Accounting News
Standard Business Reporting - A new initiative.
The new government Standard Business Reporting (SBR) initiative brings with it changes that are likely to affect your business. SBR was launched on 28 June 2010 and is aimed at reducing the reporting burden for Australian companies. This major whole-of-government project streamlines business-to-government reporting through their SBR-enabled accounting/payroll software and is expected to save businesses time and money.
Some examples of reports SBR is targeting include the Business Activity Statements (ATO), financial statements (ASIC), and payroll tax returns (State and Territory Government revenue offices). This will affect financial reports lodged with ASIC for the financial year ending 30 June 2010 and following financial years.
Consolidate your Super
Consolidating your super is a simple step that could make a difference to your super savings and help make tracking of your money easier.
If you have ever changed jobs, chances are that you have more than one super fund. By putting all your super money in one fund you could:
The basics of Payroll Tax and grouping provisions
Many businesses are required to pay Payroll Tax to the Office of State Revenue (OSR). Payroll Tax is a state-based tax imposed on wages that are paid or payable in the relevant state. Wages includes most payments for services made by an employer to employees, directors and contract workers who are deemed to be employees.
An individual employer or a group of employers may be liable for Payroll Tax if their total taxable wages throughout Australia, including NSW, exceeds $658 000 for the 2010–11 Payroll Tax year. The only case in which Payroll Tax is applicable and payable is when the total of the employer’s (or group’s) taxable wages paid is more than the yearly wage threshold - if their wage is lower than this threshold, they do not have to pay the tax. As soon as their total wages go above this amount, the full tax is applicable to the amount that exceeds the limit.
Liquidation and your Business
Once a company is having financial difficulty or has become insolvent the company may go into liquidation. Liquidation involves drawing to a close all of a company’s dealings, so that the business operations can be shut down. Assets are turned into currency, and subsequently used to settle any liabilities. Once all creditors’ debts and other liabilities have been settled, the remaining money, if any, is disbursed to stakeholders of the business.
The purpose of liquidation of an insolvent company is to have an independent and suitably qualified person (the liquidator) take control of the company so that its affairs can be wound up in an orderly and fair way for the benefit of all creditors.
Start preparing your 2010 income tax return now!
The new financial year brings with it significant changes to the tax system. With new exemptions being introduced, a multitude of perplexing figures and overwhelming paper work, it is understandable how tax time can become very confusing for tax payers. Generally speaking, anyone who earns over the tax free threshold during the course of a financial year, 1 July - 30 June, is required to submit an individual tax return to the Australian Tax Office.
Understanding Unfair Preference Payments
Insolvency law has become a generic term for what used to be called company liquidations and bankruptcy. Insolvency is defined by the Corporations Act as an inability to pay debts, as they fall due, out of the debtor’s company resources and refers specifically to businesses and companies. If you find your business starting to head in this direction, or perhaps you are already surrounded by the chaos and confusion of insolvency, one of the many important things to be aware of are Unfair Preference payments and how they could influence your business as well as others.
Trusts and the Bamford Decision. Have you amended your Trust Deed?
A trust is an entity where a person (trustee) holds and governs property or other assets guided by the terms of a trust deed for the gain of another person or persons – the beneficiaries of the trust. In the current business world trust deeds have become more prevalent and accepted as a common method of doing business, therefore it is important to understand the differences between them. The recent Bamford Decision will have an impact on almost all family and discretionary trusts and it is important that your trust is amended accordingly in order to be valid.
ATO’s Offshore Voluntary Disclosure Initiative expires Wednesday 30 June 2010. Report overseas income to avoid hefty penalties.
Whether you are an individual or own a business it is important to be aware of the tax law regarding overseas income and assets. If you or your business has offshore income or assets which has not been disclosed to the Australian Taxation Office (ATO) now is the time to do something about it. If you have entered into an arrangement or structure the purpose of which is to cover up or hide income or assets or have claimed any deduction or depended on any scheme, arrangement or false documentation to limit your taxation liability then you need to be aware of the ATO’s Offshore Voluntary Disclosure Initiative (OVDI).
The ATO is currently providing substantial concessions under the OVDI. However this is due to expire this Wednesday 30 June 2010 so action needs to be taken urgently.
Do you know your business’ audit obligations?
Audits are an assessment of your business’s annual accounts which is carried out by an independent person or body or firm of accountants whom are accredited auditors. It is basically a financial health check for your company. It is important for your business that this auditing is carried out, as it can be used to evaluate your business’ accounting practices as well as the value of your company. It also ensures that your business records and operations are in accordance with commercial laws, regulations and government directions.
Tax-effective Super Strategies
Here are some tax-effective strategies that are suitable for most taxpayers.
