - and it's possibly far better than owning an investment property in your individual name or in a Family Trust.

Don't forget to email me at m.moschetti@hendrie.com.au if you'd like a copy of my "6 Reasons a SMSF is a great tool to unlocking your financial freedom.".

 

From the 2011/12 financial year, Trustees who distribute the income of a Trust through a resolution to beneficiaries must do so BEFORE the end of the financial year (June 30).

If a Trustee fails to make a resolution to appoint the income of the Trust before the end of the financial year, the Trustee may be assessed by the ATO on the Trust income at the highest marginal tax rate of 49% rather than the intended beneficiary(s).

I think you'd agree that this is fairly HEFTY!!

What You Need to Do ABSOLUTELY, POSITIVELY NO LATER THAN MONDAY 1 JUNE:

1.       You need to provide us with a Profit & Loss Statement for each Family
           Trust that you have for the period 1 July 2014 to 31 March 2015.

2.       You also need to send us details of all income earned by all family
          members during the period 1 July 2014 to 31 March 2015.

3.       And we need your estimated income for the period 1 April 2015 to 30 June 2015, including any capital gains.

We'll then review all options for you, and recommend the most tax effective manner to distribute your Family Trust profits. And of course we'll prepare the appropriate Trust Distribution Resolution for you to sign before 30 June 2015.

 

Contact us TODAY to get started!

We don't want you ever paying more tax than you have to – because that would be a waste!

So please get your information to us no later than Thursday 14 May to make sure there's time to make the best decisions for you!!

 



11 ways to save tax if you’re quick

The end of the 2014/15 financial year is almost here, so now's the time to review what strategies you can use to minimise your tax.

 #1 | Superannuation Contributions

Individuals may be able to make tax-deductible personal contributions to superannuation to reduce their taxable income. The advantage of this strategy is that superannuation contributions are taxed at 15% compared to typical personal income tax rates of between 34.5% and 49%.

Superannuation contributions are limited to $30,000 per year for persons under 50 as at 30/6/15, and $35,000 for persons age 50 to 75. Any contributions in excess of these limits can be taxed at a rate of up to 49%, plus an excess contribution charge. Do NOT go over these limits!

Please contact us to verify that you can comply with all the eligibility criteria for this deduction. This includes satisfying the 10% test, meaning that less than 10% of the total of your income for the year must be in respect of your employment.  For the purposes of this test, income is assessable income plus reportable fringe benefits plus reportable employer superannuation contributions.

 

#2 | Property Depreciation Report

If you have an investment property, a Property Depreciation Report (prepared by a Quantity Surveyor) will allow you to claim depreciation and capital works deductions on capital items within the property.

The cost of this report is generally recouped several times over by the tax savings in the first year of property ownership.


#3 | Motor Vehicle Log Book

Ensure that you have kept an accurate and complete Motor Vehicle Log Book for at least a 12-week period. The start date for the 12-week period must be on or before 30 June 2015. You should make a record of your odometer reading as at 30 June 2015, and keep all receipts/invoices for your motor vehicle expenses. Once prepared, a log book can be used for a 5 year period should the nature of the travel, type of vehicle and business use percentage not alter.


#4 | Sacrifice Your Salary to Super

If your marginal tax rate is 19% or more, salary sacrifice can be a great way to boost your superannuation and pay less tax. By putting pre-tax salary into super rather than having it taxed as normal income at your marginal rate you may save tax. This can be especially beneficial for employees nearing their retirement age.


#5 | Prepay Expenses and Interest

Expenses relating to investment activities can be prepaid before 30 June 2015. You can prepay up to 12 months of interest before 30 June on a loan for a property or share investment and claim a tax deduction this financial year. Also, other expenses in relation to your investments can be prepaid before 30 June, including rental property repairs, memberships, subscriptions, and journals.


#6 | Insurance Premiums

Possibly your greatest financial asset is your ability to earn an income. Income protection insurance replaces up to 75% of your salary if you are unable to work due to sickness or an accident. The insurance premium is generally tax deductible, plus you get the benefit of protecting your family's lifestyle if you cannot work due to sickness or an accident. It's a small price to pay for peace of mind. Similar to rental property interest, income protection premiums can also be pre-paid for 12 months to increase your deductions.


#7 | Work Related Expenses

Don't forget to keep any receipts for work-related expenses such as uniforms, training courses and learning materials, as these may be deductible for tax purposes.


#8 | Realise Capital Losses

Tax is normally payable on any capital gains. You should consider selling any non-performing investments you hold before 30 June to crystallise a capital loss and reduce or even eliminate any potential capital gains tax liability. Unused capital losses can be carried forward to offset future capital gains.


#9 | Defer Investment Income & Capital Gains

If practical, arrange for the receipt of Investment Income (e.g. interest on term deposits) and the Contract Date for the sale of Capital Gains assets, to occur AFTER 30 June 2015.

The Contract Date is generally the key date for working out when a sale occurred, as is the contract date of purchase for the 50% general discount of Capital Gains Tax, and not the Settlement Date!


#10 | Qualify for a Government Co-Contribution

If your total income is less than $49,488 you may be eligible for a super co-contribution from the Federal Government. For each dollar in personal after-tax super contributions, the Government will contribute from 50 cents up to a maximum of $500 for those earning less than $34,488.

For the purposes of this test, total income is assessable income plus reportable fringe benefits plus reportable employer superannuation contributions, less allowable business deductions.

Please contact us to verify that you can meet all the eligibility criteria for the Government Co-Contribution.

