Your Tax Accountant in Sydney, Australia | Tax preparation service

Your Tax Accountant

Locality: Sydney, Australia

Phone: +61 2 8216 0829

Address: Level 34, 50 Bridge Street 2000 Sydney, NSW, Australia

Website: http://www.yourtaxaccountant.net.au

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25.01.2022 REMINDER DECEMBER QUARTER BAS DUE SOON 28 FEB 2014

25.01.2022 Low income super contribution The Government plans to remove the rules that currently allow the contributions tax paid on concessional contributions for individuals earning up to $37,000 to be returned. The changes will apply to concessional contributions for financial years starting on or after 1 July 2013.

23.01.2022 New Penalty Powers Which Apply To Self-Managed Super Funds On 14 December 2013 the government announced that it will proceed with law changes that give the ATO greater powers in dealing with SMSF trustees who breach super law. It is proposed that these new powers will apply to contraventions occurring from 1 July 2014 and cover: administrative penalties... education directions rectification directions. They will also apply to contraventions that were made prior to 1 July 2014 and continue after that date. For example, if your fund has lent money to a member or relative and the loan still exists on or after 1 July 2014 you will be liable for a penalty. The loan should immediately be repaid to the fund with appropriate commercial interest. Under the proposed measures, penalties will vary according to the type of breach. In the example above, each individual trustee will be personally liable for a penalty of $10,200. For an SMSF with a corporate trustee each director will be jointly and severally liable for a penalty of $10,200. The penalty cannot be paid using the resources of the SMSF and doing so would be considered a serious breach likely subject to more significant penalties from the ATO. Under the proposed administrative penalties the ATO must impose the penalty when we become aware of a relevant breach from 1 July 2014. To avoid these penalties make sure your SMSF is fully compliant with the super laws so that you dont become liable for a penalty or other sanctions. If trustees are making progress in resolving contravention(s) by 1 July 2014 the ATO would consider these circumstances in any request to remit any imposed administrative penalties. See more

23.01.2022 Your tax return checklist for 2014 Payment summaries from all employers and/or Centrelink... Details of Interest on bank accounts (including account name, number and total interest received) Dividend statements & Trust Distribution statements for Investments Details of any rent received on Investment Properties Details of any business income e.g. sole trader/subcontractor Details of ANY foreign income Details of asset sales EXPENSES Log book showing kilometres travelled in your motor vehicle ONLY for work purposes Details of any expenses incurred in relation to work. e.g. home power (how many hours per week), Internet (business %), mobile phone (business %), uniforms, union fees, stationery, tools, materials, subscriptions, memberships, courses etc (NOTE, please bring all receipts) Details of Income Protection Insurance and Superannuation Contributions Details of donations to charities and building funds (NOTE, please bring receipts) Details of all expenses in relation to Investment Properties eg advertising, body corp, council rates, gardening, insurance, interest on loans, pest contol, agents fees, repairs, travel, depreciation etc Details of all business expenses REBATES Details of your spouse/defacto including: taxable income and D.O.B. Names, dates of birth and income of dependant children Private Health Insurance Statement from your Health Provider *Please don't forget to bring your Bank Account Name, BSB and Account Number to the appointment as we can't lodge without these

23.01.2022 Looking forward: Increasing Australias superannuation balances through raising the concessional contributions cap Encouraging Australians to be self sufficient in retirement has long been a hot topic. However recent legislative changes seem to be in conflict with this very important objective. According to the Australian Bureau of Statistics (ABS), approximately 15% of the Australian population have retired from gainful employment as at 2012. By 2061, approximately 30% of t...Continue reading

22.01.2022 Superannuation guarantee increase slowed As you know, the superannuation guarantee (SG) percentage was due to increase gradually from 1 July 2013 until July 2019 when the rate reaches 12%. The new measures slow the increase. The SG percentage will be kept at 9.25% for the 2014, 2015 and 2016 financial years. From 1 July 2016, the SG percentage will then rise to 9.5% and then increase by half a percentage point each year until it reaches 12% for years starting on or after 1 July 2021.

