HDQ Accountants in Sydney, Australia | Accountant

HDQ Accountants

Locality: Sydney, Australia

Phone: +61 2 9000 1211

Address: 145 Canley Vale Rd 2166 Sydney, NSW, Australia

Website: https://linktr.ee/hdqaccountants

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• Tax preparation service
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25.01.2022 Or you could use a tax agent... we have lodgement concessions that allow us to lodge until 15 May 2018 for outstanding 2017 tax returns. It would be very worthwhile to give us a visit as we can help you with your deductions and other investments !!

25.01.2022 Donations are often overlooked as a way to reduce taxes. If you have a organisation that you believe in, you could donate to bring down your taxable income. Not all donations are tax deductible & it would be best to ask first if they are a deductible gift recipient (DGR). As a rule of thumb if you got something in return such as a raffle ticket, it won't be tax deductible.

24.01.2022 14. FY21 Change to Individual Progressive Income Tax Rates The Budget has announced some cuts to the tax rate as seen in the tables taken from the fact sheets. What does this mean?... - For Employees - You guys will pay lower tax & will have slightly more cash throughout the year Some planning considerations for the owners of private groups regarding timing of dividends for private companies could present significant tax savings by taking advantage of the new tax rates especially in FY25. This is only one change of many that were announced in the budget last night & we encourage you to have a read of the fact sheets yourself. If you need any help, please send us a direct message!

23.01.2022 Ask us about the Coronavirus Stimulus Packages and determine your eligibility. - Instant asset write-off theshold increase to 150k - Accelerated depreciation -15 month investment incentive in the form of accelerated depreciation deductions... - PAYGW refunds - Apprentice support - Stimulus payments to households to support growth - Assistance for severely affected regions - JobKeeper & JobSeeker payments Phone or Inbox us for a free discussion.

22.01.2022 7. Income Tax for Individuals - How is it calculated? In Australia we have a progressive tax system, which means the more you make the higher you get taxed. For Australian Tax Residents, which is most of us, refer to the table attached to see the income tax brackets. ... So you are able to make up to $18,200 without paying any tax at all. Actually the Australian Taxation Office do provide some low and middle income tax offsets which mean you can even make up to roughly $22,000 without paying a single dollar in tax. For those high-income earners, their marginal tax rate would be 45% income tax + 2% medicare levy = 47%, so often it is not tax effective to further invest or earn money individually and some re-structuring can often save a significant proportion in tax legally. Ask us to review whether your current structure is tax effective for free! - Steven

21.01.2022 15. Tax Depreciation Limit for Motor Vehicles used for business - For tax purposes there is an upper limit for the maximum depreciation claim you are allowed being $59,136 for the Financial Year 2020-21. This means that if you bought a Ferrari for $400,000, you can only claim $59,136 as a tax deduction. The deduction also has to be apportioned for business usage. This limit applies to the ATO's definition of a Motor Vehicle. So if you are purchasing a utility vehicle such as a Ute or Truck, this depreciation limit does not apply. Before purchasing a vehicle, it would be best to consult your accountant to make sure issues such as GST & Fringe Benefits Tax have been considered.

21.01.2022 Are you now working from home? Youre eligible for a home office tax deduction. The ATO has announced an updated method for claiming home office running costs deductions. This new method will apply to the period 1 March 20 to 30 June 20. If you prepare your own taxes, it will be worthwhile to look up these rules. Otherwise, please inbox us and we are more than happy to guide you.

20.01.2022 You can increase your presence by going online as around 40% of the world have an internet connection.

19.01.2022 Following last weeks example of CGT & Property, this week we are covering CGT & Shares. 1. Tax Liability - Selling a share and realising your capital gain on 29 June 2019 means tax would be payable in your FY19 Income Tax Return, whereas if you sold on 01 July 2019 tax would be payable in your FY20 Income Tax Return. If youve got a huge tax bill to pay, this will give you an extra year to manage your cash flow. 2. General 50% CGT Discount - If you have held the investment ...for >12 months, you can reduce the capital gain by 50%. 3. Timing - You could choose to realise certain investments at the same time. For example you could realise a losing investment with very little chance of recovery to realise a capital loss to offset expected capital gains. Let us know if this helped and what you guys would like us to cover next. Ask us in the comments!!

18.01.2022 Last week before the end of the financial year! We remind you to review your FY20 & FY21 Tax Plan. Thinking ahead can save you money as well.

