14 Aug 2014

Straight Numbers & Tax Talk August 2014

by | posted in: Newsletter |

In this edition:

Taking time away from your job or business during the day can be difficult. That’s why we offer after hours and Saturday appointments, so you don’t need to stress about getting your tax done on time. Just call us on 07 3388 9944 to arrange an appointment that’s convenient for you. We also offer in-house visits, if that would suit you more.

Be sure to read our news items on tax phone scams, tax investment schemes and SMFS overseas seminars that are not what they seem. Being forewarned is truly fore-armed and can save you hundreds of dollars.

Best regards from the Team at Straight Talk Accounting & Tax

 

Visit www.straighttalkat.com.au to read a multitude of re-cent articles of vital interest… some are genuinely irreverent but all are relevant.

FREE End of Financial Year Tax Blaster: In-crease your retirement fund and earnings NOW

Tax time is here. If you’ve had your tax return done with us in 2013, we could help you to identify further opportunities this financial year. The changes announced since last year have been substantial.

Don’t wait to maximise on our tax savings. Book in for a FREE 20-minute Tax Blaster meeting. We’ve got limited spaces available for people who want to increase their earnings, save on taxes and put more money into their retirement fund.

Find out NOW how you could be making more money for your retirement and facing less financial stress.

Call our Team on 07 3399 8844 to book your FREE meeting NOW.

‘Tell-A-Friend’ Program…

… the easiest way to help your friends get on top of their tax is by making a referral to us! Plus, you’ll get a chance to win a fantastic night out with your partner – our gift to you for participating in the program. Here are the details:
The Entertainment Package Prize:

  • Meal at the Jetty, either Bulimba or Southbank (to the value of $150)
  • Movie tickets to Hawthorne, Balmoral or IMAX Theatre at Southbank
  • Cab Vouchers To and From (Value to $50)

Bonus Prize:
Refer three friends who get their tax done with us, and you’ll get your Tax Return done for free (up to $150 value).
Conditions apply.
Winner to be drawn at the end of August.

Some important tax changes from 1st July

Medicare Levy
The Medicare levy rises from 1.5% to 2%.

2% Deficit Levy
The new “Deficit Levy” (tax on high income earners) applies to taxable income in excess of $180,000.
Tax rates for the 2014/15 income year are as follows:

Taxable Income
$		 Taxable Payable
$
0 – 18,200 Nil
18,201 – 37,000 Nil + 19% of excess over $18,200
37,001 – 80,000 $3,572 + 32.5% of excess over $37,000
80,001 – 180,000 $17,547 + 37% of excess over $80,000
180,001+ $54,547 + 47% of excess over $180,000

The above rates do not include the Medicare levy of 2%.

Memorable Quotes…

“Learn to trust your own judgment, learn inner independence,
learn to trust that time will sort good from bad – including your own bad.”

Doris Lessing
1919-2013, Author

Introducing Robert Bauman

RobertBaumanHeadShotRobert Bauman has been a Financial Planner for 14 years and an Accountant and Business Advisor for over 25 years.

Robert’s passion is to educate and empower people to take their financial future into their own hands. That’s why he wrote two books to spread the message he has distilled over the years of his accounting and financial planning practice.
Find out more at www.straightmoneytalkbook.com and www.financialindependencekit.com.

His vast experience in the work and business world allows him to understand exactly what challenges people face to make their money and get ahead financially, whether as an employee or an employer.

In his personal time, Robert enjoys spending time with his daughters and grandchild. He is a season ticket holder for the Brisbane Lions and he enjoys a relaxing (sometimes frustrating) game of golf from time to time.

SGC

The compulsory employer paid super contribution rises from 9.25% to 9.5%.

Superannuation contribution caps

  • The general concessional contributions cap rises from $25,000 to $30,000. For individuals aged 49 or over on 30 June 2014, the concessional contributions cap is $35,000.
  • The non-concessional cap is increased from $150,000 to $180,000. That means the 3-year bring forward rule in-creases from $450,000 to $540,000.

PAYG instalments threshold increases from 1 July 2014

The ATO has announced changes to the pay as you go (PAYG) instalments entry and exit thresholds.
From 1 July 2014, PAYG instalment thresholds have in-creased, which means that some taxpayers no longer need to pay instalments.

The entry and exit thresholds for:

  • business or investment income will increase from $2,000 to $4,000;
  • adjusted balance of assessment will increase from $500 to $1,000; and
  • notional tax will increase from $250 to $500.

There will no longer be a requirement for entities registered for GST to remain in the PAYG instalment system, if they have a zero instalment rate.

The ATO says that if taxpayers no longer meet the entry rules, they will be automatically exited from the PAYG instalments system. It will send a letter to notify tax agents of a client’s automatic withdrawal.