22.01.2022 Happy Easter have a wonderful day

22.01.2022 BUSINESS OWNERS, THIS WILL AFFECT YOU With some sense of déjà vu, the Budget announced that small businesses (aggregate annual turnover less than $2m) would be able to immediately write off assets they start to use or install ready for use, provided the asset costs less than $20,000. [The existing write-off threshold is $1,000 after being reduced from the previous $6,500.] Eligible assets could include things like cars, vans, kitchens, machinery, etc. Date of effect: This wi...ll apply for assets acquired and installed ready for use between 7:30pm (AEST) 12 May 2015 and 30 June 2017. It should also be remembered that the threshold applies on a per asset basis, so several assets each costing up to $20,000 would qualify for the write-off if installed ready for use before 30 June 2017. Assets valued at $20,000 or more (which cannot be immediately deducted) can continue to be placed in the small business simplified depreciation pool and depreciated at 15% in the first income year and 30% each income year thereafter. The pool can also be immediately deducted if the balance is less than $20,000 over this period These changes are expected to improve cash flow for small businesses and provide a boost to small business activity and investment. Small businesses can access accelerated depreciation for the majority of capital asset types. Only a small number of assets are not eligible (such as horticultural plants and in-house software). In most cases, specific depreciation rules apply to these assets. From 1 July 2017, the thresholds for the immediate depreciation of assets and the value of the pool will revert back to existing arrangements. Small business tax rate cut to 28.5%; tax discount for unincorporated small businesses The Government announced, with effect from the 2015-16 income year (ie from 1 July 2015), a 1.5% cut in the company tax rate applying to small businesses (turnover less than $2m). That would reduce the tax rate applying to those businesses to 28.5%. This is expected to benefit some 780,000 incorporated small businesses, 90% of incorporated businesses with annual turnover under $2m. Companies with an aggregated annual turnover of $2m or above will continue to be subject to the current 30% rate on all their taxable income. As the tax cut will apply from 1 July 2015, companies with PAYG instalments can benefit from their first payment after 1 July 2015. Please feel free to ask any questions

20.01.2022 A very happy first home buyer #CrowsNest #FirstHomeBuyer helping people move

19.01.2022 Deductions at risk February 11, 2016 Staff Reporter With the government’s appetite for GST reform seemingly diminishing, the loss of work-related tax deductions now appears to be a genuine threat, according to the IPA.The House of Representatives Economics Committee is investigating trading tax deductions for lower tax rates and is due to report at the end of February.... With this in mind, IPA chief executive officer Andrew Conway warned that while a reduction in personal income tax is an attractive proposition for most people, it will not compensate the majority for the loss in having the right to claim legitimate work-related deductions. Under such a proposal, up to nine million Australian taxpayers would lose their existing ability to claim deductions relating to expenses incurred in earning their income; a fundamental entitlement under our tax system, Mr Conway said. And employees should not be under the false assumption that employers will pick up the slack. Most businesses in Australia are small businesses who can ill afford to fund the shortfall, he added. Mr Conway said small businesses in particular will be affected where an employee chooses not to buy tools of trade, such as mobile phones and laptops, because they will no longer be able to claim them as a legitimate deduction. Loss of essential tools of trade will lead to further deterioration of Australia’s already declining productivity, he said. Taxpayers may not be aware that self-education expenses are a component of work-related deductions. Any talk of losing the ability to claim a deduction for self-education is contrary to the Government’s push for innovation, Mr Conway added.

18.01.2022 Happy new financial year Many happy tax returns.

18.01.2022 School kids bonus (SKB) This tax-free bonus payment will also be removed. The next instalment of the SKB would be in respect of the test day occurring on 1 January 2014. As Parliament is yet to pass the legislation to end the Schoolkids Bonus, it will now be paid to eligible families and students in January 2014. Payment of future instalments of the Schoolkids Bonus, including for July 2014, will depend on whether the legislation is passed by Parliament in 2014.

14.01.2022 Motor Vehicle claims for "work horse" vehicles by tradespeople *taxpayers should not claim 100% business use for non car vehicles such as a 1 tonne ute as ATO is targeting this claim * a logbook should determine business portion *odometer records or receipts should be kept for fuel costs and receipts for all other expenses *expenses for work horse vehicles should be claimed at item D2 (work related travel expenses)

12.01.2022 Higher Education (HELP) Voluntary discounts removed If you had a small accumulated HELP debt, that is likely to be paid out in the 2013-14 financial year, voluntary payments were required before 31st of December 2013 to qualify for the discount.

