Is Santa a tax cheat? – December 2014

Is Santa a tax cheat? – December 2014

A lighter look at the complexity of Australian taxation laws.

Dear Santa,

Thank you for the opportunity to provide tax advice for your operation. We’re pleased you have initiated this advice as the Australian Taxation Office (ATO) is looking closely at any business or individual that operates within Australia but has significant transactions or operations internationally. The fact that you run a global business that generates no profit but ‘gifts’ millions of toys each year produced by your offshore factory, have never lodged a tax return or paid tax in Australia, is likely to trigger an investigation. We have identified a number of issues as a starting point for further discussions. These are:

5 steps to a tax free Christmas – December 2014

5 steps to a tax free Christmas – December 2014

OK, we know tax is not the most exciting thing to think about in the lead up to Christmas. But these are the questions we get asked all the time, and if you are familiar with all the tricks and traps, you can save yourself and your business hundreds if not thousands of dollars.

1. Spontaneous, well thought through team gifts

The key to Christmas presents for your team is to keep the gift spontaneous, adhoc, and from a tax perspective, below $300 per person. $300 is the minor benefit threshold for Fringe Benefits Tax (FBT) so anything at or above this level will mean that your Christmas generosity will result in a gift to the Tax Office as well at a rate of 47%. To qualify as a minor benefit, the gifts also have to be ad hoc – no once a month gym membership payments or giving the one person multiple gift vouchers amounting to $300 or more.

Activity Statement Reminder – December 2014

Activity Statement Reminder – December 2014 As of this current financial year, the ATO has implemented a new policy regarding IAS and BAS forms. In an attempt to reduce the amount of paper forms distributed by mail, the ATO proposes to send you an email alert rather than mail you the paper form. If you haven’t received either a paper … Read More

Office Closures

Office Closures Please note our last day will be Tuesday, 23rd December 2014 and the office will re-open at 8:30am on Wednesday, 7th January 2015.

ATO Due Dates – September – October 2014

ATO Due Dates – September – October 2014

 

21 September 2014

August 2014 monthly activity statement – due date for lodging and paying.

30 September 2014

Due date for lodging the PAYG withholding payment summary annual report for payers whose registered tax agent prepared the report.

Annual TFN withholding report 2014 – due date for lodgment when a trustee of a closely held trust has been required to withhold amounts from payments to beneficiaries.

Employers paying SG – September 2014

Employers paying SG – September 2014

Employers can expect a renewed focus from the ATO on superannuation guarantee (SG) payments made to employees. With the increase in the SG rate from 9.25% to 9.5% on 1 July 2014, employers will need to make sure that payments are made on time and that the calculations are accurate. Just be aware that the increase in SG does not necessarily reduce the take home pay of employees. In many cases employee contracts are ‘base plus superannuation’. In this case, the employer absorbs the increased SG rate not the employee.

KSR Wealth Management is an Authorised Representative of Sentry Financial Services AFSL 286786.

Rental property expenses – what you can and can’t claim – September 2014

Rental property expenses – what you can and can’t claim – September 2014

It’s not uncommon for landlords to be confused about what they can and can’t claim for their rental properties. What often seems to make perfect sense in the real world does not always make sense for the Australian Tax Office (ATO).

In general, deductions can only be claimed if they were incurred in the period that you rented the property or during the period the property was available for rent. This means a tenant needs to be in property or you are actively looking for a tenant. If, for example, you don’t put a tenant into the property so that you can renovate it, then you might not be able to claim the expenses during the renovation period if it was not rented or available for rent during this time (there are some exceptions to this general rule). There needs to be a relationship between the money you make and the deductions you claim. Here are a few common problem areas:

Insurance – a must-have for savvy business owners – September 2014

A Word From KSR Wealth Management

Insurance – a must-have for savvy business owners – September 2014

To be financially secure, both at work and at home, business owners need to plan for the unexpected.

Business owners are often risk takers by nature. Even starting a business is a risk in itself – leaving behind the comforts of a stable income, superannuation and entitlements like sick and annual leave. With SMEs making up 99.7% of total businesses in Australia, there are many out there willing to take that risk.¹

While that risk can be extremely rewarding, one risk that’s not worth taking is trying to run a business without adequate life insurance.

Employers paying SG – September 2014

Employers paying SG – September 2014 Employers can expect a renewed focus from the ATO on superannuation guarantee (SG) payments made to employees. With the increase in the SG rate from 9.25% to 9.5% on 1 July 2014, employers will need to make sure that payments are made on time and that the calculations are accurate. Just be aware that … Read More

Superannuation – What Happens To It When You Die? – September 2014

Superannuation – What Happens To It When You Die? – September 2014

The general rule is that superannuation is not part of your estate unless you expressly make it part of your will, right? Well, maybe not. A recent case serves as a warning to make sure that you take care of the details.

Generally, superannuation is passed directly to your nominated beneficiaries and not to your estate. However, a recent case may change current belief and convention on what happens to your superannuation when you die.

In this case, an unmarried son, James, tragically died at age 40. His mother and father were divorced and had an acrimonious relationship. At the time of his death, James did not have a valid will in place (intestate). Generally, when a child dies intestate, the estate is divided equally between the parents. James’ estate was worth about $80,000 and his superannuation over $450,000.