Tax Advice and Updates
Watch out – OSR coming down hard on Grouping of companies
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, and is generally applied to the annual payroll of employers/grouping of linked employers. Wages includes most payments for services made by an employer to employees, directors and contract workers who are deemed to be employees.
It’s getting harder to negotiate repayment of outstanding tax debt over time with the ATO
Tax debt is the amount of tax incurred during previous financial years that you still owe to the Australian Tax Office (ATO). Debt to the tax office can become increasingly difficult to manage when the ATO enforces its penalties for late payment, thus creating even more debt for you. However, if you undertake the right measures and heed some advice you should be able to avoid these penalties and perhaps even some tax debt.
Capital gains made by trusts
If you receive a distribution from a trust, you may have capital gains tax (CGT) consequences. If the amount by which an asset’s selling price exceeds its initial purchase price. Trusts include managed funds, such as property trusts, share trusts, equity trusts, growth trusts, imputation trusts and balanced trusts.
Thinking of Investing in Property?
The decision over what type of property is the most beneficial, when it comes to investment properties, is one that has been debated for many years. Levels of capital growth, purchase prices, the amount of rent the property is expected to bring in and the current Australian economy are all factors that need to be taken into consideration.
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Don’t forget to lodge your Tax Return before October 31st 2011!
The new financial year brings with it significant changes to the tax system. With new exemptions and tax deductions being introduced such as the recent changes regarding the Family Tax Benefit and the Education Tax Refund and also the Flood Levy which will need to be paid in this year’s tax return. With such a multitude of perplexing figures and overwhelming paper work, it is understandable how tax time can become very confusing and stressful 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.
The ATO’s view on borrowing in Self Managed Superannuation Funds (SMSFs)
The ATO’s view on Limited Recourse Borrowing Arrangements (LRBA) within Self Managed Superannuation Funds (SMSF’s) has been clarified with the release of the Draft Self Managed Superannuation Funds Ruling (SMSFR 2011/D1) on 14 September 2011.
Think twice before you invest in overseas property!
Investing in overseas property is more risky than investing in property in Australia. It is much more difficult to make sure the investment suits your needs if you don’t have local knowledge and you can’t regularly inspect the property. ASIC has recently received many complaints about promoters who are encouraging Australians to invest in the United States property market.
The Research and Development Tax Incentive can help your business
The Research and development (R&D) tax incentive provides a tax offset for eligible R&D activities and is targeted towards innovation that benefits Australia. The incentive came into effect on 1 July 2011 and replaced the R&D tax concession. There are several objectives to this incentive; it aims to boost competitiveness and improve productivity across the Australian economy, while encouraging industry to conduct R&D that may not otherwise have been conducted. The incentive should also provide business with more predictable, less complex support and improve the incentive for smaller firms to engage in R&D.
Beware of receipts printed on thermal paper!
Many of you may have noticed that a lot of receipts these days are printed on thermal paper (particularly receipts that come from cash registers.) The two main problems with thermal paper is that the text can fade over time, and also the entire receipt can turn black when exposed to high temperatures – for instance lying in the sun. This presents an issue when it comes to keeping receipts and financial records for tax time; especially if the ATO asks for copies of these records at a later point in time. The ATO is not lenient if you can’t provide the receipts. However, there are a few things you can do to prevent such a small matter from becoming a large issue:
Government Benefits for your Family
With the rising costs of living and increased work commitments being faced by parents and guardians in today’s environment, raising and maintaining a young family in Australia can be a difficult task. The Australian Government recognises the increased costs associated with families by providing financial support through various benefits, to assist with the costs of raising children. It is important that you are aware of these available government payments to ensure you receive all the payments and financial assistance you are entitled to.