12.01.2022 SMALL BUSINESS BENCHMARKS: Small business benchmarks are financial ratios developed from information provided to the ATO by businesses on their tax returns and activity statements. You can use the benchmarks to help you compare your performance against similar businesses in your industry. Benchmarks and other risk indicators are used to identify businesses that may be avoiding their tax obligations by not reporting some or all of their income. If a business does not have evid...ence to support their return the ATO may also use the benchmarks to determine income that has not been reported. For each industry the ATO highlights the benchmark that is used to predict income or turnover. Benchmarks are published for businesses with different turnover ranges across more than 100 industries. They are generally published as a range, to recognise the variations that occur between businesses due to factors such as location and the businesses circumstances. Businesses reporting outside the benchmarks may attract the attention of the ATO. There may be reasons for this difference, such as higher costs or lower selling prices than others in the industry, but it may also be an indication that a business is not recording and paying tax on all its transactions, especially cash transactions. If you find you are outside the benchmarks for your industry, check that you have correctly recorded and reported income and deductions for your business. To do this you should review your record-keeping practices to ensure they meet the legal requirements. The following types of benchmarks are published for the small business sector: performance benchmarks these provide financial ratios for different industries input benchmarks these show an expected range of income for tradespeople based on the labour and materials they use.

12.01.2022 Key Dates - May 2014 15 May 2014 Income Tax 2013 income tax returns for all other entities that did not have to lodge earlier (including all remaining consolidated groups), and are not eligible for the 5 June 2014 concession. Due date for:... lodging company and super funds to pay where required individuals and trusts in this category to pay as per their notice of assessment. 21 May 2014 FBT return Final date for appointing a tax agent for a fringe benefits tax role. You must tell the ATO who your new clients are by this date to make sure they receive your lodgment and payment concessions for their fringe benefits tax returns. 21 May 2014 Activity statements Final date to lodge and pay April 2014 monthly activity statements. 26 May 2014 Activity statements Eligible quarterly activity statement, quarter 3, 201314 due date for lodging and paying if you lodge via any of the following: electronic commerce interface (ECI) electronic lodgment service (ELS) Tax Agent Portal BAS Agent Portal Standard Business Reporting. 28 May 2014 Superannuation Due date for lodging the Superannuation guarantee charge statement - quarterly (NAT 9599) and paying the super guarantee charge for quarter 3, 2013-13 (1 January - 31 March), if required contributions were not made by the due date. Employers who lodge a Superannuation guarantee charge statement quarterly can choose to offset contributions they paid late to a fund against their super guarantee charge for the quarter. They will still have to pay the remaining super guarantee charge to the ATO. The SGC cannot be deducted from tax. 28 May 2014 FBT return Due date for lodging and paying (if required) the fringe benefits tax annual return. NOTE: As some dates may vary, please ensure you contact the ATO to double check any dates in question. When the due date for lodgment or payment falls on a Saturday, Sunday, or public holiday, it may be done on the next business day.

11.01.2022 Loss carry-back measures The loss carry-back measures were only recently introduced and enable companies to offset tax they have paid in previous years against current year losses. The repeal of this measure however means that companies will only be able to use the loss carry-back measures for the 2013 income year. The rules will be repealed from the start of the 2014 income year. Companies that are late lodging their 2013 tax returns will still be able to utilise the loss carry-back rules for the 2013 income year.

10.01.2022 NOT SO LUCKY FOR THE HOLIDAY MAKERS Temporary working holiday makers - tax residency rules to change The Government will change the tax residency rules to treat most people who are temporarily in Australia for a working holiday as non-residents for tax purposes, regardless of how long they are here. This means they will be taxed at 32.5% from their first dollar of income. Currently, a working holiday maker can be treated as a resident for tax purposes if they satisfy the ta...x residency rules, typically that they are in Australia for more than six months. This means they are able to access resident tax treatment, including the tax-free threshold, the low income tax offset and the lower tax rate of 19% (for taxable income above the tax free threshold up to $37,000). Date of effect This measure will apply from 1 July 2016. See more

