Tax Refund Delays

Some people have been experiencing delays in gettingtheir refunds due to the backlog caused by The Tax Office updatingtheir computer systems earlier this year and everything didn’t go to plan.

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Pay The Tax Office Using Your Credit Card

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

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2009 Year End Tax Planning Strategies

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

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2009 Budget: Small Business Tax Break (Investment Allowance) increased to 50%

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

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Are you entitled to the NEW 30% Investment Allowance? Information You Must Know Now or You May Miss Out.

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

Press Release

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

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Beware Letters Offering To Buy Your Shares

I received a letter in the mail today offering to buy some shares from me.

These sort of letters have been around a long time.

They usually offer to buy your shares at around half the price of the marketvalue.

It’s worded so its legal.

If you are thinking of selling, first check the current price on the stock exchange. To do this type in the Share Code, (it will be on the letter) in the Get Price box on the right hand side of this page ttp://www.asx.com.au/professionals/market_information/index.htm and it will show how much you can sell it for, per share, on the stock market.

As the letter says whether you sell or buy you should seek financial advice. This is not financial advice, just a warning.

You can sell shares yourself online buy using sites like http://www.commsec.com.au. After you have opened an account you mat be able to just use your SRN number from your share dividend advice (its the long number after the letters SRN) to sell the shares.

Unfortunately it is probably unsuspecting people who could really do with the extra money that decide to act on these letters and they are the ones whose lives could really do with the possible extra 40% or so they could receive selling it themselves online or through a standard broker.

As the letter says seek financial advice.

Regards,

Glenn Wallace
Chartered Accountant, CPA, Registered Tax Agent

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