17.01.2022 Don't miss out on your tax deduction entitlements! Check all of your expenses and see which ones are eligible for a deduction.

17.01.2022 The last thing you want is to roll over bad debts or outstanding bills to the new year. Making your debt repayment strategies a top priority can make sure you pay off any outstanding business payments more quickly and efficiently.

17.01.2022 #4 Negative Gearing is when your investment property's income < expenses. The net rental loss then reduces the owners taxable income. The magnitude of the net rental loss is normally driven by the highest cost of maintaining an investment property being the interest expense on borrowings. This means that the more geared (higher level of debt) you are in the more likely you are to run a net rental loss. This is a funding model used by growth investors as year on year, their ...income tax liability will be reduced and as the value of the property rises there is no taxing point until sale. As it offsets your individual income tax this strategy is better for high-income earners as they have a higher rate of tax. Comment below your thoughts on property investment.

17.01.2022 Business owners often lose sight of whats important when juggling their responsibilities. It is important not to lose focus of your goals!

17.01.2022 Be an Advocate for Your Business Not Just a Salesman

17.01.2022 #3 Treatment of Capital Losses A special request by our client Aaron Jackson The calculation of a capital loss is quite straightforward, but the treatment that follows can be quite tricky. Lets focus on the general concept. 1. Capital Loss Basically, if you dispose of an asset for less than you paid for it, you incur a capital loss. This can be used to offset current year capital gains. This is a tax incentive that may appeal to investors as it can reduce overall tax pa...yable. 2. Capital Losses Carried Forward In our example, after offsetting our current year capital gains we are still left with a capital loss of $1,030. This can be carried forward indefinitely to offset future capital gains. The value of the future tax benefit is equal to $1,030 x 47% (or your marginal tax rate) being $484. 3. 50% CGT Discount It should be noted, capital losses are netted against your gross gain before applying the CGT discount. Let us know in the comments or message us if you need any clarification. Also, let us know what else you want us to cover!

16.01.2022 #5 Depreciation - Rental Properties How does depreciation work for a rental property? There are two main types of depreciation which are:... 1. Plant & Equipment (known as Division 40 Depreciation) 2. Capital Works (known as Division 43 Depreciation) Common Division 40 Items are: Chairs Carpet Blinds Cook tops Common Division 43 Items are: Tiling Kitchen Vanity So whats the difference? 1. Properties Division 40 items are smaller items that can be individually identified and removable whereas Division 43 items are usually to do with the structural elements of a building that are permanent 2. Depreciation Rate Division 40 items can be depreciated much faster than Division 43 items These treatments may vary depending on the status of your rental property i.e. currently vacant, available for rent, closed for renovation. So do you guys think he can deduct his bathroom remodelling costs?

16.01.2022 Following last week's example of CGT & Property, this week we are covering CGT & Shares. 1. Tax Liability - Selling a share and realising your capital gain on 29 June 2019 means tax would be payable in your FY19 Income Tax Return, whereas if you sold on 01 July 2019 tax would be payable in your FY20 Income Tax Return. If you've got a huge tax bill to pay, this will give you an extra year to manage your cash flow. 2. General 50% CGT Discount - If you have held the investment ...for >12 months, you can reduce the capital gain by 50%. 3. Timing - You could choose to realise certain investments at the same time. For example you could realise a losing investment with very little chance of recovery to realise a capital loss to offset expected capital gains. Let us know if this helped and what you guys would like us to cover next. Ask us in the comments!!

16.01.2022 Start the new year by revising your financial goals, sales targets and short-term and long-term business vision. Taking time to re-examine your business from a birds-eye perspective can enable you to find key priorities and inefficiencies that you will need to tackle in the new year.

16.01.2022 Never stop testing. If you never stop testing new things and your website, your business will never stop improving.

15.01.2022 Business owners should understand what their BAS actually shows and the proper preparation that is needed to consolidate it. There are heavy penalties and risks of audit when preparing them incorrectly.

15.01.2022 How to get paid by your clients faster, save time invoicing & escape the headache of debt collection... Let's discuss further at Australian Tax & Business Mastery

14.01.2022 We are Xero Partners & Certified Advisors so ask us anything about their cloud accounting solutions. Automate what you can and free up your time for the more critical areas of your business! When was the last time you had a review of your accounting systems?