If they want to continue to pay instalments towards their end of year tax liability, they can voluntarily re-enter the PAYG instalment system.

A little bit of Trivia…

  • 1st August 1932—The first Mars Bar went on sale in Slough, England. By coincidence, on the 37th anniversary of this date, in the year 1969, the first pic-tures of Mars (the planet) were beamed back to earth by the US spacecraft Mariner Six.
  • 2nd August 1865—On this day, Lewis Carrol’s im-mortal “Alice in Wonderland” was published for the first time. Two of the marvellous work’s better known quotes are handy lessons for living: “It gets curiouser and curiouser”, said Alice …. And “Begin at the beginning”, the King said gravely, “and then go on until you reach the end. Then stop.”
  • 28th August 1922—The first radio commercial went to air on this day in New York.
  • 29th August 1874—On this day, internationally known stuntman and dare devil, Frenchman Pierre Blondin walked a tightrope across Sydney Harbour. As a finale to his feat on the wire, he produced a stove, cooked an omelette and drank a glass of champagne, as any good Frenchman would of course!

ATO “data mining” program targets off-shore tax evaders

The ATO has announced that it is “mining data” to identify individuals with undisclosed offshore income and assets.
The new information would be used to encourage people to disclose under Project DO IT, the ATO’s offshore disclosure initiative.

The ATO will significantly increase its compliance focus by examining data including:

  • information from overseas tax authorities on Australians with offshore investments and bank accounts;
  • information from Australian and foreign banks on fund flows, interest and account balances; and
  • information from informants about offshore accounts, and money transfers to and from offshore bank accounts.

Deputy Commissioner Michael Cranston said “Most people getting in touch with us are reporting accounts in Swit-zerland, Israel, Lichtenstein, the Netherlands, South Africa and Hong Kong, so we’ll obviously be looking closely at flow of funds to those countries.”

Encouraging Words

“You miss 100% of the shots you never take.”
Wayne Gretzky

“Excellence is not a singular act, but a habit. You are what you do repeatedly do.”
Shaquille O’Neal

“You have to believe in yourself when no one else does—that makes you a winner right there.”
Venus Williams

Now phone scammers target taxpayers with threats

SecureMoneyTaxpayers are being warned to be on the lookout for a malicious scam that attempts to intimidate them into paying a fake tax debt over the phone.

“This scam is particularly concerning because it threatens taxpayers with legal action or arrest if they do not immediately hand over money, and their personal financial details, over the phone,” said ATO Chief Technology Officer, Todd Heather.

If people receive a call from the ATO and are concerned about providing their personal information over the phone, they should ask for the caller’s name and phone them back through the ATO’s switchboard on 13 28 69.

SMSFs and overseas seminars

The ATO says that it is keeping an eye on promoters who advertise questionable SMSF conferences in over-seas destinations.

The promotions target SMSF trustees citing they can claim a deduction for the full cost of the travel, accommodation and meals component incurred when attending these seminars or workshops.

The conferences appear to contain minimal training related to SMSF activities and the ATO is likely to target any such expenses claimed by SMSFs.

Get a second (investment) opinion

The ATO is encouraging anyone unsure about a tax in-vestment they have been offered to seek a second opinion from an independent and trusted tax professional, so as not to be fooled by legitimate-looking tax avoidance schemes.

Deputy Commissioner Tim Dyce says illegal schemes are usually designed to appear legitimate, even to experienced investors, but there are tell-tale signs you can look out for. In particular, he advises people to watch out for unusual financing arrangements such as round-robin financing and non-recourse loans.

In one case, promoters offered a ‘mortgage management plan’ promising to assist investors in repaying their home loan sooner.

The scheme involved using the equity in their home to get additional loans to claim investment deductions equivalent to home loan interest payments.

Be wary of promoters that:

  • offer zero-risk guarantees for their product;
  • refer you to a particular adviser or expert. They may seek to persuade you by claiming the adviser has specific knowledge about the arrangement and the prom-ised tax benefits; and
  • ask you to maintain secrecy to protect the arrangement from rival firms and discourage you from obtaining in-dependent advice.

Small business online dispute resolution service

The Minister for Small Business has announced that small businesses in a dispute are set to benefit from the launch of Dispute Support, a new online dispute resolution information and referral tool.

“Small businesses have told us it can be difficult to find alternative dispute resolution services and to work out which one is most suited to their needs.”

Dispute Support is a simple to use online tool to help small businesses identify the most appropriate low cost dispute resolution service for their dispute.

It also provides information on understanding and managing disputes, and tips to help avoid disputes in the future. It is available on the Australian Small Business Commissioner’s website.

Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.