09.01.2022 Key Dates - June 2014 5 June 2014 Income tax... Income tax return lodgment where both of the following criteria are met: non-taxable or refund as per latest year lodged actual nontaxable or refund in the current year, unless due earlier. This is for all entities with a lodgment end date of 15 May 2014, excluding large/medium business taxpayers and head companies of consolidated groups. This includes companies and super funds that were not due earlier and meet the above criteria. 5 June 2014 Income tax Income tax returns due for individuals and trusts with a lodgment end date of 15 May 2014 provided they also pay any liability due by this date. This is not a lodgment end date but a concessional arrangement where you will not have to pay failure to lodge on time (FTL) penalties if you lodge and pay by this date. 21 June 2013 Activity statements Final date to lodge and pay May 2014 monthly activity statements. 25 June 2014 FBT return 2014 Fringe benefits tax annual return lodgment due date for eligible tax agents with 25 or more FBT clients attached to their registered agent number as at 28 May 2014. Payment (if required) is due 28 May. 30 June 2014 End of financial year. Last day for appointing a registered agent for an activity statement role. You must tell us who your new clients are by this date to make sure their quarter 4 activity statements are linked to you. Super guarantee contributions must be paid by this date to qualify for a tax deduction in the 201314 financial year. NOTE: As some dates may vary, please ensure you contact the ATO to double check any dates in question. When the due date for lodgment or payment falls on a Saturday, Sunday, or public holiday, it may be done on the next business day.

09.01.2022 Federal Budget & Future Developments From 1 July 2016 -Removal of tax exemption for employees deriving foreign income while delivering Official Development Assistance (ODA) overseas for more than 90 continuous days.

09.01.2022 2014 FEDERAL BUDGET UPDATE Revenue measures announced The major revenue measures announced in the Budget included:... A temporary (3 year) 2% Budget deficit levy (tax), known as the Temporary Budget Repair Levy, for incomes above $180,000. The Government confirmed that it was committed to cutting the company tax rate by 1.5 percentage points (to 28.5%) from 1 July 2015. For large companies, the reduction will offset the cost of the Government's 1.5% Paid Parental Leave levy. Further progress on announced but enacted measures eg exempt income of charities, no decision yet on s 25-90 foreign source income measure, principal asset test and foreign residents. Medicare levy surcharge and private health insurance offset thresholds to be frozen. Most dependant offsets to be abolished. A tax receipt for individuals will be introduced from 1 July 2014. Super guarantee rate to go to 9.5% on 1 July 2014. Option to be given to withdraw excess non-concessional superannuation contributions. ATO staff reductions to be brought forward. Family Tax Benefit changes: 2-year freeze on rates; other changes. Fuel excise indexation to recommence. The Government also confirmed in the Budget that it would proceed with its Paid Parental Leave scheme from 1 July 2015. It will provide 6 months paid leave and will include superannuation. The Medicare levy will increase from 1.5% to 2% from 1 July 2014. That was announced in last year's Budget and has been legislated. The intention of the increase is to help fund the proposed National Disability Insurance Scheme (NDIS), now renamed DisabilityCare Australia. This would mean that, coupled with the proposed new budget deficit levy, the effective top marginal tax rate would become 49% from that date.

09.01.2022 Did you know we can arrange Asset Finance for your Business??? Please contact our office to learn more 02 82160829 or 0425 344416

08.01.2022 Any Repair, Is A Repair, Is Deductible...Or Is It? Expenditure incurred by taxpayers for repairs to investment properties or other investment assets (eg the toaster in the premises) is deductible. However, sometimes it is not that easy to identify what is a repair, because even though its broke and you fixed it, the costs incurred may not be deductible as a repair. A 1997 Taxation Ruling provides guidance on the Commissioner of Taxations view as to what constitutes repai...Continue reading

07.01.2022 ATO reacts to Panama data leak The ATO has issued its response to the monumental data release relating to offshore tax havens, which has embroiled several high-profile organisations and individuals. Recently, the ATO received data in relation to a Panamanian law firm containing names of a significant number of Australian residents, the Tax Office said in a statement.... We have identified over 800 individual taxpayers and we have now linked over 120 of them to an associate offshore service provider located in Hong Kong. The statement continued: These cases relate to the release of data by transparency or media organisations in Australia and overseas. ATO intelligence on tax evasion comes from a variety of sources, including from concerned citizens, advisers, partner agencies and international bodies. ATO deputy commissioner Michael Cranston said that since the completion of the offshore disclosure initiative Project DO IT, the ATO has ramped up its compliance work to deal with taxpayers who have failed to disclose offshore income and assets. Sharing information and coordinating action closely with other tax administrations is a large part of this work. We promised the community that following Project DO IT we would continue to build our intelligence base, undertake audits, apply significant penalties and refer the worst cases for criminal investigation, Mr Cranston said. We have been analysing the latest data against information these taxpayers had reported to the ATO and against the information we already have. We are also working closely with the AFP, Australian Crime Commission and AUSTRAC to further cross-check the data and strengthen our intelligence. He added: The message is clear taxpayers cant rely on these secret arrangements being kept secret and we will act on any information that is provided to us.

