Increase To The Minimum Wage – 1 July 2016

One of the biggest expenses all businesses face, especially in the tourism and hospitality industry, is the cost of wages. Besides purchases of stock, payroll is generally the second highest expense with businesses needing to make sure they are complying with penalty rates, superannuation, WorkCover and payroll tax. However, a recent development will see the cost of employment increasing.

Farm Management Deposits Scheme

Farm management deposits (FMD) are an important tool to help primary producers deal with uneven income from one year to the next; a common scenario due to a myriad of variables in a primary production (PP) business.

The scheme allows deposits to be made with an authorised deposit-taking institution who offers special FMD accounts. A tax deduction can be claimed for the amount deposited, provided that the funds are not subsequently withdrawn within 12 months. If the FMD is withdrawn in a later year (after 12 months), the amount withdrawn is included in assessable income. In the case of a natural disaster, deposits can be withdrawn within 12 months, subject to meeting certain conditions, without the tax deduction being cancelled.

Millions May Be Unclaimed By Investors Who DIY Depreciation

We generally recommend our property investor clients obtain a quantity surveyors report so as to maximise available depreciation and capital works allowance claims. We received an article recently from BMT Quantity Surveyors, highlighting the fact that property investors who obtain a suitably qualified quantity surveyors report claim significantly higher amounts in their tax returns. Some excerpts from their media release are as follows:

Inventory

The financial year end is fast approaching and SMEs (small / medium enterprises) might have their compliance requirement to get year-end numbers audited / reviewed by a professional accountant which may either be part of fulfilling bank covenant conditions or for the tax purposes.

As owners, we are our best judge when it comes to value of inventories in the financials. Any error or anomaly in the inventory values at year end will have a direct impact on the performance and the financial position of the business for the year.

Federal Budget 2014-2015

Created Date | Saturday, 17 May 2014
Filesize | 470 Kilobytes

The Federal Budget handed down on Tuesday evening of May 13 seemed to re-emphasise Treasurer Joe Hockey’s narrative pursued in the lead-up to budget night – that tough decisions would have to be made, and that due to the state of the economy we would all be expected to do some of the “heavy lifting”.

The major tax announcement was the introduction of a debt reduction tax on incomes over $180,000, although given the forecast contribution to reduce the nation’s debt it was surprising that the government was willing to risk an unfavourable electoral response. Many of the announcements also backed up the government’s claim that the “age of entitlement” is over.

There are many other budget initiatives that will have relevance to a wide variety of our clients, depending on your circumstances. As always, please feel free to talk to our office for further details and information.