Professional Advice for Business Owners, Entrepreneurs, Investors, Employees, Retirees.
February 5th, 2009 advice
In addition to what may change as a result of the current debate in parliament one line in Tuersday’s Treasury Press Release should be highlighted.
It indicates that not every “Working Australian” under $100,000 is going to get something.
“The bonus will be available to Australian resident taxpayers who paid tax in the 2007-08 financial year after taking into account available tax offsets and credits.”
So this seems to be saying that, for example, if you gave a large donation and claimed it as a tax deduction and as a result you didn’t have tax to pay you may miss out on the bonus.
Anyway, all will be revealed when the legislation is finalised and published.
Any questions please feel free to contact me on 02 9585 9585 or make comments below.
Regards,
Glenn Wallace
Business Adviser
Chartered Accountant
CPA
Australian Registered Tax Agent
Superannuation
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February 4th, 2009 advice
The Government announced that they propose to give away a free tax bonus to aprroximately 8.7 million Australians.
Are you one of them and what do you need to do to get your share.
This so not law yet so it may change.
Are You Eligible To Receive the Tax Bonus?
There is a description of who will receive the tax bonus at
http://www.treasurer.gov.au/DisplayDocs.aspx?doc=pressreleases/2009/010.htm&pageID=003&min=wms&Year=&DocType=
Some highlights
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Working Australians who have a taxable income in their 2007/2008 income tax return and paid tax after taking into account tax offsets and credits.
Up to $80,000 – $950 tax bonus
above $80,000 to $90,000 – $650 tax bonus
above $90,000 to $100,000 – $300 tax bonus
What You Need To Do
- Lodge your 2007/2008 income tax reurn by 30 June 2009.
- Check that the bank account you provided last year (or postal address if no bank account given) is still current or if you have already lodged your incone tax return for 2007/2008 ensure that the bank details given (if any) or postal address are still current. This is the account the money is to be paid into or teh postal address the cheque wil be sent to.
- The payments are planned to start in April 2008. If you want the tax bonus to go to a different bank account or postal address so that you actually receive the tax bonus you need to call the ATO on 1300 686 636. If you have already lodged your tax return you need to change the details by mid March.
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Single Income Family Bonus
Families who are eligible for Family Tax Payment Part B on 3 February 2009 will receive the Single Income Family Bonus.
Payments made automatically by Centrelink on March 11 2009.
If you claim the Family Tax Benefit part B a s a lump sum payment you should receive it after your 2009 income tax return is processed.
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Back To School Bonus
Families who are eleigible for Family Tax Payment Part A on 3 February 2009 may receive $950 tax bonus for for each eligible child of school age (aged 4 to 18 on 3 February 2009).
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If you have any questions etc please feel free to call me on 02 9585 9585
Regards,
Glenn Wallace
New System slashes 20 Hours bookkeeping to 20 minutes
http://www.thebusinessautomator.com
Regards,
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February 2nd, 2009 advice
A tax appeal last November resulted in a self managed super fund become non complying. The trustee decided that to appoint an auditor was too expensive and the few transactions didnt warrant keeping of accounting records. The ATO issued a notice deemingt the fund to be a non-complying superannuation fund. A possible consequence of ths is that the assets of the fund can be taxed at the maximum personal marginal tax rate.
No matter how small the fund or few transactions you still need to keep accurate accounting records and produce financial statements and have them audited.
Regards,
Glenn Wallace
Business Adviser
Chartered Accountant
CPA
Australian Registered Tax Agent
Superannuation
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January 15th, 2009 advice
It doesnt matter what tax strategies you have implemented or how you have structured your business, if you don’t have an effective and efficient way of recording all your expenses you will end up paying more tax than you need.
Alot of small business owners hate, and I mean really detest, having to look after the financial side of their business whether they do it themselves or not. This could be you.
However in order to ensure you are claming the maximum amount of tax deductions and therefore paying the lowest amount of tax you need to record them. You also need to record them in a way that is acceptable for the Tax Office.
Regards,
Glenn Wallace
Business Adviser
Chartered Accountant
CPA
Australian Registered Tax Agent
Superannuation
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January 14th, 2009 advice
The Australian Tax Office has warned of an email scam where people send emails that look like they are from the Tax Office.
The email talks about a tax refund and you need to enter your credit card details. The Tax Office never asks you for your credit card details.
If you have entered your credit card details as a result of replying to one of these emails you should report it to your credit card provider.
It appears that the United States IRS had this same problem back in 2005.
Regards,
Glenn Wallace
Business Adviser
Chartered Accountant
CPA
Australian Registered Tax Agent
Superannuation
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January 5th, 2009 advice
I read Michael Campbell’s newsletter the other day and he talked about Business Secret #1. I thought I would share it with you.