07.01.2022 Need some extra cash after the holiday season come see our team and get your tax done for the 2013 financial year. 02 82160829 or 1800 110 399

07.01.2022 Deductions at risk February 11, 2016 Staff Reporter With the governments appetite for GST reform seemingly diminishing, the loss of work-related tax deductions now appears to be a genuine threat, according to the IPA.The House of Representatives Economics Committee is investigating trading tax deductions for lower tax rates and is due to report at the end of February.... With this in mind, IPA chief executive officer Andrew Conway warned that while a reduction in personal income tax is an attractive proposition for most people, it will not compensate the majority for the loss in having the right to claim legitimate work-related deductions. Under such a proposal, up to nine million Australian taxpayers would lose their existing ability to claim deductions relating to expenses incurred in earning their income; a fundamental entitlement under our tax system, Mr Conway said. And employees should not be under the false assumption that employers will pick up the slack. Most businesses in Australia are small businesses who can ill afford to fund the shortfall, he added. Mr Conway said small businesses in particular will be affected where an employee chooses not to buy tools of trade, such as mobile phones and laptops, because they will no longer be able to claim them as a legitimate deduction. Loss of essential tools of trade will lead to further deterioration of Australias already declining productivity, he said. Taxpayers may not be aware that self-education expenses are a component of work-related deductions. Any talk of losing the ability to claim a deduction for self-education is contrary to the Governments push for innovation, Mr Conway added.

06.01.2022 $5,000 deduction for motor vehicles scrapped From 1 January 2014, the $5,000 immediate deduction for motor vehicles purchased by small business entities has been removed.

05.01.2022 New Concession: small smart up companies: CHANGES TO TREATMENT OF EMPLOYEE SHARE SCHEME The Government is making it easier and more attractive for companies and their employees to participate in an employee share scheme Current Law... The default taxing point for shares and options issued under employee share schemes is when the employee receives those shares or options. For options, this often forces employees to pay income tax before they can take any action to realise a financial gain from the options, by converting them into shares and selling the shares. New Law (from 1 July 2015) The default taxing point for options will be changed so that employees will not generally have to pay income tax until they can realise a benefit from their options. This will benefit employees of all companies. Eligible start-up companies will also be able to offer shares or options to their employees at a small discount and have tax deferred until sale (for options) or the small discount exempt from tax (for shares). Employer must be the Company incorporated less than 10 years before end of Income year prior to income year when ESS interest acquired. Company aggregate turnover must nit exceed $50M in income year in which ESS interest acquired. The Employing Company must be an Australian tax resident

05.01.2022 Key Dates - April 2014 21 Apr 2014 Activity statements Final date to lodge and pay March 2014 monthly activity statements.... 21 Apr 2014 Activity statements Final date to lodge and pay Quarter 3 (January - March 2014) PAYG instalment activity statement for head companies of consolidated groups. 28 Apr 2014 Activity statements Final date to lodge and pay Quarter 3 (January - March 2014) activity statements. 28 Apr 2014 PAYG instalments Final date to pay Quarter 3 (January - March 2014) instalment notices (forms R, S or T). Final date to lodge, if varying the instalment amount. 28 Apr 2014 Superannuation Last day for superannuation guarantee contributions to be made to a superannuation provider for quarter 3, 2013-13 (1 January - 31 March). If an employer does not make the minimum superannuation guarantee contributions for quarter 3 by this date, they must pay the SGC and lodge a Superannuation guarantee charge statement - quarterly (NAT 9599) with the Tax Office by 28 May 2014. The SGC cannot be deducted from tax. 30 Apr 2014 TFN report Final date to lodge Quarter 3 (January - March 2014) TFN report for closely held trusts for TFNs quoted to a trustee by beneficiaries. 30 Apr 2014 Lost members report Lost members report for the period 1 July 2013 to 31 December 2013.NOTE: As some dates may vary, please ensure you contact the ATO to double check any dates in question. When the due date for lodgment or payment falls on a Saturday, Sunday, or public holiday, it may be done on the next business day.

04.01.2022 Immediate deductions reduced for small business entities (SBEs) Small business entities (generally entities with a turnover of less than $2m) could claim an immediate deduction for depreciating assets costing less than $6,500. From 1 January 2014 however, this threshold has dropped back to $1,000.

