KSR Update – May 2013 At KSR we are committed to providing our clients with a team that has the best training and up to date credentials. With this in mind and with great pride we would like to inform you that Stuart Flanigan, Andrew Narayan and Fiona Flanigan are now registered SMSF auditors with ASIC. Being able to provide … Read More
Welcome to the inaugural edition of KSR’s Budget 2013-2014 Outline – May 2013
In a move which was not unexpected, the Federal Government confirmed its turnaround from a forecast $1.5 billion surplus predicted in last year’s budget for the 2012-2013 year to a $19 billion deficit. This is followed by a further $18 billion deficit in the 2013-2014 year, and a return to surplus not expected until the 2016-2017 financial year. Whilst not unexpected, the quantum of the deficit and the time to restore a surplus still comes as a bit of a surprise. The Government is blaming a general downturn in the global economy and writedowns in expected tax receipts in the vicinity of $60 billion.
Have you got a tax return or BAS outstanding? Then this is important – April 2013
As part of the program intended to enforce timely lodgement of tax returns by Australian taxpayers, the ATO has taken the unprecedented step of commencing a pilot program where taxpayers who haven’t lodged their tax returns and activity statements by their due dates could be referred to an external collection agency for follow up. This is an extension of their current program where taxpayers with overdue tax debts are referred to such agencies.
Trust Compliance Update – April 2013
Recent changes to legislative interpretation now require Trustees, prior to the conclusion of the financial year, to determine the income of the Trust and to document which beneficiaries will be in receipt of that income. Traditionally these decisions had been made by Trustees after the end of the financial year. The ATO has advised however, that they will no longer allow this long- standing administration relief.
Government announces Super changes – April 2013
On Friday 5 April 2013 the Minister for Financial Services and Superannuation, the Hon Bill Shorten MP, and the Deputy Prime Minister and Treasurer, the Hon Wayne Swan MP, announced the Government’s proposed changes to the superannuation laws. The Government have aimed the changes at creating what they believe will be a more equitable and sustainable retirement income system.
Careers at KSR Partners Our team is our greatest asset. We believe that a curious mind leads to creative solutions, that’s why we encourage and support continuous learning. We believe in fostering a cohesive team with processes that reward success and hard work. Our team build strong relationships with our clients which we consider gives us the ultimate competitive advantage. … Read More
Berry Merry Christmas – December 2012
As many of our clients would know, KSR Partners are committed to giving back to our community and this year we have raised money for charities including the Ride to Conquer Cancer, Camp Australia, Lifeline, Life Education Australia and more.
KSR Partners are particularly passionate supporters of Berry Street.
Berry Street have been working hard in Victoria since 1877 and have assisted over 11,000 Victorians this year alone.
Berry Street look after children and young people who are denied what many of us were privileged to enjoy, a happy childhood free of abuse and neglect.
Trauma Cover – A Case Study – November 2012
Nathan Tiberi – KSR Wealth Management
Michael is 41 year old Carpenter, and is married with 2 children. He has been running his own business for the past 15 years. In July 2012, Michael was diagnosed with Testicular Cancer. Michael was required to undergo Chemotherapy the following week, and has been unable to return to work since the diagnosis due to treatment.
Michael and his family have had a lot of emotional stress in their lives since Michael’s diagnosis, however due to the fact that Michael had Income Protection & Trauma Insurance, they have not had financial stress to deal with also. Michael’s Trauma Insurance policy paid him $130,000 on diagnosis of the condition. This allowed Michael to receive a payment before he had commenced his Chemotherapy treatment, which he used to pay down some of his mortgage and put the rest of the money in the bank for a ‘rainy day’.
FBT and your Christmas party planning – November 2012
End of year Christmas celebrations are a chance to get everyone together for some fun as well as thanking the team for a job well done. Business owners may have the option to unlock the bar fridge for employees, but should make sure they are not the ones stuck with the tax hangover.
As with any benefit that a business provides to staff that is outside the safe definition of “salary”, the question of whether it is a (taxable) fringe benefit or not will need to be addressed.
But it’s not like the taxman doesn’t know how to have fun — the Tax Office may be prudent, but there’s still some wriggle room in the tax rules to let your hair down. Christmas-time entertainment up to the value of $300 for each employee may be exempt from FBT. This may also be the case where an employee’s spouse attends.
Should you transfer your business premises into your SMSF? – November 2012
There can be some solid reasons to consider having the ownership of your business premises in the name of your self-managed superannuation fund (SMSF). To start with, if your business is travelling along steadily, it will provide a steady source of rental income for the SMSF and capital growth. It may also provide a level of stability for you as a business owner by not having a third-party landlord. There are additional advantages that, depending on a business owner’s circumstances, may make transferring commercial property into an SMSF a tempting option.
One of the primary reasons for making such a change is tax. As the asset, which is the business premises, will be held by a superannuation fund, tax on income and capital gains will generally be less than the business would have been liable for. For an SMSF, earnings (which includes rental income) are taxed at 15%. For the business, rent or lease expenses are deductible for the business taxpayer, which pays tax at a rate of 30% (if a corporate). The end result is that the people behind these two entities — the SMSF and the business finish up overall saving 15 cents in the dollar of tax paid.