Getting a Tax Deduction for Employer Superannuation Payments

SuperTax DeductionsEmployers are eligible to a tax deduction for contributions made for employees to a complying superannuation fund.  The contributions are only deductible however in the year in which they are paid. To get the most from the deductions available, employers should make sure that the contributions are received by their employees superannuation funds before the 30th June. Continue reading

2015/2016 Federal Budget: Overall Win For Small Business

Budget 2015 (1)Last night saw the release of the 2015/2016 Federal Budget.  Fair to say it was a bit of a tame affair compared to the year before where a lot of the measures were very unpopular and as such were not able to be brought into action.  The good news that did come from last night was that there were a lot of measures in there aimed at small business.

Benefits for Small Business

It should be noted that most of the measures targeted at the business sector were either directed at the big end of town or small business with very little for those in-between. We will focus on the small business end of things which for the purposes of most government measures is generally defined as a business with turnover of under $2 million. Continue reading

Claiming Home Office Expenses: What you need to know

Wondering what you can claim in relation to home office expenses? The video below gives a good outline on what you need to satisfy to be be able to claim these type of expenses.

Key things to note are the difference between occupancy and running expenses and the difference between a place of business and a home office.

Posted in Tax

New Financial Year – Important Changes to be Aware of!

Happy New Year, well new financial year anyway! As the new financial year begins there are important changes that you may need to be aware of.

Super Guarantee Rate Increases

The super guarantee rate has increased from 9% to 9.25% from 1st July 2013. All payments made after this date need to reflect the new rate. It should also be remembered that the rate is going up by another 0.25% next year followed by 0.5% increases each year until it reaches 12%. Keep this in mind when negotiating employment conditions!
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Want to Save Tax? Try these tax planning strategies….

 Income Tax Changes for 2012/13

A large number of tax changes apply in the 2012/13 income year. A brief summary is provided to you below in this update. There may be some advantages in acting on some of these items before 30 June so if you think any of these changes may affect you, please contact us for more details.

 General Year End Tax Planning Strategies

Business Income and Expenses

Subject to cash flow requirements, consider deferring income until after 30 June, especially if you expect lower income for 2013/14 compared to 2012/13. Continue reading

Self-Managed Super Funds: What are the Benefits?

With an increasingly aging population there is going to be continued pressure to be able to fund your own retirement. The sooner you put into place practises to improve your worth when you retire, the more time you will have to get the maximum value from your retirement planning efforts.

At the end of the day we all desire a fulfilling retirement. The question is how is this best achieved? One popular option is the use of a Self-Managed Super Fund (SMSF).

While not everyone will want to set up one of these funds, it may be worth your while to take a look at some of the many benefits they offer, including: Continue reading

Proposed changes to super

In early April the federal government announced various changes to how superannuation will be managed, taxed and paid over the coming years – some changes not coming into effect until 2024.

However, it’s important to remember that these changes will not come into effect until they are passed by both Houses of Parliament and receive the Governor General’s assent. In most cases, if this takes longer than a proposed start date, ie. if it takes more than three months (and sometimes it can take many months) to pass these changes and a proposed start date is 1 July 2013, it may be backdated.

No doubt there will be much public debate and media attention placed on these proposed changes, particularly in association with the upcoming federal election. But until we advise you that the changes have become law and the actual effects they will have on your super, we just have to wait and see.

Stay tuned…

Living away from home arrangements in the spotlight

The living away from home allowance (LAFHA) is a payment made to an employee who is living away from their usual residence due to work commitments.

The attraction of this benefit is that if you meet the criteria, it’s effectively tax-free.  It doesn’t count as assessable income, and although it’s classified as a fringe benefit, it’s not taxed which means your employer doesn’t pay tax either.

“Fly-in-fly-out” workers such as those who work in remote mines or employees working on interstate infrastructure projects, are often paid LAFHA to compensate them for additional expenses incurred and any disadvantages suffered due to living away from their homes in order to do their job. Continue reading

End of Year Tax Tips

Year End Tax PlanningThe end of the tax year is edging closer.  If you haven’t planned how you will maximise your income and save some tax, take note! The most effective strategies are often the simplest and can be applied before 30 June this year whilst others should be considered for next year. Here are both categories to consider:

Pre 30 June

  • Defer non-essential income until the new financial year.
  • Review your investment portfolio prior to 30 June to determine whether investments should be sold to offset any capital gains or losses made throughout the year. Continue reading