04.01.2022 Federal Budget & Future Developments Residency changes-temporary working holidays (backpackers) From July 1, 2016 temporary working holidays makers will b e treated as non resident regardless of how long they are in Australia. They will be taxed at 32.5 % from their first dollar of income.

04.01.2022 Federal Budget & Future Developments From July 1 2016 graduate who resides overseas for more than 6 months will be required to repay their HELP debt if they resided in Australia. payment will be required if the graduate's worldwide income exceeds the minimum repayment threshold which currently is $53,000

03.01.2022 Federal Budget & Future Developments Modernising the calculation of work related car expenses Only 2 methods can be used from 1 July 2015 : "cents per kilometre method"a single rate of 66 cents per km irrespective of engine size. The government will retain the log book method. 12 percent of original value and one third of actual expenses is no longer available.

03.01.2022 YOUR TAX ACCOUNTANT SPECIAL BUDGET SUMMARY On 13 May 2014, the Treasurer handed down the 2014-15 Federal Budget. The 2014-15 Federal Budget is the Governmen...ts blueprint for tackling what they call unsustainable deficits forecast at $29.8bn next year and totalling $60bn over the next 4 years. But the proposals would signal perhaps the most radical reshaping of Australia's social safety network in its modern history through broad structural reforms to the welfare, healthcare, higher education and pension systems. As individuals and consumers, this will impact all small business owners and operators. Below are some of the measures of immediate relevance to everyday Australians. PERSONAL Debt levy tax As foreshadowed before the Budget, the Government announced the introduction of a Budget deficit levy (tax), to apply for 3 years commencing on 1 July 2014. It is formally known as the Temporary Budget Repair Levy. The temporary levy will apply at 2% for incomes over $180,000 ie 2% on taxable income in excess of $180,000. Individuals with taxable income of $200,000 will pay 2% of $20,000 ie a levy of $400. Those with taxable income of $300,000 will pay 2% of $120,000 ie $2,400 of levy. FBT rate increase The Government said that to prevent high income earners from utilising fringe benefits to avoid the levy, the FBT rate will be increased from 47% to 49% from 1 April 2015 until 31 March 2017 to align with the FBT income year. FTB B threshold The Government will reduce the Family Tax Benefit Part B (FTB-B) primary earner income limit from $150,000 per annum to $100,000 per annum, from 1 July 2015. Age Pension age to increase to 70 by 2035 The Budget confirmed the Treasurer's earlier announcement (see 2014 WTB 19 [668]) that the Government would raise the eligibility age for the Age Pension to 70 by 2035. The Government announced that, from 1 July 2025, the Age Pension qualifying age will continue to rise by 6 months every 2 years, from the qualifying age of 67 years that will apply by that time, to gradually reach a qualifying age of 70 years by 1 July 2035. People born before 1 July 1958 will not be affected by this measure. SUPERANNUATION Superannuation guarantee Instead of pausing the superannuation guarantee rate at 9.25%, as previously announced, the Government will now increase the SG rate to 9.5% on 1 July 2014 (as currently legislated) and leave it at this level until 30 June 2018. The SG charge percentage will then increase by 0.5% each year until it reaches 12% from 2022- 23, a year later than previously proposed. As such, employers are required to increase their superannuation contributions on behalf of employees to 9.5% of ordinary time earnings from 1 July 2014 (as currently legislated). Budget 2014-15 Technical Advantage client edition HEALTH $7 GP co-payment A $7 fee for all doctor's visits will be introduced from July 2015, while at the same time decreasing government subsidies for prescription medications. Medicare levy thresholds for families increased for 2013-14 From the 2013-14 income year, the Medicare levy low-income thresholds for families will be increased to $34,367 (up from $33,693 for 2012-13). The additional amount of threshold for each dependent child or student will also be increased to $3,156 for 2013-14 (up from $3,094). EDUCATION HECS and HELP The Government will reduce the income threshold for repayment of Higher Education Loan Programme (HELP) debts commencing in 2016-17 and will adjust the indexation of HELP debts from 1 June 2016. The new minimum threshold will be established for the repayment of HELP debts, set at 90% of the minimum threshold that would otherwise have applied in 2016-17. The new minimum threshold is currently estimated to be $50,638 in 2016-17. Further, a new repayment rate of 2% of repayment income will be applied to debtors with incomes above the new minimum threshold. BUSINESS Corporate tax rate A reduction in the corporate tax rate by 1.5 per cent from 1 July 2015. With only one-third of small businesses incorporated, the benefit is limited. The SME instant asset write-off: businesses still in limbo over $6,500 threshold The current $6,500 write-off still stands despite the Government's intention that it be scaled back to $1,000 from 1 January 2014. This places SMEs in something of a quandary. Many will have purchased relevant assets and installed them ready for use before 1 January 2014 to ensure the $6,500 threshold can be utilised. Others may not have done so, or not been able to do so in time. If the mining tax and this associated amendment are passed after 1 July 2014 by the incoming Senate, will the 1 January 2014 application date still apply? It would have been helpful to business if the Government had made some announcement about these measures however, the Budget papers made no mention of this. Regulators cut The Government says it will achieve savings of $142.8m over 3 years from 2015-16 by reducing the ATO's departmental resourcing. The ATO will bring forward staff reductions that were already planned in response to efficiency dividends and decisions of the former Government. ASIC funding is to be cut as well. All of this means that services to taxpayers and small business people will be impacted.

