28 Jan 10 is the last day to pay for an employer to pay the employees super guartntee obligations for the quarter ended 31 December 2009.
If an employer does not make the minimum superannuation guarantee contributions for quarter 2 by this date, they must pay the SGC and lodge a Superannuation guarantee charge statement – with the Tax Office by 28 February 2010.
The SGC is not tax deductible.
Hi,
The Australian Tax Office is trialling a system make payments using your credit card.
Looks like they are entering the 21st century .
This is also good for paying off your credit card, it buys you some time and also for earning extra points on your credit card.
The downside is that you have to use their interface which means you cant put in specific references for different payments. This ability may come later after the trial.
Read more about the trial here:
http://www.ato.gov.au/businesses/content.asp?doc=/content/33696.htm&page=3&pc=&mnu=43139&mfp=001/003&st=&cy
Regards,
Glenn Wallace
CPA
Chartered Accountant
Registered Tax Agent
A question I often get asked is what tax deductions a home business can claim.
Yes you can claim a portion of your home expenses.
Youi can claim expenses that are directly related to your business such as electricity, heating, telephone and specific furniture and equipment, repairs, cleaning etc.
If you satisfy some tests you may also be able to claim some fixed home expenses like interest or rent and insurance and rates.
If you have any questions you may ask in the comment section below.
Regards,
Glenn Wallace
Business Adviser
Chartered Accountant
CPA
Registered Tax Agent
Superannuation
Audio describing some major ways you can do some last minute tax savings.
http://businessadviser.com.au/TaxPlan/tsr.html
Why you should lodge your income tax return for the year ended 30 June 2008 by 30 June 2009.
Why superannuation is a great tax shelter
If you are over 50 what you should do today, after 30 June the benefit will reduce by half.
Looking at the new tax benefits of making child education expenses.
Some traps to avoid in regard to the New Investment Allowance (Small Business Tax Break)
And some other ways to minimise your tax.
The first home owners grant was to finish on 30 June 2009 but has been extended for six months to 31 December 2009.
Up until 30 September 2009 the grants are $14,000 for existing homes and $21,000 for new homes. For the last three months October, November and December 2009 the rate will be halved to $7,000 for existing homes and $10,500 for new homes.
If you aren’t eligible for the grant it will be interesting to see what the property prices will do if the grant is abolished as planned after December 2009.
Regards,
Glenn Wallace
Ph 612 9585 9585
You should be tax planning now for 30 June so that you can save money so that your children can have a great education or you can invest in super or splurge on that thing you have been longing for or whatever your particular desire is.
Two people can be in the exact same situation but one does something a little different and the tax savings made by that person can be significant.
There is no better time than now to work out what to do. The budget has been delivered so we know with fairly good certainty (assuming the legislation gets passed) what will be allowed and disallowed.
Essentially the strategey is to maximise deductions and rebates and minimise income.
I will be updating the blog with year end strategies and also holding seminars that you can ask questions.
To be kept up to date you can get the RSS feed or put your name and email address in the free resources and update box in the top left hand corner.
Regards,
Glenn Wallace
Business Adviser
Chartered Accountant
CPA
Australian Registered Tax Agent
Superannuation
Before the budget it was rumoured that the Transition to Retirement Income Streams would be axed.
In fact they werent axed and are still a valid form of investing for the future in a tax effective way.
The rumour was partly true in that the amount of tax benefit has been reduced if you wanted to contribute the maximum amount of super and claim a deduction.
If you are over 55 and working and not contributing extra money to super you are costing yourself money. If you are over 60 this strategy is almost mandatory.
Shortly I will be announcing some information seminars outlining what you should be doing before 30 June 2009 to legally keep the biggest amount of your money. If you would like to be notified put your name and email address in the free resources and updates boxes on the top left.
Regards,
Glenn Wallace
Business Adviser
Chartered Accountant
CPA
Australian Registered Tax Agent
Superannuation
Have you missed out on the $100,000 super stategy? There is still time to benefit if you act before 30 June 2009.
In order to save money the maximum concessional contributions were reduced from $100,000 to $50,000. Now a $50,000 tax deduction is still a benefit but not as good as $100,000.
You may now be paying as much as $30,000 dollars a year too much in tax by not using the super strategy.
Depending on your circumstances you may also be able to get the super money back without it being locked up in super or if you have your own self managed superannuation fund be proactively using the money to grow your wealth.
Its a great tax strategy, which is why the Government wanted to save money in the budge by making it half as attractive after 30 June 2009, but there is still time to get the maximum benefit, save the most amount of tax and there is stll benefits after 30 June.
I think its pretty short sighted by the government however as the idea was to save for retirement rather than relying on the government for the age pension. A bit like giving money away before the budget and then taking it back after the budget.
Shortly I will be announcing some information seminars to what you should be doing before 30 June 2009 to legally keep the biggest amount of your money. If you would like to be notified put your name and email address in the free resources and updates boxes on the top left.
Regards,
Regards,
Glenn Wallace
Business Adviser
Chartered Accountant
CPA
Australian Registered Tax Agent
Superannuation
In the budget today the small business tax break was increased from 30% to 50%
Small businesses with turnover of less than 2 million dollars can claim an additional 50% tax deduction on eligible assets up to 31 December 2009.
Regards,
Glenn Wallace
Business Adviser
Chartered Accountant
CPA
Australian Registered Tax Agent
Superannuation
The government is looking to boost business investment, bolster economic activity and support Australian jobs.
The Investment Allowance forms part of the government’s $42 billion stimulus package.
At the time of writing this the investment allowance legislation has not been passed yet so the following may change.
If you are a business with turnover of less than $2 million dollars and you spend $1,000 or more (or enter into a contract for $1,000 or more) on some new eligible equipment between 13/12/08 and 30/06/09 and it is reasonable to conclude that the asset will be used principally in Australia for the principal purpose (not apportioned for private use) of carrying on a business you can claim an additional 30% tax deduction in the business income tax return for the year ended 30 June 2009.
This is a 30% tax deduction not a tax rebate. For example, in a company, the tax you get back from spending $3,000 on new equipment is $270 ($3,000 x 30% x 30%) not $900 ($3,000 x 30%). This is a common misunderstanding.
The equipment must be new and you should normally be able to claim depreciation on the equipment. Land, intangibles and trading stock are specifically excluded. Cars that you claim the 12% method are included. More examples of ineligible equipment: intangibles such as computer software and intellectual property rights, cars using the cents per kilometer method, capital works such as building construction expenditure and earthworks also special deductions such as water facilities.
The expenditure can also be capital expenditure on existing assets.
If you acquire the asset between 1/7/2009 and 31/12/2009 and its installed and ready for use by 31/12/2010 you can claim an additional 10% tax deduction instead of the additional 30% tax deduction if you buy on or before 30/6/2009.
If the annual business turnover is greater than $2 million dollars then you must spend more than $10,000 on equipment to be eligible for the investment allowance.
More Detailed information
Copy of pending legislation and explanatory memorandum
http://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id%3A%22legislation%2Fbillhome%2Fr4094%22
http://www.treasurer.gov.au/DisplayDocs.aspx?doc=pressreleases/2009/013.htm&pageID=003&min=wms&Year=&DocType=0
Regards,
Glenn Wallace
Business Adviser
Chartered Accountant
CPA
Australian Registered Tax Agent
Superannuation