 

#11 | Net Medical Expenses Tax Offset

Review your net medical expenses and consider prepaying net medical expenses if you are close to the $2,162 threshold (or the $5,100 threshold if your adjusted taxable income is above the applicable amount).  From 1 July 2014, those taxpayers who received the offset in their 2013–14 income tax assessment will continue to be eligible for the offset for the 2014–15 income year if they have eligible out-of-pocket medical expenses above the relevant claim threshold. Generally, taxpayers who don't claim the offset in this 2014 tax year will not be able to claim the offset in the 2015 or later tax years.

Should the offset claim be for disability aids, attendant care or aged care you are not restricted to having made a claim in the 2013-2014 year.

2015 will be the final year a claim for medical expenses will be allowed, unless the expenses relate to disability aids, attendant care or aged care.

 

 

 

15 ways to save tax before EOFY

The end of the 2014/15 financial year is almost here, so now's the time to review what strategies you can use to minimise your tax. 

 

#1 | Concessional Superannuation Cap

The concessional superannuation cap for 2015 is $30,000 per year for persons under 50 as at 30/6/15, and $35,000 for persons age 50 to 75. Do not go over this limit or you will pay more tax!

Note that employer super guarantee contributions are included in these caps. Where a concessional contribution is made that exceeds these limits, the excess is included in your assessable income and taxed at your marginal rate, plus an excess contribution charge.

In order to claim a tax deduction in the 2015 financial year, the super fund must receive the contribution by 30 June 2015.

 

#2 | Asset Depreciation

If your business is a Small Business Entity (turnover less than $2 million), the following tax concessions apply:

·         Depreciating assets valued at less than $1,000 will be immediately deductible

·         Depreciating assets valued at more than $1,000 will be depreciated in one pool at a rate of 15% in the first year and 30% in future years

 

#3 | Tools of Trade / FBT Exempt Items

The purchase of Tools of Trade and other FBT exempt items for business owners and employees can be an effective way to buy equipment with a tax benefit. Items that can be packaged include Handheld/Portable Tools of Trade, Computer Software, Notebook Computers, Personal Electronic Organisers, Digital Cameras, Briefcases, Protective Clothing, and Mobile Phones.

If structured correctly, the Employer will be entitled to a tax deduction for the reimbursement payment to the employee (for the equipment cost), claim any GST input credit, and the employee's salary package will only be reduced by the GST-exclusive cost of the items purchased.

You should buy these items before 30 June 2015.

 

#4 | Employee Superannuation Payments

To claim a tax deduction in the 2015 financial year, you need to ensure that your employee superannuation payments have CLEARED your business bank account by 30 June 2015.

For any last minute superannuation payments, we recommend that you arrange for a BANK CHEQUE made payable to your employee super fund prior to 30 June 2015.

Also, check that your payroll system is paying the required 9.5% rate from 1 July 2014.

 

#5 | Defer Income

Where practical, defer issuing further invoices and/or receiving cash/debtor payments until after 30 June 2015.

 

#6 | Bring Forward Expenses

Purchase consumable items BEFORE 30 June 2015. These include stationery, printing, office and computer supplies.

 

#7 | Repairs & Maintenance

Make payments for repairs and maintenance (business, rental property, employment) BEFORE 30 June 2015.

 

#8 | Defer Investment Income & Capital Gains

If practical, arrange for the receipt of Investment Income (e.g. interest on Term Deposits) and the Contract Date for the sale of Capital Gains assets, to occur AFTER 30 June 2015.

The Contract Date is generally the key date for working out when a sale occurred, not the Settlement Date!

 

#9 | Motor Vehicle Log Book

Ensure that you have kept an accurate and complete Motor Vehicle Log Book for at least a 12-week period. The start date for the 12-week period must be on or before 30 June 2015. You should make a record of your odometer reading as at 30 June 2015, and keep all receipts/invoices for motor vehicle expenses. Should the nature of the travel, vehicle or business use % have not changed you can use the log book for a 5 year period.

 

#10 | Investment Property Depreciation

If you own a rental property and haven't already done so, arrange for the preparation of a Property Depreciation Report to allow you to claim the maximum amount of depreciation and building write-off deductions on your rental property.

 

#11 | Private Company ("Division 7A") Loans

Business owners who have borrowed funds from their company in previous years must ensure that the appropriate principal and interest repayments are made by 30 June 2015. Current year loans must be either paid back in full or have a loan agreement entered into before the due date of lodgement for the company return or risk having it counted as an unfranked dividend in the return of the individual.

 

#12 | Year End Stock Take / Work in Progress

If applicable, you need to prepare a detailed Stock Take and/or Work in Progress listing as at 30 June 2015. Review your listing and write-off any obsolete or worthless stock items.


#13 | Write-off Bad Debts

Review your Trade Debtors listing and write off all Bad Debts BEFORE 30 June 2015. Prepare a minute of a Directors' meeting, listing each Bad Debt, as evidence that these amounts were actually written off prior to year-end.

 

#14 | Small Business Concessions - Prepayments

"Small Business Entity" taxpayers can make prepayments (up to 12 months) on expenses (e.g. Loan Interest, Rent, subscriptions) BEFORE 30 June 2015 and obtain a full tax deduction in the 2015 financial year.

 

#15 | Trustee Resolutions

Ensure that the Trustee Resolutions are prepared and signed BEFORE 30 June 2015 for all Discretionary ("Family") Trusts. Like previous years, we will be preparing these and they will be sent to you.

Contact us TODAY to get started!

Don't wait until June. Contact our office TODAY to start your tax planning for 2015.

And look out for our special emails where we'll explain in detail how you can benefit from tax planning strategies!

 


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