02.01.2022 BUDGET NEWS Just a quick update! The Government announced, with effect from the 2015-16 income year (ie from 1 July 2015), a 1.5% cut in the company tax rate applying to small businesses (turnover less than $2m). That would reduce the tax rate applying to those businesses to 28.5%. This is expected to benefit some 780,000 incorporated small businesses, 90% of incorporated businesses with annual turnover under $2m. Companies with an aggregated annual turnover of $2m or above w...Continue reading

02.01.2022 GST backdown ‘a blow to business’, says Pitcher Partners Pitcher Partners has issued its criticism following the government’s decision to back down on GST-led tax reform, claiming that it has compromised the ability to deliver broader tax reform.... Craig Whatman, executive director of the mid-tier firm, noted that he failed to see how the revenue necessary to deliver a corporate tax cut to Australian businesses would be funded if the GST was not raised. At 30 per cent, Australia’s corporate tax rate compromises the ability of Australian businesses to remain competitive with their international counterparts, said Mr Whatman. Tax reform may be electorally difficult but it’s critical for Australia’s future economic growth. Mr Whatman also expressed his concerns that a lack of increased GST-accrued revenue would cause Australian businesses to remain bogged down by what he deemed inefficient and growth-stunting state-administered taxes, compromising their ability to prosper and drive economic growth. According to Mr Whatman, Australia is failing to adopt the OECD trend of shifting towards consumption taxes as a means of generating and raising revenue. If GST reform is off the table, Australia will retain one of the lowest rates of GST/VAT in the OECD, which means that we will continue to be reliant on other forms of tax to support the revenue base. This is in contrast to the OECD trend, where its members are gradually increasing their reliance on consumption taxes as a source of government revenue.

01.01.2022 Interests claims by taxpayers who use part of their home for business where part of a home is set aside for the carrying on of a business (eg a doctor conducts his business from a surgery at home)then the taxpayer can claim a portion of the loan interest relating to the property if a taxpayer chooses not to claim the business portion of the loan interest to avoid a Capital Gain Tax (CGT) problem, there will still be CGT implications on the sale of the property.

01.01.2022 GST backdown a blow to business, says Pitcher Partners Pitcher Partners has issued its criticism following the governments decision to back down on GST-led tax reform, claiming that it has compromised the ability to deliver broader tax reform.... Craig Whatman, executive director of the mid-tier firm, noted that he failed to see how the revenue necessary to deliver a corporate tax cut to Australian businesses would be funded if the GST was not raised. At 30 per cent, Australias corporate tax rate compromises the ability of Australian businesses to remain competitive with their international counterparts, said Mr Whatman. Tax reform may be electorally difficult but its critical for Australias future economic growth. Mr Whatman also expressed his concerns that a lack of increased GST-accrued revenue would cause Australian businesses to remain bogged down by what he deemed inefficient and growth-stunting state-administered taxes, compromising their ability to prosper and drive economic growth. According to Mr Whatman, Australia is failing to adopt the OECD trend of shifting towards consumption taxes as a means of generating and raising revenue. If GST reform is off the table, Australia will retain one of the lowest rates of GST/VAT in the OECD, which means that we will continue to be reliant on other forms of tax to support the revenue base. This is in contrast to the OECD trend, where its members are gradually increasing their reliance on consumption taxes as a source of government revenue.