A Self Managed Superannuation Fund (SMSF) is a type of super fund set up for those who wish to manage their own superannuation assets privately, rather than be a part of a larger fund where members pool their super funds and these are managed by professional fund managers. It gives the members much greater control over the investment decisions, but also require far greater input by the members of the fund. All super funds are required to comply with their relevant regulatory bodies and with SMSF‘s, trustees are required to oversee these compliance requirements. Read more
We want to be the Accountant who will Challenge, Attack, Question, Confront, Dare, Provoke, Contest, Assault, Invade, Blast you on the way you operate your business.
The key areas of any Business that require ongoing maintenance to ensure the Health and Wealth of your business are: Read more
Where are you on the strategy and execution axis with your business?
It has often been said that an average strategy well executed will always outperform a superior business strategy which is poorly executed. In fact in terms of effort, the development of thebusiness strategy is 10% of the effort and the execution of the business strategy is 90% of the effort. Read more
Improving the value of your business is not just about selling. It’s about running the most successful business you can.
There are many ways to value a business, however the most commonly used valuation methodology for a profitable trading business is the Capitalisation of Profits Methodology.
This methodology is based on the average earnings of the business (before interest and tax – EBIT) multiplied by a capitalisation rate.
Therefore to increase the value of your business, a business owner should focus on: Read more
Is it time to visit the Bank?
Visiting your bank is often like visiting the dentist:
• You need to go yearly but you delay it for as long as you can
• Your past sins are obvious as soon as you open your mouth. They can be even worse when the dentist digs a little deeper and does an x-ray!
• The feeling of an unknown outcome – will you get the all clear?
• Feeling like you can’t get your point of view across even when they ask you questions
• The expensive bill at the end of the visit
• The ongoing maintenance and review so you don’t lose all of your teeth. Read more
The 2011 Federal budget signaled significant changes to the way Fringe Benefits Tax will be calculated on the use of motor vehicles. Traditionally, motor vehicles have formed an essential part of many remuneration packages and it was initially feared that the changes to the legislation would make it prohibitive for employers to use this carrot to entice and retain employees. However, closer analysis suggests that there continues to be scope to tax effectively package motor vehicles into employee’s salary under the new regime. Read more
Many exceptional companies have bonus plans to reward employees.
Why would you consider a bonus plan?
- Staff retention, attraction and motivation.
- Added incentives to complete jobs on time and achieve agreed milestones.
- Assists cash flow in the company by minimising annual salary increases.
Why Consider the Contractor issue now?
The contractor issue is not at all new, nor has it been subject to any dramatic recent change. However there are a number of diverse factors that have brought this issue back to the spotlight.
- Growth in the number of Contractors: The attractions of contractors are many: a substantial release from the growing obligations that employers face and the flexibility which comes with being able to gain or shed resources in line with needs and the business cycle, just to name a couple.
- Government / Treasury Attention: The new contractor reporting regime which will apply to the building and construction industry from 1 July 2012 is the most obvious example of measures to examine contractor arrangements.
- Tax Office Attention: The Tax Office’s compliance plan for 2012 is reason enough to note how important the contractor issue has become.
- Institutional attention: It is reasonable to expect that union scrutiny of contractor arrangements will continue.
The Government released their Mid-Year Economic and Fiscal Outlook (“MYEFO”) report and announced the following key changes:
- Corporate PAYG Tax Instalments
Companies with a turnover in excess of $20 million per annum will be required to make PAYG Income Tax instalments on a monthly basis.
- In-House Fringe Benefits
Under the current legislation, the taxable value of an in-house fringe benefit under a salary sacrifice arrangement would be reduced to 75% of the lowest price at which an identical benefit would be sold to the public or under an arm’s length transaction. This taxable value would then be eligible for a further $1,000 reduction in determining the FBT payable. Read more
The new legislation containing changes to the current Living Away From Home Allowances (“LAFHA”) regime was recently passed.
For employers with LAFHA arrangements entered into after 8 May 2012, the new rules will apply from 1 October 2012.
The new rules require the following from the employers and/or employees: Read more
The ATO has started offering refunds to some individuals who have exceeded their annual superannuation concessional contributions cap.
From the 2011-2012 year, there is a once-only opportunity to have excess concessional contributions refunded. Read more
The ATO has recently released details of a data-matching program focusing on contractor payments. Under the program, the ATO intends to collect information in relation to payments made to contractors for the 2009-2010 to the 2011-2012 income years by businesses audited by the ATO’s employer obligations area. Read more
A taxpayer has successfully argued before the AAT that there were special circumstances in his situation to allow for the exercise of the Commissioner’s discretion under the law to reallocate superannuation contributions.
Accordingly, monies paid into his superannuation account in late July 2009 could be attributed to the 2008-2009 financial year, and this meant that the taxpayer would not exceed the (then) $50,000 contributions cap. Read more
A recent case before the AAT has highlighted the need for businesses to maintain appropriate records of plant and equipment used in business. Read more
A taxpayer has been, in most part, successful before the Administrative Appeals Tribunal (AAT) in relation to a matter concerning loans from a private company.
These loans were made to him, over various years, as a shareholder and director of the private company.
The ATO had treated the loans, which were made in the 2005, 2006 and 2007 income years, as assessable dividends.
The AAT sided with the ATO in relation to the 2005 loans. Read more
The Government’s mid-year budget update was handed down in late October 2012.
The Treasurer revised down the expected Budget underlying cash surplus to $1.1 billion for 2012 – 2013 down from $1.5 billion estimated in the May 2012 Budget. Read more
The Reserve Bank’s decision to reduce the prime interest rate to 2.75% (the lowest for 50 years) confirms the difficult environment in which businesses are operating.
To survive in difficult times, businesses need to continually review their business operating environment. This would include a review of your marketing strategy, managing costs, innovation, productivity, preparation of cashflow and profit and loss budgets for 2013/14. Read more
When did you last complete a competitor analysis?
Almost all business owners/managers are aware of their direct competitors but when was the last time you actually completed a formal analysis by way of a ‘competitor analysis’? This should be at least an annual process to help pin-point key opportunities for improvement. To complete a competitor analysis: Read more
Intellectual property theft is growing and can be quite expensive for your business.
Intellectual property may include, for example customer database, pricing and contracts lists, trade secrets, design and products being developed, details of how prices are calculated for various important customers etc. Read more
The Austrade Export Market Development Grants Scheme is a program providing financial assistance to businesses exporting (or looking to export) Australian made goods.
The scheme aims to encourage small and medium sized businesses to develop export markets. Each applicant can receive up to 7 grants and applications open 1 July and close 2 December 2013. Read more
The ATO advises that business with a GST turnover that meets or exceeds the electronic lodgment turnover threshold of $20 million are legislatively required to: Read more