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Business Secret #1
The first thing to do is separate your business and personal accounts. Evenif you’re not incorporated and don’t have a company account, use separate cards for each.
Use your Gold card for business and your Silver for personal. That way, if you ever get audited, you’ll have clean records for the tax man to look at.
That triggers or flags an audit? Sudden jumps in income, deductions, travel or complaints. If you trigger a flag, you’re 3-5 times more likely to get audited if you, or a “bookkeeper” did your taxes.
Look for and hire a professional. In Canada they’re called CGAs. In the US they’re CPAs. In the UK they’re CCAs. These professionals – and others like them – are held accountable for their accounting. They must abide by the rules of their associations and the government.
Get one and you won’t lose any sleep over your taxes.
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So Business Secret #1 is to get a Professional Tax Accountant.
Regards,
Glenn Wallace
Business Adviser
Chartered Accountant
CPA
Australian Registered Tax Agent
Superannuation
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January 3rd, 2009 advice
There has been talk about a 20% tax break for the December Quarter BAS. Could this be a Cbristmas New Year present? Its actually a deferral not a cut.
Its only in relation to the income tax paid in advance, known as Pay As You Go Instalment (PAYGI). This is paid as part of your BAS payment for December. Normally the income tax in advance is calculated by the Tax Office as a fixed amount or as a certain percentage of your income ex GST.
According to the Prime Minister the 20% reduction is available to small businesses with annual turnover of less than $2 million. This effects about 1.2 million businesses. It is not that significant in that you can reduce the instalment manually in some cases in any BAS statement.
Here are some extracts from the press release.
“While there is a tolerance in the existing provisions that allows taxpayers to vary instalments down of their own accord, many small businesses are reluctant to do so, especially those with unpredictable income streams. This action by the Government will reduce uncertainty for those small business taxpayers and relieve them of the cost of doing their own calculations.”
and another extract outlining how it will apply
“How will it apply?
The 20 per cent reduction applies to the instalment amount shown on the Business Activity Statement (BAS) dispatched by the Australian Taxation Office (ATO) in December 2008 for the quarter ending on 31 December 2008. This instalment amount is due on or before 28 February 2009 (which will be extended to 2 March 2009 as 28 February 2009 falls on a weekend) for most small business taxpayers. For some small business taxpayers (for example, small businesses which elect to report and pay the goods and services tax on a monthly basis), this due date is 21 January 2009. As such, for the quarter ending 31 December 2008, small business entities are only required to pay 80 per cent of the instalment amount shown on the BAS on 21 January 2009 or 2 March 2009.
Small businesses can further vary their instalments based on the reduced amount in accordance with the existing law.
This reduction does not apply to taxpayers who calculate their instalments based on the instalment rate notified by the ATO. Their payments will automatically adjust when they apply the given rate to their actual income for the quarter.”
If you have a cash flow issue this will be welcome, however you still have to pay the tax at the end of the year.
So not really a present but maybe a gift which has to be returned.
Regards,
Glenn Wallace
Business Adviser
Chartered Accountant
CPA
Australian Registered Tax Agent
Superannuation
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November 10th, 2008 advice
Hi Beleagured Taxpayer,
Are you looking for someone to be on your side?
Someone looking out for your interests, giving you straight advice.
Someone you can trust.
Someone who is an expert in their field.
Do you sometimes feel alone and confused by the myriad of laws that you have to deal with in your business and personal life?
Last weekend I went to a Ted Nicholas workshop and he made me realise that there are so many people who are really looking for someone to be on their side, someone they can trust, someone to look out for them.
I already knew this but he said it in such a passionate way that it moved me to share more of the knowledge and experience that I have gained over the last thirty years rather than just keeping it to myself and worried about what others might think.
Following is a quote from Ted Nicholas.”Your best business friend as an entrepreneur is an accountant well versed in the challenges faced by business owners”.
Hopefully this blog will be a way that you can get to know me, or if you know me already, get to know me better. Feel free to ask any questions or make comments so I can get to know you as well.
If you are in business I highly recommend visiting Ted’s website http://www.tednicholas.com
Regards,
Glenn Wallace
Business Adviser
Chartered Accountant
CPA
Australian Registered Tax Agent
Superannuation
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October 13th, 2008 advice
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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July 28th, 2008 advice
Today is the last day for contributions to be paid to a complying superannuation fund or retirementsvings account (RSA) provider for quarter4, 2007-08 in respect of the compulsory super of 9% of wages. After this date the amount is still payable but a tax deduction won’t be allowed.
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