10 Jun 2016

Straight Numbers & Tax Talk for Business – June 2016

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In this Issue:

The wheels for the next federal election are in motion, and what that really means for business owners is that none of the tax regime changes proposed in the May 2016 Budget will be enshrined in law while the Government is in caretaker mode.

To help you get prepared for your tax return we’ve attached a 2016 Year-end Checklist for Business, so you can make sure that you minimise your tax bill this year.

If you want more information on tax saving strategies, you can get a free download of our eBook How to Slash Your Tax Legally. Just visit the Resources page to get instant access.

If you have any questions about the items published in this newsletter, please don’t hesitate to give us a call on 07 3399 8844… or stop by at our office for a coffee. We’re never too busy to sit down and talk to you.

Best regards from the Team at Straight Talk Accounting & Tax

2016/17 Federal Budget

The government handed down the 2016/17 Federal Budget on Tuesday 3rd May.

It included (among many changes) proposed personal income and company tax cuts from 1 July 2016, the extension of GST to all imports (irrespective of value) from 1 July 2017, an increase in the small business entity (‘SBE’) turnover threshold from 1 July 2016, and (as you may have heard) many, many superannuation changes.

Of course, they are all dependent on the Turnbull Government winning the election on 2 July and the legislation then surviving Parliament after that.

Editor: We’ll keep you informed!

Gold Coast businesses under the ATO’s microscope

As part of an ongoing, Australia-wide program, the ATO has advised that it will be visiting restaurants, cafés and take-aways, along with hair salons and nail bars, on the Gold Coast.

Assistant Commissioner Matthew Bambrick said “In all, we’ll be visiting around 250 businesses in the Gold Coast to talk about a range of topics, including business registration, record-keeping, superannuation and lodgment.”

“Where taxpayers are unwilling to work with us or continue to cause us concern, we will undertake further investigation. In Sydney and Melbourne, for example, we have now moved to auditing businesses that didn’t want to work with us.”

Exit Interviews: Ask These Questions

Exit interviews may not be the most enjoyable part of your job, but they’re a useful opportunity to get an honest, unvarnished view of your organization. Don’t waste time defending your organization or trying to talk the employee into staying.

Instead, ask some pertinent questions that may help you prevent current employees from jumping ship as well:

  • What factors caused you to accept a job with us here?
  • Did any of these factors change as you worked here?
  • How appropriate and useful was the training you received? What kind of training would have been more valuable?
  • How promising did you feel your opportunities for advancement were?
  • What is your opinion of the supervision you encountered here?
  • How would you describe morale in your department or work group?
  • How does your new position differ from your job here? What are the differences between that organization and this one?
  • Why did you decide to look for a new job? (Or, why did you consider an offer from outside?)
  • How important were pay and benefits in your decision to leave?

ATO’s continuing focus on trust property developers

The attached 2016 Year-end Checklist for Individuals will help you work out what documents you need and give you the scoop on what tax saving strategies you can apply this year. ATO’s continuing focus on trust property developers In recent years, the ATO has focused on trusts developing and selling properties as part of their normal business.

When these developed properties are sold, some trusts incorrectly claim a 50% CGT discount. The ATO will continue to target arrangements that display the following characteristics:

  • clients have experience in either developing or selling property (or experience in the industry) and establish a new trust to acquire property for development and sale;
  • circumstances surrounding the arrangement are inconsistent with the stated purpose of developing the property as a long term investment;
  • the development is advertised as available to purchase before completion, or is sold soon after completion;
    and
  • the trustee claims the 50% CGT discount on the sale of the property.

The ATO is encouraging taxpayers to review their circumstances with their tax agent/adviser.

Editor: The ATO has also advised that they may contact property developers directly to “help them meet their obligations during development and disposal of the property. However, we may contact your clients at any stage of a development, not just on the sale of the property.”

If you get any such contact – let us know!

ATO’s ‘High risk industries’ for super guarantee

Each year, the ATO identifies industries that they believe are at risk of not meeting their super guarantee obligations
for eligible employees.

This year they are looking at these industries:

  • bakeries;
  • supermarkets;
  • car retailers; and
  • computer system designers.

Letters will be sent to clients in these industries advising of planned audits from July 2016.

Memorable Quotes…

“You can fail at what you don’t want, so you might as well take a chance at doing what you love.”
—Jim Carrey – Actor/Comedian

Lifestyle assets and CGT

The ATO has advised that it has identified some instances where lifestyle assets, such as artworks and collectables, are not being properly accounted for.

They said that they want to help taxpayers with these kinds of assets comply and be aware they may be subject to CGT on disposal. They said that it’s important taxpayers are aware that:

  • items purchased for more than $500 on or after 20 September 1985 are subject to CGT, even if they are kept mainly for the personal use or enjoyment of your client;
  • special CGT rules apply to items that form part of a deceased estate; and
  • the date of purchase/auction needs to be accounted for, not the settlement date.