13.01.2022 #4 Negative Gearing is when your investment propertys income < expenses. The net rental loss then reduces the owners taxable income. The magnitude of the net rental loss is normally driven by the highest cost of maintaining an investment property being the interest expense on borrowings. This means that the more geared (higher level of debt) you are in the more likely you are to run a net rental loss. This is a funding model used by growth investors as year on year, their ...income tax liability will be reduced and as the value of the property rises there is no taxing point until sale. As it offsets your individual income tax this strategy is better for high-income earners as they have a higher rate of tax. Comment below your thoughts on property investment.

12.01.2022 ATO Audits & Unethical Tax Agents - Understand what you are signing, do it right & welcome audits rather than be scared...

11.01.2022 8. Should I Salary Sacrifice into Super? So firstly how does this work? 1. You ask your employer if you can salary sacrifice into super 2. They pay you directly into your superfund instead of paying you additional salary... 3. Contributions are taxed at 15% instead of 47% (high income earners) if paid as additional salary This means there is a tax saving of 32%. However it really depends on your requirements as this may not always be the best option as it locks your money in super and it may not be accessible until you meet a condition of release. You also lose control of your investments unless you set up a self-managed superfund. If you choose to salary sacrifice you should also be aware of contribution caps for example the concessional contribution cap of 25k. As super is a concessionally taxed environment, there are limits to how much you can contribute. Have you guys reviewed your super situation?

11.01.2022 Pretty decent free payroll app, STP compliant & integrates with Xero #Payroll

10.01.2022 So how are we taxed when we sell our investment properties? The short answer is you get taxed on the gain referred to as capital gains tax (CGT). If youve made a loss then you incurr a capital loss which can offset capital gains. Weve put together a simple example to follow along to demonstrate how this would be calculated. Simplified, the capital gains will be added to your individual taxable income and taxed at your marginal tax rate if held directly. Also note that there... is a 50% CGT discount if youve held the property for over 12 months. Since property is a pretty common investment, you should understand the tax consequences as it has a significant effect on how much money you actually receive. We note that the rules are different if youre selling the house you live in & will cover in a later post.

09.01.2022 Keeping proper documentation and evidence of your expenses is very important when preparing your taxes. Tracking your expenses is easy and may be as simple as keeping a book or a box of your receipts, which will ensure you claim all eligible deductions to maximise your return.

09.01.2022 Business cash flow is not static. And complacency will only lead to financial failure. Just like an athlete who is training regularly, revising and improving. Make sure you revise and review your finances weekly, identify weak spots, refine, tweak and continually improve. Over time, these small changes can lead to drastic improvements in business efficiency and commercial viability. #accountants #accounting #tips #success #HDQTips #business #smallbusiness #entrepreneur #onlinemarketing #marketing #website

08.01.2022 11. Why are credit cards useful? 1. Credit Score Building a strong repayment history will be beneficial when applying for mortgages, car loans & business loans 2. Working Capital It provides some short-term interest free cash flow if repaid on time. This is a good temporary solution for unusual cash shortages... 3. Reward Points Most credit cards offer a reward scheme that usually can be exchanged for gift cards, flights & accommodation 4. Insurance Most credit cards come with complementary insurance such as travel insurance and even rental car insurance The main thing is never miss a payment & never pay interest if you dont have to. We like to use credit cards as debit cards so never spend more than you have. Some credit cards even give points for tax payments! If youre going to spend these amounts anyway then might as well accumulate points for rewards.

08.01.2022 The 2017 year is done and dusted! It would be best to give in all your information and finish off your tax affairs for 2017 so you dont have to panic when the deadline comes around. This may include: - End of year accounts - Tax Returns... - Outstanding BASes Keeping on top of these will take one more thing off your mind and help you avoid any late lodgement penalties.

05.01.2022 Dont miss out on your tax deduction entitlements! Check all of your expenses and see which ones are eligible for a deduction.

05.01.2022 13. Family Trusts (Discretionary) - This is the most commonly used structure for holding & transferring wealth as it has many benefits: - Minimising Tax - Income that is generated in a trust can be distributed to family members of choice. For example, you could distribute dividend income from shares to a family member who has no income. This means that you can fully utilise the tax free threshold (& the franking credits will be refundable) rather than having additional income... at your own marginal tax rate. - Asset Protection - The assets are not held personally by you but are actually owned by the trustee of the trust for the benefit of the beneficiaries. - Estate Planning - It is easy to change the control of the assets as you may change the trustee. This is especially useful when dealing with illiquid assets such as property. It would be worthwhile to review your investment structures as there are a variety of factors that would determine whether setting up a family trust would be appropriate for your situation. There are also many different types of trusts & situations in business operations where it may be appropriate to use an alternate structure. Correct structuring from the beginning is ideal as it may be costly and time consuming to restructure later on. Chat with us before organising.