The ATO is currently working with insurance companies to identify owners of these sorts of assets.

Editor: Clients who may be affected should contact our office.

New Simpler BAS on the way

The ATO has been working on ways to deliver a simpler business activity statement (BAS) to simplify account set-up, record keeping, BAS preparation and lodgment for agents and their clients, and make it less costly.

To achieve this, several GST labels will be removed from the BAS, with small businesses only required to report:

  • GST on sales (1A);
  • GST on purchases (1B); and
  • Total sales (G1).

They will begin user testing from 1 July 2016 and a simpler BAS should be the standard option for all small business from 1 July 2017.

Get More Efficient to Get More Done

If you want to get more accomplished at work, start developing these essential habits to increase your efficiency on the job:

Turn off cell phone alerts. Resist the temptation to stop what you’re doing every time your phone beeps with a new message. You’ll be better able to focus on tasks when you’re not constantly distracted and interrupted. Fine-tune your to-do list. When planning your day, add estimated times to each item on your to-do list. This will help you decide what to do first and what can be saved for later.

Run two-minute drills. Every few hours, look at your list for tasks that can be done quickly—answering emails and phone calls, confirming appointments, and the like. Spend a few minutes clearing those away, and you’ll have more blocks of uninterrupted time to take on bigger tasks.

Take regular breaks. You’ll burn out if you go full throttle for eight or 10 hours. Determine how long you can effectively concentrate on a single task (usually between 30 minutes and an hour, for most people). Take a break after that time—walk around, get out of the building, talk to co-workers—and you’ll return feeling refreshed.

FREE Tax Blaster Session

AD_eBook_SlashTax_CTA_Vert-EmailThere are a number of ways that individuals and small business operators can legally slash their tax. We find that many of our clients only begin to realise after a chat with one of our professional tax agents how much tax they could have saved if they had taken action earlier.

Don’t delay it any longer and book in for your FREE 20-minute Tax Blaster session. 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 now and in future.

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

Laughter is the best medicine

Monkey Business

A wealthy man took his dachshund on an African safari, but on the second day, the dog got scared and ran into the jungle. Lost, he wandered around until a lion spotted him.

Thinking fast, the dachshund turned his back on the lion and lay down, pretending to sleep. “Boy, that was one tasty lion!” he said loudly. “After a meal like that, I need to take a nap!”

The lion backed off. “I’ve never seen an animal like that,” he thought. “He must be dangerous.”

A monkey up in a tree saw the whole thing and realized that the dog had fooled the king of beasts. So he jumped onto the lion’s back and explained that he’d been tricked.

Furious, the lion leaped to attack again. But the dachshund saw him just in time and thought fast again. Lifting his head with a yawn, he said loudly, “Where is that monkey? I thought he’d be back by now with another lion!”

ATO reminder about 30 June SuperStream deadline

With the 30 June 2016 deadline looming, the ATO strongly encourages small businesses to get on board with SuperStream as soon as possible.

SuperStream is the standardisation of how employers make super contributions on behalf of their employees, and involves employers sending all super payments and employee information electronically in a standard format.

Using it is mandatory.

Editor: Unless the employer and the SMSF are related parties. Options for becoming ‘SuperStream ready’ include using:

  • a payroll system that meets the SuperStream standard;
  • a super fund’s online system; or
  • a messaging portal or a super clearing house like the

ATO’s Small Business Super Clearing House (SBSCH). The SBSCH is a free, optional service for small business with 19 or fewer employees, as well as businesses with an annual aggregated turnover of $2 million or less.

Editor: If you’re worried you won’t be able to use SuperStream as you don’t operate electronically, there is a SuperStream option to suit every business, including using third parties to pay your super using SuperStream on your behalf.

If you have any questions, let us know and we’ll help you out.

FREE Copy of Our Book

In this book, Robert Bauman lays out 10 steps anybody can follow to become truly wealthy, and reveals ‘money myths’ and ‘inside secrets’.

Just contact us on 07 3399 8844 to claim your gift and we will send it out to you.

About Straight Money Talk—A Straightforward Plan for Financial Independence

Amazon-screen-shot-8.15-am-23-may1

 

bookstack3dWHAT PEOPLE ARE SAYING ABOUT THIS BOOK:

“I’ve read many financial books and found this one to be up there with the best. It can really kick-start your journey to get your financial situation into great shape.”
– Dr. Joe Vitale, author “Attract Money Now” www.attractmoneynow.com

“Robert has done a fantastic job on this book. My views on how to handle money and how to educate my kids to learn the value of savings have totally changed now. This is an excellent book to guide you to creating great financial wealth in your life!”
– Keith Abraham CSP – Professional Speaker and Best Selling Author

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.