03.01.2022 Use search, social, and email marketing to boost website traffic. #accountants #accounting #tips #success #HDQTips #business #smallbusiness #entrepreneur #onlinemarketing #marketing

03.01.2022 Are you now working from home? You're eligible for a home office tax deduction. The ATO has announced an updated method for claiming home office running costs deductions. This new method will apply to the period 1 March 20 to 30 June 20. If you prepare your own taxes, it will be worthwhile to look up these rules. Otherwise, please inbox us and we are more than happy to guide you.

03.01.2022 If accounting, bookkeeping and general cash flow management are giving you nightmares, then get help from professionals. An experienced financial expert can help you tailor and streamline. #accountants #accounting #tips #success #HDQTips #business #smallbusiness

03.01.2022 9. Why start-ups need a good accountant early on: 1. Business Structuring Setting up the correct structure early on is ideal. For example a company structure is the most common for startups because of the ability to raise capital through the issue of equity and provides limited liability as it is a separate legal entity from the owners. 2. Grants Founders may be unaware of government support such as the R&D Grant that are available for some startups. These grants are a si...gnificant incentive for new businesses. 3. Tracking what is important Growth is hard to manage without measurement. We advise our clients to keep a dashboard of key metrics dependent on industry to help. Our clients mostly use Xero as it is a cloud reporting software that allows them to create management reports with ease. 4. Sale & Exit considerations Keeping clean accounting records from the beginning increases the value of your business as external investors have clarity when evaluating the business. Investors tend to stray away from messy management as they dont want to be buying the skeletons in the closet. Having the right business adviser will help guide your startup in the right direction. Often, a majority of the problems that arise can be avoided with adequate planning & strategy. As we believe, a good accountant will pay for themselves. Ask us how we can help you & contact us for a free consultation.

02.01.2022 12. How do we claim deductions for home office expense? The two main ways are: 1. Actual Method - Add up the total of your running costs such as electricity, internet, office furniture depreciation, phone, cleaning & apportion for business usage accordingly.... 2. Estimate Method - Work out hours worked from home and use a flat rate calculation. - From 1 July 2019 to 1 March 2020 at 52c per hour - From 1 March 2020 to 30 September 2020 at 80c per hour The business usage and home office hours will require some sort of substantiation such as a diary and must sound reasonable should the tax office enquire further into your claims. If you are running a business from home, you may choose to also deduct occupancy expenses such as rent, mortgage interest, water rates, land taxes and house insurance premiums. However if you do choose to do this there will be capital gain consequences as you will no longer get the full main residence exemption. There are certain proofs required for this so ask us.

02.01.2022 Business owners often lose sight of what's important when juggling their responsibilities. It is important not to lose focus of your goals!

01.01.2022 The cost of managing your tax affairs are tax deductible and is often overlooked by most. If you used a tax agent to prepare and lodge your tax return last year, you can claim the amount you paid - on this years return. Remember that the fees you pay for tax return help are always tax deductible.

01.01.2022 6. Why you should be monitoring your Cash Flow regularly: - Monitoring your cash flows will tell you where your money is going i.e. operating activities, investing activities & financing activities - Planning will allow you to pay suppliers on time and keep healthy business relationships... - Should you have a deficit of cash due to poor planning, staff will be unhappy when they are paid late and this will have flow-on effects to your business. - Having sufficient cash flow will strengthen growth opportunities as you are able to service more debt as well as use excess cash on expansion activities We encourage our clients to keep a dashboard of key metrics that provide useful information depending on what industry and business they are in. What Key Metrics are you monitoring and why?

01.01.2022 10. When is interest expense deductible? The determinant of whether interest on loans are tax deductible or not relates to the underlying purpose of using the borrowings. For example: ... - Interest paid on a mortgage of a rental property deductible as it directly relates to the derivation of rental income - Interest paid on a car that is used within the business deductible for % of business usage - Interest paid on a business loan deductible as funds are used as working capital/fund assets of the business A common situation is when people do a cash out refinance of their home and use the cash for private purposes i.e. spending it on a holiday. As a portion of the loan now relates to private usage, that proportion would be non-deductible interest as it no longer relates to income derivation. Incorrect treatment for tax purposes can get you into quite a bit of trouble!